Help: do I need to transfer out of this SVF ?

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Tigermoose
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Joined: Sat Jul 21, 2012 5:02 pm

Help: do I need to transfer out of this SVF ?

Post by Tigermoose » Thu Sep 04, 2014 12:50 pm

My company is going to convert from our current insurance company 401k provider to Fidelity at the beginning of next year. While looking at the fine print for the SVF I have some money in, i see the following:

"Upon discontinuance of the annuity by your employer, distributions from the fixed annuity account may be subject to a market value adjustment which may increase or decrease the value of your account. Surrender charges may also apply. Any
market value adjustment would not apply for transfers to approved products within the plan or on account of benefit responsive withdrawals initiated by you, such as on account of your retirement, separation from service, distribution for a
loan under the plan or IRC hardship withdrawals. Please see your MetLife representative and plan materials for more detail"


I think the bolded section would apply since my employer is switch to a different 401k provider. Do I need to transfer out of this SVF prior to the end of the year to avoid a market value adjustment? What's the odds it would be a favorable adjustment? What do you think? What's with "surrender charges"? The yield for this SVF is 3% in case that matters.
Institutions matter

mhalley
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Re: Help: do I need to transfer out of this SVF ?

Post by mhalley » Fri Sep 05, 2014 3:35 am

I take it you mean the stable value fund? I don't think that changing providers would count, I imagine they will just switch it over to the equivilant svf at fidelity. If it is of a concern, you can always sell it just prior to the blackout period, and buy the svf at fidelity.
Mike

dickenjb
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Location: Philadelphia PA

Re: Help: do I need to transfer out of this SVF ?

Post by dickenjb » Fri Sep 05, 2014 6:02 am

I would play it safe and switch if it concerns you.

robertf57
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Re: Help: do I need to transfer out of this SVF ?

Post by robertf57 » Fri Sep 05, 2014 11:17 am

I have a novel idea... Why don't you ask the plan administrator or your MetLife representative what the ramifications really are? I don't think any of us have the documents necessary to give you cogent advice.

Tigermoose
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Joined: Sat Jul 21, 2012 5:02 pm

Re: Help: do I need to transfer out of this SVF ?

Post by Tigermoose » Fri Sep 05, 2014 11:18 am

robertf57 wrote:I have a novel idea... Why don't you ask the plan administrator or your MetLife representative what the ramifications really are? I don't think any of us have the documents necessary to give you cogent advice.
I was hoping someone here has had experience with this.

I suppose I could try contacting the representative. I really doubt he will be of any help. But you never know...
Institutions matter

dbr
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Re: Help: do I need to transfer out of this SVF ?

Post by dbr » Fri Sep 05, 2014 11:47 am

The language you quote talks about an annuity with annuity like conditions such as surrender charges. That does not sound like a stable value fund. I agree you need to ask the administrator unless by chance someone here actually has the same fund in their 401K and can explain it better.

WHL
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Re: Help: do I need to transfer out of this SVF ?

Post by WHL » Fri Sep 05, 2014 7:32 pm

robertf57 wrote:I have a novel idea... Why don't you ask the plan administrator or your MetLife representative what the ramifications really are? I don't think any of us have the documents necessary to give you cogent advice.
Just for your education, I know more about my companies 401k plan than both our plan administrator and HR manager...

None of the blue collar workers in my company seem to care much about the 401k plan, so there is no incentive for the plan administrator to be knowledgable. Anything "tricky" is handled by the third party provider.

dbr
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Re: Help: do I need to transfer out of this SVF ?

Post by dbr » Sat Sep 06, 2014 9:12 am

WHL wrote:
robertf57 wrote:I have a novel idea... Why don't you ask the plan administrator or your MetLife representative what the ramifications really are? I don't think any of us have the documents necessary to give you cogent advice.
Just for your education, I know more about my companies 401k plan than both our plan administrator and HR manager...

None of the blue collar workers in my company seem to care much about the 401k plan, so there is no incentive for the plan administrator to be knowledgable. Anything "tricky" is handled by the third party provider.
Well, the the suggestion is meant that you talk to that person, if that is the case. I don't think anyone on this forum really knows the answer to your question and it doesn't sound like the kind of thing that would happen in what most people know as a stable value fund, but I could be wrong.

I hope if someone here is familiar with this kind of thing that they respond to the thread.

placeholder
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Re: Help: do I need to transfer out of this SVF ?

Post by placeholder » Sat Sep 06, 2014 11:38 am

dbr wrote:Well, the the suggestion is meant that you talk to that person, if that is the case.
Note that WHL is not the OP so the comment would not be specifically applicable to the situation at hand but apparently meant as a more general "that might not help" addition.

dbr
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Joined: Sun Mar 04, 2007 9:50 am

Re: Help: do I need to transfer out of this SVF ?

Post by dbr » Sat Sep 06, 2014 11:57 am

placeholder wrote:
dbr wrote:Well, the the suggestion is meant that you talk to that person, if that is the case.
Note that WHL is not the OP so the comment would not be specifically applicable to the situation at hand but apparently meant as a more general "that might not help" addition.
Correction noted, sorry for being a little sloppy on the thread.

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