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Plan Transition FAQs for CIPS/GEN 702 Employees
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1.
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Q.
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I didn’t receive a transition brochure in the mail. Is a copy available online?
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A.
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A copy of the brochure is available online. Open the following link and print: Brochure.
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2.
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Q.
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Do the funds have any trading restrictions?
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A.
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The Large Cap Growth Equity Fund, Small/Mid Cap Equity Index Fund and International Equity Fund have trading restrictions. To learn more, call 877.7my.Ameren (877.769.2637) to speak with a Customer Service Representative.
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3.
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Q.
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Do any funds have redemption fees?
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The Large Cap Value Equity Fund carries a short-term trading fee of 2% for shares held less than seven days.
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4.
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Q.
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What is the benefit of Roth 401(k) contributions?
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A.
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Roth 401(k) contributions allow you to make after-tax contributions to SIP 401(k) account. Your after-tax contributions and earnings on the contributions can be potentially withdrawn tax-free if the withdrawal is qualified. Generally, Roth 401(k) contributions may be right for you if expect your retirement income to be more than your current income, or if you are currently contributing at the IRS limit and desire to save more in a tax-sheltered manner.
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5.
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Q.
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What is qualified withdrawal of Roth 401(k) contributions?
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A.
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A qualified withdrawal can be taken five tax years after the year of the first Roth contribution and after the participant has attained age 59½, has become disabled, or has died.
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6.
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Q.
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Will I receive company match on my Roth 401(k) contributions?
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A.
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Roth 401(k) contributions, as well as any pre-tax contributions, are considered as part of your company match calculation up to your maximum match level.
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7.
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Q.
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What happens to my money during the plan transition? Am I still invested in the market?
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A.
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All funds, except the Ameren Stock Fund, will be liquidated on January 31, 2008. You may be out of the market from 1 to 3 days depending upon the liquidated fund’s normal settlement period.
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8.
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Q.
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Why isn’t there an exact date for when the transition period will end?
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A.
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The end of the transition period depends on the accurate and timely transfer of data between Merrill Lynch, the current service provider, and Fidelity Investments. By projecting completion within the week of Feb. 10, we are allowing ample time for the information to be transferred, checked, and tested before the Plan reopens for transactions.
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9.
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Q.
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What happens if the stock market fluctuates during the blackout period, when I won’t have access to my account?
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A.
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The prospect of short-term losses can be a concern, especially if you are not prepared for them. One step you can take is to try to make sure your investment mix is well diversified before the blackout period begins. Also, keep in mind that it’s natural for stock prices to rise and fall in the short run.
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10.
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Q.
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I’m repaying a loan on my account. What happens during the transition period?
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A.
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Your loan will be transferred to Fidelity and payments will continue to be deducted from your pay during the transition period. These deductions will be applied to your loan balance when the transition period is over.
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11.
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Q.
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How do I access my SIP 401(k) account at the Ameren Resource Center?
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A.
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Access the Ameren Resource Center Web site (www.myAmeren.com) for your 401(k) link or call 877.7my.Ameren (877.769.2637). If it’s your first visit, you will need to go through new user registration to set-up your personal identification number (PIN), which you’ll use every time you contact Fidelity. The Ameren Resource Center will open for questions beginning Dec. 24, 2008.
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12.
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Q.
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How do I set-up my account?
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A.
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You will need to the following information to set-up your account:
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Social Security Number (SSN)
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Birth Date (mm/dd/yyyy)
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Home ZIP Code
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When you go through new user registration, you need to use your Social Security Number to initially set-up your account. However, you may elect to create a personalized Customer ID to use instead of you Social Security Number.
You will also need to establish a password or Personal Identification Number (PIN) and a Security question for security purposes. Your password/PIN must be between 6 and 12 digits long. The password/PIN set-up is instantaneous; nothing needs to be mailed to you.
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13.
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Q.
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What do you mean by Tier One?
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A.
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Tier One investments are an investment portfolios managed by professionals. This tier has the following features:
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An investment professional determines an appropriate mix of investments for you
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You only need to select one Target Retirement Date Fund to ensure a well-diversified investment mix
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Automatically provides a diversified pool of investments that changes as the fund moves towards its maturity date
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14.
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Q.
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What do you mean by Tier Two?
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A.
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Tier Two investments allow you to build and monitor your own investment portfolio. This tier has the following features:
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At least one option in each of the major asset classes, including the ability to invest in the Ameren Stock Fund
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Ability to mix and match funds to create your own portfolio
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Requires a strategy that takes into consideration how much time you have to save and your comfort level with risk
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15.
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Q.
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What are Target Retirement Date Funds?
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A.
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The Target Retirement Date Funds (Tier One funds) are designed for hands-off investors—those who would rather not go through the process of choosing various investment options to create their investment mix. The numbers in the funds’ names are target dates. Just pick the fund with a target date closest to when you expect to retire (typically age 65) and the fund will do the rest.
The Target Retirement Date Funds provide professional portfolio management and a mix of stocks, bonds, and short-term investments that change as the fund moves towards its maturity date. To learn more about the Target Retirement Date Funds, call the Ameren Resource Center at 877.my.Ameren.
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16.
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Q.
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Can I invest in a Target Retirement Date Fund (from Tier One) and also invest in one or more of the Tier Two investments?
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A.
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Yes, you may choose to invest in a Target Retirement Date Fund and at the same time invest in one or more of the Tier Two investments.
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17.
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Q.
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Why are we not using any of the Fidelity Funds?
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A.
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The decision to select Fidelity as the provider of recordkeeping and trustee services is separate from decisions related to investment options and underlying fund offerings. A committee made-up of Ameren Treasury and Human Resource employees, with the assistance of an independent outside advisor, is continually monitoring the investment options and underlying fund offerings, and makes changes as appropriate. As part of the decision to move to Fidelity, we performed an in-depth review of our current investment options and underlying funds.
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