Board of Visitors minutes :: June 8, 2007 :: University of Virginia Library

The Board of Visitors has overall responsibility for the University Qualified Defined Contribution Retirement Program, which is administered by the Chief Human Resources Officer. The purpose of this Retirement Program Policy (PP is to establish the roles of the Finance Committee of the Board of Visitors and the Retirement Administrative Committee in the oversight of this program to ensure program goals are met.

II. Program Goals

The University of Virginia Retirement Program sponsors several qualified retirement plans, including but not limited to the Faculty Retirement Plan and the Medical Center Retirement Plan (the "Plan" or lans. Although not required to follow ERISA standards, ERISA Section 404(c) is used as a guideline. The Plans are designed to:

Provide a retirement benefit attractive to current and prospective staff and faculty
Provide flexibility to participants in directing and reallocating University contributions
Maintain a limited but sufficient number of investment options to provide access to diversified investment alternatives
Through plan providers and direct communications from the University, inform the participants about the benefits of the Plan and the characteristics of the investment choices
Provide regular, accurate and concise participant statements

III. Program Provisions

The Plans are defined contribution plans.

Key Information

Name of Plans:
- The Defined Contribution Retirement Plan for the General Faculty of the University of Virginia
- The Defined Contribution Retirement Plan for Employees of the University of Virginia Medical Center
- The Commonwealth of Virginia Matching Contribution Retirement Plan for Salaried Employees of the University of Virginia
- The Matching Contribution Plan for the University of Virginia Medical Center
- The Defined Contribution Retirement Plan for Executive Employees of the University of Virginia
- The Supplemental Defined Contribution Benefit Plan for Physicians of Community Medicine
- The Supplemental Defined Contribution Benefit Plan for the General Faculty of the University of Virginia
Program Fiduciary: The Rector and Visitors of the University of Virginia
Program Administrator: Chief Human Resources Officer
Retirement Administrative Committee ("RAC"): RAC members are appointed by the Executive Vice President and Chief Operating Officer
Oversight Committee: The Finance Committee of the Board of Visitors
Contracting Officer: Executive Vice President and Chief Operating Officer

Policy Provisions

Plan Year: Twelve month period commencing January 1.
Enrollment Dates: Within 60 days of becoming eligible, a faculty member must choose to participate in the Faculty Retirement Plan, or default to the Virginia Retirement System ("VRS"). Within 180 days of becoming eligible, a Medical Center employee with prior VRS service must choose between the VRS and Medical Center Retirement Plan, or default to the Medical Center Retirement Plan.
Employee Eligibility: Varies depending on the plan. Transfers: The Plan shall accept no transfers of any kind on behalf of a Participant other than accrued benefits from the VRS.
University Contribution:
- Faculty Retirement Plan: 10.4 percent of compensation, or the greater of 10.4 percent of compensation or 11.5 percent of up to $100,000 in compensation for Participants with uninterrupted participation since before January 1, 1991.
- Medical Center Retirement Plan: for employees hired prior to October 1, 2002: eight percent of compensation, for employees hired October 1, 2002 or after: four percent of compensation.
- Physicians of Community Medicine Retirement Plan: 11.9 percent of compensation or $12,500, whichever is greater.
- In no event shall the University contribution exceed the limits established by Internal Revenue Code section 415.
Investment Options: The Participant shall allocate the University's contribution among the various investment options offered by the Plan.

IV. Authority and Responsibility

The Board of Visitors has overall responsibility for the Program and delegates oversight to the Finance Committee of the Board of Visitors or its appointees, and Program administration to the Retirement Administrative Committee.

The Finance Committee or its Appointees will:

Establish and maintain this Retirement Program policy
At least annually:
- Review the investment performance of the various investment funds offered to participants as reported by the Retirement Administrative Committee to ensure compliance with the Retirement Program Policy
- Report to the Board of Visitors

The Retirement Administrative Committee will:

Establish and maintain Investment Procedures (IP) to meet program goals for investment options
Review the investment performance of the various investment funds offered to participants not less frequently than semi-annually
At least annually:
- Review the investment funds for compliance with the guidelines Established in the Investment Procedures
- Make deletions or changes in investment funds offered under the Program
- Review expenses paid by the Plans to ensure that they are reasonable and necessary
- Report to the Finance Committee or its Appointees
Oversee:
- The professionals whose expertise is deemed by the contracting officer to be appropriate and necessary
- The communications provided to Plan participants regarding the investment alternatives offered by the Plan
As necessary make revisions to the Investment Procedures to reflect changing conditions within the Plan, or to refine the Investment Procedures in order to make them more effective

The Program Administrator will generally be responsible for:

Administration of the Program
Oversight of the Plan Providers
Service to potential and current participants including, but not limited to:
- Identifying the name, address, and phone number of the plan providers
- Providing a general description of the investment alternatives available under the plan, and a general description of the investment objectives and risk and return characteristics of each alternative, including information relating to the type and diversification of assets comprising the portfolio of the designated investment alternative
- Providing a description of transaction fees and expenses connected to purchases and sales

Providing a description of procedures established to provide confidentiality of information relating to investments in the Plan and without providing advice, direct employees to plan providers to access information and full plan provisions and benefits.

University of Virginia Library

ATTACHMENT B (POLICY ON QUALIFIED DEFINED CONTRIBUTION RETIREMENT PROGRAM)

UNIVERSITY OF VIRGINIA POLICY ON QUALIFIED DEFINED CONTRIBUTION RETIREMENT PROGRAM ("Retirement Program Policy ") JULY 9, 1997 Revised MAY 18, 2007

University of Virginia Policy on Qualified Defined Contribution Retirement Program ("Retirement Program Policy")

I. Purpose