No matter where you are in your journey, we can help you map out the retirement you envision.

Transcription

1 UCHealth Retirement Savings Plans No matter where you are in your journey, we can help you map out the retirement you envision. Your guide to the investment changes effective January 2, 2018, in the UCHealth retirement savings plans. University of Colorado Hospital Authority* Fixed Contribution Investment Plan [401(a)] University of Colorado Hospital Authority* Matching Tax Deferred Annuity Plan [403(b)] University of Colorado Hospital Authority* Deferred Compensation Plan [457(b)] November 2017 * University of Colorado Hospital Authority is the sole employer of staff at UCHealth.

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3 Get ready for the changes ahead. UCHealth and Fidelity Investments are pleased to provide you with this guide that offers detailed information about the upcoming changes to the UCHealth retirement savings plans. Starting January 2, 2018, there will be some changes to the investment options available in the University of Colorado Hospital Authority 401(a), 403(b), and 457(b) Retirement Savings Plans (collectively, the Plans ). In addition, we will be introducing a new fixed-fee structure. The goals of this change are twofold: first, to reduce the cost of participating in the UCHealth Retirement Plans; and second, to more clearly illustrate to plan participants the cost they are paying and the credit they are receiving for their retirement benefits. Please read through this guide so that you are familiar with what is changing and how your account(s) may be affected. No action is required on your part as a result of these changes. You are encouraged, however, to take an active role in managing your account(s) and selecting investments that are best suited to your risk tolerance, time horizon to retirement, and overall investment goals, among other factors. See page 12 for information on where to go for help. If you would like to meet with a Fidelity Retirement Planner, call Fidelity at or log on to Fidelity NetBenefits at Pages 4 9 Investment options explore how the current investment lineup will change for each of the Plans Pages Page 12 Discover the new fixed-fee structure How do I get help? Pages Investment descriptions 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 Plans, some of the information enclosed may not apply to you. However, you will be affected by the upcoming fund action, so please read this material carefully. November

4 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 As a result of the Retirement Committee s regular review, the following changes are being made to the UCHealth retirement plans investment lineup on January 2, Several investment options will be changing. These changes are designed to make it easier for you to build a lower-cost investment mix based on your time horizon and risk tolerance. In the 401(a) and 457(b) plans, we will be moving from the Fidelity Freedom Funds - Class K to the FIAM Target Date Funds. The 403(b) plan is not eligible for the FIAM Target Date Funds, so we will be moving from the Fidelity Freedom Funds - Class K to Fidelity s K6-share class. UCHealth 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 fund changes take place, the UCHealth retirement savings plans investment lineup may change depending on which funds you currently invest in. More information regarding these Plan changes is provided on the following pages. UCHealth 401(a) and 457(b) Plans New investment options in the UCHealth 401(a) and 457(b) Plans Now is a good time to review your accounts and decide whether changes might be appropriate to better align your investment approach with your retirement goals. Remember, you are required to contribute 6.2% of your eligible compensation to the UCHealth 401(a) Plan. This mandatory requirement is equal to paying social security taxes. Before making your investment decisions, it is important that you become familiar with the various options in the Plans. Additional information regarding each new investment option s risk, as well as its strategy and objective, can be found in the Investment Descriptions section of this guide. Please consider all investment information before choosing your investments. Here is a list of the new investment options that will be available January 2, 2018, for the UCHealth 401(a) and UCHealth 457(b) retirement savings plans. NEW TARGET DATE INVESTMENT OPTIONS FIAM Target Date Income Commingled Pool Class S FIAM Target Date 2005 Commingled Pool Class S FIAM Target Date 2010 Commingled Pool Class S FIAM Target Date 2015 Commingled Pool Class S FIAM Target Date 2020 Commingled Pool Class S FIAM Target Date 2025 Commingled Pool Class S FIAM Target Date 2030 Commingled Pool Class S FIAM Target Date 2035 Commingled Pool Class S FIAM Target Date 2040 Commingled Pool Class S FIAM Target Date 2045 Commingled Pool Class S FIAM Target Date 2050 Commingled Pool Class S FIAM Target Date 2055 Commingled Pool Class S FIAM Target Date 2060 Commingled Pool Class S NEW CORE INVESTMENT OPTIONS Fidelity Total Bond K6 Fund Fidelity Contrafund K6 Fidelity U.S. Bond Index Fund - Institutional Class Vanguard Growth Index Fund Institutional Shares Vanguard Value Index Fund Institutional Shares TICKER SYMBOL FTKFX FLCNX FXSTX VIGIX VIVIX 4

5 UCHealth 401(a) and 457(b) Plans UCHealth 401(a) and 457(b) investment options that are changing When the market closes (generally 2 p.m. Mountain time) on January 2, 2018, some of the current investment options currently offered through the Plans will no longer be available. As a result, current account balances and future contributions will transfer to the new investment options listed below unless you direct otherwise by making changes to your accounts before market close (generally, 2 p.m. Mountain time) on January 2, Why are we making this change in the 401(a) and 457(b)? UCHealth is adding the Fidelity Institutional Asset Management (FIAM) Target Date Funds to replace the Fidelity Freedom Funds - Class K as part of an ongoing commitment to offer participants choice and value when selecting investment products. Each FIAM Target Date Fund seeks to achieve its objective by investing in a set of underlying FIAM collective trust funds (CITs) representing various asset classes. CIT fees tend to be lower than mutual funds, largely in part because CITs are designed for retirement plans, not retail investors. By spending less on distribution and administration costs than what is required for retail investments, CITs can often offer lower fees than mutual funds. A mutual fund s portfolio is structured and maintained to match the investment objectives stated in its prospectus, whereas a CIT matches the investment objectives in its group trust. Refer to the Investment Descriptions beginning on page 13. In addition, UCHealth understands that the fees and expenses of the investments you select have an impact on the overall returns of your portfolio. Therefore, we are pleased to offer the new share class on three Core investment options, which have a lower expense ratio than the prior share class. More detailed information is provided below. CURRENT INVESTMENT OPTION TICKER SYMBOL Fidelity Freedom Income Fund - Class K FNSHX Fidelity Freedom 2005 Fund - Class K FSNJX Fidelity Freedom 2010 Fund - Class K FSNKX Fidelity Freedom 2015 Fund - Class K FSNLX Fidelity Freedom 2020 Fund - Class K FSNOX Fidelity Freedom 2025 Fund - Class K FSNPX Fidelity Freedom 2030 Fund - Class K FSNQX Fidelity Freedom 2035 Fund - Class K FSNUX Fidelity Freedom 2040 Fund - Class K FSNVX Fidelity Freedom 2045 Fund - Class K FSNZX Fidelity Freedom 2050 Fund - Class K FNSBX Fidelity Freedom 2055 Fund - Class K FNSDX Fidelity Freedom 2060 Fund - Class K FNSFX NEW INVESTMENT OPTION TICKER SYMBOL FIAM Target Date Income Commingled Pool Class S N/A FIAM Target Date 2005 Commingled Pool Class S N/A FIAM Target Date 2010 Commingled Pool Class S N/A FIAM Target Date 2015 Commingled Pool Class S N/A FIAM Target Date 2020 Commingled Pool Class S N/A FIAM Target Date 2025 Commingled Pool Class S N/A FIAM Target Date 2030 Commingled Pool Class S N/A FIAM Target Date 2035 Commingled Pool Class S N/A FIAM Target Date 2040 Commingled Pool Class S N/A FIAM Target Date 2045 Commingled Pool Class S N/A FIAM Target Date 2050 Commingled Pool Class S N/A FIAM Target Date 2055 Commingled Pool Class S N/A FIAM Target Date 2060 Commingled Pool Class S N/A Fidelity Total Bond Fund FTBFX Fidelity Total Bond K6 Fund FTKFX Fidelity Contrafund - Class K FCNKX Fidelity Contrafund K6 FLCNX Share Class Changes Fidelity U.S. Bond Index Fund - Premium Class FSITX Fidelity U.S. Bond Index Fund- Institutional Class FXSTX Vanguard Growth Index Fund Admiral Shares VIGAX Vanguard Growth Index Fund Institutional Shares VIGIX Vanguard Value Index Fund Admiral Shares VVIAX Vanguard Value Index Fund Institutional Shares VIVIX November

6 UCHealth 401(a) and 457(b) Plans UCHealth 401(a) and 457(b) default investment options If you do not or previously have not made an investment election, your future contributions will be invested in one of the FIAM Target Date Commingled Pool Class S Funds that has a target retirement date closest to the year in which you turn age 65. The target retirement date timeline and retirement age were selected by UCHealth. DATE OF BIRTH FUND NAME TARGET RETIREMENT DATE 1/1/ /31/1937 or no date of birth on record FIAM Target Date Income Commingled Pool Class S Retired before /1/ /31/1942 FIAM Target Date 2005 Commingled Pool Class S /1/ /31/1947 FIAM Target Date 2010 Commingled Pool Class S /1/ /31/1952 FIAM Target Date 2015 Commingled Pool Class S /1/ /31/1957 FIAM Target Date 2020 Commingled Pool Class S /1/ /31/1962 FIAM Target Date 2025 Commingled Pool Class S /1/ /31/1967 FIAM Target Date 2030 Commingled Pool Class S /1/ /31/1972 FIAM Target Date 2035 Commingled Pool Class S /1/ /31/1977 FIAM Target Date 2040 Commingled Pool Class S /1/ /31/1982 FIAM Target Date 2045 Commingled Pool Class S /1/ /31/1987 FIAM Target Date 2050 Commingled Pool Class S /1/ /31/1992 FIAM Target Date 2055 Commingled Pool Class S /1/1993 or later FIAM Target Date 2060 Commingled Pool Class S 2058 and later To make changes, log on to Fidelity Netbenefits at or call , Monday through Friday from 6 a.m. 10 p.m. Mountain time, to speak with a Fidelity representative. 6

7 UCHealth 403(b) Plan New investment options in the UCHealth 403(b) Plan 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 goals. Before making your investment decisions, it is important that you become familiar with the various options in the Plans. Additional information regarding each new investment option s risk, as well as its strategy and objective, can be found in the Investment Descriptions section of this guide. Please consider all investment information before choosing your investments. Here is a list of the new investment options that will be available January 2, 2018, for the UCHealth 403(b) retirement savings plan. FIDELITY FREEDOM K - CLASS K6 FUNDS Fidelity Freedom Income Fund - Class K6 Fidelity Freedom 2005 Fund - Class K6 Fidelity Freedom 2010 Fund - Class K6 Fidelity Freedom 2015 Fund - Class K6 Fidelity Freedom 2020 Fund - Class K6 Fidelity Freedom 2025 Fund - Class K6 Fidelity Freedom 2030 Fund - Class K6 Fidelity Freedom 2035 Fund - Class K6 Fidelity Freedom 2040 Fund - Class K6 Fidelity Freedom 2045 Fund - Class K6 Fidelity Freedom 2050 Fund - Class K6 Fidelity Freedom 2055 Fund - Class K6 Fidelity Freedom 2060 Fund - Class K6 TICKER SYMBOLS FYTKX FITKX FOTKX FPTKX FATKX FDTKX FGTKX FWTKX FHTKX FJTKX FZTKX FCTKX FVTKX CORE INVESTMENT OPTIONS Fidelity Total Bond K6 Fund Fidelity Contrafund K6 Fidelity U.S. Bond Index Fund - Institutional Class Vanguard Growth Index Fund Institutional Shares Vanguard Value Index Fund Institutional Shares TICKER SYMBOL FTKFX FLCNX FXSTX VIGIX VIVIX Why are we making this change to the 403(b) Plan? The 401(a) and 457(b) Plans can have CITs described in the previous section. Due to regulations, the 403(b) Plan does not allow CIT funds as part of its investment lineup; therefore, we are adding the brand new Fidelity Freedom K Class K6 Funds to the 403(b) Plan. UCHealth is adding these new funds as part of their ongoing commitment to offer participants choice and value when selecting investment products to help meet your distinct financial goals. In addition, UCHealth understands that the fees and expenses of the investments you select have an impact on the overall returns of your portfolio. Therefore, we are pleased to offer the new share class on three Core investment options, which has a lower expense ratio than the prior share class. November

8 UCHealth 403(b) Plan UCHealth 403(b) investment options that are changing When the market closes (generally 2 p.m. Mountain time) on January 2, 2018, some of the current investment options currently offered through the Plans will no longer be available. As a result, current account balances and future contributions will transfer to the new investment options listed below unless you direct otherwise by making changes to your account before market close (generally, 2 p.m. Mountain time) on January 2, CURRENT INVESTMENT OPTION TICKER SYMBOL NEW INVESTMENT OPTION TICKER SYMBOL Fidelity Freedom Income Fund - Class K FNSHX Fidelity Freedom Income Fund - Class K6 FYTKX Fidelity Freedom 2005 Fund - Class K FSNJX Fidelity Freedom 2005 Fund - Class K6 FITKX Fidelity Freedom 2010 Fund - Class K FSNKX Fidelity Freedom 2010 Fund - Class K6 FOTKX Fidelity Freedom 2015 Fund - Class K FSNLX Fidelity Freedom 2015 Fund - Class K6 FPTKX Fidelity Freedom 2020 Fund - Class K FSNOX Fidelity Freedom 2020 Fund - Class K6 FATKX Fidelity Freedom 2025 Fund - Class K FSNPX Fidelity Freedom 2025 Fund - Class K6 FDTKX Fidelity Freedom 2030 Fund - Class K FSNQX Fidelity Freedom 2030 Fund - Class K6 FGTKX Fidelity Freedom 2035 Fund - Class K FSNUX Fidelity Freedom 2035 Fund - Class K6 FWTKX Fidelity Freedom 2040 Fund - Class K FSNVX Fidelity Freedom 2040 Fund - Class K6 FHTKX Fidelity Freedom 2045 Fund - Class K FSNZX Fidelity Freedom 2045 Fund - Class K6 FJTKX Fidelity Freedom 2050 Fund - Class K FNSBX Fidelity Freedom 2050 Fund - Class K6 FZTKX Fidelity Freedom 2055 Fund - Class K FNSDX Fidelity Freedom 2055 Fund - Class K6 FCTKX Fidelity Freedom 2060 Fund - Class K FNSFX Fidelity Freedom 2060 Fund - Class K6 FVTKX Fidelity Total Bond Fund FTBFX Fidelity Total Bond K6 Fund FTKFX Fidelity Contrafund - Class K FCNKX Fidelity Contrafund K6 FLCNX Share Class Changes Fidelity U.S. Bond Index Fund - Premium Class FSITX Fidelity U.S. Bond Index Fund- Institutional Class FXSTX Vanguard Growth Index Fund Admiral Shares VIGAX Vanguard Growth Index Fund Institutional Shares VIGIX Vanguard Value Index Fund Admiral Shares VVIAX Vanguard Value Index Fund Institutional Shares VIVIX To make changes, log on to Fidelity Netbenefits at or call , Monday through Friday from 6 a.m. 10 p.m. Mountain time, to speak with a Fidelity representative. If you would like to meet with a Fidelity Retirement Planner, call Fidelity at or log on to Fidelity NetBenefits at 8

9 UCHealth 403(b) Plan UCHealth 403(b) default investment option If you do not or previously have not made an investment election, your future contributions will be invested in the Fidelity Freedom Fund - Class K6 that has a target retirement date closest to the year in which you turn age 65. The target retirement date timeline and retirement age were selected by UCHealth. DATE OF BIRTH FUND NAME TARGET RETIREMENT DATE 1/1/ /31/1937 or no date of birth on record Fidelity Freedom Income Fund - Class K6 Retired before /1/ /31/1942 Fidelity Freedom 2005 Fund - Class K /1/ /31/1947 Fidelity Freedom 2010 Fund - Class K /1/ /31/1952 Fidelity Freedom 2015 Fund - Class K /1/ /31/1957 Fidelity Freedom 2020 Fund - Class K /1/ /31/1962 Fidelity Freedom 2025 Fund - Class K /1/ /31/1967 Fidelity Freedom 2030 Fund - Class K /1/ /31/1972 Fidelity Freedom 2035 Fund - Class K /1/ /31/1977 Fidelity Freedom 2040 Fund - Class K /1/ /31/1982 Fidelity Freedom 2045 Fund - Class K /1/ /31/1987 Fidelity Freedom 2050 Fund - Class K /1/ /31/1992 Fidelity Freedom 2055 Fund - Class K /1/1993 or later Fidelity Freedom 2060 Fund - Class K and later November

10 New fixed-fee structure Change: Fixed administration fee change from an asset-based fee to a fixed plan administration fee charged on a per-participant basis Change: Revenue credits funds in the Retirement Plans that will generate revenue credits beginning January 2, 2018 The goals of this change are twofold: first, to reduce the cost of participating in the UCHealth Retirement Plans; and second, to more clearly illustrate to plan participants the cost they are paying and the credit they are receiving for their retirement benefits. The UCHealth Retirement Committee is committed to providing UCHealth participants transparency into their retirement plans costs and will continue to monitor the Retirement Plans administration and other plan fees, negotiate further reductions as warranted, and communicate changes to you. Current participant fees The UCHealth Retirement Committee periodically reviews and benchmarks the Plans fee structure against industry standards and best practices to ensure we are offering you Plans that help you to both achieve your retirement savings goals and understand fees associated with administering your account. Participants in the UCHealth Retirement Plans paid two types of fees: 1) investment option fees and 2) plan administration fees. Investment option fees are paid to firms, like Fidelity, that provide investment management and other services to the funds. These fees are incorporated in the Net Asset Value (NAV) of each investment option. They are not deducted from your Retirement Plan account so you do not see an explicit fee deduction on your quarterly statement. These fees are expressed as a percentage (which varies by investment option) of the investment option's assets, called an expense ratio. Expense ratios vary from fund to fund, depending on many factors, such as investment objectives, investment style, management fees, and fees associated with a fund's daily operations. These fees reduce the returns of each investment option in your account. To view the investment option fees for your funds, please view the prospectus at Plan administration fees are charged to plan participants for administration of the Retirement Plans by the recordkeeper. Fidelity Investments is the provider of recordkeeping services as directed by UCHealth. The fees generally cover charges for third-party recordkeeping, accounting, trustee services, and other administrative services for participants. Previously, the Retirement Plans cost for administrative services was paid through offsets associated with certain investment options under the UCHealth Retirement Plans. Using offsets to pay the Retirement Plans administration costs is a common approach. Additional administrative fees are not deducted from participant accounts, and these amounts are not reflected on participant quarterly account statements. In an effort to ensure transparency for UCHealth plan participants, a change is being made to a fixed plan administration fee. What is changing UCHealth continuously monitors Administrative Fees in order to get the lowest costs available to all plan level participants. Starting in 2018, a fixed plan administrative fee will be charged to participant accounts to cover the Plan s administrative costs and will be reflected on your quarterly statements and online transaction history. We want to improve transparency when it comes to the fees paid for plan administration. In this case, the overall fees are lower and are allocated to the individual participants on an equitable basis. 10

11 Change: Fixed plan administration fee Effective January 2, 2018, UCHealth will change to a fixed plan administration fee for all participants. Each Retirement Plan participant will pay a fixed plan administration fee of $12.25 each calendar quarter ($49.00 per year). This fee will be deducted from each participant's account. Every participant will pay the same fee for plan administration and will pay the $49.00 annual fee. This fixed fee is the same for all Plan participants, regardless of the account balance or investment options held. This fee will appear in your Retirement Plan account each quarter. You will see this fee as a line item for the first time on your first quarter statement. In addition, you will also see this fee appear under the Transaction History section of your account on Fidelity NetBenefits in the first quarter. You may also see a credit if you invest in the investment options listed in the Revenue Credit section below. Change: Revenue credit Effective January 2, 2018, you will receive Participant Revenue Credits (PRC) after the close of each quarter if you hold investment options based on the chart below. Participants invested in the investment options below will receive a revenue credit allocation on a quarterly basis. Any credit allocated to your account will appear on your quarterly benefits statement, and will be invested as your Plan s fiduciary has directed. LEGACY INVESTMENT OPTIONS TICKER SYMBOL ANNUAL CREDIT RATE PERCENTAGE Fidelity Growth Company - Class K FGCKX 0.20% Fidelity Balanced Fund - Class K FBAKX 0.20% Fidelity Small Cap Discovery Fund FSCRX 0.35% Dodge & Cox Stock Fund DODGX 0.10% Fidelity High Income Fund SPHIX 0.20% Wells Fargo Government Securities Fund - Class Institutional SGVIX 0.05% Harding Loevner Institutional Emerging Markets Portfolio - Class I HLMEX 0.15% American Beacon International Equity Fund - Institutional Class AAIEX 0.04% Whether or not a fund generates revenue credits should not be the sole or disproportionate determinant of your investment strategy, as there are many other important factors to consider, including the details contained in each fund's prospectus, such as the investment strategy, returns, and risk. Need help? If you would like to meet with a Fidelity Retirement Planner, call Fidelity at or log on to Fidelity NetBenefits at to schedule a one-on-one appointment at a time that is convenient for you. Fidelity Representatives are also available to assist you at your earliest convenience over the phone. Call the Fidelity Retirement Services Center at , Monday through Friday (excluding New York Stock Exchange holidays, except Good Friday) between 6 a.m. 10 p.m. Mountain time, to speak with a Service Center Representative. November

12 How do I get help? Online It all starts on NetBenefits at Fidelity s website is designed so you can quickly and easily set up, monitor, and manage your retirement savings account. By Phone Fidelity representatives are available to assist you at your convenience over the phone. Call Fidelity Investments at to access your account and hear how your investments may be affected. Representatives are available Monday through Friday from 6 a.m. 10 p.m. Mountain time. If you have questions, need more information about the UCHealth retirement savings plan investment lineup and fee credits, or would like to view your quarterly statement, visit Fidelity NetBenefits at or call Fidelity at to speak with a representative. Confidential Consultations To schedule an appointment for a confidential consultation with one of the Fidelity Retirement Planners, please call to make your reservation, or schedule your appointment online by visiting and clicking the Contact Us tab, then Meet. Meet with the Fidelity Retirement Planners one-on-one, and you ll be able to tap into the education, resources, and support that only a trusted partner can provide. Plus, consultations with a Retirement Planner are free to you as an employee benefit. UCHEALTH Retirement Planners are available to help you address many questions, including: What changes are taking place in my plans? Am I investing properly? Am I on track with my retirement savings? How do I bring my retirement savings together? Access your account information. anytime, anywhere. Swipe to begin. As your financial partner, Fidelity is committed to helping you plan for a future that s unique to you. 12

13 Investment descriptions FIAM Target Date Income Commingled Pool Class S Objective: Seeks high total current income and, as a secondary objective, capital appreciation. Strategy: Investing in a combination of FIAM domestic equity funds, international equity funds (developed and emerging markets), bond funds, and short-term funds (underlying Fidelity funds). Allocating assets among underlying FIAM pools according to a stable neutral asset allocation strategy of approximately 17% in domestic equity funds, 7% in international equity funds, 46% in bond funds, and 30% in short-term funds. Through an active asset allocation strategy, the Adviser may increase or decrease neutral asset class exposures by up to 10 percentage points for equity (includes domestic and international equity funds), bond and short-term funds to reflect the Adviser s market outlook, which is primarily focused on the intermediate term. The Adviser may also make active asset allocations within other asset classes (including commodities, high yield debt, floating rate debt, real estate debt, inflation-protected debt, and emerging markets debt) from 0% to 10% individually but no more than 25% in aggregate within those other asset classes. Risk: The fund is subject to risks resulting from the asset allocation decisions of the Investment Adviser. Pursuant to the Adviser s ability to use an active asset allocation strategy, investors may be subject to a different risk profile compared to the fund s neutral asset allocation strategy shown in its glide path. The fund is subject to the volatility of the financial markets, including that of equity and fixed income investments. Fixed income investments entail issuer default and credit risk, inflation risk, and interest rate risk (as interest rates rise, bond prices usually fall and vice versa). This effect is usually more pronounced for longer-term securities. No target date fund is considered a complete retirement program and there is no guarantee any single fund will provide sufficient retirement income at or through retirement. Principal invested is not guaranteed at any time, including at or after the funds target dates. Short-term redemption fee: None FIAM Target Date 2005, 2010, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060 Commingled Pool Class S Objective: Seeks high total return until its target retirement date. Thereafter, the fund s objective will be to seek high current income and, as a secondary objective, capital appreciation. Strategy: Designed for investors who anticipate retiring in or within a few years of the fund s target retirement year at or around age 65 and plan to gradually withdraw the value of their account in the fund over time. Investing in a combination of Fidelity domestic equity funds, international equity funds (developed and emerging markets), bond funds, and short-term funds (underlying FIAM pools). Allocating assets among underlying FIAM pools according to a neutral asset allocation strategy that becomes increasingly conservative until it reaches an allocation similar to that of the FIAM Target Date Income Commingled Pool - approximately 17% in domestic equity funds, 7% in international equity funds, 46% in bond funds, and 30% in short-term funds (approximately 10 to 19 years after the target year). Ultimately, the fund will merge with the FIAM Target Date Income Commingled Pool. Through an active asset allocation strategy, the Adviser may increase or decrease neutral asset class exposures by up to 10 percentage points for equity (includes domestic and international equity funds), bond and short-term funds to reflect the Adviser s market outlook, which is primarily focused on the intermediate term. The Adviser may also make active asset allocations within other asset classes (including commodities, high yield debt, floating rate debt, real estate debt, inflation-protected debt, and emerging markets debt) from 0% to 10% individually but no more than 25% in aggregate within those other asset classes. The Adviser may continue to seek high total return for several years beyond the fund s target retirement date in an effort to achieve the fund s overall investment objective. Risk: The investment risk of each FIAM Target Date Income Commingled Pool changes over time as its asset allocation changes. These risks are subject to the asset allocation decisions of the Investment Adviser. Pursuant to the Adviser s ability to use an active asset allocation strategy, investors may be subject to a different risk profile compared to the fund s neutral asset allocation strategy shown in its glide path. The funds 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, commodity-linked, and foreign securities. No target date fund is considered a complete retirement program and there is no guarantee any single fund will provide sufficient retirement income at or through retirement. Principal invested is not guaranteed at any time, including at or after the funds target dates. Short-term redemption fee: None November

14 The investment option is a collective investment trust. It is managed by Fidelity Institutional Asset Management. This description is only intended to provide a brief overview of the fund. FIAMTC has claimed an exemption from registration under the Commodity Futures Trading Commission rules for its management of its pools, and neither the top level pool, nor the underlying pools, are subject to registration or regulation under the Commodity Exchange Act. This investment option is not a mutual fund. The inception date of this S share class of the Pool was 6/27/2014. The earliest share class of this Pool had an inception date of 10/31/2007. Performance for time periods when this S share class was not funded, including from inception date of the earliest share class and the inception date of this S share class was calculated by subtracting Class S s management fee and the Pool s net administrative expenses for that period from the Pool s gross performance. Fidelity Contrafund K6 Objective: Seeks capital appreciation. Strategy: Normally investing primarily in common stocks. Investing in securities of companies whose value Fidelity Management &Research Company (FMR) believes is not fully recognized by the public. Investing in domestic and foreign issuers. Investing in either growth stocks or value stocks or both. Using fundamental analysis of factors such as each issuer s financial condition and industry position, as well as market and economic conditions, to select investments. Risk: Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks. Short-term redemption fee: None This description is only intended to provide a brief overview of the mutual fund. Read the fund s prospectus for more detailed information about the fund. Fidelity Freedom 2005, 2010, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060 Fund - Class K6 Objective: Seeks high total return until its target retirement date. Thereafter, the fund s objective will be to seek high current income and, as a secondary objective, capital appreciation. Strategy: Designed for investors who anticipate retiring in or within a few years of the fund s target retirement year at or around age 65 and plan to gradually withdraw the value of their account in the fund over time. Investing in a combination of Fidelity domestic equity funds, international equity funds (developed and emerging markets), bond funds, and short-term funds (underlying Fidelity funds). Allocating assets among underlying Fidelity funds according to a neutral asset allocation strategy that becomes increasingly conservative until it reaches an allocation similar to that of the Freedom Income Fund - approximately 17% in domestic equity funds, 7% in international equity funds, 46% in bond funds, and 30% in short-term funds (approximately 10 to 19 years after the target year). Ultimately, the fund will merge with the Freedom Income Fund. Through an active asset allocation strategy, the Adviser may increase or decrease neutral asset class exposures by up to 10 percentage points for equity (includes domestic and international equity funds), bond and short-term funds to reflect the Adviser s market outlook, which is primarily focused on the intermediate term. The Adviser may also make active asset allocations within other asset classes (including commodities, high yield debt, floating rate debt, real estate debt, inflationprotected debt, and emerging markets debt) from 0% to 10% individually but no more than 25% in aggregate within those other asset classes. The Adviser may continue to seek high total return for several years beyond the fund s target retirement date in an effort to achieve the fund s overall investment objective. Risk: The investment risk of each Fidelity Freedom Fund changes over time as its asset allocation changes. These risks are subject to the asset allocation decisions of the Investment Adviser. Pursuant to the Adviser s ability to use an active asset allocation strategy, investors may be subject to a different risk profile compared to the fund s neutral asset allocation strategy shown in its glide path. The funds 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, commodity-linked, and foreign securities. No target date fund is considered a complete retirement program and there is no guarantee any single fund will provide sufficient retirement income at or through retirement. Principal invested is not guaranteed at any time, including at or after the funds target dates. Short-term redemption fee: None This description is only intended to provide a brief overview of the mutual fund. Read the fund s prospectus for more detailed information about the fund. 14

15 Fidelity Freedom Income Fund - Class K6 Objective: Seeks high total current income and, as a secondary objective, capital appreciation. Strategy: Investing in a combination of Fidelity domestic equity funds, international equity funds (developed and emerging markets), bond funds, and short-term funds (underlying Fidelity funds). Allocating assets among underlying Fidelity funds according to a stable neutral asset allocation strategy of approximately 17% in domestic equity funds, 7% in international equity funds, 46% in bond funds, and 30% in short-term funds. Through an active asset allocation strategy, the Adviser may increase or decrease neutral asset class exposures by up to 10 percentage points for equity (includes domestic and international equity funds), bond and short-term funds to reflect the Adviser s market outlook, which is primarily focused on the intermediate term. The Adviser may also make active asset allocations within other asset classes (including commodities, high yield debt, floating rate debt, real estate debt, inflation-protected debt, and emerging markets debt) from 0% to 10% individually but no more than 25% in aggregate within those other asset classes. Risk: The fund is subject to risks resulting from the asset allocation decisions of the Investment Adviser. Pursuant to the Adviser s ability to use an active asset allocation strategy, investors may be subject to a different risk profile compared to the fund s neutral asset allocation strategy shown in its glide path. The fund is subject to the volatility of the financial markets, including that of equity and fixed income investments. Fixed income investments entail issuer default and credit risk, inflation risk, and interest rate risk (as interest rates rise, bond prices usually fall and vice versa). This effect is usually more pronounced for longer-term securities. No target date fund is considered a complete retirement program and there is no guarantee any single fund will provide sufficient retirement income at or through retirement. Principal invested is not guaranteed at any time, including at or after the funds target dates. Short-term redemption fee: None Fidelity Total Bond K6 Fund Objective: Seeks a high level of current income. Strategy: Normally investing at least 80% of assets in debt securities of all types and repurchase agreements for those securities. Using the Bloomberg Barclays U.S. Universal Bond Index as a guide in allocating assets across the investment grade, high yield, and emerging market asset classes. Investing up to 20% of assets in lower quality debt. Managing the fund to have similar overall interest rate risk to the index. Investing in domestic and foreign issuers. Allocating assets across different asset classes, market sectors, and maturities. Analyzing the credit quality of the issuer, the issuer s potential for success, the credit, currency, and economic risks of the security and its issuer, security-specific features, current and potential future valuation, and trading opportunities to select investments. Engaging in transactions that have a leveraging effect on the fund, including investments in derivatives such as swaps (interest rate, total return, and credit default), options, and futures contracts and forward-settling securities, to adjust the fund s risk exposure. Investing in Fidelity s central funds (specialized investment vehicles used by Fidelity funds to invest in particular security types or investment disciplines). Risk: 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, liquidity risk, call 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. Lower-quality bonds can be more volatile and have greater risk of default than higher-quality bonds. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks, all of which are magnified in emerging markets. Leverage can increase market exposure and magnify investment risk. Short-term redemption fee: None This description is only intended to provide a brief overview of the mutual fund. Read the fund s prospectus for more detailed information about the fund. The Bloomberg Barclays U.S. Universal Bond Index is an unmanaged market value-weighted performance benchmark for the U.S. dollar-denominated bond market, which includes investment-grade, high yield, and emerging market debt securities with maturities of one year or more. November

16 Fidelity U.S. Bond Index Fund - Institutional Class Objective: Seeks to provide investment results that correspond to the aggregate price and interest performance of the debt securities in the Bloomberg Barclays U.S. Aggregate Bond Index. Strategy: Normally investing at least 80% of the fund s assets in bonds included in the Bloomberg Barclays U.S. Aggregate Bond Index. Using statistical sampling techniques based on duration, maturity, interest rate sensitivity, security structure, and credit quality to attempt to replicate the returns of the Index using a smaller number of securities. Engaging in transactions that have a leveraging effect on the fund, including investments in derivatives - such as swaps (interest rate, total return, and credit default) and futures contracts - and forward-settling securities, to adjust the fund s risk exposure. Investing in Fidelity s central funds (specialized investment vehicles used by Fidelity funds to invest in particular security types or investment disciplines). Risk: 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. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks. The fund can invest in securities that may have a leveraging effect (such as derivatives and forward-settling securities) which may increase market exposure, magnify investment risks, and cause losses to be realized more quickly. Short-term redemption fee: None This description is only intended to provide a brief overview of the mutual fund. Read the fund s prospectus for more detailed information about the fund. The Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged market value-weighted index for U.S. dollar denominated investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgagebacked securities with maturities of at least one year. Returns prior to May 4, 2011 are those of the Investor Class and reflect the Investor Class expense ratio. Had the Institutional Class expense ratio been reflected, total returns would have been higher. Vanguard Growth Index Fund Institutional Shares Objective: The investment seeks to track the performance of a benchmark index that measures the investment return of large-capitalization growth stocks. Strategy: The fund employs an indexing investment approach designed to track the performance of the CRSP US Large Cap Growth Index, a broadly diversified index predominantly made up of growth stocks of large U.S. companies. The advisor 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: Growth stocks can perform differently from the market as a whole and can be more volatile than other types of stocks. 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. Short-term redemption fee: None This description is only intended to provide a brief overview of the mutual fund. Read the fund s prospectus for more detailed information about the fund. The CRSP US Large Cap Growth Index includes U.S. companies that comprise the top 85% of investable market capitalization. It includes both Mid and Mega capitalization. CRSP classifies growth securities using the following factors: future long-term growth in earnings per share (EPS), future short-term growth in EPS, 3-year historical growth in EPS, 3-year historical growth in sales per share, current investment-to-assets ratio, and return on assets. The analysis on these pages may be based, in part, on adjusted historical returns for periods prior to the class s actual inception of 05/14/1998. These calculated returns reflect the historical performance of the oldest share class of the fund, with an inception date of 11/02/1992, 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. 16

17 Vanguard Value Index Fund Institutional Shares Objective: The investment seeks to track the performance of a benchmark index that measures the investment return of large-capitalization value stocks. Strategy: The fund employs an indexing investment approach designed to track the performance of the CRSP US Large Cap Value Index, a broadly diversified index predominantly made up of value stocks of large U.S. companies. The advisor 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 stocks can perform differently than other types of stocks and 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. Short-term redemption fee: None This description is only intended to provide a brief overview of the mutual fund. Read the fund s prospectus for more detailed information about the fund. The CRSP US Large Cap Value Index includes U.S. companies that comprise the top 85% of investable market capitalization. It includes both Mid and Mega capitalization. CRSP classifies value securities using the following factors: book to price, forward earnings to price, historic earnings to price, dividend-to-price ratio and sales-to-price ratio. The analysis on these pages may be based, in part, on adjusted historical returns for periods prior to the class s actual inception of 07/02/1998. These calculated returns reflect the historical performance of the oldest share class of the fund, with an inception date of 11/02/1992, 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. November

18 Notes: 18

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20 Download a NetBenefits mobile app from the App Store, Google Play store, or Windows Store. 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. This document provides only a summary of the main features of the Fixed Contribution Investment Plan [401(a)], Matching Tax Deferred Annuity Plan [403(b)], Deferred Compensation Plan [457(b)], and the 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 /0717