Introduction

With well over 30 investment options available, the Visteon Investment Plan (VIP) for salaried employees and 401(k) Savings Plan for hourly employees 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 Visteon 401k savings.

For your reference, we have provided a fund table displaying style, risk, and past performance for many of the funds in the VIP. In addition, please visit our “Fund Commentary” section below for further information on specific funds and/or fund types within the VIP account.

Below you will find articles of interest as well as news and updates to Visteon employee and retiree benefits. Check this page for future updates to the VIP, as well as news that affects Visteon employees and retirees.


For Your Interest


Plan Updates

Visteon Plan Option Changes – October 2016

Visteon has announced the following plan option changes that will take effect as of the close of business November 7, 2016 impacting the Visteon Investment Plan (VIP), Visteon Corporation Savings Parity Plan, and Visteon Corporation 2010 Supplemental Executive Retirement Plan (SERP).

  • The Vanguard Institutional Index Fund Institutional Shares investment option is replacing the Domini Social Equity Fund Institutional Class fund which will no longer be offered as an investment option under the Visteon Plans.
  • The U.S. Debt Index Fund M investment option is replacing the Bond Fund which will no longer be offered as an investment option under the Visteon Plans.

To discuss these changes to the Visteon savings plans or how to allocate your portfolio in light of the updated fund line-up, do not hesitate to contact Mainstay toll-free at 1-866-444-6246.

Visteon Fund Change Announcement – August 2015

Visteon has announced changes that will impact the Visteon Investment Plan (VIP). Effective September 18, 2015, certain funds will be added as investment options under the VIP and certain funds will be closed. Transfers out of the closing funds must be completed by market close on September 18th or balances will automatically transfer to alternative funds in the plan. To discuss these changes to the Visteon 401(k) plans, do not hesitate to contact us toll-free at 1‑866‑444‑6246.

Visteon Fund Change Announcement – November 2014

Visteon has announced changes that will impact the Visteon Investment Plan (VIP). Effective November 28, 2014, the target date funds in the VIP will move from Fidelity Freedom Funds to State Street Global Advisor (SSgA) Target Retirement Funds.

The new investment options will provide similar investment strategies and risks, but the overall expenses for the investment options will be lower. To discuss this change to the Visteon 401(k) plans, do not hesitate to contact us toll-free at 1-866-444-6246.

Visteon Fund Change Announcement – October 2014

Visteon has announced changes to several investment options in the Visteon Investment Plan (VIP). Two investment options will be frozen in the plan on November 28th and remaining balances will transfer to the new options on December 4th. During this blackout period you will be unable to make exchanges into or out of the exiting funds.

In addition, the target date funds will transfer from Fidelity Freedom Funds to SSgA Target Retirement Funds on November 28th. There is no blackout period associated with this change.

To discuss the new plan lineup, our insight into these changes, or how they may impact your investment allocation, contact us toll-free at 1-866-444-6246.

Visteon Fund Change Announcement – January 2013

Visteon has again announced changes to several investment options in the Visteon Investment Plan (VIP). These new investment options will provide similar investment strategies and risks, but the overall expenses for the investment options will be lower. The Plan had similar changes to several funds in April 2011. These changes are effective as of the close of business on January 30, 2013.

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", or contact Mainstay toll-free at 1-866-444-6246 to discuss the impact these changes may have on your portfolio.

Visteon Offers Pension Lump Sum Payments – September 2012

Visteon has announced the Visteon Pension Accelerated Payment Program. This program will offer approximately 10,000 eligible retirees a voluntary lump sum pension benefit payment option. By taking advantage of the lump sum pension payment option, Visteon retirees may reduce many potential pension risks including longevity risk due to inflation, tax risk, and mortality risk. Most importantly it will completely eliminate "PBGC risk" - the risk that monthly pension payments are someday reduced by the Pension Benefit Guaranty Corporation.

Visteon retirees that are being presented with these new pension payment options will have only a short window in which to make their decision. if you are considering the pension lump sum offer, review Mainstay's “Pension Lump Sum Buyout Program” summary and visit our “In The News” section to review recent articles discussing pension lump sum payments. You can also contact Mainstay toll-free at 1-866-444-6246 to discuss your personal situation.

Visteon Freezes the VPP and Increases Company Match – October 2011

Visteon has announced that they will “freeze” the Visteon Pension Plan (VPP) effective December 31, 2011. As of this date, no further cash balance pay credits will be earned and an employee’s base pay as of December 31, 2011 will be used to calculate their pension payment. In conjunction with the VPP freeze, Visteon also announced an increase in the company match to the Visteon Investment Plan (VIP). Effective January 1, 2012, Visteon will match 100% of employee contributions up to 6% of base pay. Previously, the match was 25% of employee contributions up to 6% of base pay.

Automatic Enrollment to the VIP – October 2011

Visteon employees that are not currently contributing to the Visteon Investment Plan (VIP) will be automatically enrolled on January 1, 2012. These participants will be enrolled at a contribution rate of 3% of annual pay. Every January 1st thereafter, this automatic enrollment will take place for all eligible employees that are not contributing. In addition, for those VIP participants that are contributing but at a level less than 6%, Visteon will increase their contribution rate by 1% each January 1st until they reach the 6% level. This is to encourage all VIP participants to take full advantage of the company match. Participants will have the opportunity to opt out of both the automatic enrollment and the contribution increase each year.

Mainstay recommends all VIP participants contribute a minimum of 6% to maximize the company match. Call Mainstay Capital Management toll-free at 1-866-444-6246 to discuss these changes or your personal situation with one of our Certified Financial PlannersTM.

Visteon Fund Change Announcement – April 2011

Visteon has announced changes to several investment options in the Visteon Investment Plan (VIP). The new investment options will provide similar investment strategies and risks, but the overall expenses for the investment options will be lower. These changes are effective as of the close of business on April 20, 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", or contact Mainstay toll-free at 1-866-444-6246 to discuss the impact these changes may have on your portfolio.

Visteon Reinstates Company Match – April 2011

Visteon has announced the reinstatement of the company match in the Visteon Investment Plan (VIP). Effective April 1, 2011, Visteon will match 25% of employee contributions up to 6% of base pay. For employees that elect to contribute at least 6%, this will equate to a 1.5% company match contribution each payroll cycle.

While your personal retirement plan may already call for a contribution level higher than 6%, Mainstay recommends that all Visteon salaried employees contribute a minimum of 6% to the VIP to maximize the company contribution.

Visteon Announces New Roth 401(k) Feature in the VIP – December 2010

Visteon has announced that effective January 1, 2011 a Roth 401(k) feature is being added to the VIP 401(k). This Roth feature within the VIP 401(k) gives employees added savings options within their retirement plan. Employees will now have the flexibility to direct contributions among both types of 401(k) accounts as their current and future tax situation dictates. For those VIP participants who are ineligible for a Roth IRA due to income limitations, the addition of the Roth 401(k) feature provides an opportunity to build a tax-free retirement income source.

Visteon also announced, effective immediately, the removal of the 10% maximum on the Spillover election in the VIP.

To discuss the new Roth 401(k) feature, removal of the Spillover election maximum, or your personal situation contact Mainstay Capital Management toll-free at 1-866-444-6246.

Visteon’s Reorganization Plan Approved – September 2009

Tuesday, August 31st Visteon Corporation won confirmation of its Chapter 11 reorganization plan. Visteon first entered bankruptcy in March of 2009 and although there was speculation that Visteon would hand their pension plans over to the PBGC, they were able to structure a reorganization plan that would eliminate the need to do so. Although the details are not yet final, Visteon expects to exit bankruptcy by the end of September.


News and Articles


Fund Commentary

SSgA Target Retirement Funds

The SSgA Target Retirement 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.

Ten of these funds are included in the plan, with 5-year incremental targets from 2015 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.

Target retirement 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. These 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 target retirement funds offer a simple one-stop-solution, we continue to advise participants to avoid these funds and retain the flexibility to proactively adjust their portfolios as needed.

Please reference The Problem With Target-Date Funds

Fund Table - September 30, 2016

The Visteon VIP and 401(k) Savings Plan fund table provides critical data on investment options within the plan.

Visteon VIP and 401(k) Savings Plan - Fund Table


 

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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.