Board of Visitors minutes :: November 8, 1996 :: University of Virginia Library

The Participant shall have the option to allocate the University's contribution made pursuant to Section 3.1 between the following forms of investment:

(a) an annuity contract that meets the requirements of Code Section 403(a), or

(b) a qualified trust as described in Code Section 401(a).

When first applying to become a Participant in the Plan, as described in Section 2.1, the Eligible Employee shall also designate on the Plan application form prescribed by the Administrator whether Plan contributions should be invested in an annuity contract or the Trust. A Participant may then change the investment allocation annually during the Plan's open enrollment period which is a 30-day period designated by the Administrator prior to the beginning of the Plan Year and which takes place no earlier than ninety days prior to the beginning of the Plan Year.

5.2 Annuity Contract

The University may offer one or more annuity contracts described in Section 5.1(a) above among which a Participant may choose to allocate contributions made to his or her Accumulation Account. The nature and the quality of the investments offered under each of these contracts shall be determined by the Administrator. To the extent a Participant may choose among various investments offered under an annuity contract, any communication regarding such investment shall be between the sponsor of the annuity contract and the Participant. Once a Participant chooses an annuity contract to which to allocate Plan contributions, the University shall have no further responsibility regarding such contributions.

5.3 Qualified Trust

(a) Investment Funds

The Plan shall offer Participants investment funds to which the Participants may choose to allocate Plan contributions that the Participant has designated are to be allocated to the Trust pursuant to Section 5.1(b) above. The nature and the quality of the investments in each of these funds shall be determined by the Administrator.

(b) Designation of Investment Funds

Each Participant shall designate on a written form prescribed or approved by the Administrator one or more of the investment funds described in (a) above. Accounts for which no direction is received shall be invested in the investment fund which provides a balance between capital appreciation and preservation of capital and generation of income.

A Participant may change the designation described in (b) above any number of times permitted by the Administrator and by any method permitted by the Administrator.

(d) Investment Performance

(I) Crediting Income and Losses

Income or losses from the investments in each investment fund above shall correspondingly increase or decrease the same investment fund.

(II) Adjustment of Accounts

The Administrator shall adjust, as of each Valuation Date, the respective portions of the Participant's Accumulation Account balance allocated to the Trust to reflect the current market value of the investment funds in which such Account was invested.

5.4 Reallocation Among Annuity Contracts and the Trust

A Participant may reallocate all or a portion of his or her Accumulation Account invested in annuity contracts to the Trust, or vice versa, to the extent permitted, if at all, by the sponsor of the annuity and the Administrator.