Lawrence General Hospital

Transcription

1 Lawrence General Hospital

2 Agenda 1 Why VALIC 2 Transition 3 Investment options 4 Participant services 5 Managing your account 6 Questions and answers 2

3 Why VALIC

4 Why VALIC Formal RFP and vetting process More than 60 years experience Easy access to one-on-one personal counseling sessions from on-site financial advisors Financial advice is provided through VALIC Financial Advisors, Inc. (VFA) Our VFA financial advisors are fiduciaries to your participants Array of investment options from well known mutual fund companies with low cost share classes; institutional share classes have been chosen for this investment platform Competitive fixed interest option Reduced administrative expenses; 0.10% on your account balance State-of-the-art financial education, tools and calculators 4

5 VALIC strength Strength in Numbers Healthcare Experience Operational Excellence > Serving more than 23,000 clients > Serving more than 1.8 million participants > More than $73 billion in general and separate account assets* > More than 60 years experience > More than $3.4 billion of adjusted capital and surplus* > Serving 4,000 healthcare clients nationwide > A leading provider in Healthcare > Strong supporter of ASHHRA and HFMA > $20 billion in healthcare assets under management > Over 99% group retention rate > Proprietary recordkeeping system > Dedicated service team to simplify administration * As of 9/30/2015.

6 The power of AIG Strength 65,000 associates serving 88 million customers in more than 100 countries and jurisdictions $496.9 billion in total assets as 12/31/2015 $58.3 billion in 2015 Revenue 96 plus years of operation Premier Protection Serving over 89% of companies included in the Fortune Global 500 Provides 90 million customers around the globe with protection, including financial and retirement security

7 Transition

8 Transition Transition dates Key dates Dec 30, 2016 Jan 12-27th Jan 30, 2017 Jan 27, 2017 Jan 27, 2017 On or around Feb 10, 2017 Week of Feb 20, 2017 Transition events Conversion communication mailing Employee meetings Blackout period begins at MetLife Last contribution sent to MetLife Last day for employees to give salary deferral changes to Lawrence General Hospital HR First contribution sent to VALIC Blackout period ends at VALIC 8

9 Transition Blackout Period Begins Jan. 30 th and ends week of Feb. 20 th During the blackout period, transactions will be limited to allow for reconciliation of accounts Assets remain invested No loan or hardship withdrawals Loans with MetLife will be converted to VALIC during the transition. Your payment frequency and how the loan will be paid will not change Limited access to your account 9

10 Investment options

11 Annual administrative fee Annual administrative fee is 0.10% (10 basis points) on your account balance - what does this mean? 0.10% of $10,000 = $ % of $25,000 = $ % of $50,000 = $ % of $100,000 = $100 An annual administrative fee of 10 basis points, based on total Plan assets (including all assets in Schwab PCRA), is charged to Participant accounts or paid by the Plan Sponsor quarterly. Participant accounts that include a fund for which VRSCO receives Indirect Compensation will be credited with a pro rata share of the Indirect Compensation from such fund based on the value of their investment in the fund at the time of the credit. The Plan may incur charges or fees outside of the investment alternative product(s) that may be deducted from participant accounts as directed or authorized by the Plan Administrator. These fees may include third-party administration, consultant, legal, audit, and other fees directly related to the operation of the Plan. Any such charges or fees deducted from VALIC participant accounts will be reflected on quarterly participant account statements. 11

12 Investment options Investments 31 core mutual fund investment options Target date funds Fixed-Interest Option* Schwab Personal Choice Retirement Account (PCRA) Investment values will fluctuate and there is no assurance that the objective of any fund will be achieved. Mutual fund shares are redeemable at the then-current net asset value, which may be more or less than their original cost. Your Schwab Personal Choice Retirement Account is a custodial account established under Section 401(a), 403(b)(7) or 457 of the Internal Revenue Code of 1986, as amended. Your rights under the account are governed by the terms of the account and/or the employer's plan The principal value of an investment in a target date fund is not guaranteed at any time including at or after the target maturity date. The target date is the approximate date when investors plan to start withdrawing their money. The fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. *Policy Form series GFUA-315, a group fixed unallocated annuity issued by The Variable Annuity Life Insurance Company, Houston, Texas. Remember that investing involves risk, including the possible loss of principal. 12

13 Investment options Target Date Funds Fund Name Ticker Target-Date¹ T. Rowe Price Retirement I 2015 TRFGX T. Rowe Price Retirement I 2020 TRBRX T. Rowe Price Retirement I 2025 TRPHX T. Rowe Price Retirement I 2030 TRPCX T. Rowe Price Retirement I 2035 TRPJX T. Rowe Price Retirement I 2040 TRPDX T. Rowe Price Retirement I 2045 TRPKX T. Rowe Price Retirement I 2050 TRPMX T. Rowe Price Retirement I 2055 TRPNX T. Rowe Price Retirement I 2060 TRPLX The principal value of an investment in a target date fund is not guaranteed at any time including at or after the target maturity date. The target date is the approximate date when investors plan to start withdrawing their money. The fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. 13

14 Investment options Fixed-Interest Option The first full year 3.00%* Second year standard crediting rate +.50% Contract minimum guarantee rate: 2.00% *Enhanced rate The Fixed-Interest Option from VALIC is a group fixed unallocated annuity. It features interest rate guarantees that include: (i) a lifetime minimum interest rate set at the time the contract is issued; (ii) an annual crediting rate set at the beginning of each calendar year; and (iii) in the company s discretion, a current crediting rate, declared no more frequently than every 90 days, and equal to or greater than the annual crediting rate. Each of these interest rates is credited on a daily basis at an annual effective rate. The product currently credits interest under a portfolio interest crediting method in which all deposits receive the same crediting rate regardless of date of deposit. Policy Form GFUA-315, a group fixed unallocated annuity, issued by The Variable Annuity Life Insurance Company, Houston, Texas. Policies and practices for prospectively determining current crediting rates are subject to change, but remain subject to the applicable lifetime guaranteed rate(s). All guarantees are backed by the claims-paying ability of The Variable Annuity Life Insurance Company. 14

15 Investment options Any current assets in the MetLife Fixed interest rate fund (3% interest rate) will convert over to VALIC in 5 installments Initial installment payment on 02/06/2017 is 20% Installment payment #2 on 02/06/2018 is 25% Installment payment #3 on 02/06/2019 is 33.33% Installment payment #4 on 02/06/2020 is 50% Installment payment #5 on 02/06/2021 is 100% During the 4 year and one day conversion period, any fixed interest assets converted to VALIC will be available to plan participants upon separation from service, age 59 ½, retirement, or disability. Any assets that remain with MetLife will be unavailable as they will be in an unfunded account with MetLife. 15

16 Investment options Mapping Mapping is a method of liquidating an investment and purchasing an investment with like objectives. Mapping allows for the movement of assets between like investments regardless of market conditions. Mapping will happen automatically. No action is required from you. 16

17 Participant services

18 Participant services On-site financial advisor Offering individual financial planning Retirement income planning Risk Management Cash flow and budgeting Estate planning Annual review to make sure your plan stays on track Educational seminars and enrollment sessions 18

19 Participant services VALIC.com Custom website coming soon! Early 2017, you will have access to a custom site, created specifically for Lawrence General Hospital Responsive design (mobile phone, tablet, laptop) Participant workspace highlighting plan information Reminder bar to help you take advantage of plan FutureFIT calculator designed around future monthly income Educational content geared toward your interest Smart technology to help you stay on track Easy online enrollment process 19

20 Managing your account

21 Managing your account Three convenient ways VALIC.com Secure account access 24/7 Request forms, view statements and account history Make transactions (contribution changes, asset allocation, etc.) Begin/Stop contributions VALIC Contact Center Call toll-free: Mon. Fri. between 8 a.m. 9 p.m. ET Account-specific participant services Spanish-speaking Customer Service Representatives Financial Advisor Personal counseling sessions Educational financial seminars Computer-aided retirement planning tools Comprehensive financial planning 21

22 Managing your account Advisor contact information Clint Hyland, Financial Advisor Office address: 410 Amherst Street, Ste: 310, Nashua, NH Office phone: Cell: address: Josh Gould, Financial Advisor Office address: 410 Amherst Street, Ste: 310, Nashua, NH Office phone: address: 22

23 Questions and answers

24 Lawrence General Hospital Photo collage Thank you!

25 This information is general in nature, may be subject to change, and does not constitute legal, tax or accounting advice from any company, its employees, financial professionals or other representatives. Applicable laws and regulations are complex and subject to change. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax penalties. For advice concerning your individual circumstances, consult a professional attorney, tax advisor or accountant. Securities and investment advisory services offered through VALIC Financial Advisors, Inc. ( VFA ), member FINRA, SIPC and an SEC-registered investment advisor. VFA registered representatives offer securities and other products under retirement plans and IRAs, and to clients outside of such arrangements. Annuities issued by The Variable Annuity Life Insurance Company ( VALIC ). Variable annuities distributed by its affiliate, AIG Capital Services, Inc., member FINRA. VALIC and VFA are members of American International Group, Inc. ( AIG ). AIG is a leading international insurance organization serving customers in more than 100 countries and jurisdictions. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. All products and services are written or provided by subsidiaries or affiliates of AIG. Non-insurance products and services may be provided by independent third parties. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange. Copyright The Variable Annuity Life Insurance Company. All rights reserved. VALIC.com VC XXXXX (XX/20XX) JXXXXX EE