There are two changes to your 401(k) Plan as of January 2020. First, Empower will be the new401(k) Plan recordkeeper. Second, we’re introducing new Target Date Funds, which will replace the three Style Funds (Conservative, Moderate, and Aggressive),and the Balanced Inflation Plus Fund.
The Administrative Committee, made up of senior Baker Hughes executives, decided to move to Empower Retirement, the second largest retirement services provider in the United States, serving more than 38,000 plans and 9.2 million participants.The main responsibility of the recordkeeper is to track how much you have, where it is, and what type of money it is. Because Baker Hughes utilizes custom funds for investments only designed for the Baker Hughes 401(k) Plan, the choice of recordkeeper does not impact the investments of the Plan.
Target date funds are designed to simplify your investment decisions by providing an investment option with an asset allocation that is appropriate for your age.The year in the Baker Hughes Target Date Funds refers to the approximate year(the target year) when you would retire and leave the workforce. You choose theTarget Date Fund with the date closest to the year of your target retirement date (for many people, this may be age 65).
Each TargetDate Fund begins with a larger allocation to aggressive (growth) investments, such as stock, when the target date is further off. This is because you have a longer period of time to ride out any short-term ups and downs in the market to gain more earnings on your investments over the long-term. The asset allocation for the Target Date Funds gradually changes over time to more conservative(income) investments, such as bonds and cash, which provide more stability as you get closer to your retirement date and your investment horizon shortens. See the Investment Option Overview chart.
The Style Funds were replaced by the Target Date Funds. Any balances you had invested in the three Style Funds (Conservative, Moderate, and Aggressive) and/or the Balanced Inflation Plus Fund were automatically be “mapped” and invested in a Target Date Fund based on your estimated retirement age. Any investment elections for future contributions in these funds will also be mapped to the Target Date Funds. You can make changes to your investments here. Instructions for accessing your account can be found here.
If you have questions, contact the Baker Hughes Benefits Center at 1-866-244-3539 from Monday - Friday, 7:00 a.m. to 9:00 p.m. and Saturdays from 8:00 a.m. to 4:30 p.m. CT.