Board of Visitors minutes :: January 29, 1999 :: University of Virginia Library

6.1 Investment Options: The Participant shall have the option to allocate the Employer'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 change the investment allocation at such time or times as the Administrator may prescribe.

6.2 Annuity Contract: The University may offer one or more annuity contracts. described in Section 6.1(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.

6.3 Qualified Trust:

(a) Individual Accounts: The Administrator shall establish and maintain an account in the name of each Participant to which there
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shall be credited (or debited) a Participant's contributions made in accordance with Section 3.1 or 3.2 above that the Participant has designated are to be allocated to the Trust pursuant to Section 6.1(b) above. The Administrator shall adjust, as of each Valuation Date, the balance of each Participant's account to reflect the current market value of the Investment Funds in which the account was invested. A Participant's interest in any Investment Fund shall be determined and accounted for based on his beneficial interest in any such Fund, and no Participant shall have any interest in or rights to any specific asset of any Investment Fund.
(b) Investment of Accounts: (I) The balance held for the benefit of each Participant in his account shall be invested at the direction of each Participant among one or more of the Plan's Investment Funds. The nature and the quality of the investments in each of these Funds shall be determined by the Administrator in its sole discretion. There will be at least three Investment Funds to which a Participant may allocate his Accounts and each of these Funds will have a different one of the following primary objectives:
(A) The generation of the highest level of income consistent with the preservation of capital over the long term;
(B) Capital appreciation; and
(C) A balance between capital appreciation and preservation of capital and generation of income.
(II) The Administrator shall provide Participants with directions as to how to obtain information sufficient to enable Participants to make informed investment directions. Neither the Administrator nor the Trustees, however, shall provide investment advice to a Participant with respect to an investment.
(III)Each Participant shall be responsible for directing the investment of all contributions in
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his or her account. Participant investment directions shall be made in a manner prescribed by the Administrator. Investments shall be made in one (1) or more of the Investment Funds made available under subsection (I) hereof.
(IV) Subject to the terms and limitations of the various Investment Funds, each Participant may direct at such time or times as the Administrator may prescribe that amounts held in one or more of the Investment Funds described in subsection (I) hereof, may be transferred to, from or between such Investment Funds.
(c) Allocations of Earnings and Losses: Allocations of earnings and losses to Participant accounts shall be accomplished as follows:
(I) The dividends, capital gains distributions, and other earnings received on any shake or unit of an Investment Fund that is specifically credited or earmarked to a Participant's account under the Plan in accordance with the directed investment provisions of this Section 6.3 shall be allocated to such account and immediately reinvested, to the extent practicable, in additional shares or units of such Investment Fund.
(II) To the extent not otherwise provided in paragraph (I) above, the assets of each Investment Fund shall be valued by the Trustee at their current fair market value of as each Valuation Date, and the earnings and losses of the Investment Fund since the immediately preceding Valuation Date shall be allocated to the accounts of all Participants with interests in that Investment Fund in the ratio that the fair market value of each such interest as of the immediately preceding Valuation Date, reduced by any distributions or withdrawals therefrom since such preceding Valuation Date, bears to the total fair market value of all such interests as of the immediately preceding Valuation Date, reduced by any distributions or withdrawals therefrom since such preceding Valuation Date.

(d) Allocation to Individual Accounts: The accounts of each Participant shall be adjusted as of each Valuation Date by (I) reducing such accounts by any payments made therefrom since the preceding Valuation Date, and then (II) increasing or reducing such accounts by the Participant's share of earnings and losses, determined pursuant to (c) above, and the expense of administering the Investment Funds since the preceding Valuation Date, and (III) crediting such accounts with any contributions allocated thereto since the preceding Valuation Date.
(e) Valuation for Withdrawal and Distribution: For purposes of paying the amounts to be withdrawn or distributed to a Participant or beneficiary pursuant to Section 7.2 below, the value of the Participant's Accumulation Account allocated to the Trust shall be determined in accordance with the provisions of this Section 6.3 as of the Valuation Date that is on or immediately preceding the date the distribution is made.

6.4 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.