Personal Choice Retirement Account

Transcription

1 Trinity Health Retirement Savings Plan Schwab Personal Choice Retirement Account (PCRA)

2 We are pleased to make available to you the Schwab Personal Choice Retirement Account (PCRA) offered though Charles Schwab & Co., Inc. (member SIPC). In addition to the PCRA Enrollment Guide, the following details how PCRA works in the Trinity Health Retirement Savings Plan. The PCRA account is an option which is made available for the convenience of employees who feel very comfortable with mutual fund investing and who want additional flexibility to invest in various fund options beyond the various core funds offered through Diversified Investment Advisors in the Trinity Health Retirement Savings Plan. For most employees the various core fund options offered through Diversified will provide the level of diversification desired. Open Your PCRA To open a Personal Choice Retirement Account (PCRA), call Diversified Investment Advisors (Diversified) at to obtain a Schwab Limited Power of Attorney form (LPOA). Once you have completed, signed, and returned the LPOA to Diversified, your PCRA will be established and Schwab will send you a PCRA Welcome Kit and a confirmation letter with your investor account number. You will then be able to transfer assets from your Diversified account to your Schwab PCRA. We do not require any other forms as mentioned in the PCRA Enrollment Guide. There is an annual maintenance fee of $50 which is deducted from your Diversified account in January. PCRA Investment Choices The PCRA account provides employees access to thousands of mutual fund options. Most of the funds available through the PCRA are open for investment at any time. There are some fund options which may be closed to new investors. Information on which fund options are available can be determined by calling Schwab at or by going to their website at Investment in unlisted securities, margin trades, commodities, options and individual stocks and bonds are prohibited. You may only invest in mutual funds. If you direct Schwab to purchase a disallowed investment, the trade will not be placed. Transfers to or from your PCRA are prohibited during the last 2 business days of any month to allow for transaction settlements. Transfers From Diversified To Your PCRA When you open a PCRA, you must fund the account by initiating a transfer to PCRA from your core retirement account. Funding your PCRA is similar to transferring money between core retirement account investment choices, however:

3 Transfers From Diversified To Your PCRA (cont d) Direct contributions to your PCRA are not permitted. Money may only be invested into your PCRA through a transfer initiated from your Diversified account. For information regarding the types of contributions you may transfer from your core retirement account to your PCRA, please refer to the Retirement Savings Plan Highlights booklet. Your ongoing Retirement Savings Plan contributions must first be contributed to the Diversified fund options you have elected. In order to have these funds transferred to your PCRA account you must contact Diversified via the toll free number at , or the website at and transfer your funds from Diversified to the Schwab money market account. You will then need to contact Schwab via their toll free number at or website at in order to have your funds transferred from the Schwab money market account to a mutual fund offered through the Schwab PCRA account. These steps are summarized below: Step 1: Employee contributions are transferred to Diversified via payroll deductions. Step 2: Employee calls Diversified to transfer the funds to Schwab Money Market (please allow 3 business days from the effective date to process your transaction). Step 3: Employee calls Schwab and requests that the funds be moved from the Money Market to a specific fund offered through Schwab (i.e. XYZ fund). An initial investment of $1,000 is required to establish the Schwab PCRA account. The subsequent minimum transfer amounts from the Diversified account to the Schwab PCRA is $250; however, some mutual funds offered through Schwab may require higher minimums. Any uninvested cash is automatically swept into a Schwab Money market Fund. 1 Transfers From Your PCRA To Diversified As a Diversified plan participant, you may transfer assets from your PCRA to other investment choices available through Diversified at any time without minimums or transfer fees. Please note that Schwab redemption fees may apply. Call Schwab at to provide the necessary information and instructions to liquidate all or a portion of your PCRA assets. Call Diversified at to advise Diversified of the pending liquidation of all or a portion of your PCRA assets, and the desired allocation to the investment choices available through Diversified. Within five business days, Diversified will receive and invest the amount transferred from Schwab.

4 Transfers From Your PCRA To Diversified If you have questions regarding the investment choices available to you through Diversified, please call a Diversified representative at Loans If you decide to apply for a loan and your balance with Diversified is sufficient to satisfy your loan request, you do not need to transfer assets from your PCRA. The amount indicated as available for loan through Diversified s automated telephone service Diversified Direct SM does not include your PCRA balance; therefore: Call a Diversified representative at to confirm the amount available for a loan. If your balance with Diversified is not sufficient to satisfy your loan request, then additional assets in your PCRA must be liquidated and transferred to Diversified. The loan is then processed by Diversified within the usual service timeframes, which begin after sufficient assets in your PCRA have been liquidated and transferred to Diversified. Tax reporting information, if applicable, will be provided by Diversified. For this reason, all loans are issued through Diversified. If you need to transfer from your PCRA to have sufficient assets to initiate a loan: Call Schwab at to provide the necessary information and instructions to liquidate all or a portion of your PCRA assets. Call Diversified at to advise Diversified of the pending liquidation of all or a portion of your PCRA assets, and the desired allocation to the investment choices available through Diversified. Call Diversified at to initiate your loan request and obtain instructions for completing the loan transaction. Distributions If your account balance with Diversified is sufficient to satisfy your withdrawal request, you do not need to transfer assets from your PCRA. Schwab will not distribute assets directly to you. If your balance with Diversified is not sufficient to satisfy your distribution request, then additional assets in your PCRA must be liquidated and transferred to Diversified. The distribution is then processed by Diversified within the usual service timeframes, which begin after sufficient assets in your PCRA funds have been liquidated and transferred to Diversified. Tax reporting information, if applicable, will be provided by Diversified. For this reason, all distributions are issued through Diversified.

5 Distributions (cont d) If you need to transfer from your PCRA to have sufficient assets for your withdrawal: Call Schwab at to provide the necessary information and instructions to liquidate all or a portion of your PCRA assets. Call Diversified at to advise Diversified of the pending liquidation of all or a portion of your PCRA assets, and the desired allocation to the investment choices available through Diversified. Complete and submit the appropriate distribution request form to Diversified. Fees Diversified will charge an annual maintenance fee of $50 for the PCRA which will be withdrawn from your Diversified account in January of each year and appear on your Diversified statement. Schwab s short-term redemption fee (STR) will be charged on each redemption of funds bought through Schwab s Mutual Fund OneSource service with no transaction fee and held for 90 days or less. If you pay a transaction fee to purchase a fund, you will pay a transaction fee when you sell it as well. Schwab reserves the right to change the funds made available without transaction fees and to reinstate fees on any funds. Trades in no-load funds available through Mutual Fund OneSource service (including SchwabFunds), as well as certain other funds, are available without transaction fees when placed through schwab.com or Schwab s automated phone channels. Call Schwab at to obtain more complete information regarding Schwab s STRs and related fees. Schwab may apply other fees. 2 Statements Diversified s quarterly account statement will show the balance in your PCRA as of the last day of the quarter. Schwab will also provide transaction confirmations for activity occurring in your PCRA as well as a quarterly statement detailing account activity. In addition, you will receive a monthly statement if there is activity in your PCRA. If there are any transactions still in process at the end of the statement period, the statement may not reflect these transactions. If you change your name or address, please submit separate notification to both Schwab and Diversified, in addition to notifying your employer. Notify Diversified of all name and address changes by calling or logging on to your account at Call Schwab at to notify Schwab of your changes.

6 Are You Ready for PCRA? Please refer to the Schwab Personal Choice Retirement Account Enrollment Guide for comprehensive information about PCRA. To contact Diversified Investment Advisors, please visit or call Money market funds are managed to maintain a stable $1 share price. Investment in these funds are neither insured nor guaranteed by the U.S. government and there can be no assurance that the funds will be able to maintain a stable net asset value of $1 per share. 2 You may trade many funds with no loads and no transaction fees through Schwab s Mutual Fund OneSource service. Certain funds in the Mutual Fund OneSource are available with no transaction fees, but have 12b-1 fees in excess of.25% and therefore cannot be called no-load funds. Commissions and transaction fees may apply to fund trades placed outside of Mutual Fund OneSource or trades on other investment vehicles available through Schwab. For a prospectus containing more complete information including management fees, charges, and expenses, or to obtain a current commission schedule, call Schwab at Please read the prospectus carefully before you invest or send money. Securities purchased through the PCRA are available through Charles Schwab & Co., Inc., Member SIPC. Diversified, Charles Schwab & Co. and Trinity Health are not affiliated companies. DIVERSIFIED INVESTMENT ADVISORS 8008 (rev. 07/05) 4 Manhattanville Road, Purchase, New York