County of San Luis Obispo Deferred Compensation Plans. Transition guide. We re transitioning your Deferred Compensation Plans.

Transcription

1 County of San Luis Obispo Deferred Compensation Plans Transition guide We re transitioning your Deferred Compensation Plans.

2 The County of San Luis Obispo Plans are transitioning to Nationwide. Following a thorough analysis, the County of San Luis Obispo has selected Nationwide as the provider of your Deferred Compensation Plans. The transition period will be short and seamless. Nationwide has been helping public sector employees like you prepare for and live in retirement for more than 40 years. Nationwide will provide administrative and recordkeeping services for the 457(b) and 401(a) participants previously administered by Empower. Participants invested in the Empower 457(b) and 401(a) plans will be transferred to Nationwide on September 28, Through this new partnership, you will receive: A new line-up of lower-cost investment options Fixed account with a competitive yield of 2.15% through the end of 2017 Access to professional account management Comprehensive retirement planning tools Website customized for the County s employees New Loan provision feature Roth after-tax investing option Responsive, local Plan service Please read this brochure carefully. We encourage you to attend educational workshops to learn more about the Plans and to meet your local Nationwide Retirement Specialists. Important Transition Dates September 14, 2017 Transition webpage is available at September 20, :00 p.m. PT/4:00 p.m. ET Blackout period September 26, 2017 September 27, 2017 September 28, 2017 Last day to: - request a distribution - make changes to your account through Empower - make changes to your Self-Directed Brokerage Account You can see your account live at Empower through close of market. After the close of the market, your assets will be liquidated from Empower. Your accounts and assets will be transferred to Nationwide and mapped as explained on the Investment Options pages in this brochure. Your new Deferred Compensation Plan account will be fully active at 5 a.m. PT and you can begin making changes to your account. 2

3 Learn more at one of these workshops. Attend an educational workshop for one-on-one transition support. Your local Retirement Specialist will gladly assist as you make decisions about Plan participation. We encourage you to attend one of the many upcoming transition workshops to learn more about your options. LOCATION DATE TIME ROOM Sheriff-SLO 8/14/17 7 am, 9 am, 11 am, 2:30 pm, 5:30 pm Lowgren Auditorium Government Center 8/15/17 9 am, 11 am Room 161 Airport-SLO 8/15/17 1:30 pm, 3 pm Airport Sheriff-Oceano 8/16/17 7 am, 4 pm, 9 pm Community Room DSS-Paso 8/17/17 9 am, 10 am, 11 am Conference Room DSS-SLO 8/17/17 1 pm, 2 pm, 3 pm Room 101 Government Center 8/17/17 1:30 pm, 2:30 pm, 4 pm County Board of Supervisors Court-SLO 8/18/17 11 am, 12 pm, 1 pm, 2 pm 3 pm, 4 pm Jury Services Government Center 8/23/17 8:30 am, 10 am, 11 am County Board of Supervisors Paso Robles Court 8/24/17 9:30 am, 12:00 pm, 2:00 pm, 3:30 pm Hearing Room Paso Robles Court 8/31/17 9:30 am, 12 pm, 2 pm, 3:30 pm Hearing Room Sheriff-Templeton 9/6/17 7:00 am Conference Room Government Center 9/6/17 1 pm, 2:30 pm, 4 pm County Board of Supervisors Probation-SLO Adult Probation Office 9/7/17 9:30 am, 12:00 pm, 2:30 pm Casa Classroom Atascadero Library 9/8/17 11 am, 12 pm, 2 pm, 3 pm Conference Room South County Regional Center 9/14/17 10 am, 11:30 am, 1:30 pm, 3:30 pm South County Regional 3

4 Investment Option Updates Your current funds will be mapped as displayed in the table below. On September 28, 2017 after 5 a.m. PT, you will have the option of selecting your own mix of investment options from the To (New Fund) column in the table below. About the Guaranteed Portfolio and Government Funds: Guaranteed Portfolio Fund Empower has committed to transfer participant assets invested in the Guaranteed Portfolio Fund at book value 12 months after the transition date, i.e. in September Until that time, you will receive a separate statement from Empower. Guaranteed Government Fund Empower has committed to transfer participant assets invested in the Guaranteed Government Fund at market value in October Assets in these Guaranteed Funds will be reflected in participant account balances within seven business days of receipt from Empower. Asset Class From (Current Fund) Ticker To (New Fund) Ticker Lifetime GREAT-WEST LIFETIME 2015 TRUST N/A VANGUARD TARGET RETIREMENT 2015 FUND VTXVX Lifetime GREAT-WEST LIFETIME 2025 TRUST N/A VANGUARD TARGET RETIREMENT 2025 FUND VTTVX Lifetime GREAT-WEST LIFETIME 2035 TRUST N/A VANGUARD TARGET RETIREMENT 2035 FUND VTTHX Lifetime GREAT-WEST LIFETIME 2045 TRUST N/A VANGUARD TARGET RETIREMENT 2045 FUND VTIVX Lifetime GREAT-WEST LIFETIME 2055 TRUST N/A VANGUARD TARGET RETIREMENT 2055 FUND VFFVX Asset Allocation CONSERVATIVE PROFILE N/A AMERICAN FUNDS INCOME PORTFOLIO R-5E RGOFX Asset Allocation MODERATELY CONSERVATIVE PROFILE N/A AMERICAN FUNDS INCOME PORTFOLIO R-5E RGOFX Asset Allocation MODERATE PROFILE N/A AMERICAN FUNDS BALANCED PORTFOLIO R-5E RGPFX Asset Allocation MODERATELY AGGRESSIVE PROFILE N/A AMERICAN FUNDS GROWTH AND INCOME PORT R-5E RGQFX Asset Allocation AGGRESSIVE PROFILE N/A AMERICAN FUNDS GROWTH PORTFOLIO R-5E RGSFX International ARTISAN INTERNATIONAL VALUE INVESTOR ARTKX ARTISAN INTERNATIONAL VALUE ADVISOR APDKX International DODGE & COX INTERNATIONAL STOCK DODFX DODGE & COX INTERNATIONAL STOCK DODFX International OPPENHEIMER INTERNATIONAL GROWTH Y OIGYX OPPENHEIMER INTERNATIONAL GROWTH Y OIGYX Specialty JANUS GLOBAL TECHNOLOGY T JAGTX VANGUARD 500 INDEX ADMIRAL VFIAX Small Cap LORD ABBETT ALPHA STRATEGY A ALFAX LORD ABBETT ALPHA STRATEGY A ALFAX Small Cap PRUDENTIAL JENNISON SMALL COMPANY A PGOAX PRUDENTIAL JENNISON SMALL COMPANY Z PSCZX Mid Cap ARIEL APPRECIATION FUND CAAPX ARIEL APPRECIATION FUND INVESTOR CAAPX Mid Cap JPMORGAN MID CAP VALUE L FLMVX JPMORGAN MID CAP VALUE L FLMVX Mid Cap WELLS FARGO DISCOVERY A WFDAX HARTFORD MIDCAP R5 HFMTX Large Cap AMERICAN CENTURY ULTRA INV TWCUX T. ROWE PRICE GROWTH STOCK FUND PRGFX Large Cap INVESCO DIVERSIFIED DIVIDEND R5 DDFIX INVESCO DIVERSIFIED DIVIDEND R5 DDFIX Large Cap PARNASSUS CORE EQUITY - INV PRBLX PARNASSUS CORE EQUITY INSTITUTIONAL PRILX Large Cap T. ROWE PRICE DIVIDEND GROWTH PRDGX T. ROWE PRICE DIVIDEND GROWTH PRDGX Large Cap T. ROWE PRICE GROWTH STOCK FUND - ADV TRSAX T. ROWE PRICE GROWTH STOCK FUND PRGFX Large Cap VANGUARD 500 INDEX ADMIRAL VFIAX VANGUARD 500 INDEX ADMIRAL VFIAX Large Cap VANGUARD TOTAL STOCK MKT IDX ADM VTSAX VANGUARD 500 INDEX ADMIRAL VFIAX 4

5 Asset Class From (Current Fund) Ticker To (New Fund) Ticker Balanced FIDELITY PURITAN FPURX FIDELITY PURITAN FPURX Balanced VANGUARD WELLESLEY INCOME FUND VWINX VANGUARD WELLESLEY INCOME FUND VWINX Bond HARBOR BOND FUND HABDX HARBOR BOND FUND INSTL HABDX Bond Fixed VANGUARD HIGH YIELD CORPORATE FUND GREAT-WEST GUARANTEED GOVERNMENT FUND VWEHX VANGUARD HIGH YIELD CORPORATE FUND VWEHX GGF NATIONWIDE FIXED ACCOUNT* n/a Fixed GREAT-WEST PORTFOLIO FUND PORT NATIONWIDE FIXED ACCOUNT* n/a *Future Participant Deferrals only New Funds: Asset Class Ticker Symbol Investment Name Asset Allocation VTINX VANGUARD TARGET RETIREMENT INCOME FUND Asset Allocation VTWNX VANGUARD TARGET RETIREMENT 2020 FUND Asset Allocation VTHRX VANGUARD TARGET RETIREMENT 2030 FUND Asset Allocation VFORX VANGUARD TARGET RETIREMENT 2040 FUND Asset Allocation VFIFX VANGUARD TARGET RETIREMENT 2050 FUND Asset Allocation VTTSX VANGUARD TARGET RETIREMENT 2060 FUND Bond RGMFX AMERICAN FUNDS PRESERVATION PORTFOLIO R-5E Bond VBTLX VANGUARD TOTAL BOND MARKET INDEX ADM Mid Cap VEXAX VANGUARD EXTENDED MARKET INDEX ADMIRAL International VTIAX VANGUARD TOTAL INTL STOCK INDEX ADMIRAL Small Cap NDVUX MFS NEW DISCOVERY VALUE R4 Important information to consider 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. Before investing, consider the fund s investment objectives, risks, and charges and expenses carefully. Each fund s prospectus contains this and other important information, and is available by calling or by download at sanluisobispo457.com. Read carefully before investing. Bond funds have the same interest rate, inflation and credit risks that are 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. International funds involve risks not associated with investing solely in the U.S., such as currency fluctuation, political risk, differences in accounting and the limited availability of information. Large-cap funds are subject to market risk that is generally perceived to be less than with mid- and small-cap funds. Mid-cap funds are subject to market risk that is generally perceived to be greater than large-cap stock funds, but less so than small-cap funds. Real estate funds are sensitive to economic and business cycles specific to the real estate industry as well as changing demographic patterns and government actions. Short-term investment options may be subject to less volatility than other investments, but they may not keep pace with inflation. Small company funds may be subject to greater price volatility and risk than the overall stock market. Target date funds are designed for investors who plan to withdraw funds during or near a specific year after retirement. As a result, the funds are managed to become more conservative that is, decrease in market risk as that year approaches. However, no strategy can assure a profit or prevent a loss, especially in a declining market; the funds are not guaranteed to provide enough income to last through retirement. In addition to the costs of the fund, investors pay a proportionate share of the underlying fund expenses. Nationwide Fixed Account is offered by Nationwide Life Insurance Company, Columbus, Ohio. Guarantees are subject to the claims-paying ability of Nationwide Life. 5

6 Our managed account option can help you be more confident in your investing. If you are currently enrolled in Empower s managed account service, contact Nationwide at to discuss the managed account service option available through Nationwide (Nationwide ProAccount ). With the transition, assets in your managed account will transition to the underlying funds in your account. If you are not currently enrolled in a professionally managed account solution, you can learn more or request that your plan assets be professionally managed by calling Nationwide at or your local service team featured on page 7. Self Directed Option If you have a self directed brokerage account with TD Ameritrade, your funds and investments will transfer to the Charles Schwab & Co., Inc. PCRA self-directed brokerage account. Through the Schwab Personal Choice Retirement Account (PCRA ), you can have access to thousands of mutual funds outside of the 457(b) and 401(a) Plans. Brokerage services for the Schwab PCRA are provided by Charles Schwab & Co., Inc. (member SIPC). PCRA is service mark of Charles Schwab & Co., Inc., which is not an affiliate of Nationwide or any of its companies. 6

7 How to access your account Beginning September 28, 2017 at 7:00 a.m. PT, you can manage your account by phone. Just call and follow the prompts to establish your PIN for account access. Correspondence from Nationwide with your new account number will be sent within 5-10 working days after the September 28, 2017 transition date. Use this number to establish an online account (including establishing a username and password) and sign up for edelivery. As you set up access to your account online and by phone, you will be asked to use your Social Security Number, date of birth and account number. This is the only time you will be asked to use your Social Security Number. In the meantime, please familiarize yourself with our new website and the tools and resources featured there. When you set up your online account, review and manage your beneficiary designation(s). To do this, log into into your account and select Manage Beneficiaries in the left navigation bar. It is important to do this now and whenever you have an important life event. If you would like more information about the enhancements coming to your retirement plan, contact your Nationwide Retirement Specialists: Lupita Ayala ayalag2@nationwide.com Gareth Ward wardg1@nationwide.com 7

8 Investing involves market risk, including possible loss of principal. No investment strategy or program, including participation in Nationwide ProAccount, can guarantee a profit or avoid loss. Investment advice for Nationwide ProAccount is provided to plan participants by Nationwide Investment Advisors, LLC (NIA), an SEC-registered adviser. NIA charges an asset-based fee for the managed account services. NIA has retained Wilshire as an Independent Financial Expert for Nationwide ProAccount. While NIA is the investment adviser for your account, Wilshire provides NIA with investment decisions for the Nationwide ProAccount portfolios. NIA will exercise discretionary authority to allocate and rebalance a Nationwide ProAccount participant s account to implement the advice provided by Wilshire. Wilshire is a registered service mark of Wilshire Associates Incorporated, Santa Monica, California, which is not an affiliate of the Plan, NIA or Nationwide. Nationwide Retirement Specialists are Registered Representatives of Nationwide Investment Services Corporation, member FINRA. Nationwide representatives cannot offer investment, tax or legal advice. Consult your own counsel before making decisions about participation in the Deferred Compensation Plans. Nationwide, through its affiliated retirement plan service and product providers, have endorsement relationships with the National Association of Counties and the International Association of Fire Fighters-Financial Corporation. In addition, Nationwide may receive payments from mutual funds or their affiliates in connection the variety of investment options offered to public sector retirement plans through variable annuity contracts, trust or custodial accounts. For more detail about Nationwide s endorsement relationships and/or payments Nationwide receives, please visit Nationwide, the Nationwide N and Eagle, Nationwide ProAccount and My Interactive Retirement Planner are service marks of Nationwide Mutual Insurance Company Nationwide NRM-14868CA (07/17)