The Deferred Compensation Plan/NYCE IRA offers different strategies for investing your money: investing in onef of the Pre-Arranged Portfolios or creating your own portfolio using a combination of the core investment funds. It is recommended that participants choose to invest in either one of the pre-arranged portfolios or create their own portfolio from the core investment funds offered.
Selection of investment options depends on many factors and should be considered carefully. It is advisable that participants consult an independent professional financial planner and/or investment advisor before making investment decisions.
Summary of Past Performance (PDF)
Glossary of Investment Terms
Understanding Plan Fees
(1) Pre-Arranged Portfolios
The Pre-Arranged Portfolios help answer the question: Where should I invest my money? They offer you a mix of diversified investments and help you if you are not comfortable with creating your own portfolio or if you are looking to invest in a professionally managed portfolio.
The Pre-Arranged Portfolios have the following advantages:
Portfolio Diversification - The Pre-Arranged Portfolios are made up of varying percentages of the Plan's core investment options and are appropriately diversified for the time horizon specified. Studies show that most participants' portfolios are significantly under diversified. These funds offer the simplicity of a single investment vehicle with the benefit of exposure to different asset classes and efficient allocations.
Risk Management - The pre-arranged portfolios are designed to balance the risk participants face between not saving enough money for retirement and ongoing market risk. Given the longer time horizon younger participants have to save, a more aggressive allocation is implemented. As participants age, the asset allocation implemented becomes more conservative.
Portfolio Rebalancing - The Pre-Arranged Portfolios are automatically rebalanced to their target allocations quarterly.
On December 31, 2014, the 2000 Fund was rolled into the Static Allocation Fund. The 2000 Fund will no longer be an investment option. The transition from the 2000 Fund to the Static Allocation Fund occured after 4:00 pm ET on December 31, 2014. On January 6, 2015, the Plan added the 2055 Fund to the Pre-Arranged Portfolios.
How do the Pre-Arranged Portfolios work?
On a quarterly basis, the asset allocation of each Pre-Arranged Portfolio will be adjusted, shifting to a slightly more conservative mix. This increases the likelihood that your account will last longer so that it can serve you throughout your retirement years.
View the Portfolio Fact Sheet (PDF) for information about the investment allocation of each portfolio and their expenses.
Pre-Arranged Portfolio Investment Profiles (PDF)
(2) Core Investment Funds
The core investment funds include stable value and variable funds which vary in terms of risk and the potential for return and include several different asset classes. The core funds include the Stable Income Fund, Bond Fund, Equity Index Fund, Socially Responsible Fund, Mid-Cap Equity Index Fund, International Equity Fund, and Small Cap Equity Fund.
Core Investment Fund Profiles
(3) Self-Directed Brokerage Option
The Deferred Compensation Plan also offers a Self-Directed Brokerage (SDB) Option for those participants who are knowledgeable about investments and understand the associated risks. You may invest up to 20% of the balance of your account balance in the SDB Option. For more information on the SDB Option, please call (212) 306-7760, or 888-DCP-3113, if outside NYC. Mutual Funds available through the Self-Directed Brokerage Account are offered by TD Ameritrade, Inc. Additional information can be obtained by calling TD Ameritrade at 1-866-766-4015.
Please consider the investment objectives, risks, fees and expenses carefully before investing. In addition to the investment fund profiles available on this Web site, you may obtain prospectuses on funds available through the Self-Directed Brokerage Option by contacting TD Ameritrade at 1-866-766-4015. Read them carefully before investing.
Making Investment Changes
You can change the investment allocation of your deferrals. You can also transfer existing funds among the plan's investment options. You can make these changes at any time either online, or by calling 212-306-7760, or 888-DCP-3113, if outside NYC. Please note that your PIN is required in order to access your account.
Note: Effective March 13, 2009, transfers out of any Plan investment option will be assessed a 2% redemption fee on the amounts transferred into that option within the previous thirty-two (32) calendar days. Any amounts held longer than thirty-two days (32) consecutive calendar days will not be assessed the redemption fee. This is meant to strongly discourage frequent trading in the Plan. The fees collected will be re-invested back into the option in order to offset the decrease in fund value associated with the trades.