Prepared for Utah Higher Education Assistance Authority
Prepared for: Utah Higher Education Assistance Authority
Plans can prudently manage this change by mapping existing beneficiaries to the new
portfolio glide path based on their age and thoroughly communicating implications
Operational feasibility
•
At implementation, account owners currently invested in age-based options will be mapped to a
new Target Enrollment Portfolio; clearly communicating this change to account owners is
recommended
Example of possible mapping
Bene age
Portfolios
Age <1
.
Baseline to the right uses the age of the beneficiary, assumed enrollment age of 18, and the
portfolio closest to year of enrollment
Age 1-2
Target Enrollment 2038/2039
Target Enrollment 2036/2037
Age 3-4
Age 5-6
Target Enrollment 2034/2035
Target Enrollment 2032/2033
•
Plan Sponsors have flexibility to tailor the mapping to the new portfolios, based on beneficiary age
Age 7-8
Target Enrollment 2030/2031
Age 9-10
•
All account owners can opt-out prior to mapping by processing an exchange before black out dates
occur
Age 11-12
Age 13-14
Target Enrollment 2028/2029
Target Enrollment 2026/2027
Target Enrollment 2024/2025
Age 15-16
Target Enrollment 2022/2023
Age 17-18
Age 19+
Target Enrollment 2020/2021
Commencement Portfolio
Considerations for mapping decision
•
•
Aggressive and Moderate account owners are invested with attributes similar to the new portfolio:
the new portfolio's wealth accumulation is between aggressive and moderate, while the portfolio's
volatility is similar to moderate
Conservative account owners are currently invested differently: they hold fewer equities, have
lower wealth accumulation and lower volatility
Email outreach
Example of possible account owner communications journey
30-day notice
勗
Supplement
Social media
promotion
Email
reminder
Launch day!
Public site
pages
Public site
banner
For institutional use only. Not for distribution to retail investors. 21View entire presentation