Introduction

With over two dozen investment options available, the Rolls-Royce Corporation Personal Savings Plan for Hourly-Rate Employees and the Rolls-Royce North America 401(k) Savings Plan are among the best in the country. With this large number of funds, there is ample opportunity to build a well-diversified portfolio for your Rolls-Royce 401(k) savings.

For your reference, we have provided a “Fund Commentary” section below for further information on specific funds and/or fund types within the Rolls-Royce 401(k) savings plans.

Below you will find articles of interest as well as news and updates regarding Rolls-Royce employee and retiree benefits. Check this page for future updates to the Rolls-Royce 401(k) savings plans, as well as news that affects Rolls-Royce employees and retirees.


For Your Interest


Plan Updates

Rolls-Royce Investment Lineup Announcement – July 2015

Rolls-Royce has announced changes to the investment lineup in the Rolls-Royce North America 401(k) Savings Plan and Rolls-Royce Corporation Personal Savings Plan for Hourly-Rate Employees (“the Plans”), effective as of market close on August 12, 2015.

A new investment option is being added to the Plans and another option will no longer be available. In addition, Lazard Emerging Markets Equity Portfolio will change share class, resulting in a fund code and ticker symbol change.

To discuss these changes to the Rolls-Royce 401(k) Plans and how they may impact your current portfolio allocation, do not hesitate to contact us toll-free at 1-866-444-6246.

Rolls-Royce Investment Lineup Announcement – March 2015

Rolls-Royce has announced changes that will impact the Rolls-Royce North America 401(k) Savings Plan and Rolls-Royce Corporation Personal Savings Plan for Hourly-Rate Employees (“the Plans”).

The Pyramis Index Lifecycle Commingled Pool funds are changing share class as of market close on June 1, 2015. The new share class will have a lower expense percentage than the currently offered funds. All existing balances and future contributions will be transferred to the new investment options.

To discuss these changes to the Rolls-Royce 401(k) plans and how this may impact your current portfolio allocation, do not hesitate to contact us toll-free at 1-866-444-6246.

Rolls-Royce Investment Lineup Announcement – October 2014

Rolls-Royce has announced changes that will impact the Rolls-Royce North America 401(k) Savings Plan (the "Plan").

Three current investment funds will shift over from Class K shares to Commingled Pool shares. The funds impacted are Diversified International Fund, Growth Company Fund, and Low-Priced Stock Fund. This transfer will take place as of the market close on November 14, 2014.

To discuss these changes to the Rolls-Royce 401(k) plan and how it may impact your investment allocation, do not hesitate to contact Mainstay toll-free at 1-866-444-6246.

Rolls-Royce Fund Change Announcement – May 2014

Rolls-Royce has announced a change that will impact the Rolls-Royce North America 401(k) Savings Plan (the "Plan").

Fidelity Diversified International Fund previously frozen in the plan will be unfrozen as of June 5, 2014. This will allow participants to direct new future contributions or move money into this investment option.

To discuss this change to the Rolls-Royce 401(k) plan and how it may impact your investment allocation, do not hesitate to contact Mainstay toll-free at 1-866-444-6246.

Rolls-Royce Fund Change Announcement – February 2014

Rolls-Royce has announced a change that will impact the Rolls-Royce North America 401(k) Savings Plan (the "Plan").

The pending change surrounds the replacement of one existing investment option with a new investment option being added to the plan. This change will take effect on February 28, 2014.

Rolls-Royce Separation Package – January 2013

Rolls Royce has announced a Voluntary Enhanced Retirement Program (VERP) that will be offered to employees currently eligible for retirement and to those that are within one year of retirement eligibility. The decision to accept any buyout offer requires careful analysis and planning.

For those evaluating a buyout offer, there are important factors to consider:

  • Am I financially ready to leave Rolls Royce?
  • Which distribution period should I choose for my lump sum payment?
  • Have I developed a comprehensive Retirement Income Plan?
  • How would the VERP impact my current retirement plan?
  • Are my investments allocated appropriately for this life event?
  • What should I do with the assets in my Personal Savings Plan (PSP)?

Mainstay Capital Management is a fee-only, independent investment advisor that has counseled thousands of automotive employees on buyout offers. Mainstay currently provides portfolio management and retirement planning services to more than 2000 active and retired autoworkers. We can provide a comprehensive Retirement Income Analysis, help evaluate "what-if" scenarios, and assist in making well-informed decisions concerning the VERP or any buyout offer.

Call Mainstay Capital Management toll-free 1-866-444-6246 to discuss your personal situation with a Retirement Planning Specialist.

Rolls-Royce Fund Changes Announcement – May 2011

Rolls-Royce has announced upcoming changes to the investment options in the Rolls-Royce Corporation Personal Savings Plan for Hourly-Rate Employees and the Rolls-Royce North America 401(k) Savings Plan. The new investment options will provide similar investment strategies and risks, but the overall expenses for the investment options will be lower. These changes will be effective as of the close of business on May 9, 2011. Mainstay Capital Management’s CEO, David Kudla, has spoken and is published on the subject of reducing fees (internal expense ratios) for investment options within 401(k) plans. For further insight read his article penned for Forbes, "Why Investment Choices In Your 401(k) Might Change".


News and Articles


Fund Commentary

Pyramis Active Lifecycle Funds

The Pyramis Active Lifecycle fund family (Pathway One) is designed for those participants who wish to base their asset allocation decision on a specific target date, typically aligning the account with the fund that most closely matches their projected retirement date.

Twelve of these funds are included in the new plan, with 5-year incremental targets from 2005 to 2055, along with a fund targeted as an Income Fund. The further away the target date, the more aggressive the asset allocation. Conversely, the closer the date, the greater the emphasis on preservation of capital in the asset allocation.

Lifecycle funds hold some appeal in that they are simple to explain and administer. While this approach is unique, we believe the asset allocation decisions provided by these funds are crude at best. Lifecycle funds attempt to make decisions about asset allocation based solely on a target date. An investor’s tolerance for risk and financial goals are other key factors that should largely play a role in determining investment strategy and asset allocation. Additionally, they leave no room for the fund manager to tactically adjust the strategy based on specific opportunities within the financial markets or in response to prevailing market conditions.

The returns realized in these commingled vehicles are diluted by a rigid adherence to mechanical allocation parameters. These parameters may prove to be shortsighted and inappropriate for everyone participating in the pool. The real world changes every day, yet proponents of lifecycle funds expect someone to stick to a single game plan for as much as 40 years, whether interest rates are rising or falling, or whether the economy is in expansion or recession. While lifecycle funds offer a simple one-stop-solution, we continue to advise participants to avoid lifecycle funds and retain the flexibility to proactively adjust their portfolios as needed.


 

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Important Consumer Disclosure

Mainstay Capital Management, LLC is an investment advisor registered with the Securities and Exchange Commission. Due to various state regulations and filing requirements, Mainstay and its representatives may only provide investment advisory services in those states in which it is first appropriately registered or otherwise exempt or excluded from registration requirements. The purpose of this website is to provide the public with general information about the services offered by our investment management firm. Mainstay does not render personalized investment advice or services or effect, or attempt to effect any securities transactions, on this website. Our firm continuously monitors its filing requirements in all states, and will provide individualized advisory services only in accordance with various state regulations. Mainstay does not make any representations or warranties as to the accuracy, completeness, or relevance of any information prepared by any unaffiliated third party provider, whether linked to Mainstay's website or incorporated herein. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.