Dear Participants, For more information, please check out the Your Plan Your Way article in this newsletter. January Blake G.

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1 January 2017 HELPLINE: TTY/TDD: WEB: nysdcp.com Dear Participants, We spend a lot of time making decisions. Some decisions are trite, like picking out an ice cream flavor, while others can have a meaningful impact on your life. The easiest decisions are those about the things we like best, where no research needs to be done. For more serious decisions, we either need to have plenty of information ourselves, or we enlist the help of relevant experts. We make important decisions when we decide how to invest our contributions into the Plan s investment options. We want to make the most informed decisions we can, but our abilities and comfort in making investment decisions vary widely. Even the best choices may need to be adjusted due to changes in the world around us. The good news is that the Plan s investment options are structured in a way to meet almost every need. Don t feel comfortable making asset allocation decisions and would prefer to leave that to experts? The Plan offers a series of Retirement Date Funds. These funds have target years you select based on the approximate year you expect to start to receive distributions from the Plan. Want more control and wish to create your own asset allocation? The Plan offers core options that cover all the major asset classes in fixed income, domestic stocks and international stocks. You can also use some of these core funds to compliment the Retirement Date Funds. There are online tools available to help you determine your risk tolerance as well as Account Executives who can provide one-on-one help. Finally, there is a third tier which offers access to the Self-Directed Investment Account and a few additional specialty investment options that are not found among the core options. For more information, please check out the Your Plan Your Way article in this newsletter. Diana Jones Ritter Blake G. Washington David J. Natoli

2 Be wise protect your online identity Tell a Friend Is that you, Bluebird? Bluebird, this is silly. What is wrong now? Shhh! It might be. Who wants to know? My friend s was attacked yesterday. I m protecting my identity. But wearing this outfit won t protect your online identity! Oh, there are many great tips out there and they re all relatively easy to follow. What can I do then?! My investments are so important! Of course, you can always call your Account Executive or the HELPLINE at for additional help. Wonderful! It s great to know help is out there! Remember, you don t need to wear a silly disguise just be wise!

3 Keeping your investments safe and secure We provide a secure Web site and screen HELPLINE calls to ensure identities. But you need to take precautions in your Web usage. Here s what you can do: PASSWORDS Figuring out a password is like cracking a code. Make it difficult for hackers to know your password. You can create a strong password by incorporating capital letters and numbers, and using more than 12 characters total. DEVICES Set up a password or PIN code for each of your devices, such as your desktop computer, laptop, smart phone and tablet. Always make sure that these devices are locked when not in use. Even your work computer should be locked when you step away from your desk. S Even if you have good security software on your computer, your friends and family might not. Be careful about the information you send by . Never send your credit card information, Social Security number, or other private information via . Also, watch out for phishing scams. These are fake s that look like they come from legitimate businesses. They want to lure you into revealing your login or private account information. To be safe, if you receive an from a business that includes a link to a Web site, open a separate browser window and visit the business Web site that way. You can also verify that an is from a legitimate business by calling the business or agency directly. ONLINE SHOPPING If you shop online, make sure the site you re using is secure. A quick way to do this is to check that the site s Web address (aka URL) begins with https at the time of checkout. Also, look for a tiny locked padlock symbol on your browser at the checkout screen. This symbol represents that the Web site is in secure mode. GAMING When playing online games make sure you re careful, especially when playing with other online players. Be sure your security software is working when you re in gaming mode. HELPLINE: TTY/TDD: WEB: nysdcp.com

4 SECURITY SOFTWARE There are many good and helpful security software sources out there. Ask for a recommendation from a trusted friend who works with computers or IT. Unlike one-time software which can become outdated, subscribing to an online security service provides updates and protection every time you go online, making it well worth the annual fee. CHILDREN If you have children, keep your family computer in an open area so that you can monitor their activity. Limit your children s time spent online and use parental control software that allows you to oversee their activity online. This will keep your children from accessing undesirable Web sites and sharing personal information via online communications. SOCIAL MEDIA Social media is a prime location for people to obtain your information. To protect yourself, be extremely cautious about what personal information you share on social media, lock down your social media profiles and only accept friend requests from people you know. Be suspicious of anyone who asks for your personal information online and never share your home address, phone number, Social Security number, or other identifying information. And remember to always manage your privacy settings, making sure that you are only sharing information with friends and family. Check your settings regularly in case there are any changes. With all the focus on online threats, it s easy to forget that we all must be careful when talking over the phone, too. This is why participants are asked several identifying questions when calling the HELPLINE. Rest assured, the individuals who answer calls on the HELPLINE are specifically trained to manage accounts and detect fraud attempts. Faster. Cleaner. Greener. edelivery delivers Plan newsletters, statements and confirmations at the speed of light. Save time. Save trees. Go Paperless.

5 Your Plan your way As a participant in the Plan, you have access to a variety of investment options to help you build your retirement account. Whether you're a hands-off investor, a do-it-yourselfer, or somewhere in between, you can potentially find the right investments for you with the Plan's investment structure. The Plan s investment structure makes using an asset allocation strategy less difficult and helps meet the needs of those who want varying levels of involvement in investment decision-making. You may choose to mix and match investment options from more than one category below. Do-It-For-Me Choose a T. Rowe Price Retirement Fund. You may not have the time nor desire to select and track your Plan investments, so this series of funds is designed to meet your retirement investment needs without regular input from you. The funds invest in a combination of T. Rowe Price stock and bond funds in pursuit of different risk and reward goals based on a specific retirement year (aka target date). You normally choose one Retirement Fund with a date that includes the five-year increment closest to your retirement date or the date you expect to start withdrawing funds from the Plan, whichever is later. The portfolios are designed to become more conservative over time.* Do-it-Yourself Create a portfolio based on your investment strategy and tolerance for risk. Participants may design their own asset allocation from the core menu of individual investment options. Unlike the target date funds, a number of these options are typically used together to create your retirement portfolio. You can also use one or more of these funds to supplement the target date funds. In each asset class, an index fund option is available for participants who desire a passive investment strategy. Specialty Options Transfer a portion of your Plan balance to a self-directed brokerage account (SDO) managed by Charles Schwab & Co. Inc., Inc. The SDO is available for participants who wish to include mutual fund or exchange traded fund (ETF) options outside of the other investment options. Neither the Deferred Compensation Board nor the Plan s Investment Consultants perform any review of the mutual funds or ETFs offered in this program. Participants can review Plan materials and the Self-Directed Investment Account Handbook to determine eligibility and additional fees that may apply. Other specialty options may be included in this category, representing specialized investment philosophies. The Schwab Personal Retirement Account is offered through Charles Schwab & Co., Inc. (Member SIPC) Visit nysdcp.com or call the HELPLINE Toll Free at Personalized assistance is available 8 a.m. to 11 p.m., Monday through Friday and 9 a.m. to 6 p.m. on Saturdays, except holidays.

6 Welcome new participating employers Cuba Rushford CSD Elmira City SD Fallsburg Library Hamilton CSD Island Park CSD Schoharie CSD Thrall Public Library Town of Canandaigua Town of Conesus Town of Fulton Town of Newport Town of South Bristol Town of Trenton Town of Westerlo Village of Clayville Worcester CSD Current Fund Developments Effective January 1, 2017, Michael Schneider, CFA will assume the role of senior portfolio manager and team leader for the Wells Fargo Small Cap Value fund. Charles Rinaldi is retiring from this role but will remain on as an advisor to the fund through January 31, *Target Maturity 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 Target Maturity Funds, an investor is indirectly paying a proportionate share of the applicable fees and expenses of the underlying funds. Target Maturity Funds are designed for people who plan to withdrawal funds during or near a specific year. Like other funds, target date funds are subject to market risk and loss. Loss of principal can occur at any time, including before, at or after the target date. There is no guarantee that target date funds will provide enough income for retirement. Before investing, you should carefully consider the fund s investment objectives, risks, charges, and expenses. This and other information is contained in the fund prospectus, which is available by calling Read it carefully before you invest. This newsletter provides information that is intended to help participants understand what investment alternatives are available to them under the Plan. If you need investment, tax or legal advice, please ask your accountant or lawyer. While we are pleased to help keep you up to date on your retirement savings, nothing in this newsletter can change the terms of the Plan or any investment contract. Participants in the New York State Deferred Compensation Plan will be charged administrative fees for the Plan year beginning April 1, 2016 and ending March 31, Each participant account is charged a $20 annual fee, assessed in two $10 semi-annual installments in April and October. In addition, an asset-based fee determined by the Board will be assessed to participants with a balance greater than $20,000. The asset-based fee will not be assessed on assets in excess of $200,000. The semi-annual asset-based fee assessed in October 2016 was 0.020%. It is anticipated that the semi-annual asset-based fee to be assessed in April 2017 will be 0.020%. Each of the mutual funds offered by the Plan has fund expenses that are netted directly from the mutual fund s daily price. These will vary based upon the investment fund selected. Information provided by Account Executives is for educational purposes only and is not intended as investment advice. Neither the Administrative Service Agency nor any of its representatives offer investment, legal or tax advice. For such guidance, you should consult your own investment, legal or tax advisor. Account Executives are registered representatives of Nationwide Investment Services Corporation, Member FINRA. New York State Deferred Compensation Plan Room 124 Empire State Plaza P.O. Box 2103 Albany, NY Nationwide NRM-2830NY-NY.51 (12/16) HELPLINE: TTY/TDD: WEB: nysdcp.com