Marin County Deferred Compensation Plans

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1 Important Updates Marin County Deferred Compensation Plans We are excited to announce that we will be implementing several changes to the Plans. Nationwide Retirement Solutions works closely with employee representatives of the County of Marin and Marin County Superior Court to continually review the services and investment options offered to participants in the 457(b) Plans. We are now able to offer enhanced investment options at a lower expense, which should be more equitable and easier to understand. DEFERRED COMPENSATION PLAN

2 Why are the Plans making this change? Up to this point, the Plan recordkeeping, investment consulting and administrative costs have been paid through administrative reimbursements or indirect fees. These fees are indirect because they were added as part of the investment option expense ratios and were deducted at the fund level, rather than being directly charged to your account. The new fee structure, coupled with the transition to lower-expense ratio investment options, will allow participants to keep a greater portion of their investment dollars. Assessing the explicit administrative fee directly also provides more transparency and assures that the costs of administering the Plans is shared equitably by all participants. Enhanced menu of investment options With a focus on providing a diverse selection of quality funds and lower overall participant costs, a new investment line-up will be implemented on July 18th. Comprised of some current, as well as newly added funds. It has been thoughtfully designed to accommodate varying risk tolerance levels and asset diversification goals and will also result in a reduction in the Plans average expense ratio. Information on the fund changes is provided in the table on the following page. Nationwide and the Marin employee representatives decided to modernize the investment menu methodology by migrating its County Risk Based Portfolios to Target Date Funds with Vanguard. Target Date Funds start out with a high equity (stock) allocation and reduce that allocation over time in favor of fixed income (bond) investments. The farther out the target date, for example 2060, the higher the allocation to equity investments. TargetRisk fund equity and fixed income allocations are static and do not change over time. The Fund Changes table shows how your existing target-risk investment options will be transferred to the appropriate target date investment option based on the year you turn age 65. Vanguard is one of the largest investment companies in the world, known for its low cost funds Note: No action on your part is required. Account balances in current fund options and future contributions will be automatically transferred to the corresponding new fund options on July 18, 2017.

3 Lower expenses, cost equity and fee transparency The primary objectives of the Plans are to minimize expenses, create fee transparency and provide cost equity among all participants. The Marin employee representatives, in partnership with Nationwide, determined that a revised fee allocation structure would better help meet these objectives. As reflected in the Fund Changes table, overall fees associated with the new menu of available funds are less than the overall fees of the current investment choices. We are very pleased to offer a new investment menu that will decrease the Plans average expense by 25%. Effective July 18, 2017, the fee structure will change as the Plans implement an annual 0.09% administrative fee that will cover all administrative expenses. The annual fee will be pro-rated and will be deducted from your account balance on a monthly basis. This administration fee will appear on each quarterly statement beginning with the third quarter statements. The table below shows an example of the annual administration fee that would be collected based on a participant s account balance. ACCOUNT BALANCE FEE CALCULATION ANNUAL ADMINISTN $10,000 $10,000 x.0009 $9.00 $25,000 $25,000 x.0009 $22.50 $100,000 $100,000 x.0009 $90.00 Learn more about these changes Attend a workshop or an information table. DATE TYPE LOCATION TIME June 28, 2017 Workshop Civic Center Room :30 and 1:00 June 30, 2017 Information Table Civic Center Cafeteria 9:00 3:00 July 10, 2017 Information Table Civic Center Cafeteria 9:00 3:00 July 11, 2017 Workshop Civic Center Room :30 and 1:00 July 14, 2017 Information Table H&HS Wellness Campus 3240 Kerner Lobby 9:00 3:00 July 18, 2017 Information Table Civic Center Cafeteria 9:00 3:00 July 19, 2017 Information Table Civic Center Cafeteria 9:00 3:00 July 21, 2017 Information Table H&HS Redwood Dr. Lobby 9:00 3:00

4 Fund Changes Investment option updates CURRENT NEW CAPITAL PRESERVATION FUNDS Galliard Stable Value Fund A N/A 0.71% Galliard Stable Value Fund C (OBRA) N/A 0.86% Nationwide Bank Liquid Savings N/A 0.50% Galliard Stable Value Fund G N/A 0.39% Nationwide Bank Liquid Savings (OBRA) N/A 0.65% Nationwide Bank Certificates of Deposit N/A 0.65% BOND FUNDS PIMCO Total Return Instl PTTRX 0.46% Metropolitan West Total Return Bond MWTSX 0.38% Vanguard Total Bond Market Index Adm VBTLX 0.05% Vanguard Total Bond Market Index Adm VBTLX 0.05% INTERNATIONAL/GLOBAL EQUITY FUNDS Vanguard Total Intl Stock Index Adm VTIAX 0.11% Vanguard Total Intl Stock Index Adm VTIAX 0.11% Dodge & Cox International Stock DODFX 0.64% Hartford International Opp HLS IA HIAOX 0.76% American Funds EuroPacific Growth R4 REREX 0.85% U.S. EQUITY FUNDS Vanguard Institutional Index I VINIX 0.04% Vanguard Institutional Index I VINIX 0.04% Fidelity Contrafund FCNTX 0.68% MFS Blended Research CIT N/A 0.33% Dodge & Cox Stock DODGX 0.52% T. Rowe Price Mid-Cap Growth Adv PAMCX 1.02% Hotchkis & Wiley Mid-Cap Value I HWMIX 1.02% Hartford Schroder US S/M-Cap Opps SMDRX 0.88% DFA US Micro Cap I DFSCX 0.52% AllianzGI NFJ Small-Cap Value Admin PVADX 1.07% Vanguard Mid Cap Index Adm VIMAX 0.06% Vanguard Extended Market Vanguard Small Cap Index Adm VSMAX 0.06% Index Instl VIEIX 0.06% Investing involves market risk, including possible loss of principal. Actual investment results will vary depending on your investment and market experience, and there is no guarantee that fund objectives will be met. Understanding investment types International/emerging market funds involves additional risks, including currency fluctuations, political instability, differences in accounting standards and foreign regulations. Real estate funds are sensitive to economic and business cycles, changing demographic patterns and government actions. Small-cap funds typically involve increased market risk and volatility, and may include assets of limited liquidity. Mid-cap funds are subject to market risk generally perceived to be greater than large-cap stock funds, but less so than small-cap funds. Large-cap funds are subject to market risk generally perceived to be less than with mid- and small-cap funds. Bond funds have the same interest rate, inflation and credit risks associated with the underlying bonds owned by the fund. High-yield bond securities are typically subject to greater risk and price volatility than funds that invest in higher rated debt securities. Stable value funds primarily invest in guaranteed investment contracts (GICs) issued by insurance companies or banks, synthetic GICs, or in a common collective trust or mutual fund which invests in these securities. Fixed account guarantees are subject to the claims-paying ability of the issuing life insurance company.

5 CURRENT NEW ASSET ALLOCATION/TARGET DATE FUNDS Calvert Balanced A CSIFX 1.02% Calvert Balanced I CBAIX 0.65% Vanguard Target Retire 2060 Instl VILVX 0.10% Vanguard Target Retire 2055 Instl VIVLX 0.10% Vanguard Target Retire 2050 Instl VTRLX 0.10% Vanguard Target Retire 2045 Instl VITLX 0.10% Vanguard Target Retire 2040 Instl VIRSX 0.10% New Target Date Funds N/A N/A Vanguard Target Retire 2035 Instl VITFX 0.10% Vanguard Target Retire 2030 Instl VTTWX 0.10% Vanguard Target Retire 2025 Instl VRIVX 0.10% Vanguard Target Retire 2020 Instl VITWX 0.10% Vanguard Target Retire 2015 Instl VITVX 0.09% Vanguard Target Retirement Income Instl VITRX 0.09% YEAR BORN AGE TARGET FUND or VG 2060 or after younger VG VG VG VG VG VG VG VG VG or VG Income or before older Marin County Aggressive Portfolio N/A 0.60% Marin County Moderate Portfolio N/A 0.56% Target Date 0.10% Marin County Conservative Portfolio N/A 0.51% Before investing, carefully read the fund prospectus and consider the fund s investment objectives, risks, charges and expenses. The underlying fund prospectuses contain this and other important information, and are available to download at marincountydc.com or by calling Asset allocation funds are designed to provide diversification and asset allocation across several types of investments and asset classes, primarily by investing in underlying funds. Therefore, in addition to the expenses of the portfolio, investors indirectly pay a proportionate share of the applicable fees and expenses of the underlying funds. Target date funds are designed for people who plan to retire during or near a specific year, by investing in underlying funds. In addition to the target date funds expenses, investors indirectly pay a proportionate share of applicable fees and expenses of the underlying funds. The funds become more conservative as an investor approaches the selected fund date. However, no strategy can assure a profit or prevent a loss in a declining market, nor do target date funds guarantee an investor will have enough assets to last through retirement. Vanguard Target Retirement Funds are designed for investors expecting to retire around the year indicated in each fund s name. Except for the Vanguard Target Retirement Income Fund, the funds asset allocation strategy becomes increasingly conservative as they approach their target date and beyond. Ultimately, they are expected to merge with the Vanguard Target Retirement Income Fund. The investment risks of each Vanguard Target Retirement Fund changes over time as its asset allocation changes. They are subject to the volatility of the financial markets, including equity and fixed income investments in the U.S. and abroad and may be subject to risks associated with investing in high yield, small cap and foreign securities. Principal invested is not guaranteed at any time, including at or after the designated target retirement date.

6 We are here for you We encourage you to stop by one of the workshops or information tables. Additionally, your local Retirement Specialist, Jim Laffoon, and Nationwide call center representatives are always here to help. Jim Laffoon, Nationwide Retirement Specialist (415) Customer Service Contact Center (888) Deferred Compensation Plan website DEFERRED COMPENSATION PLAN Nationwide Retirement Specialists are Registered Representatives of Nationwide Investment Services Corporation, member FINRA. Retirement Specialists cannot offer investment, tax or legal advice. Consult your own counsel before making decisions about participation in the Deferred Compensation Plan Investing involves market risk, including possible loss of principal. Actual investment results will vary depending on your investment and market experience, and there is no guarantee fund objectives will be met. Before investing, carefully read the fund prospectus and consider the fund s investment objectives, risks, charges and expenses. The underlying fund prospectuses contain this and other important information, and are available to download at marincountydc.com or by calling Nationwide and the Nationwide N and Eagle, and Nationwide is on your side, are service marks of Nationwide Mutual Insurance Company Nationwide NRM-15236CA-MY