Interfund Transfer Rule
The General Board maintains a policy to limit the frequency of interfund transfers by participants in its funds. Under the policy, a participant may not purchase units in a particular fund for 60 days after selling units in that same fund.
This policy applies to all existing funds and all future funds that may be offered by the General Board of Pension and Health Benefits (General Board)—with the exception of the Stable Value Fund (SVF). Participants may continue executing interfund purchases of units in SVF at any time. The 60-day waiting period policy applies only to interfund transfers. It does not apply to new contributions, rollovers, loans or withdrawals. In addition, the interfund transfer policy affects only the purchase—not the sale—of fund units.
For transactions involving the Multiple Asset Fund (MAF):
- A participant may sell units in MAF and purchase units in one or all of the four funds that comprise MAF in the same transaction. However, a participant may not subsequently purchase additional units in MAF or any of the four funds until 60 days have elapsed.
- A participant may sell units in one or more of the four funds that comprise MAF and purchase units in MAF in the same transaction. However, a participant may not subsequently purchase additional units in the same fund(s) or in MAF until 60 days have elapsed.
The funds that comprise MAF are: Inflation Protection Fund (IPF), Fixed Income Fund (FIF), U.S. Equity Fund (USEF) and International Equity Fund (IEF).
Interfund transfer rules also apply to the LifeStage Investment Management Service (LifeStage). Participants should be aware that:
- For 60 days after selling units in any of the funds to which LifeStage makes allocations (except for the Stable Value Fund), a participant may elect LifeStage at any time. However, LifeStage will not begin managing a participant’s account until the 60-day waiting period has elapsed.
- If a participant elects LifeStage after having opted out of LifeStage previously, the participant’s account will not be managed by LifeStage until 60 days have elapsed either from the date of opting out or from the date of the most recent fund sale (if applicable), whichever is later. At the conclusion of the 60-day waiting period, LifeStage will begin the target asset allocation process (assuming the participant is still enrolled in LifeStage).