Changes to the University of Notre Dame 403(b) Retirement Plan

Transcription

1 Changes to the University of Notre Dame 403(b) Retirement Plan The University of Notre Dame maintains the University of Notre Dame 403(b) Retirement Plan [UND 403(b) Plan]. This packet contains information that may help you become better informed about the UND 403(b) Plan and upcoming changes to the Plan. Whether you have an account already or are eligible to participate in the UND 403(b) Plan, the information in this packet can help you make informed investment decisions regarding your participation in the Plan and your account. If you are a participant in the UND 403(b) Plan, you should have recently received a transition guide explaining the changes ahead and providing important action steps you may want to take. If you did not receive your transition guide, an electronic version can be found at These changes will take place without any action required on your part. However, if you wish to better understand how these changes may affect you, call to discuss with a Fidelity representative. Right to Direct Investments To access your Plan account with Fidelity, make any changes to your investment options in the new line-up (beginning October 6, 2014), direct any future contributions (beginning January 2015), or seek additional information, log on to or call Plan Administrative and s Plan administrative fees may include legal, accounting, trustee, recordkeeping, and other administrative fees and expenses associated with maintaining the Plan. The following changes are being made: Effective January 1, 2015 a new plan administration fee will be added to the Plan in the amounts of $60 per year. This fee will show up as a deduction on your quarterly statement in the amount of $15 per quarter. The fee may be displayed on statements as two separate fees that total $15 per quarter. Your New Investment Options When the market closes (generally 4 p.m. Eastern time) on October 6, 2014, the following investment options will be added to the investment lineup. Please see the Investment Option Descriptions section of this letter for more details. Tier 1: Vanguard Target Retirement Income Vanguard Target Retirement 2010 Vanguard Target Retirement 2015 Vanguard Target Retirement 2020 Vanguard Target Retirement 2025 Vanguard Target Retirement 2030 Vanguard Target Retirement 2035 Vanguard Target Retirement 2040 Vanguard Target Retirement 2045 Vanguard Target Retirement 2050 Vanguard Target Retirement 2055 Vanguard Target Retirement 2060 Tier 2: MetLife Fixed Interest Account* Vanguard Total Bond Market Index Vanguard Total International Bond Index Vanguard Total Stock Market Index Vanguard Total International Stock Index Tier 3: PIMCO Global Bond DFA Inflation Protected Securities Vanguard 500 Index Vanguard Extended Market Index Vanguard Emerging Markets Stock Index Dodge & Cox Global Stock Vanguard REIT Index Effective December 16, 2014, the MetLife Fixed Interest Annuity will feature a guaranteed 3.0% minimum crediting rate and a fully benefit responsive contract, free of surrender charges on participant directed withdrawals or exchanges. Guarantees are subject to the claims-paying ability of Metropolitan Life Insurance Company. Participants considering investing in this fund prior to December 16, 2014 should consider carefully the differences, including liquidity restrictions, between the current non-exclusive annuity contract and the exclusive MetLife Guaranteed Annuity (MGA) September 2014 Page 1 of 17

2 contract featured in the new investment line-up. Elections made in the Early Choice Investment Election Window must be entered into the source labeled Elections 12/16/14 in NetBenefits. Any elections in this source will be applied to future contributions beginning in December and existing balances transferred during the blackout period. Early Choice investment elections made to the MetLife Fixed Interest Annuity will be invested under the exclusive MetLife Guaranteed Annuity (MGA) contract, so no surrender fees will apply on participant directed withdrawals or exchanges." Fidelity BrokerageLink Effective January 1, 2015, the University of Notre Dame is adding Fidelity BrokerageLink to the Plan. Fidelity BrokerageLink allows you to choose from investments beyond those options offered by the Plan. This feature is intended for those who are comfortable actively managing a portfolio of expanded investment choices. Commissions will be charged per order. For commission purposes, orders executed over multiple days will be treated as separate orders. Unless noted otherwise, all fees and commissions are debited from your core account. To utilize this feature, you must first open a separate brokerage account within the Plan. To open an account, or if you have any questions about Fidelity BrokerageLink, please call Once you have opened an account, you may access, monitor, or change investments in your BrokerageLink account by contacting Fidelity. The following plan-imposed restriction(s) applies/apply to BrokerageLink: Mixes and exchanges in to BrokerageLink are limited to 90% of assets in the individual s account. Minimum Initial Transfer: $1,000 Minimum Subsequent Transfer: $500 The Plan's fiduciaries do not monitor the investments available in Fidelity BrokerageLink. This feature is intended for those who are comfortable actively managing a portfolio of expanded investment choices. When you access your BrokerageLink account, there is additional information regarding available investment choices, which you should read before making any investment decisions. If purchasing a mutual fund through BrokerageLink, mutual fund minimums generally still apply. Prior to initiating a trade in your BrokerageLink account, you should review any fees associated with your transaction. Please refer to the Appendix at the end of this notice for brokerage fees. Please note that upon opening a Fidelity BrokerageLink account, the Automatic Rebalance service will no longer be available. As an alternative, consider the free Rebalance Notification service that alerts you by when your account s investment mix strays from your original specification. If you choose to rebalance, you can take action immediately by clicking a link delivered with the message. To learn more about Rebalance Notification: Log on to Fidelity NetBenefits at Go to your retirement savings account. Select Change Investments. Select Rebalance. A self-directed brokerage account may entail greater risk and is not appropriate for everyone. Additional fees apply to a BrokerageLink account. Roth Contribution Option The University of Notre Dame is pleased to announce the availability of a Roth contribution option to the University of Notre Dame 403(b) Retirement Plan. With the addition of this new Roth feature, you will have another choice on how to save for your retirement. Roth contributions and withdrawals are taxed differently from your current plan contribution options. With a Roth feature, you can designate all or a portion of your future deferral contributions as Roth contributions. Roth contributions are made on an after-tax basis and are included in current taxable income. Earnings on Roth contributions are tax free if they are part of a qualified distribution. A qualified distribution is one that is taken at least five tax years from the year of your first Roth contribution and after you have attained age 59 ½ or if you become disabled or deceased. In contrast, traditional contributions are made on a pretax basis and are not included in current taxable income. The pretax contributions and any earnings will be subject to income taxes when withdrawn. You may contribute to both the pretax and Roth option so long as you do not exceed the total IRS contribution limit for that year. September 2014 Page 2 of 17

3 Loans Effective January 1, 2015 loans will be available in the Plan through Fidelity. The loan setup fee associated with this service is $25 per loan (maximum of two concurrent loans allowed in the Plan). Please keep in mind that fees are subject to change. If any individual fees are deducted directly from your account, they will be reflected on your Plan account statement. Investment Options No Longer Available The following investment options will not be available in the UND 403(b) Plan after December 15, Product Name: Ticker Short-term Trading Fee (% / days) Ratio Fidelity Asset Manager 20% FASIX 0.53 Fidelity Asset Manager 30% FTANX 0.57 Fidelity Asset Manager 40% FFANX 0.57 Fidelity Asset Manager 50% FASMX 0.68 Fidelity Asset Manager 60% FSANX 0.75 Fidelity Asset Manager 70% FASGX 0.75 Fidelity Asset Manager 85% FAMRX 0.78 Fidelity Emerging Markets Discovery FEDDX 2.00/ Fidelity Fifty FFTYX 0.83 Fidelity Freedom K 2005 FFKVX 0.50 Fidelity Freedom K 2010 FFKCX 0.53 Fidelity Freedom K 2015 FKVFX 0.55 Fidelity Freedom K 2020 FFKDX 0.57 Fidelity Freedom K 2025 FKTWX 0.61 Fidelity Freedom K 2030 FFKEX 0.65 Fidelity Freedom K 2035 FKTHX 0.66 Fidelity Freedom K 2040 FFKFX 0.66 Fidelity Freedom K 2045 FFKGX 0.66 Fidelity Freedom K 2050 FFKHX 0.65 Fidelity Freedom K Income FFKAX 0.44 Fidelity Total Emerging Markets FTEMX 1.50/ Fidelity Treasury Only Money Market FDLXX 0.42 Fidelity Balanced - Class K FBAKX 0.47 Fidelity Blue Chip Growth - Class K FBGKX 0.61 Fidelity Blue Chip Value FBCVX 0.64 Fidelity Canada FICDX 1.50/ Fidelity Capital & Income FAGIX 1.00/ Fidelity Capital Appreciation - Class K FCAKX 0.66 Fidelity Cash Reserves FDRXX 0.37 Fidelity China Region FHKCX 1.50/ Fidelity Conservative Income Bond FCONX 0.40 Fidelity Contrafund - Class K FCNKX 0.56 Fidelity Convertible Securities FCVSX 0.73 Fidelity Corporate Bond FCBFX 0.45 Fidelity Disciplined Equity - Class K FDEKX 0.65 Fidelity Diversified International - Class K FDIKX 1.00/ Fidelity Dividend Growth - Class K FDGKX 0.49 Fidelity Emerging Asia FSEAX 1.50/ September 2014 Page 3 of 17

4 Fidelity Emerging Europe, Middle East, Africa (EMEA) FEMEX 1.50/ Fidelity Emerging Markets - Class K FKEMX 1.50/ Fidelity Equity Dividend Income - Class K FETKX 0.53 Fidelity Equity-Income - Class K FEIKX 0.54 Fidelity Europe FIEUX 1.00/ Fidelity Export and Multinational - Class K FEXKX 0.75/ Fidelity Floating Rate High Income FFRHX 1.00/ Fidelity Focused High Income FHIFX 1.00/ Fidelity Focused Stock FTQGX 0.91 Fidelity Four-in-One Index FFNOX 0.24 Fidelity - Class K FFDKX 0.42 Fidelity Global Balanced FGBLX 1.00/ Fidelity Global Commodity Stock FFGCX 1.00/ Fidelity Global Equity Income FGILX 1.00/ Fidelity Global High Income FGHNX 1.00/ Fidelity Global Strategies FDYSX 0.85 Fidelity GNMA FGMNX 0.45 Fidelity Government Income FGOVX 0.45 Fidelity Government Money Market SPAXX 0.42 Fidelity Growth & Income Portfolio - Class K FGIKX 0.54 Fidelity Growth Company - Class K FGCKX 0.71 Fidelity Growth Discovery - Class K FGDKX 0.72 Fidelity Growth Strategies - Class K FAGKX 1.50/ Fidelity High Income SPHIX 1.00/ Fidelity Independence - Class K FDFKX 0.51 Fidelity Inflation-Protected Bond FINPX 0.45 Fidelity Intermediate Bond FTHRX 0.45 Fidelity Intermediate Government Income FSTGX 0.45 Fidelity International Capital Appreciation FIVFX 1.00/ Fidelity International Discovery - Class K FIDKX 1.00/ Fidelity International Enhanced Index FIENX 1.00/ Fidelity International Growth FIGFX 1.00/ Fidelity International Real Estate FIREX 1.50/ Fidelity International Small Cap FISMX 2.00/ Fidelity International Small Cap Opportunities FSCOX 2.00/ Fidelity International Value FIVLX 1.00/ Fidelity Investment Grade Bond FBNDX 0.45 Fidelity Japan FJPNX 1.50/ Fidelity Japan Smaller Companies FJSCX 1.50/ Fidelity Large Cap Core Enhanced Index FLCEX 0.46 Fidelity Large Cap Growth Enhanced Index FLGEX 0.45 Fidelity Large Cap Stock FLCSX 0.88 Fidelity Large Cap Value Enhanced Index FLVEX 0.47 Fidelity Latin America FLATX 1.50/ Fidelity Leveraged Company Stock - Class K FLCKX 1.50/ Fidelity Limited Term Government FFXSX 0.45 Fidelity Low-Priced Stock - Class K FLPKX 1.50/ Fidelity Magellan - Class K FMGKX 0.42 Fidelity Mega Cap Stock FGRTX 0.70 Fidelity Mid Cap Enhanced Index FMEIX 0.75/ Fidelity Mid Cap Value FSMVX 0.75/ Fidelity Mid-Cap Stock - Class K FKMCX 0.75/ September 2014 Page 4 of 17

5 Fidelity Money Market SPRXX 0.42 Fidelity Money Market Trust Retirement Government Money Market Portfolio FGMXX 0.42 Fidelity Money Market Trust Retirement Money Market Portfolio FRTXX 0.42 Fidelity Mortgage Securities FMSFX 0.45 Fidelity Nasdaq Composite Index FNCMX 0.75/ Fidelity New Markets Income FNMIX 1.00/ Fidelity New Millennium FMILX 0.91 Fidelity Nordic FNORX 1.50/ Fidelity OTC Portfolio - Class K FOCKX 0.62 Fidelity Overseas - Class K FOSKX 1.00/ Fidelity Pacific Basin FPBFX 1.50/ Fidelity Puritan - Class K FPUKX 0.47 Fidelity Real Estate Income FRIFX 0.75/ Fidelity Real Estate Investment Portfolio FRESX 0.75/ Fidelity Short-Term Bond FSHBX 0.45 Fidelity Small Cap Discovery FSCRX 1.50/ Fidelity Small Cap Enhanced Index FCPEX 1.50/ Fidelity Small Cap Growth FCPGX 1.50/ Fidelity Small Cap Stock FSLCX 2.00/ Fidelity Small Cap Value FCPVX 1.50/ Fidelity Stock Selector All Cap - Class K FSSKX 0.61 Fidelity Stock Selector Large Cap Value FSLVX 0.72 Fidelity Stock Selector Mid Cap FSSMX 0.72 Fidelity Stock Selector Small Cap FDSCX 1.50/ Fidelity Strategic Dividend & Income FSDIX 0.77 Fidelity Strategic Income FSICX 0.69 Fidelity Strategic Real Return FSRRX 0.75/ Fidelity Telecom and Utilities FIUIX 0.76 Fidelity Total Bond FTBFX 0.45 Fidelity Total International Equity FTIEX 1.00/ Fidelity Trend FTRNX 0.78 Fidelity U.S. Government Reserves FGRXX 0.32 Fidelity Value Discovery - Class K FVDKX 0.57 Fidelity Value - Class K FVLKX 0.54 Fidelity Value Strategies - Class K FVSKX 0.58 Fidelity Worldwide FWWFX 1.00/ Fidelity Global Bond FGBFX 0.99 Fidelity International Bond FINUX 1.07 MetLife Fixed - New Account MetLife Fixed - Old Account Select Air Transportation Portfolio FSAIX 0.75/ Select Automotive Portfolio FSAVX 0.75/ Select Banking Portfolio FSRBX 0.75/ Select Biotechnology Portfolio FBIOX 0.75/ Select Brokerage and Investment Management Portfolio FSLBX 0.75/ Select Chemicals Portfolio FSCHX 0.75/ Select Communications Equipment Portfolio FSDCX 0.75/ Select Computers Portfolio FDCPX 0.75/ Select Construction and Housing Portfolio FSHOX 0.75/ Select Consumer Discretionary Portfolio FSCPX 0.75/ Select Consumer Finance Portfolio FSVLX 0.75/ Select Consumer Staples Portfolio FDFAX 0.75/ September 2014 Page 5 of 17

6 Select Defense and Aerospace Portfolio FSDAX 0.75/ Select Electronics Portfolio FSELX 0.75/ Select Energy Portfolio FSENX 0.75/ Select Energy Service Portfolio FSESX 0.75/ Select Environment and Alternative Energy Portfolio FSLEX 0.75/ Select Financial Services Portfolio FIDSX 0.75/ Select Gold Portfolio FSAGX 0.75/ Select Health Care Portfolio FSPHX 0.75/ Select Industrial Equipment Portfolio FSCGX 0.75/ Select Industrials Portfolio FCYIX 0.75/ Select Insurance Portfolio FSPCX 0.75/ Select IT Services Portfolio FBSOX 0.75/ Select Leisure Portfolio FDLSX 0.75/ Select Materials Portfolio FSDPX 0.75/ Select Medical Delivery Portfolio FSHCX 0.75/ Select Medical Equipment and Systems Portfolio FSMEX 0.75/ Select Money Market Portfolio FSLXX 0.30 Select Multimedia Portfolio FBMPX 0.75/ Select Natural Gas Portfolio FSNGX 0.75/ Select Natural Resources Portfolio FNARX 0.75/ Select Pharmaceuticals Portfolio FPHAX 0.75/ Select Retailing Portfolio FSRPX 0.75/ Select Software and Computer Services Portfolio FSCSX 0.75/ Select Technology Portfolio FSPTX 0.75/ Select Telecommunications Portfolio FSTCX 0.75/ Select Transportation Portfolio FSRFX 0.75/ Select Utilities Portfolio FSUTX 0.75/ Select Wireless Portfolio FWRLX 0.75/ Spartan 500 Index - Institutional Class FXSIX 0.05 Spartan Emerging Markets Index - Fidelity Advantage Class FPMAX 1.50/ Spartan Extended Market Index - Fidelity Advantage Class FSEVX 0.75/ Spartan Global ex U.S. Index - Fidelity Advantage Class FSGDX 1.00/ Spartan Inflation-Protected Bond Index - Fidelity Advantage Class FSIYX 0.10 Spartan Intermediate Treasury Bond Index - Fidelity Advantage Class FIBAX 0.10 Spartan International Index - Fidelity Advantage Class FSIVX 1.00/ Spartan Long-Term Treasury Bond Index - Fidelity Advantage Class FLBAX 0.10 Spartan Mid Cap Index - Fidelity Advantage Class FSCKX 0.75/ Spartan Real Estate Index - Fidelity Advantage Class FSRVX 0.75/ Spartan Short-Term Treasury Bond Index - Fidelity Advantage Class FSBAX 0.10 Spartan Small Cap Index - Fidelity Advantage Class FSSVX 1.50/ Spartan Total Market Index - Fidelity Advantage Class FSTVX 0.50/ Spartan U.S. Bond Index - Fidelity Advantage Class FSITX 0.17 Strategic Advisers Core Income Multi-Manager FWHBX 1.04 Strategic Advisers Core Multi-Manager FLAUX 1.22 Strategic Advisers Emerging Markets of s FLILX 1.50/ Strategic Advisers Growth Multi-Manager FMELX 0.84 Strategic Advisers Income Opportunities of s FSADX 1.00/ Strategic Advisers International Multi-Manager FMJDX 1.00/ Strategic Advisers Small-Mid Cap Multi-Manager FNAPX 1.50/ Strategic Advisers Value Multi-Manager FKMOX 1.32 ratio information as of August 12, September 2014 Page 6 of 17

7 A short-term redemption fee will not be charged as part of this reallocation. However, if you request a change before the transition without satisfying the required holding period, you may incur a short-term redemption fee. MetLife Fixed Interest Account now through December 14, 2014: Partial withdrawals or exchanges of up to 20% of your account balance may be made in any contract year without incurring contract surrender charges. Withdrawals or exchanges in excess of 20% may be subject to a surrender charge of up to 4% of the amount of the excess withdrawal or exchange. Please see your certificate or contact Fidelity for more information. MetLife Fixed Interest Account beginning December 16, 2014: will feature a guaranteed 3% minimum rate and a fully benefit responsive contract, free of restrictions on liquidation or reallocation. Guarantees are subject to the claims-paying ability of the issuing insurance company. Participants considering investing in this fund prior to the transition should consider carefully the differences, including liquidity restrictions, between the current product and the product featured in the new line-up. Elections made in the Early Choice Investment Election Window must be entered into the source labeled Elections 12/16/14 in NetBenefits. Any elections in this source will be applied to future contributions beginning in December and existing balances transferred during the blackout period. Early Choice investment elections made in the MetLife Fixed Interest Account will be invested under the new provisions, so no surrender fees will apply. Additional Information For a mutual fund, the expense ratio is the total annual fund or class operating expenses (before waivers or reimbursements) paid by the fund and stated as a percentage of the fund s total net assets. ratios change periodically and are drawn from the fund s prospectus. For more detailed fee information, see the fund prospectus or annual or semiannual reports. Short-term redemption fees help protect long-term investors and fund performance from the effects of frequent or short-term redemption. This type of activity can hurt fund performance by increasing redemption costs, and may also cause the fund s portfolio manager to maintain excess cash. This, in turn, can impair the ability to effectively manage the fund according to its objectives. The fees are paid directly to the mutual funds, not to Fidelity Investments. University of Notre Dame Default If you have not already made an investment election decision, we encourage you to review the investment options available to you. However, if no elections are made, the University of Notre Dame has directed Fidelity to invest your existing balances and future contributions in a Vanguard Target Retirement based on your current age and assuming a retirement age of 65. Simply find your date of birth range in the following chart to determine into which Vanguard Target Retirement your contributions will be directed. For more information on the Vanguard Target Retirement s, log on to Fidelity NetBenefits at Lifecycle Age Chart Should an investment election not be made during the Early Choice Investment Election Window, between October 6 and December 12, 2014, your contributions and existing balances as indicated in the chart located in the Investment Options Being Removed section will be directed to a Vanguard Target Retirement. The University of Notre Dame has chosen the Vanguard Target Retirement based on your date of birth and the assumption that you will retire at age 65. Simply find your date of birth range in the following chart to determine which Vanguard Target Retirement your contributions and existing balances will be directed to. Name Ticker Symbol Date of Birth Rage Target Retirement Years Vanguard Target Retirement Income VTINX Before 1943 Before 2008 Vanguard Target Retirement 2010 VTENX 1/1/ /31/ Vanguard Target Retirement 2015 VTXVX 1/1/ /31/ Vanguard Target Retirement 2020 VTWNX 1/1/ /31/ Vanguard Target Retirement 2025 VTTVX 1/1/ /31/ Vanguard Target Retirement 2030 VTHRX 1/1/ /31/ Vanguard Target Retirement 2035 VTTHX 1/1/ /31/ Vanguard Target Retirement 2040 VFORX 1/1/ /31/ Vanguard Target Retirement 2045 VTIVX 1/1/ /31/ Vanguard Target Retirement 2050 VFIFX 1/1/ /31/ Vanguard Target Retirement 2055 VFFVX 1/1/ /31/ Vanguard Target Retirement 2060 VTTSX 1993 and later 2058 and later Date of birth ranges were selected by your Plan Sponsor. September 2014 Page 7 of 17

8 What Do I Need to Do? If you do not want future contributions to default into the investment options shown, or if you wish to change how your current balances are invested, please log on to Fidelity NetBenefits at or call Monday through Friday, between 8:00 a.m. and 9:00 p.m. Eastern time. As a reminder, if you make an investment election for your contributions through Fidelity during the early election period, the previous default schedule does not apply. Go Paperless Tired of mailbox clutter? You can significantly reduce paper mail by providing us your address and updating your mail preferences to electronic delivery. Log on to Fidelity NetBenefits at and go to Your Profile. New Investment Option Descriptions DFA Inflation-Protected Securities Portfolio Institutional Class FPRS Code: OUTW Ticker: DIPSX Objective: The investment seeks to provide inflation protection and earn current income consistent with inflation-protected securities. Strategy: The fund seeks its investment objective by investing in a universe of inflation-protected securities that are structured to provide returns that at least keep up with the rate of inflation over the long-term. It ordinarily invests in inflation-protected securities issued by the U.S. government and its agencies and instrumentalities and the credit quality such inflation-protected securities will be that of such applicable U.S. government, agency or instrumentality issuer. Risk: The interest payments of TIPS are variable, they generally rise with inflation and fall with deflation. In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible. Additional risk information for this product may be found in the prospectus or other product materials, if available. Gross Ratio: 0.12% Someone wh o is seeking potential returns primarily in the form of interest dividends and who can tolerate more frequent changes in the size of dividend distributions than those usually found with more conservative bond funds. Someone who is seeking to supplement his or her core fixed-income holdings with a bond investment that is tied to changes in inflation. Footnotes: A mutual fund registered under DFA Investment Dimensions Group Inc, and managed by Dimensional Advisors LP. This description is only intended to provide a brief Dodge & Cox Global Stock FPRS Code: OLLK Ticker: DODWX Objective: The investment seeks long-term growth of principal and income. Strategy: The fund invests primarily in a diversified portfolio of equity securities issued by companies from at least three different countries, including emerging markets countries. It will invest at least 40% of its total assets in securities of non-u.s. companies and will invest at least 80% of its total assets in common stocks, preferred stocks, certain securities convertible into common stocks, and securities that carry the right to buy common stocks. The fund invests primarily in medium-tolarge well established companies based on standards of the applicable market. Risk: Foreign securities are subject to interest-rate, currency-exchange-rate, economic, and political risks, all of which may be magnified in emerging markets. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, economic or other developments. Additional risk information for this product may be found in the prospectus or other product materials, if available. Gross Ratio: 0.65% Someone who is seeking an investment that invests in both domestic and international markets. Someone who is willing to accept the volatility of the markets and the gener ally higher degree of risk associated with international investments. Footnotes: A mutual fund registered under Dodge & Cox s, and managed by Dodge & Cox. This description is only intended to provide a brief overview of the fund. Read the fund's prospectus for more detailed information about the fund. MetLife Fixed - New Account FPRS Code: GUND September 2014 Page 8 of 17

9 Ticker: Objective: Seeks to provide a competitive fixed interest rate while offering a guarantee of principal and interest. Strategy: The MetLife Fixed Account is backed by the General Account of Metropolitan Life Insurance Company. This General Account portfolio consists primarily of public and private securities, commercial and residential mortgages and U.S. agency securities. Like most annuity contracts, MetLife contracts contain withdrawal charges and terms for keeping it in force. Risk: The fund is backed by a diversified portfolio of fixed-income assets held in the general account of the issuer. Guarantees are subject to the claims paying ability of the issuer. Restrictions or fees may apply to exchanges or withdrawals. The Contracts provide for the payment of certain withdrawals and exchanges at book value during the terms of the Contracts. In order to maintain the Contract issuers' promise to pay such withdrawals and exchanges at book value, the Contracts subject the fund and its participants to certain restrictions. For example, withdrawals prompted by certain events (e.g., layoffs, early retirement windows, spin-offs, sale of a division, facility closings, plan terminations, partial plan terminations, changes in laws or regulations) may be paid at the market value of the fund's securities, which may be less than your book value balance or may restrict withdrawals in these events. This annuity contract contains withdrawal charges and terms for keeping it in force. No restrictions or additional fees, including surrender charges, will apply to the amount you withdraw as a result of certain life events. Please see your certificate or contact Fidelity for more information. Partial withdrawals or exchanges of up to 20.00% of your account balance may be made in any contract year without incurring contract surrender charges. Withdrawals or exchanges in excess of 20.00% may be subject to a surrender charge of up to 4.00% of the amount of the excess withdrawal or exchange. As of December 15, 2014, the surrender fee will be removed. Please see your certificate or contact Fidelity for more information. Someone who seeks a slightly higher yield over the long term than is offered by money market funds, but who is willing to accept slightly more investment risk. Someone who is interested in balancing an aggressive portfolio with an investment that seeks to provide a declared crediting rate that is reset on a periodic basis. Footnotes: The investment option is an annuity. The fund is managed by Metropolitan Life Insurance Company. This description is only intended to provide a brief overview of the fund. The MetLife Fixed Account is not a mutual fund and is an annuity contract issued by Metropolitan Life Insurance Company, which guarantees your principal and interest. Information furnished on the MetLife Fixed Account provided through the MetLife Guaranteed Annuity Contract was furnished by MetLife. Fidelity Investments Institutional Services Company, Inc. and Metropolitan Life Insurance Company are not affiliated. This investment option is not a mutual fund. PIMCO Global Bond (Unhedged) Institutional Class FPRS Code: OF4P Ticker: PIGLX Objective: The investment seeks maximum total return, consistent with preservation of capital and prudent investment management. Strategy: The fund normally invests at least 80% of its assets in Fixed Income Instruments that are economically tied to at least three countries (one of which may be the United States), which may be represented by forwards or derivatives such as options, future contracts or swap agreements. It may invest, without limitation, in derivative instruments, such as options, futures contracts or swap agreements, or in mortgage- or asset-backed securities. The fund is non-diversified. Risk: Foreign securities are subject to interest-rate, currency-exchange-rate, economic, and political risks, all of which may be magnified in emerging markets. The fund may invest in lower-quality debt securities that involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible. Additional risk information for this product may be found in the prospectus or other product materials, if available. Gross Ratio: 0.56% Someone who is seeking potential returns primarily in the form of interest dividends rather than through an increase in sh are price. Someone who is seeking to complement his or her core bond holdings with international bond investments and who can lerate to the greater risks associated with foreign investments. Footnotes: A mutual fund registered under PIMCO s, and managed by Pacific Investment Management Co LLC. This description is only intended to provide a brief Vanguard 500 Index Admiral Class FPRS Code: OMZZ Ticker: VFIAX Objective: The investment seeks to track the performance of a benchmark index that measures the investment return of large-capitalization stocks. Strategy: The fund employs an indexing investment approach designed to track the performance of the Standard & Poor's 500 Index, a widely recognized benchmark of U.S. stock market performance that is dominated by the stocks of large U.S. companies. It attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index. Risk: Value and growth stocks can perform differently from other types of stocks. Growth stocks can be more volatile. Value stocks can continue to be undervalued by the market for long periods of time. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, economic or other developments. These risks may be magnified in foreign markets. Additional risk information for this product may be found in the prospectus or other product materials, if available. Gross Ratio: 0.05% September 2014 Page 9 of 17

10 Someone who is seeking the potential for long -term share-price appreciation and, secondarily, dividend income. Someone who is seeking both growth - and value-style investments and who is willing to accept the volatility associated with investing in the stock market. Footnotes: A mutual fund registered under Vanguard Index s, and managed by Vanguard Group, Inc. This description is only intended to provide a brief The S&P 500 Index is a market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance. Vanguard Emerging Markets Stock Index Admiral Shares FPRS Code: OS4W Ticker: VEMAX Objective: The investment seeks to track the performance of a benchmark index that measures the investment return of stocks issued by companies located in emerging market countries. Strategy: The fund employs an indexing investment approach by investing substantially all (approximately 95%) of its assets in the common stocks included in the FTSE Emerging Index, while employing a form of sampling intended to reduce risk. The FTSE Emerging Index includes approximately 851 common stocks of companies located in emerging markets around the world. Risk: Foreign securities are subject to interest-rate, currency-exchange-rate, economic, and political risks, all of which may be magnified in emerging markets. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, economic or other developments. Additional risk information for this product may be found in the prospectus or other product materials, if available. Gross Ratio: 0.15% Someone who is willing to accept the higher degree of risk associated with investi ng in emerging markets. Someone who is seeking to complement a portfolio of domestic investments and/or international investments in developed cou ntries with investments in developing countries, which can behave differently. Footnotes: A mutual fund registered under Vanguard International Equity Index, and managed by Vanguard Group, Inc. This description is only intended to provide a brief FTSE Emerging Index is a market-capitalization weighted index representing the performance of over 790 large and mid-cap companies in 22 emerging markets. The index is derived from the FTSE Global Equity Index Series (GEIS). In March 2013, the FTSE Emerging Index will expand by around 100 constituents following the addition of P Chips' to the FTSE China Index. Except for Life of returns, the analysis on these pages may be based, in part, on adjusted historical returns for periods prior to the class's actual inception of 06/23/2006. These calculated returns reflect the historical performance of the oldest share class of the fund, with an inception date of 05/04/1994, adjusted to reflect the fees and expenses of this share class (when this share class's fees and expenses are higher.) Please refer to a fund's prospectus for information regarding fees and expenses. These adjusted historical returns are not actual returns. Calculation methodologies utilized by Morningstar may differ from those applied by other entities, including the fund itself. Vanguard Extended Market Index Admiral Shares FPRS Code: OQAE Ticker: VEXAX Objective: The investment seeks to track the performance of a benchmark index that measures the investment return of small- and mid-capitalization stocks. Strategy: The fund employs an indexing investment approach designed to track the performance of the Standard & Poor's Completion Index, a broadly diversified index of stocks of small and mid-size U.S. companies. It invests all, or substantially all, of its assets in stocks of its target index, with nearly 80% of its assets invested in approximately 1,200 of the stocks in its target index, and the rest of its assets in a representative sample of the remaining stocks. Risk: Value and growth stocks can perform differently from other types of stocks. Growth stocks can be more volatile. Value stocks can continue to be undervalued by the market for long periods of time. The securities of smaller, less well-known companies can be more volatile than those of larger companies. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, economic or other developments. These risks may be magnified in foreign markets. Additional risk information for this product may be found in the prospectus or other product materials, if available. Gross Ratio: 0.10% Someone who is seeking the potential for long -term share-price appreciation and, secondarily, dividend income. Someone who is seeking both growth - and value-style investments and who is willing to accept the generally greater volatility of investments in smaller companies. Footnotes: A mutual fund registered under Vanguard Index s, and managed by Vanguard Group, Inc. This description is only intended to provide a brief The S&P Completion Total Return Index contains all of the U.S. common stocks regularly traded on the New York and American Stock Exchanges and the Nasdaq over-the-counter market, except those stocks included in the S&P 500 Index. Vanguard REIT Index Admiral Shares September 2014 Page 10 of 17

11 FPRS Code: OQNJ Ticker: VGSLX Objective: The investment seeks to provide a high level of income and moderate long-term capital appreciation by tracking the performance of a benchmark index that measures the performance of publicly traded equity REITs. Strategy: The fund employs an indexing investment approach designed to track the performance of the MSCI US REIT Index. The index is composed of stocks of publicly traded equity real estate investment trusts (known as REITs). The fund attempts to replicate the index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index. Risk: Real Estate is a cyclical industry that is sensitive to interest rates, economic conditions (both nationally and locally), property tax rates, and other factors. Changes in real estate values or economic downturns can have a significant negative effect on issuers in the real estate industry. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, economic or other developments. These risks may be magnified in foreign markets. Sector funds can be more volatile because of their narrow concentration in a specific industry. In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible. Additional risk information for this product may be found in the prospectus or other product materials, if available. Gross Ratio: 0.10% Someone who is willing to accept the potentially lower diversification and higher risks associated with investing in a par ticular industry or sector. Someone who is seeking to complement his or her core holdings with investments concentrated in a par ticular sector or industry. Footnotes: A mutual fund registered under Vanguard Specialized s, and managed by Vanguard Group, Inc. This description is only intended to provide a brief The MSCI US REIT Index is a free float-adjusted market capitalization weighted index that is comprised of equity REITs that are included in the MSCI US Investable Market 2500 Index, with the exception of specialty equity REITs that do not generate a majority of their revenue and income from real estate rental and leasing operations. The index represents approximately 85% of the US REIT universe. Vanguard Target Retirement 2010 Investor Shares FPRS Code: OKKK Ticker: VTENX Objective: The investment seeks to provide capital appreciation and current income consistent with its current asset allocation. Strategy: The fund invests in other Vanguard mutual funds according to an asset allocation strategy designed for investors planning to retire and leave the workforce in or within a few years of 2010 (the target year). Its asset allocation will become more conservative over time, meaning that the percentage of assets allocated to stocks will decrease while the percentage of assets allocated to bonds and other fixed income investments will increase. Risk: Target date funds are designed for investors expecting to retire around the year indicated in each fund's name. The funds are managed to gradually become more conservative over time as they approach their target date. The investment risk of each target date fund changes over time as its asset allocation changes. They are subject to the volatility of the financial markets, including that of 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 their target dates. Additional risk information for this product may be found in the prospectus or other product materials, if available. Gross Ratio: 0.16% Someone who is seeking an investment option intended for people in or very near etirement r and who is willing to accept the volatility of diversified investments in the market. Someone who is seeking a diversified mix of stocks, bonds, and short -term investments in one investment option or who does not feel comfortable making asset allocation choices over time. Footnotes: A mutual fund registered under Vanguard Chester s, and managed by Vanguard Group, Inc. This description is only intended to provide a brief Vanguard Target Retirement 2015 Investor Shares FPRS Code: OSHQ Ticker: VTXVX Objective: The investment seeks to provide capital appreciation and current income consistent with its current asset allocation. Strategy: The fund invests in other Vanguard mutual funds according to an asset allocation strategy designed for investors planning to retire and leave the workforce in or within a few years of 2015 (the target year). The fund's asset allocation will become more conservative over time, meaning that the percentage of assets allocated to stocks will decrease while the percentage of assets allocated to bonds and other fixed income investments will increase. Risk: The target date funds are designed for investors expecting to retire around the year indicated in each fund's name. The funds are managed to gradually become more conservative over time as they approach their target date. The investment risk of each target date fund changes over time as its asset allocation changes. They are subject to the volatility of the financial markets, including that of 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 their target dates. Additional risk information for this product may be found in the prospectus or other product materials, if available. Gross Ratio: 0.16% September 2014 Page 11 of 17

12 Someone who is seeking an investment option intended for people in or very near retirement and who is willing to accept e thvolatility of diversified investments in the market. Someone who is seeking a diversified mix of stocks, bonds, and short -term investments in one investment option or who does not feel comfortable making asset allocation choices over time. Footnotes: A mutual fund registered under Vanguard Chester s, and managed by Vanguard Group, Inc. This description is only intended to provide a brief Vanguard Target Retirement 2020 Investor Shares FPRS Code: OKKL Ticker: VTWNX Objective: The investment seeks to provide capital appreciation and current income consistent with its current asset allocation. Strategy: The fund invests in other Vanguard mutual funds according to an asset allocation strategy designed for investors planning to retire and leave the workforce in or within a few years of 2020 (the target year). The fund's asset allocation will become more conservative over time, meaning that the percentage of assets allocated to stocks will decrease while the percentage of assets allocated to bonds and other fixed income investments will increase. Risk: The target date funds are designed for investors expecting to retire around the year indicated in each fund's name. The funds are managed to gradually become more conservative over time as they approach their target date. The investment risk of each target date fund changes over time as its asset allocation changes. They are subject to the volatility of the financial markets, including that of 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 their target dates. Additional risk information for this product may be found in the prospectus or other product materials, if available. Gross Ratio: 0.16% Someone who is seeking an investment option that gradually becomes more conservative over time and who is willing to accep t the volatility of the markets. Someone who is seeking a diversified mix of stocks, bonds, and short -term investments in one investment option or who does not feel comfortable making asset allocation choices over time. Footnotes: A mutual fund registered under Vanguard Chester s, and managed by Vanguard Group, Inc. This description is only intended to provide a brief Vanguard Target Retirement 2025 Investor Shares FPRS Code: OSHR Ticker: VTTVX Objective: The investment seeks to provide capital appreciation and current income consistent with its current asset allocation. Strategy: The fund invests in other Vanguard mutual funds according to an asset allocation strategy designed for investors planning to retire and leave the workforce in or within a few years of 2025 (the target year). The fund's asset allocation will become more conservative over time, meaning that the percentage of assets allocated to stocks will decrease while the percentage of assets allocated to bonds and other fixed income investments will increase. Risk: The target date funds are designed for investors expecting to retire around the year indicated in each fund's name. The funds are managed to gradually become more conservative over time as they approach their target date. The investment risk of each target date fund changes over time as its asset allocation changes. They are subject to the volatility of the financial markets, including that of 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 their target dates. Additional risk information for this product may be found in the prospectus or other product materials, if available. Gross Ratio: 0.17% Someone who is seeking an investment option that gradually becomes more conservative over time and who is willing to accep t the volatility of the markets. Someone who is seeking a diversified mix of stocks, bonds, and short -term investments in one investment option or who does not feel comfortable making asset allocation choices over time. Footnotes: A mutual fund registered under Vanguard Chester s, and managed by Vanguard Group, Inc. This description is only intended to provide a brief Vanguard Target Retirement 2030 Investor Shares FPRS Code: OKKM Ticker: VTHRX Objective: The investment seeks to provide capital appreciation and current income consistent with its current asset allocation. Strategy: The fund invests in other Vanguard mutual funds according to an asset allocation strategy designed for investors planning to retire and leave the workforce in or within a few years of 2030 (the target year). The fund's asset allocation will become more conservative over time, meaning that the percentage of assets allocated to stocks will decrease while the percentage of assets allocated to bonds and other fixed income investments will increase. Risk: The target date funds are designed for investors expecting to retire around the year indicated in each fund's name. The funds are managed to gradually become more conservative over time as they approach their target date. The investment risk of each target date fund changes over time as its asset allocation changes. They are subject to the volatility of the financial markets, including that of 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 their target dates. Additional risk information for this product may be found in the prospectus or other product materials, if available. Gross Ratio: 0.17% September 2014 Page 12 of 17