Important information about the Schwab Personal Choice Retirement Account (PCRA)

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1 Important information about the Schwab Personal Choice Retirement Account (PCRA) As you may be aware, the Lawrence University Retirement Readiness Plan offers a self directed investment account that allows you to direct purchases and sales within your account through Charles Schwab. PCRA is designed for the experienced investor who wants to independently and actively manage an even greater choice of investments and is willing to pay additional fees and accept full responsibility for researching, selecting, monitoring and investing their investments. If you are confident with this independent approach to actively managing your retirement assets and PCRA is the right choice for your long term investment strategy, please review the enclosed information and procedures brochure and the following Lawrence University Retirement Readiness Plan PCRA provisions. If you have questions about PCRA, you may contact Transamerica at Investing in your PCRA You can elect payroll contributions directly to PCRA. The maximum direct allocation is 90% of payroll contributions. Additionally, you may transfer assets from your Transamerica account. Your first transfer to your PCRA must be at least $1,000 and each subsequent transfer must be at least $250 and you must have a balance of at least $3,000 in your core investment options. You can initiate a transfer by calling or visiting luretirement.trsretire.com. Please review pages 6 7 of the enclosed brochure for more information about transfers from Transamerica to your PCRA. Fund restrictions Assets in the New York Life Insurance Company Guaranteed Interest Account cannot be transferred directly to your PCRA. If you have assets in the New York Life Insurance Company Guaranteed Interest Account that you d like to transfer to your PCRA, you may transfer them to any other fund offered under the plan for a period of 90 days. You may then transfer those funds to your PCRA. Such restrictions are an industry standard and are intended to prevent excessive short term or disruptive trading to protect the integrity of the fund and its shareholders. Please review page 6 of the enclosed brochure for more information on fund restrictions. Fees There is an annual PCRA fee of $50 that will be withdrawn from your Transamerica account in addition to any other Transamerica administrative fees, if applicable. Transaction fees and trading commissions may be charged by Charles Schwab. Please contact Schwab at PCRA (7272) for questions regarding commissions and transaction fees. This material was prepared for general distribution. It is being provided for informational purposes only and should not be viewed as an investment recommendation. If you need advice regarding your particular investment needs, contact your financial professional. Schwab Personal Choice Retirement Account (PCRA) is not a fund but rather a self-directed brokerage account maintained at Charles Schwab & Co., Inc. You must individually apply for PCRA and are solely responsible for your fund selections made under the PCRA. Commissions and transaction fees may apply to fund trades placed outside of the Schwab Mutual Fund OneSource program or trades on other investment vehicles available through Schwab. An annual fee of $50 will be applied by Transamerica if you invest in the Schwab PCRA. Securities purchased through the PCRA are available through Charles Schwab & Co. Inc., (Member SIPC). Charles Schwab & Co., Inc. is not affiliated with Transamerica. Lawrence University has selected Transamerica Retirement Solutions as your retirement plan provider, but there are no other affiliations between Lawrence University, Charles Schwab, or and Transamerica L PT (11/16) 2016 Transamerica Retirement Solutions, LLC

2 Brighten Your Outlook Information and Procedures Schwab Personal Choice Retirement Account (PCRA)

3 As your retirement savings plan provider, Transamerica Retirement Solutions is dedicated to providing tools and resources to help you create and maintain your investment strategy. To complement the investment options offered under your retirement savings plan, you may choose to open a Schwab Personal Choice Retirement Account (PCRA). A PCRA is a self-directed investment account that allows you to direct purchases and sales within your account. PCRA is designed for individuals who seek more flexibility, increased diversification and a greater role in managing their retirement savings. By establishing a PCRA, you assume responsibility for controlling your investments. Schwab PCRA is for knowledgeable investors who understand the risks associated with many of the investment choices available through PCRA and who are committed to staying invested for the long-term. A PCRA may be appropriate for you if: You have a sophisticated understanding of investment principles and the stock market. You have the resources to research and monitor your investments. You are comfortable with the additional risk associated with making investment decisions. You are willing to undertake any additional trading and maintenance costs that may apply. This guide provides general information and explains the procedures associated with establishing and maintaining your PCRA. Through PCRA, you can access more than 8,000 mutual funds from over 640 well-known fund families. Over 4,000 mutual funds are available with no-loads and no-transaction fees1, including over 2,200 loadwaived funds typically available only to institutional clients. You ll also have access to 226 commission-free exchange-traded funds2 through Schwab ETF OneSource. Other investments also include individual stocks from all the major exchanges, bonds and other fixed income investments, CDs, and money market funds. 2 Opening your PCRA Transfers Loans... 8 Distributions... 9 Disallowed Purchases Fees Statements Name and Address Changes Closing your PCRA

4 Opening your PCRA To open a Schwab PCRA: 1. Visit my.trsretire.com. 2. Sign in to your account and go to the Messages box (on the top right side of the page). 3. In the Messages box, click on Schwab Personal Choice Retirement Account, then click on the link that appears in the message box. Please make sure to note the Retirement Plan ID and Plan Password displayed on this page you ll need them for the next step! 4. You ll be directed to the Schwab site to complete the process. From the Schwab site, enter the Retirement Plan ID, Plan Password that you noted from the prior page, and your Social Security number. Follow the steps to complete the online PCRA application. Once you click Submit you will receive your account number instantly on the screen. To set up your PCRA for online access go to Schwab.com, click the New User tab, then the Register button. In a few days you will receive an Account Verification Kit containing: A confirmation of your PCRA account number. Regulatory materials pertaining to your PCRA account. Information on transaction fees and commissions that may apply. 4 Information about PCRA: You will also receive a PCRA Welcome Kit containing information on making the most of your PCRA account, including how to research investments, place trade orders, and monitor your account. Once your account is opened, and Transamerica has received your Schwab account number, you ll be able to transfer assets from your Transamerica core account to your Schwab PCRA account. In addition, you can use equity, mutual fund, exchange-traded fund and fixed income screener tools to help you choose investments for your account. You also have access to powerful proprietary research tools on Schwab.com, including Schwab Equity Ratings, the Schwab Mutual Fund OneSource Select List and the Schwab ETF OneSource Select List. In addition, Schwab provides independent, third-party research from leading providers such as Credit Suisse, Argus Re-search, Standard & Poor s, Morningstar, Reuters and MarketEdge. PCRA resources on Schwab.com On Schwab.com, you have access to a PCRA video, containing step by step instructions on researching, trading and monitoring your PCRA. You can view the video at: If your plan transferred your self-directed brokerage account assets to a Schwab PCRA: To allow in-kind transfers of your retirement plan assets to Schwab, a PCRA account has been opened for you. You will receive an Account Verification Kit from Schwab containing your new PCRA account number. Once you have received your Schwab PCRA account number, you will need to complete the online Limited Power of Attorney (LPOA) form in order to begin trading within your PCRA account. Please follow the steps listed above to complete the online LPOA form. You may also call Transamerica at for more information. 5

5 Transfers from Transamerica to your PCRA Direct contributions to your PCRA are not permitted. Money can be invested into your PCRA through a transfer initiated from your Transamerica account. Transamerica does not impose any charges on your transfer, but certain plan options may charge redemption fees on frequent trading, which could apply if you liquidate a fund with a redemption fee in order to fund your PCRA contribution. Certain transfer restrictions may apply such as restricting funds to a selected contribution type(s). Please contact Transamerica to verify any restrictions that may apply. Call Transamerica at or sign in to your account at my.trsretire.com to direct your contributions or to transfer existing funds to your PCRA. Transfer requests received by 4:00 p.m. ET will be processed that day. Transfer requests received after 4:00 p.m. ET will be processed the next business day. Direct transfers to your PCRA from certain stable value funds may be prohibited. To transfer from these stable value funds to your PCRA, you must first transfer to another available fund, then transfer to your PCRA after 90 days. Please contact Transamerica to confirm which funds may not allow direct transfers to your PCRA. The initial transfer minimum to your PCRA is $1,000. The minimum for subsequent transfers is $250. Any uninvested cash is automatically swept into a Schwab money market fund in your PCRA. Transfers to or from your PCRA are prohibited during the last two days of any month to allow for transaction settlements. 6 Transfers from your PCRA to Transamerica As a Transamerica plan participant, you may transfer assets from your PCRA to other investment choices available through Transamerica at any time, without minimums or transfer fees. If you have securities in your PCRA, you must liquidate them first either online at schwab.com or by contacting the PCRA Call Center at PCRA (7272) to provide the necessary information and instructions to liquidate all or a portion of your PCRA assets. When the trades settle, Schwab will then sweep your liquidated assets into a Schwab money market fund in your PCRA. Call Transamerica at or sign in to your account at my.trsretire.com (once the PCRA liquidation has been settled at Schwab) to confirm your desired allocation to the investment choices available through Transamerica. The transfer of your assets to Transamerica will then be initiated. Transfers initiated by 4:00 p.m. ET will be processed that day. Transfers initiated after 4:00 p.m. ET will be processed the next business day. Transfers to or from your PCRA are prohibited during the last two days of any month to allow for transaction settlements. 7

6 Loans If loans are available under your plan and your account balance with Transamerica is sufficient to satisfy your loan request, you do not need to transfer assets from your PCRA. If your account balance with Transamerica is not sufficient to satisfy your loan request, then additional assets in your PCRA must be liquidated and transferred to Transamerica. The loan is then processed by Transamerica within the usual service timeframes, which begin after sufficient assets in your PCRA have been liquidated and transferred to Transamerica. Tax reporting information, if applicable, will be provided by Transamerica. For this reason, all loans are issued through Transamerica. If you need to transfer from your PCRA to have sufficient assets to initiate a loan: Call Schwab at PCRA (7272) to provide the necessary information and instructions to liquidate all or a portion of your PCRA assets. When the trades settle, Schwab will then sweep your liquidated assets into a money market fund in your PCRA. Call Transamerica at or sign in to your account at my.trsretire.com (once the PCRA liquidation has been settled at Schwab) to initiate your loan request and obtain instructions for completing the loan transaction. 8 Distributions If your account balance with Transamerica 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 account balance with Transamerica is not sufficient to satisfy your distribution request, then additional assets in your PCRA must be liquidated and transferred to Transamerica. The distribution is then processed by Transamerica within the usual service timeframes, which begin after sufficient assets in your PCRA funds have been liquidated and transferred to Transamerica. Tax reporting information, if applicable, will be provided by Transamerica. For this reason, all distributions are issued through Transamerica. If you need to transfer from your PCRA to have sufficient assets for your withdrawal: Call Schwab at PCRA (7272) to provide the necessary information and instructions to liquidate all or a portion of your PCRA assets. Schwab will then sweep your liquidated assets into a money market fund in your PCRA. Complete and submit the appropriate distribution request form obtained from Transamerica as instructed (once the PCRA liquidation has been settled at Schwab). 9

7 Disallowed Purchases Investment in unlisted securities, margin trades, commodities, and options are prohibited. Furthermore, if your PCRA is held in a 403(b) plan, IRS regulations allow for only mutual fund investment choices. 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 two days of any month to allow for transaction settlements. Fees Transamerica may apply an annual fee for the PCRA that will be withdrawn from your Transamerica account and will appear on your Transamerica statement. This is in addition to any other Transamerica administrative fee, if applicable. Please contact Transamerica to verify any applicable PCRA fees. Transaction fees and trading commissions are outlined in the Charles Schwab Pricing Guide for Retirement Plan Accounts provided in the welcome materials you receive from Schwab after opening your account. For any questions regarding the commissions and transaction fees that Schwab charges in your PCRA account, please contact Schwab at PCRA (7272). 10 Statements Your periodic account statement from Transamerica will show the balance in your PCRA as of the last day of the period. Schwab will also provide transaction confirmations for any activity in your PCRA, as well as a monthly statement detailing account activity. If any transactions are still in process at the end of the statement period, the statement may not reflect these transactions. Name and Address Changes If you change your name or address, please submit separate notification to your employer, Schwab, and Transamerica. Notify Transamerica of all name and address changes by calling or by changing this information online at my.trsretire.com. Call Schwab at PCRA (7272) to notify Schwab of any changes. Closing your PCRA To close your PCRA, your PCRA assets must be liquidated and then transferred to Transamerica. For more information, see the Transfers and Distributions sections of this guide. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in money market funds. Investors should consider carefully information contained in the prospectus, including investment objectives, risks, trading policies, charges, and expenses. You can request a prospectus by calling Schwab s dedicated PCRA Call Center at PCRA (7272). You may also request a prospectus online at schwab.com/prospectus. Please read the prospectus carefully before investing. Securities purchased through the PCRA are available through Charles Schwab & Co., Inc., Member SIPC. Transamerica Retirement Solutions and Charles Schwab & Co., Inc. are not affiliated companies. 11