Ben E. Keith Company Retirement Plans. Welcome to Empower Retirement!

Transcription

1 Ben E. Keith Company Retirement Plans Welcome to Empower Retirement!

2 Agenda Who is Empower Retirement? Your new 401(k) plan at Empower Investment options Transfer of your Ben E. Keith Profit Sharing Plan Demonstration: empowermyretirement.com Contacting Empower Retirement 2

3 Who is Empower Retirement? Your new service provider We define success as helping people like you work toward replacing for life the income they earned while working. Click play to learn more about Empower Responsibilities Receiving your payroll contributions Tracking your account balances Providing ongoing communication and education Providing your quarterly statements Providing customer support 3

4 Your new 401(k) plan at Empower

5 401(k) Overview A 401(k) plan is a savings and investing plan offered by employers May give participants a tax break on money set aside for retirement A 401(k) plan is a common type of retirement plan companies offer today Here is what you can expect from our new 401(k) Plan: You can contribute money from your paycheck by choosing a percentage of your pay through automatic payroll deductions A tax-advantaged opportunity to build a valuable retirement income The ability to see your balance every day Control over your retirement savings including: How much you contribute How you invest your money and the matching contributions from Ben E. Keith How often you adjust your account to fit your needs Opportunity for growth through interest and investment earnings 5

6 Think about a retirement plan like a machine Raw materials in Finished product out Raw materials in Employer contributions Employee contributions Finished Product out 6 FOR ILLUSTRATIVE PURPOSES ONLY. Contributions Retirement age Investments Retirement Income

7 Contributions to your 401(k) plan Pretax contributions and/or Roth contributions You contribute a percentage of your pay The first 401(k) contribution will be deducted for weekly paid employees Pay the week of July 9 1 to 75% of eligible compensation Annual Bonus (separate election): 0% - 90% You will be automatically enrolled at a 4% contribution rate You may increase, decrease or stop your contributions at any time 2018 IRS contributions limits pretax contributions and Roth contributions $18,500 Participants turning age 50 or older in 2018, may contribute an additional $6,000, allowing for a total contribution of $24,500 7

8 Pretax Contribution Withdrawal Tax Toll Tax Toll Tax Toll If tax bracket will be lower in retirement you may pay less taxes at withdrawal Potentially lower your current taxable income May mean more money in your pocket today Any earnings grow tax deferred Pay taxes on contributions and any earnings as ordinary income 8

9 Roth Tax Toll Tax Toll Contribution Tax Toll Withdrawal If tax bracket will be higher in retirement you may save by paying taxes now Pay taxes on contributions now* Any earnings grow tax deferred Any earnings are tax-free with a qualified distribution* 9 *Subject to requirements: Roth contributions must be in your account for at least five years and the money withdrawn after age 59½, death or disability. If distribution is not qualified, the earnings are taxed as ordinary income and may be subject to early withdrawal penalties.

10 Pretax contributions vs. Roth contributions Gross pay $ 2,500-4% pretax contribution (100) Taxable income $2,400 - taxes* (360) NET PAY $ 2,040 Gross pay $2,500 - taxes* (375) - 4% Roth contribution (100) NET PAY $2,025 Ben E. Keith Today Date Pay to You $ 2,040 Two thousand and forty Dollars Memo 4% pretax contribution Ben E. Keith Today Date Pay to You $2,025 Two thousand and twenty-five Dollars Memo 4% Roth contribution 10 FOR ILLUSTRATIVE PURPOSES ONLY. *Assumes $30,000 annual salary and 15% federal, state, and local tax rate. Please note that taxes on savings are deferred until withdrawal and that pretax deferrals do not lower your income for FICA and FUTA tax withholding purposes.

11 Understand the differences Review Pretax contributions Roth contributions Effect on paycheck Prior to tax withholding After taxes withheld Taxation on distributions Contributions taxed as ordinary income Any earnings taxed as ordinary income Contributions not taxable Any earnings not taxable in qualified distribution* 11 Note: When choosing between contribution types, participants must take into consideration their complete personal financial situation. *If distribution is not qualified then the earnings are taxed as ordinary income and may be subject to early withdrawal penalties.

12 Ben E. Keith contributions to your 401(k) plan Ben E. Keith Matches the same amount you contribute, up to 4% (it s free money!) Vesting Ownership of company contributions Matching contributions vesting schedule 2 year cliff schedule Prior company service with Ben E. Keith is counted towards vesting Years of service Vesting percentage 1 0% 2 100% 12

13 Investment options

14 Control How You Invest Your 401(k) Plan can be managed based on your personal investment strategy If you do not make an active election Your account will automatically be invested in a Target Date Fund based on your date of birth If you can make an active election You can choose from options that may fit your personal investment strategy Help me do it Do it myself 14

15 Investor types Help me do it Do it myself 15

16 Target date funds: How they work What are target date funds? Made up of multiple asset classes Professionally managed Offer a diversified investment in a single fund These funds are meant to align with an expected retirement date The investment allocation will change over time Funds will become increasingly more conservative as the target retirement date approaches Participants may choose to invest in any of the target date funds or any other investments in the lineup As with all investments, the principal value of the fund(s) is not guaranteed at any time, including at the target date 16

17 Target date funds Target date funds Date of birth Vanguard Target Retirement Income Fund Before Vanguard Institutional Target Retirement Vanguard Institutional Target Retirement Vanguard Institutional Target Retirement Vanguard Institutional Target Retirement Vanguard Institutional Target Retirement Vanguard Institutional Target Retirement Vanguard Institutional Target Retirement Vanguard Institutional Target Retirement Vanguard Institutional Target Retirement Vanguard Institutional Target Retirement Vanguard Institutional Target Retirement After

18 Point-in-Time Best Interest Advice Empower Retirement has a team of specially trained and licensed consultants who will: Act in your best interest Provide you with recommendations at no additional cost to you Help you understand the features of your plan Possible topics include: Investment options in your plan Savings and financial wellness Distributions or rollovers out of your plan Rolling in outside assets into your current plan As with any financial decision, you are encouraged to discuss rolling money from one account to another with your financial advisor/planner, considering any potential fees and/or limitation of investment options. 18

19 Investor types Help me do it Do it myself 19

20 Investment options: Core funds What are core funds? Building blocks for investors who want a custom portfolio Single fund choices in multiple asset classes Capital preservation Bonds Stocks Risk range of low to high and could include any of the following Market risk Interest rate risk Credit risk Inflation Return potential range of low to high 20

21 Core Funds Capital Preservation Goldman Sachs Institutional Sable Value Bond Vanguard Total Bond Market Index Aon Hewitt Income Large-Cap Equity T. Rowe Price Blue Chip Growth MFS Institutional International Equity Vanguard 500 Index Mid-Cap Equity Vanguard Extended Market Index Small-Cap Equity Aristotle Small/Mid Cap Equity International Equity Vanguard FTSE All-World Ex-US Index 21

22 Passive vs. Active Passively managed funds Track groups of investments representative of a market to measure performance Provide broad market exposure Typically lower operating expenses than actively managed funds Low portfolio turnover Typically a lower return potential than actively managed funds Actively managed funds Managed to try to surpass the total return of a particular index Run by a professional portfolio manager or group of professionals Using research, financial analyses and personal expertise No guarantees of accomplishing the goal of higher returns than benchmark May have higher management fees than passively managed funds 22 A benchmark index is not actively managed, does not have a defined investment objective and does not incur fees or expenses. Therefore, performance of a fund will generally be less than its benchmark index. You cannot invest directly in a benchmark index.

23 Transfer of your Ben E. Keith Profit Sharing Plan

24 What you need to know: Transfer of your Ben E. Keith Profit Sharing Plan The Profit Sharing plan will transfer to Empower It is converting to a 401(k) Profit Sharing plan called: Ben E. Keith Retirement Savings Plan The investment options will be the same for Profit Sharing contributions as 401(k) contributions Your account will automatically transfer No action is required from you for the transfer of your: Account balances Loan or distribution arrangements, as applicable 24

25 What you need to know: Transfer of your Ben E. Keith Profit Sharing Plan You will have limited access to your account during the blackout period This blackout period allows for the transfer of the plan s administrative records to Empower During the blackout period The transferred assets will remain invested in the market The assets will continue to gain and/or lose value depending on market conditions When the blackout period ends, you will have full access to your plan account Please evaluate your financial circumstances and the appropriateness of your current investments in light of this temporary restriction 25

26 Key dates June 22, 2018 Temporary blackout period for the Ben E. Keith Profit Sharing Plan (the Plan ) begins July 15, 2018 This temporary blackout period for the Plan ends Your Ben E. Keith Profit Sharing Plan will be merged into your 401(k) plan 26

27 How your account will transfer 27 If you have a balance in this fund The Plan s Trust Fund It will transfer to this fund Date of birth Vanguard Institutional Target Retirement Income Fund Before Vanguard Institutional Target Retirement 2015 Fund Vanguard Institutional Target Retirement 2020 Fund Vanguard Institutional Target Retirement 2025 Fund Vanguard Institutional Target Retirement 2030 Fund Vanguard Institutional Target Retirement 2035 Fund Vanguard Institutional Target Retirement 2040 Fund Vanguard Institutional Target Retirement 2045 Fund Vanguard Institutional Target Retirement 2050 Fund Vanguard Institutional Target Retirement 2055 Fund Vanguard Institutional Target Retirement 2060 Fund Vanguard Institutional Target Retirement 2065 Fund 1998 After 1998

28 Demonstration: empowermyretirement.com

29 Demonstration: empowermyretirement.com FOR ILLUSTRATIVE PURPOSES ONLY. 29

30 Me & My Money FOR ILLUSTRATIVE PURPOSES ONLY. 30

31 Mobile access empowermyretirement.com Mobile friendly website Access and enroll in your account Change contribution amounts Review investment options Tip: Save the website to your home screen for easy access 31 FOR ILLUSTRATIVE PURPOSES ONLY

32 Empower Retirement app It puts your retirement plan at your fingertips See your estimated monthly retirement income Customize your retirement income goal Check your contributions Increase your contribution rate View account balances and retirement income Access balance by plan and by investment See your own Countdown to Retirement 32 FOR ILLUSTRATIVE PURPOSES ONLY. Account management features are available on the app only. Empower Retirement app available on Apple products only. Apple, Apple Watch, and iphone are trademarks of Apple Inc., registered in the U.S. and other countries.

33 The Retirement Solutions Group Asset consolidation assistance White-glove assistance for rolling in to an Empower plan Generally a paperless process Direct point of contact Potential for improved retirement readiness Contact information: Making a move? We can help. Changing jobs or retiring Consider keeping your hard-earned money in tax-deferred status By keeping your money tax-deferred, you also have the potential to benefit from growth over the years before you retire Contact information: As with any financial decisions, you are encouraged to discuss rolling money from one account to another with your financial advisor/planner, considering any potential fees and/or limitation of investment options. One portfolio One statement ONE RETIREMENT 33

34 Next steps: Review your options Review the materials that were sent to you Remember key dates Make elections as needed Call Empower Retirement if you have questions 833-BEK-SAVE ( ) 34

35 Carefully consider the investment objectives, risks, fees and expenses of the annuity and/or the investment options. Contact us for a prospectus, a summary prospectus and disclosure document, as available, containing this information. Read them carefully before investing. Securities offered or distributed through GWFS Equities, Inc., Member FINRA/SIPC and a subsidiary of Great-West Life & Annuity Insurance Company. GWFS Equities, Inc., or one or more of its affiliates, may receive a fee from the investment option provider for providing certain recordkeeping, distribution and administrative services. Asset allocation and diversification do not ensure a profit and do not protect against loss in declining markets. The charts, graphs and screen prints in this presentation are for ILLUSTRATIVE PURPOSES ONLY. Great-West Financial, Empower Retirement and Great-West Investments TM are the marketing names of Great-West Life & Annuity Insurance Company, Corporate Headquarters: Greenwood Village, CO; Great-West Life & Annuity Insurance Company of New York, Home Office: New York, NY, and their subsidiaries and affiliates, including registered investment advisers Advised Assets Group, LLC and Great-West Capital Management, LLC. GWFS Equities, Inc. registered representatives may also be investment adviser representatives of GWFS affiliate, Advised Assets Group, LLC. Representatives do not offer or provide investment, fiduciary, financial, legal or tax advice or act in a fiduciary capacity for any client unless explicitly described in writing. The trademarks, logos, service marks, and design elements used are owned by their respective owners and are used by permission. All rights reserved Great-West Life & Annuity Insurance Company. All rights reserved. AM Unless otherwise noted: Not a Deposit Not FDIC Insured Not Bank Guaranteed Funds May Lose Value Not Insured by Any Federal Government Agency IMPORTANT: The projections, or other information generated on the website by the investment analysis tool regarding the likelihood of various investment outcomes, are hypothetical in nature. They do not reflect actual investment results and are not guarantees of future results. The results may vary with each use and over time. Healthcare costs and projections, if applicable, are provided by HealthView Services. Healthview Services is not affiliated with GWFS Equities, Inc. Empower Retirement does not provide healthcare advice. A top peer is defined as an individual who is at the 90th percentile of the selected age band, salary range and gender. 35

36 You could lose money by investing in a money market fund. Although the fund seeks to preserve the value of your investment at $1 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time. Investing involves risk, including possible loss of principal. Rebalancing does not ensure a profit and does not protect against loss in declining markets. A collective investment trust is not a mutual fund and is exempt from SEC registration. Designed for and exclusively sold to qualified retirement plans and their participants, the funds are not available to individual retail investors. Capital preservation funds are not federally guaranteed and may lose value. These investments have interest rate, inflation, and credit risks that are associated with the underlying assets owned by the portfolio or fund. Separately managed accounts are not registered investment products but separate accounts created specifically for the plan. Separately managed funds are not required to file a prospectus or registration statement with the SEC and, accordingly, neither is available. A collective trust stable value fund is offered by a bank or trust company. These investments have interest rate, inflation and credit risks associated with the underlying assets owned by the portfolio or fund. The strength of the wrap contracts, which provide book-value guarantees associated with a fund, depends on the financial strength of the financial institutions issuing the contracts. Certain fixed interest products are offered through insurance company group annuity contracts or funding agreements. The guarantees are backed by the general assets of the insurance company issuing the contract. The strength of the guarantee is dependent on the financial strength of the insurance company issuing the contracts. Funds may impose redemption fees and/or transfer restrictions if assets are held for less than the published holding period. For more information, see the fund s prospectus and/or disclosure documents A bond fund's yield, share price and total return change daily and are based on changes in interest rates, market conditions, economic and political news, and the quality and maturity of its investments. In general, bond prices fall when interest rates rise and vice versa. Compared to more highly rated securities, high-yield bond investment options are subject to greater risk, including the risk of default. Certain underlying funds invest in treasury inflation-protected securities ( TIPS ). Unlike conventional bonds, the principal or interest of TIPS is adjusted periodically to a specified rate of inflation (e.g., Consumer Price Index for all Urban Consumers [CPI-U]). There can be no assurance that the inflation index used will accurately measure the actual rate of inflation. U.S. Treasury securities are guaranteed as to the timely payment of principal and interest if held to maturity. Investment options are neither issued nor guaranteed by the U.S. government. 36

37 Equity securities of small and mid-sized companies may be more volatile than securities of larger, more established companies. Foreign investments involve special risks, including currency fluctuations, taxation differences and political developments. Equity securities of companies located in emerging markets involve greater risks than investing in more established markets, including currency fluctuations, political developments and share illiquidity. Asset allocation and balanced investment options and models are subject to the risks of the underlying funds, which can be a mix of stocks/stock funds and bonds/bond funds. Specialty funds invest in a limited number of companies and are generally non-diversified. As a result, changes in market value of a single issuer could cause greater volatility than with a more diversified fund. Real estate securities and trusts involve greater risks than other non- diversified investments, including but not limited to: declining property values, varying economic conditions, changes in zoning laws, or losses from casualty. Real estate securities that invest in foreign real estate involve additional risk, including currency fluctuations and political developments. The value of commodity-linked investments may be affected by financial factors, political developments and natural disasters. As such, investment options that invest primarily in commodities may experience greater volatility than investments in traditional securities. A company stock investment option invests in the stock of one company. It has more risk than a diversified portfolio consisting of the stocks of many companies and may be used to round out a well-diversified portfolio. Company stock is not offered by GWFS Equities, Inc. A benchmark index is not actively managed, does not have a defined investment objective, and does not incur fees or expenses. Therefore, performance of a passively managed fund (index fund) will generally be less than its benchmark index. You cannot invest directly in a benchmark index. Putnam mutual funds are managed by Putnam Investment Management, LLC and are distributed by Putnam Retail Management. The Putnam Stable Value fund is distributed and managed by Putnam Fiduciary Trust Company. Putnam is affiliated with GWL&A and GWL&A of NY and their subsidiaries and affiliates. 37

38 The following indices and benchmarks are used for illustrative purposes only and are not intended to be indicative of fund performance. The Ibbotson U.S. Treasury Bill Index is used to measure public obligations of the U.S. Treasury, excluding flower bonds and foreign-targeted issues, and all publicly issued debt of U.S. Government agencies and quasi-federal corporations, and corporate debt guaranteed by the U.S. Government with maturities less than 1 year. The Barclays Capital U.S. Aggregate Bond Index is used to represent fixed rate debt issues rated investment grade or higher having at least 1 year left to maturity and an outstanding par value of at least $100 million. The Standard & Poor s 500 Index is used as a proxy for the stock market in general. S&P 500 Index is a registered trademark of Standard & Poor s Financial Services LLC, and is an unmanaged index considered indicative of the domestic Large-Cap equity market. The Russell 2000 Index and benchmark is unmanaged and used to track the smallest 2000 companies in the Russell 3000 Index, which represents approximately 7% of the Russell 3000 total market capitalization. The Russell 2000 Value Index and benchmark measures the performance of companies within the Russell 2000 Index having lower price-tobook ratios and lower forecasted growth values. The Russell 2000 Growth Index and benchmark measures the performance of companies within the Russell 2000 Index having higher price-tobook ratios and higher forecasted growth values. The Russell 1000 Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The Russell 1000 Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. The Morgan Stanley Capital International Europe, Australasia and Far East Index (MSCI EAFE) is a capitalization-weighted measure of stock markets in Europe, Australasia and the Far East Citigroup 3-Month T-Bill Index The Citigroup 3-Month T-Bill Index is an unmanaged index that is generally representative of 3-month Treasury bills and consists of an average of the last 3-month U.S. Treasury Bill issues 38

39 Contact Empower: Get help when you need it empowermyretirement.com 833-BEK-SAVE ( ) Monday - Friday, 8 a.m. to 10 p.m. Eastern time Automated system available 24 hours a day, seven days a week Requires password TTY: Follow Empower 39