How is the money in my CCOERA retirement plan invested?
The CCOERA Retirement Plan is a participant-directed investment plan. This means that the participant chooses the investments from a menu of options. The Participant chooses how to invest all of the money in the Retirement Plan, from all sources (ie. Employee Contributions, Employer Matching Contributions, Deferred Compensation). CCOERA offers a wide range of investment options to choose from including:
- CCOERA's Book Value Fund
- Publicly Traded Mutual Funds
- CCOERA's Target Date Funds (TDFs)
- Schwab Self Directed Brokerage Option
CCOERA's Book Value Fund is a conservative interest bearing investment option that maintains stable value with the highest rate of return consistent with preservation of capital.
The moderate or aggressive investor may choose from several different mutual funds, with varying levels of risk and return. CCOERA offers participants mutual funds that include large and small domestic companies as well as foreign company investments.
For the investor that's not comfortable choosing their own investment allocation there are twelve Automatic Allocation Funds to choose from, the CCOERA TDFs. These are a series of twelve diversified portfolios for different types of investors. They were created for CCOERA by a professional investment advisor. The investment allocation (percentage in each investment) was selected by the investment advisor based on fifty years of historical data, using the efficient frontier method of asset allocation. They are intended to provide greater return with reduced risk by diversifying money into several different asset classes. This plan and its self-direction provisions are intended to constitute a plan similar to that described in section 404(c) of the Employee Retirement Income Security Act and Title 29 of the Code of Federal Regulations section 2550.404c-1, and that the fiduciaries of the plan may be relieved of liability for any losses which are the direct and necessary result of investment instructions given by Employee.