A NEW DIRECTION FOR YOUR FUTURE

Transcription

1 A NEW DIRECTION FOR YOUR FUTURE Transition Guide MEDTRONIC SAVINGS AND INVESTMENT PLAN

2 Medtronic is committed to helping you build financial security and appreciates your contributions to the company s mission of improving lives. Together, we will succeed as a company as well as help save for tomorrow. Beginning in January 2016, Medtronic will change its administrator for the Medtronic Savings and Investment Plan (also known as the Medtronic 401(k) Plan) to Aon Hewitt. You can look forward to a number of enhancements and a new website with tools and resources to help you plan smarter for your financial future. During the transition to Aon Hewitt, there will be a three-week period during which you cannot access your account. This guide will explain what you need to know as we make this transition together. THE MEDTRONIC 401(k) PLAN TRANSITION IS COMING. GET READY! Find what you need to know inside: What to Expect 1 Key Dates 2 New Features 3 Connect to Your New Account 4

3 WHAT TO EXPECT Transition Will Temporarily Limit Account Access To complete the transition, there will be a three-week period (called a quiet period) when you won t be able to direct or diversify investments in your Medtronic 401(k) Plan account, change your contribution rate, or take a loan or distribution from the Medtronic 401(k) Plan. The quiet period is necessary to ensure the accurate transfer of records and will start at 4 p.m. Eastern Time on December 23 and end at 9 a.m. Eastern Time on January 12. You ll be unable to direct or diversify your Medtronic 401(k) Plan account during the quiet period, so it s important that you review and consider the appropriateness of your current investments before the quiet period begins. See the Important Notice about the quiet period on page 5. How This Transition Affects Your Account As a result of the transition, your Medtronic 401(k) Plan account balance, loan payments, investment and contribution elections, and beneficiary information will automatically transfer from Vanguard to Aon Hewitt. You will continue to have the same investment fund options from Vanguard in 2016 as you do today. While no action is required of you, read this guide carefully to learn more about the upcoming transition and how it may affect your account. Be sure to review the Key Dates table on page 2 for important deadlines and steps you may wish to take before the transition begins. About the Quiet Period The quiet period is standard practice during a change in administrators. Your Medtronic 401(k) Plan account will remain fully invested during this period and will continue to be subject to market gains and losses. If you re planning to retire in the near future, you re encouraged to carefully consider how the quiet period may affect your retirement planning and overall financial plan. 1

4 KEY DATES TO REMEMBER ABOUT THE MEDTRONIC 401(k) PLAN TRANSITION Here is a summary of important dates associated with the transition. To review your account or make changes before 4 p.m. Eastern Time on December 23, go to vanguard.com or call (800) DECEMBER EVENTS December 23, 2015, 4 p.m. Eastern Time Last day to: Make a contribution rate change Make an investment election change Designate a beneficiary (If newly eligible) Enroll in the Medtronic 401(k) Plan and make your retirement plan choice election Last day Vanguard can receive forms for the following to be processed before the quiet period: Rollover contributions Hardship withdrawals Loans Early loan payoffs Beneficiary designations requiring signature or spousal consent Quiet Period Starts During this time, your Medtronic 401(k) Plan account balance will transfer to Aon Hewitt. You won t be able to access your account or make any transactions until after the quiet period ends. JANUARY EVENTS January 12, 2016, 9 a.m. Eastern Time Quiet Period Ends You ll have full access to your Medtronic 401(k) Plan account by visiting the Medtronic retirement website at retirement.medtronic.com. You can start using all the new tools and information that make it easier to save and plan for retirement. January 19, 2016 Advisory services are available and can be accessed through the Medtronic retirement website at retirement.medtronic.com. Note: If you are currently enrolled in the Vanguard Managed Account Program, a pre-transition letter detailing the process will be sent in early December. A post-transition letter from Aon Hewitt Financial Advisors will be sent shortly after this date. KNOW WHETHER YOU NEED TO TAKE ACTION You do not need to take any action unless you want to make one or more of the changes to your account listed in the table on this page. If you want to make a change in 2015, remember, you must do so through Vanguard by 4 p.m. Eastern Time on December 23, Otherwise, you ll need to wait until after the quiet period ends to make changes. PENDING CHANGE TO TARGET RETIREMENT FUND SERIES The share class for the Vanguard Target Retirement fund series will change from Trust Plus to Trust Select effective January 1, 2016, which will lower the fees. Trust Select will become part of each fund s name (e.g., Vanguard Target Retirement 2030 Trust Select ). 2

5 FEATURES TO HELP SUPPORT YOUR FINANCIAL WELL-BEING While you will continue to have features like automatic escalation to increase your contribution rate, we re taking this opportunity to make the following enhancements to expand the suite of tools and support services available to help you save and invest better. Automatic Rebalance The natural varying performance of investments over time may cause your investment mix to become unbalanced. To help you stay on track with your savings and investing goals, we ll be offering automatic rebalance. This feature restores your original investment mix, bringing you back to where you originally intended. You can sign up to have your portfolio rebalanced on a 90-day, 180-day, or annual basis. Advisory Services Aon Hewitt Financial Advisors, LLC (AFA), in partnership with Financial Engines, will provide financial advisory services, including: Online Advice integrated into the Plan website. This service will provide specific, personalized savings and investment advice that employees can put into action. The Aon Hewitt Professional Management Program, which will offer personalized, professional portfolio management for a fee. Experts will create a personalized plan, put the plan into action, and routinely monitor accounts while rebalancing as needed. Employees will also receive quarterly retirement updates to monitor their progress. A personalized retirement forecast will be sent to all eligible employees after the transition is complete. Fund Fact Sheets With Lipper Fund Fact Sheets, employees will have access to best-in-class investment analysis and performance information for each of their investment options. These fact sheets will be available online when employees access their accounts (paper copies of the information can also be ordered at any time). Personal Financial Assistance The Financial Wellness Center will provide access to specialists who are trained to answer a wide variety of personal finance questions by phone or . All calls to the center are confidential, and come at no charge to employees. Debt Management/Counseling Services Through Aon Hewitt s partnership with ClearPoint Financial Solutions, Inc., a nonprofit provider of credit counseling services, employees will be eligible for free credit counseling with NFCC-certified consumer credit counselors. Appointments will be available by phone, online, or face-to-face at ClearPoint s 50-plus branches across the U.S. Online Financial Education Employees will have access to a library of financial planning resources such as articles, interactive presentations, and videos. Online Retirement Income Forecast Tool The retirement forecast tool uses Financial Engines powerful investment methodology to give meaningful, realistic forecasts of how much savings employees might expect to have in retirement. Personalization will allow employees to see how changes in their retirement dates and savings affect their forecasts. With the click of a button, employees will also be able to easily accept and apply recommendations. 3

6 CONNECT TO YOUR NEW ACCOUNT Logging On to retirement.medtronic.com Is Easy After the transition, you can log on to view and manage your Medtronic 401(k) Plan account online. Simply visit retirement.medtronic.com and select Current Employee? to log on via Medtronic Secured Access using your Medtronic user ID and password. You may also call the Retirement Service Center. Get Access on the Go Once the transition is complete, you can use your smartphone to access your Medtronic 401(k) Plan balance and check your progress toward meeting your goals anytime, anywhere. You ll also receive personalized tips that may improve your outcomes. You can even put those tips, including changes to your contribution rate or investment elections, into motion right on your smartphone! QUESTIONS? Before the quiet period begins on December 23, 2015: Contact Vanguard at vanguard.com or call (800) Beginning January 4, 2016: Call the new Retirement Service Center at (844) to speak with a representative between 9 a.m. and 7 p.m. Eastern Time, Monday through Friday. Note: Full service with account transactions will be available beginning January 12. Online chat will also be available at retirement.medtronic.com beginning January 12. 4

7 (844) Beginning January 4, 2016, representatives are available from 9 a.m. to 7 p.m. Eastern Time, Monday through Friday. Note: Full service with account transactions will be available beginning January 12. retirement.medtronic.com Important Notice The following notice is required by law and concerns your rights under the Medtronic 401(k) Plan during the quiet period. This notice is to inform you that the Medtronic 401(k) Plan will be changing record keepers from Vanguard to Aon Hewitt, which will result in a quiet period. To facilitate the transfer of the records of the account under the Medtronic 401(k) Plan from Vanguard to Aon Hewitt, there will be a limited time period during which you will be temporarily unable to direct or diversify investments in your individual account, change your contribution rate, or obtain a loan or a withdrawal or distribution from the Plan. This period, during which you ll be unable to exercise these rights otherwise available under the Plan, is the quiet period. The quiet period will begin at 4 p.m. Eastern Time on December 23, 2015 and is expected to end at 9 a.m. Eastern Time on January 12, You can determine whether the quiet period has ended by logging on to the Medtronic retirement website at retirement.medtronic.com or by calling the Retirement Service Center at (844) Note: You will be unable to enroll in Professional Management through Vanguard beginning at 4 p.m. Eastern Time on December 23, Access to the Aon Hewitt Professional Management Program will be available beginning January 19, Your contribution payroll deductions on file and investment elections for future contributions with Vanguard as of 4 p.m. Eastern Time on December 23, 2015 will be transferred to Aon Hewitt. Since you ll be unable to direct or diversify the assets held in your account during the quiet period, it s very important that you review and consider the appropriateness of your current investments before the quiet period begins. Reminder: For your long-term financial security, you should give careful consideration to the importance of a well-balanced and diversified investment portfolio, taking into account all your assets, income, and investments. Stocks that experience dramatic ups and downs (volatility) might incur a large loss during the quiet period. However, you would not be able to direct the sale of such stocks from your account during the quiet period, regardless of market conditions. If you have any questions concerning this notice, please contact Vanguard at (800) or write (regular or certified mail) to: The Vanguard Group P.O. Box 2900 Valley Forge, PA Toll-free at (800) :30 a.m. to 9 p.m. Eastern Time, any business day 5

8 DISCLAIMER Your Plan sponsor has hired Aon Hewitt Financial Advisors, LLC (AFA) to provide investment advisory services to Plan participants. AFA has hired Financial Engines Advisors, L.L.C. (FEA) to provide sub-advisory services. AFA is a federally registered investment advisor and wholly owned subsidiary of Hewitt Associates LLC. FEA is a federally registered investment advisor and wholly owned subsidiary of Financial Engines, Inc. Neither AFA nor FEA guarantees future results. Brokerage services are offered through Hewitt Financial Services LLC (HFS), a broker-dealer. HFS is a wholly owned subsidiary of Hewitt Associates LLC. Hewitt Financial Services, LLC Member FINRA, SIPC Lipper, a Thomson Reuters company, All rights reserved. L-M Transition Guide