IMPORTANT INFORMATION REGARDING INVESTMENT FUND CHANGE

Effective August 7, 2009, Villanova University will add eleven (11) Vanguard® Target Retirement Funds to the Villanova University Retirement Savings Plan and the Villanova University Supplemental Retirement Savings Plan (the “Plans"). Target Retirement Funds are designed to help simplify your investment decisions. The other investment options offered under the Plans will continue to be available in addition to the Vanguard® Target Retirement Funds. Details about the Target Retirement Funds investment objectives, fees and expenses, and risk and return characteristics are available on the Vanguard® Target Retirement Funds website.

The Vanguard® Target Retirement Fund has been designated as the Plans’ default investment fund. Effective September 1, 2009, if an employee fails to give investment instructions before the employee's eligibility date or the instructions the employee gives are inadequate, contributions under the Plans will be invested in the Target Retirement Fund with the target date closest to the year in which the employee will turn age 65 .

Please read this important information regarding the default fund and your rights and responsibilities in connection with the default fund.

If you have any questions about the Plans, benefits under the Plans, or the default fund, please contact Mary Beth Green, Pension Plan Administrator, at 610-519-7954 or marybeth.green@villanova.edu.

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ELIGIBILITY REQUIREMENTS FOR FULL TIME FACULTY AND STAFF

After one year of full-time service, participation is permitted in the University's Basic, voluntary defined contribution retirement program. Accounts are available with TIAA-CREF and/or The Vanguard Group. If the new employee was employed by a non-profit institution, university, or governmental employer for at least one year immediately prior to employment at Villanova University, and the new employee participated in an employer-funded retirement plan for all or a portion of this employment, the one year requirement will be waived upon providing satisfactory proof to the University of the prior employment and participation.

For employees to participate, they must complete a University Basic Salary Reduction Form and investment carrier application form(s). University contributions are made based on the following schedule:

The University increases the base university contribution to 5% after 10 years of service. Vesting is full and immediate for both employee and University contributions. Employees also may maintain a TIAA-CREF and/or Vanguard Supplemental Retirement Account (SRA), which provides an additional tax-sheltered option to save for retirement. There is no University contribution to this supplemental program. The savings and the earnings from SRA investments are not subject to income tax until the benefits are withdrawn. All faculty and staff employees are eligible to participate immediately in a SRA, subject to limitations imposed by the Internal Revenue Service.

The University has designated the Vanguard® Target Retirement Fund as the default investment fund for the Plans. If an eligible employee fails to submit investment instructions before the eligibility date, or the instructions given are inadequate, the employee will be enrolled in the Target Retirement Fund based on the employee's projected retirement date (age 65).

Faculty Note:

The Office of Academic Affairs advises Human Resources as to the classification of a faculty member. Faculty members who are not eligible to participate in the Basic Plan include faculty on temporary status, visiting professors with less than three (3) consecutive years of full time service, and adjunct faculty members. Faculty members who are not eligible to participate in the Basic Plan may participate in the Supplemental Plan.