457 Deferred Compensation Plan

Transcription

1 457 Deferred Compensation Plan E M P L O Y E E S E R V I C E S A G E N C Y EMPLOYEE BENEFITS A S S E R V I N G I T Y Y O U Y O U S E R V E O U R C O M M U N Guiding You Toward Retirement Readiness

2 457 Deferred Compensation Plan Welcome to Fidelity Investments : a guide to the transition ahead The County of Santa Clara is committed to offering you resources to help you map out your retirement goals. Together with Fidelity we are here to help you at every step in your journey. A Special Note for Former Employees, Alternate Payees, and Plan Beneficiaries: If you are a former employee, alternate payee, or beneficiary with an account balance in the 457 Plan, some of the information enclosed may not apply to you. However, you will be affected by the upcoming transition, so please read this material carefully. 2

3 No matter where you are in your journey, we can help you map out the retirement you envision. Effective December 8, 2017, Fidelity Investments will become the new service provider for the County of Santa Clara s 457 Deferred Compensation Plan. Your County of Santa Clara 457 Deferred Compensation Plan ( 457 Plan ) is an essential benefit to help you meet your retirement savings goals. You need the right information, resources, and support to help you make decisions with confidence. With more than 65 years of financial services experience, Fidelity can help you design a plan that balances the needs of your life today with your retirement vision for tomorrow. Table of Contents Page Transition Highlights 4-5 Investment Options 6-7 Activity Calendar 8-9 Features and Services 10 Tools and Resources 11 Go Mobile 14 Key Dates and Action Steps 15 Use this guide as a resource to help you take an active role in your retirement planning. Discover what your 457 Plan offers review new services and features available to the 457 Plan. Review the investment options available in the 457 Plan. Review the key transition dates and take note of services that may be temporarily unavailable during the transition. Take advantage of the tools and resources you need to help you make educated investment decisions. 3

4 457 Deferred Compensation Plan Transition Highlights The County of Santa Clara strives to provide you with programs, tools, and resources to help you plan for a secure retirement. Together with Fidelity, we ll provide a new level of service and commitment to help you meet your retirement goals. What s available in the 457 Plan at Fidelity Fidelity Portfolio Advisory Service at Work 1 Fidelity BrokerageLink NetBenefits Website (netbenefits.com/santaclara) Take the time and stress out of managing your own investments with access to a team of professionals that will help you create a plan and stay on track to retirement. Participants currently enrolled in the ICMA-RC Guided Pathways Fund Advice and Managed Accounts Investment Advisory Service will be enrolled in the Fidelity Portfolio Advisory Service at Work. A separate notification regarding your enrollment will be sent in January with additional details. Gives you access to additional investment choices for your retirement savings beyond those investment options available in the core 457 Plan lineup. Participants with a TD Ameritrade brokerage account will transfer to a Fidelity BrokerageLink account. A separate notification will be sent in November with additional details about the transfer. Access to Fidelity s comprehensive website dedicated to retirement planning. Here is where you will manage your account, make decisions on your investment choices, and find interactive tools and calculators to help you better prepare to meet your retirement savings goals. Once the transition is complete, you can make updates to your salary deferral online at NetBenefits. Any changes made will be effective on the first pay date of the following month. See the Tools and Resources section of this guide for more details. Rebalance Notification Online Beneficiary Designations Get notified via any time your account s investment mix strays from your original strategy. Once the transition is complete, you can sign up for this service online at NetBenefits at netbenefits.com/santaclara. With Fidelity s Online Beneficiaries Service, you can designate your Deferred Compensation beneficiaries, receive instant online confirmation, and check your beneficiary information virtually any time. Beneficiary information currently on file will not transfer to Fidelity. You can designate your beneficiaries on NetBenefits at netbenefits.com/santaclara or call your Plan s toll-free number at 844-SCC-457B for help or to request a beneficiary form. 1 Fidelity Portfolio Advisory Service at Work is a service of Strategic Advisers, Inc., a registered investment adviser and a Fidelity Investments company. This service provides discretionary money management for a fee, which will be paid from your 457 Plan account. 4

5 Workplace Planning and Support Investor Centers Fidelity Retirement Planners are knowledgeable professionals equipped with detailed information about the 457 Plan and the financial know-how to provide advice that will help you get on your way to your retirement goals. Fidelity will have three dedicated Retirement Planners on site to provide complimentary one-on-one consultations to County employees. Let an experienced representative help you develop your own comprehensive plan that integrates your workplace savings plans with your overall financial goals. Visit netbenefits.com/santaclara to schedule an appointment. Fidelity has more than 190 Investor Centers across the country with six locations in Santa Clara County. The professionals in the Investor Centers are highly trained to provide you with the latest retirement planning insights and investment help. Investor Center products and services are offered beyond your employer-sponsored retirement plan. Find an Investor Center near you online at What Will Continue During the transition, some account activities will continue, including: Payroll Contributions Outstanding Loans Your pretax contribution deducted from your pay, including catch-up contributions, if applicable, in effect on November 30, 2017, will continue and transfer to Fidelity. Once the transition is complete, you can make updates to your salary deferral online at NetBenefits. Any changes made will be effective on the first pay date of the following month. Any outstanding loan balances in the 457 Plan will transfer to Fidelity. If you are currently an active participant in the 457 Plan, you will continue to repay your loan(s) in the 457 Plan in the same manner as you have with ICMA-RC. The transition will not affect the terms or length of your loan(s). Your bank information on file with ICMA-RC will transfer to Fidelity. Loan payments will be made on a monthly basis. A separate notification will be sent in December to participants with a loan and information for the Automated Clearing House (ACH) service. When the transition is complete, you can view your loan information online at NetBenefits at netbenefit.com/santaclara. Investment Allocations The current investment options will remain in the 457 Plan. Any balances you have invested in these investment options as of December 7, 2017, will transfer to the same funds (referred to as an in-kind transfer). Future contributions will continue to be invested in the 457 Plan funds unless you direct otherwise by making changes to your account at ICMA-RC before November 30,

6 457 Deferred Compensation Plan Investment Options Before investing in any mutual fund, consider the investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully. Overview The 457 Plan gives you a choice of investment options that allow you the flexibility to build your own strategy to meet your needs both long and short term. After the transition, the 457 Plan will continue to offer the same range of investment options. The County of Santa Clara may determine that a reregistration, or in-kind transfer, is appropriate. Please be aware that the investment options will transfer individually in-kind, and the investments will remain fully invested during the transition. Now is a good time to look at your situation and decide whether changes might be appropriate to better align your investment approach with your retirement needs. The following investment options will continue to be available in the 457 Plan. Refer to the Investment Options Guide at netbenefits.com/santaclara for investment descriptions. INVESTMENT OPTION TICKER SYMBOL Target Date Funds Vanguard Institutional Target Retirement 2015 Fund Institutional Shares Vanguard Institutional Target Retirement 2020 Fund Institutional Shares Vanguard Institutional Target Retirement 2025 Fund Institutional Shares Vanguard Institutional Target Retirement 2030 Fund Institutional Shares Vanguard Institutional Target Retirement 2035 Fund Institutional Shares Vanguard Institutional Target Retirement 2040 Fund Institutional Shares Vanguard Institutional Target Retirement 2045 Fund Institutional Shares Vanguard Institutional Target Retirement 2050 Fund Institutional Shares Vanguard Institutional Target Retirement 2055 Fund Institutional Shares Vanguard Institutional Target Retirement 2060 Fund Institutional Shares Vanguard Institutional Target Retirement 2065 Fund Institutional Shares Vanguard Institutional Target Retirement Income Fund Institutional Shares Core Funds Asset Class: Stable Value VantageTrust Plus Fund R10 Asset Class: Bond PIMCO Total Return Fund Institutional Class VITVX VITWX VRIVX VTTWX VITFX VIRSX VITLX VTRLX VIVLX VILVX VSXFX VITRX N/A PTTRX 6

7 Core Funds (continued) Vanguard Inflation-Protected Securities Fund Institutional Shares VIPIX Vanguard Total Bond Market Index Fund Institutional Shares VBTIX Asset Class: Balanced/Hybrid Vanguard Wellington Fund Admiral Shares VWENX Asset Class: Domestic Equities - Large Value Vanguard Windsor II Fund Admiral Shares VWNAX Asset Class: Domestic Equities - Large Blend Calvert U.S. Large Cap Core Responsible Index Fund Class I CISIX Vanguard Institutional Index Fund Institutional Shares VINIX Asset Class: Domestic Equities - Large Growth Fidelity Contrafund FCNTX T. Rowe Price Institutional Large Cap Growth Fund TRLGX Asset Class: Domestic Equities - Mid Blend Vanguard Extended Market Index Fund Institutional Shares VIEIX Asset Class: International/Global American Funds Capital World Growth and Income Fund Class R-6 RWIGX American Funds EuroPacific Growth Fund Class R-6 RERGX Dodge & Cox International Stock Fund DODFX Fidelity Diversified International Fund FDIVX Vanguard FTSE All-World ex-us Index Fund Institutional Shares VFWSX Asset Class: Specialty Vanguard REIT Index Fund Institutional Shares VGSNX Self-Directed Brokerage Transferring to Fidelity BrokerageLink When the market closes (generally 1 p.m. Pacific time) on December 7, 2017, the brokerage accounts through TD Ameritrade will no longer be available. As a result, current account balances and future contributions to TD Ameritrade will transfer to Fidelity BrokerageLink on or about December 7, Watch for a separate communication regarding brokerage account transfers. Default Investment Option Future contributions to your account that you have not directed to a specific investment option in the 457 Plan will be invested in the Vanguard Institutional Target Retirement Fund Institutional Shares. Your future contributions will be invested in the target date fund that has a target retirement date closest to the year you might retire and assumes a retirement age of 65. Please refer to the enclosed Default Investment Alternative Notice for addition information on the default investment option. 7

8 457 Deferred Compensation Plan Activity Calendar Please review this activity calendar to understand how your account may be affected during the transition period. To ensure that all information is transferred accurately from your current plan account at ICMA-RC to your new 457 Plan account at Fidelity, there will be a period of time when you will be unable to direct or diversify investments in your individual accounts, obtain a loan from the Plan, or obtain a distribution from the Plan. This period during which you will be unable to exercise these rights otherwise available under the 457 Plan is called a blackout period. Whether or not you are planning retirement in the near future, we encourage you to carefully consider how this blackout period may affect your retirement planning, as well as your overall financial plan. The blackout period for the 457 Plan is expected to begin on November 30, 2017, and is scheduled to end on December 11, During this time, you can determine whether the blackout period has started or ended by calling the Fidelity Retirement Service Center at 844-SCC-457B or going online at netbenefits.com/santaclara. During the blackout period, you will be unable to direct or diversify the assets held in your 457 Plan account. For this reason, it is very important that you review and consider the appropriateness of your current investments in light of your inability to direct or diversify those investments during the blackout period. For your long-term retirement security, you should give careful consideration to the importance of a well-balanced and diversified investment portfolio, taking into account all your assets, income, and investments. If you have any questions or if you would like to make any changes to your account at ICMA-RC before the start of the blackout period, please go online at or call before November 30, 2017, at 1 p.m. Pacific time. KEY DATES* November 30, 2017, at 1 p.m. Pacific time PLAN ACTIVITY/ACTION STEPS Any changes to your future contribution rate or enrollment in the 457 Plan must be completed by this date. BLACKOUT PERIOD BEGINS This is the last day at ICMA-RC to: Return paperwork to request a loan or distribution. Change how contributions will be invested. Check your account balance. Request an exchange (transfer balance) between investment options. Process transactions in a brokerage account. All Systematic Withdrawal Payouts (SWP) and Mandatory Required Distributions (MRD) will be processed. It is important to return all necessary paperwork to ICMA-RC to process a loan or distribution before the blackout period begins. Please allow enough time to request, receive, complete, and return the paperwork to ICMA-RC before this deadline. 8

9 KEY DATES* December 7, 2017, at 1 p.m. Pacific time December 8, 2017 December 11, 2017 January 2018 PLAN ACTIVITY/ACTION STEPS Your account balances are valued at the close of the market. Your account balances are scheduled to transfer to Fidelity. BLACKOUT PERIOD ENDS The blackout period is expected to end, and the Fidelity Retirement Service Center and NetBenefits website will open for all Plan services. You can now: Set up your username and password and log on to NetBenefits at netbenefits.com/santaclara. Review your account balances. Access investment option descriptions and research investment performance. Enroll in the 457 Plan. Call 844-SCC-457B to speak with a Fidelity representative who can answer questions and walk you through any transaction you want to make in your account. Choose your beneficiaries. Beneficiary information currently on file will not transfer to Fidelity. You can designate your beneficiaries on NetBenefits at netbenefits.com/santaclara or call your Plan s toll-free number at 844-SCC-457B for help or to request a beneficiary form. Final account statement from ICMA-RC will be mailed to you. The quarterly statement is available online from Fidelity. Compare Fidelity s statement with your final account statement from ICMA-RC. Contact Fidelity with any questions. Account statements for the 457 Plan are available online at netbenefits.com/santaclara and will not be automatically mailed to your home. To change your mail preferences and request that statements be mailed to your home address, call Fidelity at 844-SCC-457B or log on to NetBenefits at netbenefits.com/santaclara. Simply click Profile, then Preferences. * The timing of the plan changes and transition period, including any asset reallocations, described within this brochure depends on a variety of factors, which may include the timing and accuracy of the transfer of data, receipt of instructions, and receipt of assets. Changes in any of these factors may result in changes to the timing of the delivery of services, the transition period, and/or the dates on which, and thus the prices at which, assets in your account are sold and/or reinvested. 9

10 457 Deferred Compensation Plan Features and Services Here is additional information about some of the features and services offered through the 457 Plan, designed to help you meet your retirement goals. Fidelity Portfolio Advisory Service at Work Fidelity Portfolio Advisory Service at Work offers a valuable managed account service to help you get, and stay, on course toward your retirement goals. With Fidelity Portfolio Advisory Service at Work, you get active retirement account management. This means that Fidelity s team of investment professionals invest, monitor, and rebalance your account as needed to adjust to changes in the market, or changes to your situation. Fidelity Professionals are available to answer any questions you may have about this managed account service. Call 844-SCC-457B for more information. Fidelity Portfolio Advisory Service at Work is a service of Strategic Advisers, Inc., a registered investment adviser and a Fidelity Investments company. This service provides discretionary money management for a fee, which will be paid from your 457 Plan account. Investor Centers Fidelity Investor Centers provide local, face-to-face support to help address comprehensive financial needs. Investment and planning capabilities are available for plan participants seeking a more comprehensive approach to planning. Suite of services includes: Investment strategy Retirement income planning Income and asset protection Family assistance Nationwide network of more than 190 centers Licensed professionals available In addition, you can get assistance with unique and complex financial needs. Fidelity s representatives leverage online planning programs and educational seminars to build and manage individual plans. Fidelity BrokerageLink Fidelity BrokerageLink provides you with an opportunity to invest in a broad range of investment options beyond those offered directly through the 457 Plan. The Plan fiduciary neither evaluates nor monitors the investments available through BrokerageLink. It is your responsibility to ensure the investments you select are suitable for your situation, including your goals, time horizon, and risk tolerance. Call Fidelity for a fact sheet and commission schedule for applicable fees and risks. 10 Palo Alto 251 University Avenue Palo Alto, CA Mountain View 2580 West El Camino Real Mountain View, CA Sunnyvale 398 West El Camino Real Sunnyvale, CA Campbell 851 East Hamilton Avenue Campbell, CA San Jose 4160 North First Street San Jose, CA Los Gatos 434 N. Santa Cruz Avenue Los Gatos, CA

11 Tools and Resources It all starts on NetBenefits at netbenefits.com/santaclara Fidelity s website is designed so you can quickly and easily set up, monitor, and manage your 457 Plan account. Beginning December 11, 2017: If you have a username and password for other accounts at Fidelity, you can use that information to log on to NetBenefits and access your 457 Plan account. If you do not have a Fidelity username and password, log on to NetBenefits at netbenefits.com/santaclara, click Register Now, and follow the step-by-step instructions to set up your account. Online resources to help you succeed Once your account is set up, it s time to make sure your investment strategy is on track. From practical education to easy-to-use tools, you now have access to Fidelity s innovative resources and insights to help you make informed decisions. IF YOU WANT HELP WITH: Taking Control of Your Financial Future Financial Learning Resources Saving for Retirement Saving and Spending Investing Strategies TAKE THESE STEPS: Answer just a few questions and you ll be able to: Estimate how much income you may have or need in retirement Receive tips to help you get or stay on track Create a retirement plan in minutes Review articles, infographics, videos, and more to suit your interests and skill level. See how increasing your contributions may help your money grow over time. See how your pretax contribution might affect your take-home pay. Understand how much you may need to save for college and what your options are for investing. Easily monitor all of your Fidelity and non-fidelity online financial accounts in one secure place. See how your savings and spending compare using a simple rule of thumb. Determine how to invest your savings among stocks, bonds, and short-term investments. Build a portfolio for your retirement income. USE THIS ONLINE RESOURCE: Planning & Guidance Center Library Contribution Calculator Take-Home Pay Calculator College Planner Full View Savings and Spending Checkup Determine Your Asset Mix Worksheet Fidelity Income Strategy Evaluator Getting Ready to Retire If you re retiring or approaching retirement, create an income plan. Planning & Guidance Center IMPORTANT: The projections or other information generated by Fidelity s Income Strategy Evaluator and Planning & Guidance Center Retirement Analysis tools regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Results may vary with each use and over time. 11

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14 457 Deferred Compensation Plan Go Mobile. Download the NetBenefits mobile app. Download a NetBenefits mobile app from the App Store, Google Play store, or Windows Store. Connect with a rep instantly by tapping Give Us a Call NetBenefits smartphone and ipad app NetBenefits Microsoft Surface TM app Screenshots are for illustrative purposes only. System availability and response times may be subject to market conditions. The trademarks and service marks appearing herein are the property of their respective owners. All other trademarks and service marks are the property of FMR LLC or an affiliated company, and may be registered. 14

15 Key Dates and Action Steps Before the blackout period begins on November 30, 2017, at 1 p.m. Pacific time: 0 Make any updates or changes to your ICMA-RC account. Call or go online to Return paperwork to request a loan or distribution to ICMA-RC, if applicable. It is important to return all necessary paperwork to ICMA-RC to process a loan or distribution before the blackout period begins. Please allow enough time to request, receive, complete, and return the paperwork to ICMA-RC before the blackout begins. You can change how contributions will be invested before the blackout period begins. Check your account balance. If needed, request an exchange (transfer balance) between investment options. Process any transactions in a brokerage account, as desired. 0 Attend a workshop. You will receive details on upcoming workshop times and locations. Or you may visit netbenefits.com/santaclara for information. After the blackout period, scheduled to end on December 11, 2017: 0 Log on to NetBenefits at netbenefits.com/santaclara to: Set up your username and password to access your 457 Plan account. Add your preferred address and elect edelivery. Enroll in the 457 Plan, adjust your contribution amount, and/or change your investment elections. Enter your beneficiary information. Access information about each investment option available in the 457 Plan, including investment risk, strategy, and objective. Review the fact sheet or prospectus, if available. Investing involves risk, including risk of loss. This document provides only a summary of the main features of the County of Santa Clara 457 Deferred Compensation Plan, and the 457 Plan document will govern in the event of any discrepancies. Fidelity Brokerage Services LLC, Member NYSE, SIPC 900 Salem Street, Smithfield, RI FMR LLC. All rights reserved

16 County of Santa Clara, Employee Services Agency 70 W. Hedding Street, East Wing, 8th Floor, San Jose, CA Phone: