Due to current market conditions, beginning June 29, 2012, the Insurance Company Contract (ICC) Fund will no longer accept transfers or contributions.
The ICC Fund is one of the UC-managed investment funds available to faculty and staff who contribute to the 403(b), 457 (b) and/or DC Plans.
If you are currently contributing to the Fund you will need to select a different Fund for contributions scheduled on and after June 29. If you do not select a different Fund for your contributions, they will be directed into the UC Savings Fund. Please note that your accumulated assets may remain in the ICC Fund.
You are not permitted to make a direct exchange from the UC ICC Fund to money-market-type funds (considered “competing” funds) because of industry restrictions. Before exchanging from the UC ICC Fund to a competing fund, you must first exchange to a “noncompeting” fund for 30 days.
If you are no longer making contributions to the Fund you do not need to take any action.
The ICC Fund invests in insurance company contracts of select, investment grade, financially sound insurance companies. In the current market environment, these contracts are no longer offering attractive returns. Based on the current level of interest rates offered by insurance companies and the expectation that those rates will remain at current levels for an extended period of time, the Fund is no longer purchasing new contracts.
The ICC Fund manager will continue to evaluate the investment opportunities of insurance company contracts and could choose to reopen the Fund to new contributions in the future if conditions warrant.