Below are some answers to questions that we are getting from members concerning a letter sent out by PG&E’s third-party independent fiduciary, Gallagher, notifying participants in the PG&E 401k plan of the imposition of a limit on contributions to and investment exchanges into the PG&E Stock Fund, effective November 1, 2019.
Who does the limit apply to?
All 401K plan participants (union and management, active and retirees).
Does the 20% limit affect my current holdings?
No. If you already have over 20% of your 401K holdings in the PG&E Stock Fund, you will only be restricted from buying additional shares of the PG&E Stock Fund, but will not be required to sell any existing shares to meet the 20% limit.
Why is the limit being put in place?
The 401K plan fiduciary (Gallagher) decided this limit is in the best interests of plan participants. The fiduciary is a third-party company hired by PG&E.
Did the Union have a say in this matter?
No. The fiduciary is legally liable for plan investment decisions.
Can I purchase as much PG&E stock as I want in my retirement plan through Fidelity Brokerage Link?
No. Brokerage Link is limited to mutual funds (not individual stocks) and the PG&E Stock Fund is not one of the options available in brokerage link (the union has double checked on this with Fidelity).