Starting in May 2005, our 401(k) Plan is transitioning from the Principal Financial Group to the MassMutual Financial Group and Louis Kravitz and Associates.
The 401(k) Plan Trustees, including TAG President KEVIN KOCH, Business Representative STEVE HULETT and Executive Board member STEPHAN ZUPKAS, have determined that MassMutual and Kravitz will offer our members the following benefits:
Over the past several weeks, the Animation Guild has sent out two information packets about these upcoming changes. Participants should also have received mailings from MassMutual. If you are a 401(k) Plan participant and you haven't gotten these mailings, please contact Marta Strohl-Rowand at the Guild office, marta@mpsc839.org or (818) 766-7151.
IMPORTANT
NEWS ABOUT YOUR
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Why did the Plan decide to change administrators?
For the last few years, your 401k Plan has had communication and administration issues with The Principal Financial Group. Some of these issues were resolved, others not. A year ago, the Plan Trustees decided it was time to explore the possibility of changing administrators. After a lengthy search, MassMutual was selected as the Plan's new administrator. Louis Kravitz & Associates has been selected as a third-party administrator which will be interfacing with Mass Mutual. The combined costs for these two administrators will be less than the fees charged by The Principal Financial Group.
With the new administrator, will I be able to invest in the same funds that I have now?
No. However, all the funds offered by Mass Mutual will be equivalent to the funds offered by Principal. Your Plan Trustees have worked to make sure the replacement funds are similar in quality to the funds they replace. We will also be offering more funds under Mass Mutual.
MassMutual sent out a booklet to all Plan participants with a list of all the new fund offerings. You can download it here.
Below is a chart showing the old Principal investment funds will the equivalent new MassMutual funds. Each of your current Principal funds will automatically be diverted to the MassMutual fund listed to its right. Links to information sheets for all the MassMutual funds can be found on the Guild website at http://www.mpsc839.org,
| Asset class | Principal (current) | MassMutual (upcoming) |
| Short Term/Stable Value | (no equivalent) | Premier Inflation-Protected Bond (Babson Capital) |
| Cash | Money Market | Fixed Interest Account (SAGIC) |
| Guaranteed Interest | ||
| Journey Lifestyle/Asset Allocation | Vanguard Asset Allocation | Destination Retirement Income |
| (no equivalent) | Destination Retirement 2010 | |
| Destination Retirement 2020 | ||
| Destination Retirement 2030 | ||
| Destination Retirement 2040 | ||
| Fixed Income | Vanguard Short-Term Federal | Total Return (PIMCO) |
| Vanguard GNMA Fund | ||
| Large Value | MFS Strategic Value | Select Diversified Value (Bernstein) |
| Total Market Stock Index | Select Indexed Equity (Northern Trust) | |
| Large Blend | Neuberger Berman Socially Res | Social Investment Equity (Calvert) |
| Vanguard Primecap | Spectrum Growth (T. Rowe Price) | |
| Large Growth | (no equivalent) | Select OTC 100 (Northern Trust) |
| Janus Aspen Capital Appreciation | Premier Capital Appreciation (OFI) | |
| Small Value | American Century Small Cap Value | Premier Small Cap Value (Babson Capital) |
| Global Equity | American Funds New Perspective | Equity Growth (American Century) |
| Mid Value | American Century Value | Select Focused Value (Harris/C&B) |
| Mid Blend | Fidelity Advisor Mid Cap I | Mid Cap Core Equity (AIM) |
| Principal Medium Company Blend SIA | ||
| Mid Growth | AIM Leisure (was Invesco Leisure) | Select Mid Cap Growth II (T. Rowe Price) |
| Small Blend | Neuberger Berman Genesis | Main St Small Cap (OFI) |
| Small Growth | Vanguard Explorer | Growth (Baron) |
| International Stock | Putnam International Equity | EuroPacific Growth Fund (American) |
| (no equivalent) | Growth (Templeton) | |
| International New Discovery (MFS) |
What is the "blackout period"?
While the 401(k) Plan is transitioning from Principal Financial Group to MassMutual, there will be a period of time called a "blackout period" from May 16 until approximately June 12, when you will not be able to access your account.
During this blackout period, your account will continue to be invested and you will continue to collect interest on your investments. However, you will not be able to request loans or withdrawals, make changes to your investment selections or transfer monies until the move is completed and balances are reconciled.
The actual transfer of funds will take place on June 1. However, nobody will be able to access their accounts until new PIN numbers are mailed to them the week of June 12. (Note: One of our mailings said that the blackout period would end on June 1; we apologize for the confusion.)
Prior to the start of the blackout period, if your money is not invested where you want it and you want to change your investment selection or transfer your existing balance, please call Principal at (800) 986-3343 or log on to the Principal website at http://www.principal.com before May 16, 2005.
I am paying off a loan against my 401(k) account. What do I have to do?
If you take out a loan after June 12, 2005, MassMutual will require that payments be automatically deducted from your bank account. For loans taken before May 16, 2005, MassMutual will provide new coupons after June 12.
Most current loan participants should have received a letter from MassMutual, along with an Authorization Agreement for Participant Loan Debit to complete and return if you wish to convert your payment system from coupons to automatic bank account debit. If you did not receive this mailing, you can download the documents from the Guild website at http://www.mpsc839.org,; also please contact Marta Strohl-Rowand at the Guild office, marta@mpsc839.org or (818) 766-7151 ext. 101.
Do any of the new Mass Mutual funds or accounts carry "loads?" (extra charges on top of administrative fees?)
No, all the funds offered through Mass Mutual are no-load funds. NOTE: Some of the information sheets linked to the above chart may imply that the fund is subject to 12b-1 charges, but these will not be applied if the fund is purchased through our 401(k) Plan.
How soon can I contact Mass Mutual with questions?
You can call Mass Mutual at (877) 474-5016 (contract number 51878) to speak to a customer service representative between noon and 8 p.m. Pacific time if you have any questions about the transition or your new investment options. If you have general questions about the Plan, please contact Marta Strohl-Rowand at the Guild office, (818) 766-7151 ext. 101.