IMPORTANT ANNOUNCEMENT ABOUT YOUR RETIREMENT PLAN(S)

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1 Duke HUMAN RESOURCES 705 BROAD STREET TELEPHONE (919) BOX FAX (919) DURHAM, NC March 23, 2017 IMPORTANT ANNOUNCEMENT ABOUT YOUR RETIREMENT PLAN(S) Dear Retirement Plan Participant, You are receiving this notice because you are participating or eligible to participate in the Duke Faculty and Staff Retirement Plan, Duke University Commissioned Police Officers Plan or Duke 457(b) Deferred Compensation Plan (the Retirement Plans ). As part of our ongoing commitment to ensure that Duke Retirement Plan participants have access to quality investment options, Duke s Investment Advisory Committee regularly reviews and evaluates the investment options in Tier 1 and Tier 2 in terms of management team, diversification, investment style, expenses, and investment return. As a result of a recent review, Duke s Investment Advisory Committee has decided to make the following changes effective May 9, 2017: Changes at Fidelity Replace the Fidelity Freedom s with the Retirement s If you are invested in a Fidelity Freedom, your balance and future investment allocation to these funds will be changed to the corresponding Retirement. The Vanguard Target Date Retirement s are being added to the Fidelity platform. Your account will remain with Fidelity. No action is required on your part. However, if you do not want your balance directed to the corresponding Retirement s, you must reallocate your investments and/or change your future investment election before 4 p.m. (ET) on May 8, The Fidelity Freedom funds will no longer be offered as an investment option. Changes at TIAA Replace the TIAA-CREF Lifecycle s with the Retirement s If you are invested in a TIAA-CREF Lifecycle, your balance and future investment allocation to these funds will be changed to the corresponding Retirement. The Vanguard Target Date Retirement s are being added to the TIAA platform. Your account will remain with TIAA. No action is required on your part. However, if you do not want your balance directed to the corresponding Retirement s, you must reallocate your investments and/or change your future investment election before 4 p.m. (ET) on May 8, The TIAA-CREF Lifecycle s will no longer be offered as an investment option. Redirect future contributions from the CREF Money Market Account to the Vanguard Federal Money Market TIAA has announced they will end the voluntary expense waiver on the CREF Money Market Account effective April 14, Due to the potential of additional fees to the CREF Money Market Account, Duke s Investment Advisory Committee has recommended redirecting future contributions to the Vanguard Federal Money Market (VMFXX) effective May 9, No action is required on your part. However, if you do not want your future contributions to be redirected from the CREF Money Market Account to the Vanguard Federal Money Market, you must reallocate your investments options for your future contributions before 4 p.m. (ET) on May 8, 2017.

2 The CREF Money Market Account will remain as an investment option at TIAA. Duke cannot map existing assets from the CREF Money Market Account to the Vanguard Federal Money Market because these assets are individually owned annuity contracts. You, as the plan participant, may transfer existing balances from the CREF Money Market Account to the Vanguard Federal Money Market or any other investment option available in the Retirement Plan at any time online at or by calling Changes at VALIC Replace the T Rowe Price Retirement s with the Retirement s If you are invested in a T Rowe Price Retirement, your balance and future investment allocation to these funds will be changed to the corresponding Retirement. The Vanguard Target Date Retirement s are being added to the VALIC platform. Your account will remain with VALIC. No action is required on your part. However, if you do not want your balance directed to the corresponding Retirement, you must reallocate your investments and/or change your future investment election before 4 p.m. (ET) on May 8, Please note, if you have an account balance at VALIC, your account will be temporarily restricted from all transactions from Monday, May 8 at 4 p.m. (ET) until Wednesday, May 10 at 4 p.m. (ET). The T Rowe Price Retirement s will no longer be offered as an investment option. Changes at Vanguard Lower cost share class for s and lower cost share class for 50 other funds The s and 50 additional funds will be offered at a lower cost share class as of May 9, No action is required on your part. Fees at Vanguard will change The Vanguard menu has funds with some of the lowest cost share classes available to employer-sponsored plans. Effective May 9, 2017, Vanguard will separate the cost of operating the plan from the fund expenses. All Vanguard participants will be charged a flat administrative fee, regardless of which funds you are using. Administrative fees have historically been included in expense ratios of the funds in the plan. This is not a new charge. This fixed fee will be listed on your account statement. If your account balance at Vanguard is $5,000 or less, the administrative fee will be $6.25 per quarter or $25.00 per year. If your account balance at Vanguard is over $5,000, the administrative fee will be $13.50 per quarter or $54.00 per year. Administrative fees cover expenses such as recordkeeping, account management, customer service call center support and other services. For long-term retirement security, you should give careful consideration to the importance of a well-balanced and diversified investment portfolio taking into account all of your assets, income and investments. Fees and expenses should also be considered. You may change your investments at any time. Your Default Investment Alternative Effective May 9, 2017, the Retirement has been designated as the default investment alternative under the Retirement Plans for Fidelity, TIAA, VALIC and Vanguard. For additional information, see enclosed Qualified Default Investment Alternative Notice. Where can I go for more information? Please refer to the enclosed notice, contact your investment carriers or visit hr.duke.edu/retirement for additional information. Sincerely, Kyle Cavanaugh, Vice President for Administration

3 Duke Faculty and Staff Retirement Plan, Duke University Commissioned Police Officers Plan, Duke 457(b) Deferred Compensation Plan (the Retirement Plans ) March 23, 2017 NOTICE OF CHANGE IN THE PLAN S INVESTMENT OPTIONS The Duke Faculty and Staff Retirement Plan Investment Advisory Committee is replacing several investment options in the Retirement Plans. If you have any money invested in these funds, and/or if you have directed that your future contributions be allocated to these funds, those amounts/percentages will be automatically transferred/directed to the replacement fund. This notice explains your rights and obligations with respect to the automatic transfer. Description of Investment Option(s): The investment options involved in this change are shown in the Replacement Investment Option Chart on the next page. The chart lists the existing fund as well as the replacement fund to which the assets will be transferred and future allocations directed. All the replacement funds are reasonably similar in investment characteristic compared to the existing funds. For additional information about the new funds, including the attendant risk and return characteristics as well as fees and expenses, please review the enclosed information. When Will the Transfer Take Place: The automatic transfer will take place on May 9, 2017 (the automatic transfer date ). After the transfer date, your next quarterly statement will reflect any transactions in your account from the automatic transfer. For long-term retirement security, you should give careful consideration to the importance of a well-balanced and diversified investment portfolio taking into account all of your assets, income and investments. Fees and expenses should also be considered. Your Right To Direct Investments: Although the investment options in the plan are determined by the Investment Advisory Committee, you have the right to direct the investment of your individual account balance and your contributions under the Retirement Plans into one or more of the investment options. If you do not wish to have your assets or your allocations in and/or existing funds transferred to the replacement fund, you have the right to transfer your money and/or change the allocation of your future contributions prior to the automatic transfer by making an affirmative investment transfer election prior to the automatic transfer date. After the automatic transfer, you will have the right to transfer any of your assets held in the replacement fund and/or redirect your contributions allocated to such fund to one or more of the Retirement Plans other investment options. Obtain Additional Information Website Telephone Number TIAA tiaa.org/duke (800) Fidelity Fidelity.com/duke (800) Vanguard duke.vanguard-education.com (800) VALIC valic.com/duke (800) Duke Benefits hr.duke.edu (919)

4 Replacement Investment Options Chart (expense ratios as of 12/31/2016) FIDELITY Current Option Replacement Option Fidelity Freedom K Income FFKAX 0.44% u Fidelity Freedom K 2005 FFKVX 0.49% u Fidelity Freedom K 2010 FFKCX 0.53% u Fidelity Freedom K 2015 FKVFX 0.56% u Retirement 2015 Fidelity Freedom K 2020 FFKDX 0.58% u Retirement 2020 Fidelity Freedom K 2025 FKTWX 0.61% u Retirement 2025 Fidelity Freedom K 2030 FFKEX 0.65% u Retirement 2030 Fidelity Freedom K 2035 FKTHX 0.67% u Retirement 2035 Fidelity Freedom K 2040 FFKFX 0.67% u Retirement 2040 Fidelity Freedom K 2045 FFKGX 0.67% u Retirement 2045 Fidelity Freedom K 2050 FFKHX 0.67% u Retirement 2050 Fidelity Freedom K 2055 FDENX 0.67% u Retirement 2055 Fidelity Freedom K 2060 FDKNX 0.67% u Retirement 2060 Ticker Symbol Expense Ratio (%) VITVX 0.10% VITWX 0.10% VRIVX 0.10% VTTWX 0.10% VITFX 0.10% VIRSX 0.10% VITLX 0.10% VTRLX 0.10% VIVLX 0.10% VILVX 0.10% TIAA Current Option TIAA-CREF Lifecycle TIAA-CREF Lifecycle 2010 TIAA-CREF Lifecycle 2015 TIAA-CREF Lifecycle 2020 TIAA-CREF Lifecycle 2025 TIAA-CREF Lifecycle 2030 TIAA-CREF Lifecycle 2035 TIAA-CREF Lifecycle 2040 TIAA-CREF Lifecycle 2045 TIAA-CREF Lifecycle 2050 TIAA-CREF Lifecycle 2055 TIAA-CREF Lifecycle 2060 Replacement Option TLRIX 0.37% u TCTIX 0.37% u TCNIX 0.38% u Retirement 2015 TCWIX 0.40% u Retirement 2020 TCYIX 0.41% u Retirement 2025 TCRIX 0.42% u Retirement 2030 TCIIX 0.43% u Retirement 2035 TCOIX 0.44% u Retirement 2040 TTFIX 0.45% u Retirement 2045 TFTIX 0.45% u Retirement 2050 TTRIX 0.45% u Retirement 2055 TLXNX 0.45% u Retirement 2060 Ticker Symbol Expense Ratio (%) VITVX 0.10% VITWX 0.10% VRIVX 0.10% VTTWX 0.10% VITFX 0.10% VIRSX 0.10% VITLX 0.10% VTRLX 0.10% VIVLX 0.10% VILVX 0.10% 2

5 VALIC Current Option Replacement Option T Rowe Price Retirement TRRIX 0.57% u Balanced T Rowe Price Retirement 2005 TRRFX 0.60% u T Rowe Price Retirement 2010 TRRAX 0.59% u T Rowe Price Retirement 2015 TRRGX 0.62% u Retirement 2015 T Rowe Price Retirement 2020 TRRBX 0.66% u Retirement 2020 T Rowe Price Retirement 2025 TRRHX 0.69% u Retirement 2025 T Rowe Price Retirement 2030 TRRCX 0.72% u Retirement 2030 T Rowe Price Retirement 2035 TRRJX 0.74% u Retirement 2035 T Rowe Price Retirement 2040 TRRDX 0.76% u Retirement 2040 T Rowe Price Retirement 2045 TRRKX 0.76% u Retirement 2045 T Rowe Price Retirement 2050 TRRMX 0.76% u Retirement 2050 T Rowe Price Retirement 2055 TRRNX 0.76% u Retirement 2055 T Rowe Price Retirement 2060 TRRLX 0.76% u Retirement 2060 Ticker Symbol Expense Ratio (%) VITVX 0.10% VITWX 0.10% VRIVX 0.10% VTTWX 0.10% VITFX 0.10% VIRSX 0.10% VITLX 0.10% VTRLX 0.10% VIVLX 0.10% VILVX 0.10% VANGUARD Current Option Income T. Rowe Price Growth Stock Vanguard 500 Index Replacement Option VTENX 0.13% u VTXVX 0.14% u Retirement 2015 VTWNX 0.14% u Retirement 2020 VTTVX 0.14% u Retirement 2025 VTHRX 0.15% u Retirement 2030 VTTHX 0.15% u Retirement 2035 VFORX 0.16% u Retirement 2040 VTIVX 0.16% u Retirement 2045 VFIFX 0.16% u Retirement 2050 VFFVX 0.16% u Retirement 2055 VTTSX 0.16% u Retirement 2060 VTINX 0.13% u PRGFX 0.67% u T. Rowe Price Growth Stock (I) VFIAX 0.05% u Vanguard Institutional Index (Inst) 3 Ticker Symbol Expense Ratio (%) VITVX 0.10% VITWX 0.10% VRIVX 0.10% VTTWX 0.10% VITFX 0.10% VIRSX 0.10% VITLX 0.10% VTRLX 0.10% VIVLX 0.10% VILVX 0.10% PRUFX 0.52% VINIX 0.04%

6 Current Option Replacement Option Vanguard Balanced Index VBINX 0.22% u Vanguard Balanced Index VBAIX 0.07% (Inst) Vanguard Capital Opportunity VHCOX 0.45% u Vanguard Capital Opportunity VHCAX 0.38% Vanguard Developed Markets VDVIX 0.20% u Vanguard Developed Markets VTMGX 0.09% Index Index Vanguard Dividend VDAIX 0.19% u Vanguard Dividend VDADX 0.09% Appreciation Idx Appreciation Idx Vanguard Emerging Mkt. Stock VEIEX 0.33% u Vanguard Emerging Markets VEMIX 0.12% Index Stock Index (Inst) Vanguard Energy VGENX 0.37% u Vanguard Energy VGELX 0.31% Vanguard Equity Income VEIPX 0.26% u Vanguard Equity Income VEIRX 0.17% Vanguard European Stock Index VEURX 0.26% u Vanguard European Stock Index VEUSX 0.12% Vanguard Explorer VEXPX 0.49% u Vanguard Explorer VEXRX 0.35% Vanguard Extended Market VEXMX 0.22% u Vanguard Extended Market VIEIX 0.07% Index Index (Inst) Vanguard FTSE All-Wld ex-us VFWIX 0.26% u Vanguard FTSE All-Wld ex-us VFWAX 0.13% Index Index Vanguard GNMA VFIIX 0.21% u Vanguard GNMA VFIJX 0.11% Vanguard Growth & Income Vanguard Growth Index Vanguard Health Care Vanguard High-Yield Corporate Vanguard Inflation Protected Secs. Vanguard Intermediate Term Investmemt Grade Vanguard Intermediate-Term Treasury Vanguard Intermediate-Term Bond Index Vanguard International Growth Vanguard Large Cap Index Vanguard Long-Term Bond Index Vanguard Long-Term Investment Grade Vanguard Long-Term Treasury Vanguard Mid-Cap Growth Index Vanguard Mid-Cap Index Vanguard Mid-Cap Value Index Vanguard Morgan Growth VQNPX 0.34% u Vanguard Growth & Income VIGRX 0.22% u Vanguard Growth Index (Inst) VGHCX 0.36% u Vanguard Health Care VWEHX 0.23% u Vanguard High-Yield Corporate VIPSX 0.20% u Vanguard Inflation Protected Securities (Inst) VFICX 0.20% u Vanguard Intermediate Term Investment Grade VFITX 0.20% u Vanguard Intermediate-Term Treasury VBIIX 0.16% u Vanguard Intermediate-Term Bond Index (Inst) VWIGX 0.46% u Vanguard International Growth VLACX 0.20% u Vanguard Large Cap Index VBLTX 0.16% u Vanguard Long-Term Bond Index (Inst) VWESX 0.21% u Vanguard Long-Term Invest. Grade VUSTX 0.20% u Vanguard Long-Term Treasury VMGIX 0.20% u Vanguard Mid-Cap Growth Index VIMAX 0.08% u Vanguard Mid-Cap Index (Inst) VMVIX 0.20% u Vanguard Mid-Cap Value Index VMRGX 0.40% u Vanguard Morgan Growth VGIAX 0.23% VIGIX 0.07% VGHAX 0.31% VWEAX 0.13% VIPIX 0.07% VFIDX 0.10% VFIUX 0.10% VBIMX 0.06% VWILX 0.33% VLCAX 0.08% VBLLX 0.06% VWETX 0.12% VUSUX 0.10% VMGMX 0.08% VMCIX 0.07% VMVAX 0.08% VMRAX 0.27% 4

7 Current Option Replacement Option Vanguard Pacific Stock Index VPACX 0.26% u Vanguard Pacific Stock Index VPADX 0.12% Vanguard PRIMECAP VPMCX 0.40% u Vanguard PRIMECAP VPMAX 0.34% Vanguard REIT Index VGSIX 0.26% u Vanguard REIT Index VGSNX 0.10% (Inst) Vanguard Short-Term Bond VBISX 0.16% u Vanguard Short-Term Bond VBITX 0.06% Index Index (Inst) Vanguard Short-Term Federal VSGBX 0.20% u Vanguard Short-Term Federal VSGDX 0.10% Vanguard Short-Term Invest. VFSTX 0.20% u Vanguard Short-Term VFSIX 0.07% Grade Investment Grade (Inst) Vanguard Short-Term Treasury VFISX 0.20% u Vanguard Short-Term Treasury VFIRX 0.10% Vanguard Small-Cap Growth VISGX 0.20% u Vanguard Small-Cap Growth VSGIX 0.07% Index Index (Inst) Vanguard Small-Cap Index NAESX 0.20% u Vanguard Small-Cap Index VSCIX 0.07% (Inst) Vanguard Small-Cap Value VISVX 0.20% u Vanguard Small-Cap Value VSIIX 0.07% Index Index (Inst) Vanguard Total Bond Market VBMFX 0.16% u Vanguard Total Bond Market VBTIX 0.05% Index Index (Inst) Vanguard Total International VGTSX 0.19% u Vanguard Total International VTSNX 0.10% Stock Index Stock Index (Inst) Vanguard Total Stock Market VTSMX 0.16% u Vanguard Total Stock Market VITSX 0.04% Index Index (Inst) Vanguard U.S. Growth VWUSX 0.46% u Vanguard U.S. Growth VWUAX 0.32% Vanguard Value Index VIVAX 0.22% u Vanguard Value Index VIVIX 0.07% (Inst) Vanguard Wellesley Income VWINX 0.23% u Vanguard Wellesley Income VWIAX 0.16% Vanguard Wellington VWELX 0.26% u Vanguard Wellington VWENX 0.18% Vanguard Windsor VWNDX 0.39% u Vanguard Windsor VWNEX 0.29% Vanguard Windsor II VWNFX 0.34% u Vanguard Windsor II VWNAX 0.26% 5

8 Fee and Performance Information as of 12/31/2016 It is important to remember that past performance is not an indicator or guarantee of future results and that higher or lower fees are not necessarily indicative of the performance of the fund. For additional information about these funds, please visit: or visit hr.duke.edu/performance. Investment Name (%) Average Annual Total Returns (%) Benchmark Symbol Net Expense 1 year 5 year 10 year ratio Retirement 2015 VITVX 0.10% 6.27% Retirement 2020 VITWX 0.10% 7.04% Retirement 2025 VRIVX 0.10% 7.48% Retirement 2030 VTTWX 0.10% 7.97% Retirement 2035 VITFX 0.10% 8.39% Retirement 2040 VIRSX 0.10% 8.89% Retirement 2045 VITLX 0.10% 8.94% Retirement 2050 VTRLX 0.10% 8.95% Retirement 2055 VIVLX 0.10% 8.44% Retirement 2060 VILVX 0.10% 8.94% % Bloomberg Barclays U.S. Aggregate Bond Index 2.65% 2.23% 4.34% T. Rowe Price Growth Stock (I) PRUFX 0.52% 1.58% S&P 500 Index 11.96% 14.66% 6.95% Vanguard Institutional Index (Inst) VINIX 0.04% 11.93% 14.63% 6.95% S&P 500 Index 11.96% 14.66% 6.95% Vanguard Balanced Index (Inst) VBAIX 0.07% 8.81% 9.64% 6.43% CRSP U.S. Total Market Index 12.68% 14.62% 7.27% Vanguard Capital Opportunity VHCAX 0.38% 10.65% 17.97% 9.14% Russell Mid Cap Growth Index 7.33% 13.51% 7.83% Vanguard Developed Markets Index VTMGX 0.09% 2.45% 6.90% 1.03% MSCI World NR Index 7.51% 10.41% 3.83% Vanguard Dividend Appreciation Index VDADX 0.09% 11.79% Russell 1000 Index 12.05% 14.69% 7.08% Vanguard Emerging Markets Stock Index (Inst) VEMIX 0.12% 11.76% 1.48% 1.91% MSCI World NR Index 7.51% 10.41% 3.83% Vanguard Energy VGELX 0.31% 33.18% 1.74% 2.82% Dow Jones U.S. Total Stock Market Float Adjusted Index 12.62% 14.59% 7.18% Vanguard Equity Income VEIRX 0.17% 14.82% 13.78% 7.53% Russell 1000 Value Index 17.34% 14.80% 5.72% Vanguard European Stock Index VEUSX 0.12% -0.63% 6.60% 0.63% MSCI World NR Index 7.51% 10.41% 3.83% Vanguard Explorer VEXRX 0.35% 12.47% 13.28% 7.21% Russell 2500 Growth Index 9.73% 13.88% 8.24% Vanguard Extended Market Index (Inst) VIEIX 0.07% 16.15% 14.67% 7.99% S&P Completion Index 15.95% 14.55% 7.84% Vanguard FTSE All-Wld ex-us Index VFWAX 0.13% 4.77% 5.40% MSCI All Country World ex-us NR Index 4.50% 5.00% 0.96% Vanguard GNMA VFIJX 0.11% 1.95% 2.05% 4.47% Bloomberg Barclays GNMA Index 1.56% 1.81% 4.35% Vanguard Growth & Income VGIAX 0.23% 12.12% 15.20% 6.49% S&P 500 Index 11.96% 14.66% 6.95% 6

9 Investment Name (%) Average Annual Total Returns (%) Benchmark Symbol Net Expense 1 year 5 year 10 year ratio Vanguard Growth Index (Inst) VIGIX 0.07% 6.13% 14.06% 8.17% CRSP U.S. Large Cap Growth Index 6.16% 13.62% 7.83% Vanguard Health Care VGHAX 0.31% -8.94% 16.84% 10.29% Dow Jones U.S. Total Stock Market Float Adjusted Index 12.62% 14.59% 7.18% Vanguard High-Yield Corporate VWEAX 0.13% 11.30% 6.62% 6.43% Bloomberg Barclays U.S. Corporate High Yield Index 17.13% 7.36% 7.45% Vanguard Inflation Protected Securities (Inst) VIPIX 0.07% 3.37% 0.61% 4.13% Bloomberg Barclays U.S. Treasury TIPS Index 4.68% 0.89% 4.36% Vanguard Inter. Term Invest. Grade VFIDX 0.10% 3.93% 3.83% 5.38% Bloomberg Barclays U.S. Credit 5-10 Year Index 5.23% 4.39% 5.86% Vanguard Intermediate Term Treasury VFIUX 0.10% 1.29% 1.39% 4.53% Bloomberg Barclays U.S. Government Index 1.05% 1.22% 3.86% Vanguard Intermediate-Term Bond Index (Inst) VBIMX 0.06% 2.85% 2.88% 5.40% Bloomberg Barclays U.S. Aggregate Bond Index 2.65% 2.23% 4.34% Vanguard International Growth VWILX 0.33% 1.84% 7.21% 2.58% MSCI All Country World ex-us NR Index 4.50% 5.00% 0.96% Vanguard Large Cap Index VLCAX 0.08% 11.65% 14.52% 7.09% CRSP U.S. Large Cap Index 11.75% 14.54% 7.05% Vanguard Long-Term Bond Index (Inst) VBLLX 0.06% 6.51% 4.05% 6.89% Bloomberg Barclays U.S. Government/Credit Long 6.67% 4.07% 6.85% Index Vanguard Long-Term Invest. Grade VWETX 0.12% 7.92% 5.64% 7.08% Bloomberg Barclays U.S. Credit A+ Long Index 7.88% 5.13% 6.52% Vanguard Long-Term Treasury VUSUX 0.10% 1.29% 2.45% 6.53% Bloomberg Barclays U.S. Treasury Long Index 1.33% 2.52% 6.68% Vanguard Mid-Cap Growth Index VMGMX 0.08% 6.75% 12.96% CRSP U.S. Mid Cap Growth Index 6.78% 13.09% 7.68% Vanguard Mid-Cap Index (Inst) VMCIX 0.07% 11.23% 14.38% 7.69% Russell Mid Cap Index 13.80% 14.72% 7.86% Vanguard Mid-Cap Value Index VMVAX 0.08% 15.26% 15.56% CRSP U.S. Mid Cap Value Index 15.28% 15.91% 7.42% Vanguard Morgan Growth VMRAX 0.27% 3.35% 13.80% 7.03% Russell 3000 Growth Index 7.39% 14.44% 8.28% Vanguard Pacific Stock Index VPADX 0.12% 5.29% 6.95% 1.56% MSCI World NR Index 7.51% 10.41% 3.83% Vanguard PRIMECAP VPMAX 0.34% 10.72% 16.86% 9.41% S&P 500 Index 11.96% 14.66% 6.95% Vanguard REIT Index (Inst) VGSNX 0.10% 8.51% 11.79% 5.26% MSCI U.S. REIT GR Index 8.60% 11.86% 4.96% Vanguard Short-Term Bond Index (Inst) VBITX 0.06% 1.51% 1.20% Bloomberg Barclays U.S. Government/Credit 1.57% 1.30% Float Adjusted 1-5 Year Index Vanguard Short-Term Federal VSGDX 0.10% 1.24% 0.92% 2.81% Bloomberg Barclays U.S. Government 1-5 Year Index 1.02% 0.80% 2.76% Vanguard Short-Term Investment Grade (Inst) VFSIX 0.07% 2.85% 2.33% 3.37% Bloomberg Barclays U.S. Credit 1-5 Year Index 2.58% 2.46% 3.86% Vanguard Short-Term Treasury VFIRX 0.10% 1.18% 0.67% 2.45% Bloomberg Barclays U.S. Government 1-5 Year Index 1.02% 0.80% 2.76% Vanguard Small-Cap Growth Index (Inst) VSGIX 0.07% 10.74% 12.80% 8.26% CRSP U.S. Small Cap Growth Index 10.62% 12.35% 7.77% Vanguard Small-Cap Index (Inst) VSCIX 0.07% 18.32% 14.85% 8.21% Russell 2000 Index 21.31% 14.46% 7.07% Vanguard Small-Cap Value Index (Inst) VSIIX 0.07% 24.80% 16.37% 7.80% CRSP U.S. Small Cap Value Index 24.82% 17.05% 9.36% Vanguard Total Bond Market Index (Inst) VBTIX 0.05% 2.61% 2.15% 4.32% Bloomberg Barclays U.S. Aggregate Bond Index 2.65% 2.23% 4.34% Vanguard Total International Stock Index (Inst) VTSNX 0.10% 4.70% 5.53% MSCI All Country World ex-us NR Index 4.50% 5.00% 0.96% 7

10 Investment Name (%) Average Annual Total Returns (%) Benchmark Symbol Net Expense 1 year 5 year 10 year ratio Vanguard Total Stock Market Index (Inst) VITSX 0.04% 12.67% 14.63% 7.24% CRSP U.S. Total Market Index 12.68% 14.62% 7.27% Vanguard U.S. Growth VWUAX 0.32% -0.59% 14.48% 7.35% Russell 1000 Growth Index 7.08% 14.50% 8.33% Vanguard Value Index (Inst) VIVIX 0.07% 16.87% 14.99% 6.01% CRSP U.S. Large Cap Value Index 16.93% 15.37% 6.25% Vanguard Wellesley Income VWIAX 0.16% 8.16% 7.36% 6.74% Bloomberg Barclays U.S. Aggregate Bond Index 2.65% 2.23% 4.34% Vanguard Wellington VWENX 0.18% 11.09% 10.53% 6.99% S&P 500 Index 11.96% 14.66% 6.95% Vanguard Windsor VWNEX 0.29% 12.64% 14.98% 5.50% Russell 1000 Value Index 17.34% 14.80% 5.72% Vanguard Windsor II VWNAX 0.26% 13.49% 13.32% 5.77% Russell 1000 Value Index 17.34% 14.80% 5.72% Summary of other changes Effective May 9, 2017, future contributions will be redirected from the CREF Money Market Account to the Vanguard Federal Money Market (VMFXX). The CREF Money Market Account will remain as an investment option for existing balances. Please contact your investment carrier for a prospectus. 8

11 Qualified Default Investment Alternative Notice DUKE UNIVERSITY FACULTY AND STAFF RETIREMENT PLAN (May 2017) This notice describes how your contributions to the Faculty and Staff Retirement Plan (the Plan ) will be invested if you have a payroll deduction set up to contribute but do not choose an investment carrier or do not select specific investment funds. It also describes your rights and responsibilities in connection with default investments. No action is required at this time unless you would like to make changes to your investment selections. Your Right to Direct Investments You have the right to direct contributions for investment into one or more of the plan's approved investment carriers. Each investment carrier offers a broad range of investments, intended to allow you to achieve a diversified portfolio. The approved investment carriers are: Vanguard, VALIC, Fidelity Investments, and TIAA. If you have a payroll deduction set up to contribute or will start receiving Duke s contribution but do not select an investment carrier for contributions, contributions will be automatically deposited with Vanguard and invested in the appropriate default investment fund. The default investment fund established under the Plan for Vanguard, VALIC, Fidelity Investments and TIAA is the Retirement Date series. If you select an investment carrier but do not make investment elections with that investment carrier, contributions will be automatically invested in the default investment fund. Contributions invested in a default investment fund will remain invested in the default fund until you direct otherwise. You may transfer your contributions to other investment options with any of the approved investment carrier(s) at any time without incurring financial penalty. However, the value of your account at the time of transfer is based on current market value and is subject to any gains or losses. Additional information about transfer of funds is available on the retirement section of our website: hr.duke.edu/403btransfer. It is intended that the default investment fund be a "qualified default investment alternative" (QDIA) as defined under ERISA. Details about the Retirement Date are included in this notice. Understanding Your Investments You should consider the investment objectives, risks, charges and expenses carefully before investing. The fee disclosure information which includes fees and services associated with the plan is available at: hr.duke.edu/performance. This disclosure is intended to provide you with important information about your retirement plan investment options. You may also obtain a prospectus from your investment carrier for any investment fund. The prospectus will contain detailed information. If you invest in a target retirement fund, either by default or by affirmative election, the risks of each target retirement fund are the same as those of the underlying mutual funds in which they invest. The net expense ratio includes fees for the target retirement fund and fees for the underlying funds; each target retirement fund indirectly bears its pro rata share of the fees and expenses incurred by the underlying funds. Learn More... Contact Your Investment Carrier You may change your investment selections or transfer your account balance to another investment carrier at any time by contacting the investment carrier directly. Contact information for each investment carrier is provided below. You may change your investment carrier election for future contributions by logging on to Retirement Manager at: hr.duke.edu/retirementmanager. Investment Carrier Vanguard Website duke.vanguard - education.com Telephone Number (800) VALIC valic.com/duke (877) Fidelity Investments fidelity.com/duke (800) TIAA tiaa.org/duke (800) Please contact your investment carrier to make changes to your current investment elections. It is strongly recommended that you review the investment objectives, risks, charges, and expenses prior to making an investment decision. This information can be found in each fund's prospectus. Additional information about the Plan is also available on the retirement section of our website: hr.duke.edu/benefits/retirement. If you have questions regarding this notice, please contact the Benefits Office at (919)

12 Default Investment Details for the Plan The Retirement Date series has been designated as the default investment fund under the Plan. This fund series is available at Fidelity, TIAA, VALIC, and Vanguard. Your contributions will be invested in the appropriate age based fund based on the year you turn age 65. These funds seek to provide capital appreciation and current income consistent with their current asset allocations. Once your money is invested in the fund with the date that is closest to the year when you turn age 65, the fund will gradually and automatically shift from more aggressive investments (stocks) to more conservative ones (bonds and short-term reserves). Use this chart to determine where your future contributions will be invested: Date of Birth Retirement Date Range 1947 and Earlier 2010 and before and Later 2060 and beyond Name Retirement 2015 Retirement 2020 Retirement 2025 Retirement 2030 Retirement 2035 Retirement 2040 Retirement 2045 Retirement 2050 Retirement 2055 Retirement 2060 Ticker Symbol Expense Ratio as of 12/31/2016* VITVX 0.10% VITWX 0.10% VRIVX 0.10% VTTWX 0.10% VITFX 0.10% VIRSX 0.10% VITLX 0.10% VTRLX 0.10% VIVLX 0.10% VILVX 0.10% * Contact your investment carrier for a fund fact sheet or prospectus for additional details about a fund s fees and expenses.