Your choice, simplified.

Transcription

1 CalPERS Supplemental Income Plans Your choice, simplified. Learn about the new investment lineup and Plan redesign coming October 2013 Important Information Regarding Changes to your Placer County 401(k) Plan s Investment Lineup

2 *Please read the information in this brochure carefully. IMPORTANT CHANGES TO THE Placer County 401(k) PLAN ( PLAN ) INVESTMENT FUND LINEUP CalPERS has been delivering pension and health benefits to more than 1.6 million California employees, retirees, and their families for more than 80 years. And for more than 15 years we ve offered our Supplemental Income Plan services to participants to help you invest for your retirement goals. Through our regular review of performance and plan structure we strive to enhance Plan services and provide a broad array of investment options to help you diversify your Plan account according to your individual needs. New Investment Lineup and Plan redesign coming October 7 th! CalPERS continually seeks to strengthen its plan to add more value for participants. Based on the most recent review of the Supplemental Income Plans ( SIP ), CalPERS is pleased to announce a new investment lineup and redesign of the Placer County 401(k) Plan ( Plan ) resulting from member feedback, research and analysis by our Investment Office staff and the recommendations of our independent investment consultant. The Plan redesign, effective October 7 th, will consist of: A new fund lineup intended to offer a diverse range of investment choices with broad market exposure, while avoiding an overly complex fund lineup. To support the new investment lineup, funds will be replaced and eliminated from the current lineup. In addition, tools directly aimed at helping you manage your Plan more conveniently and effectively are also being implemented. As a participant in the Plan, you are responsible for investing your Plan account. You have the right to direct the investment of all, or a portion, of your account under the Plan. Take this opportunity to think about your situation and explore moves you can take to stay on course, making any necessary adjustments prior to October 2 or after the Quiet Period ends on October 7. This brochure reviews the upcoming changes to the Plan s investment lineup and highlights important dates related to the transition. Please read it carefully, paying close attention to the fund mapping section. Learn more! Special meetings, webinars, and workshops will be held prior to the transition to help you understand the Plan redesign. Please plan to attend and bring your questions. The schedule will be posted at com. Or call toll free (888) to speak with a local ING representative.

3 Your choice, simplified. Beginning October 7th, you will have access to a new investment lineup designed to represent a wide range of investment options while avoiding an overly complex fund lineup that might confuse the average participant. The new investment lineup is organized into choices of investments designed for you to decide how involved you want to be in actively designing your own asset allocation based on your individual circumstances, goals, time horizons and risk tolerance. The choices of investments include: Your Choice Your Involvement The Investment Approach Help-Me-Do-It. Target Retirement Date Funds A diversified portfolio in a single fund. Do-It-Myself. Core Funds A carefully curated list of passively managed investment options. You select the fund, CalPERS manages the asset allocation of the fund. This approach is convenient if you don t have the interest, time or experience to actively design and manage your investment asset allocation on your own. You select your funds and actively design and manage your asset allocation. If you like to design and actively manage your own asset allocation based on your individual circumstances, goals, time horizons and risk tolerance, you may choose from the core investment options. A series of target retirement date funds offer a diversified portfolio in one fund. Each fund invests in a well-diversified portfolio of a mix of the new index funds that is automatically rebalanced to a less aggressive mix of investments to become more conservative as it approaches its target date. CalPERS has selected a set of index funds in different asset classes (stocks, bonds, and cash equivalents) so you can diversify your portfolio based on your personal situation. The Self-Managed Account (SMA) remains an option available through employers who contract for that provision. The SMA gives you access to thousands of mutual funds from hundreds of fund families. Please note, however, the mutual funds are not selected, reviewed or monitored by CalPERS. The annual administration fee (prorated and charged monthly) remains $50 per account; however the new monthly asset based fee will be 0.38% vs. the current fee of 0.26%. Other fees and minimum investment requirements may apply. This information is for general discussion purposes only. Prior to investing you should carefully review all fund information and objectives contained in the Investment Fund Fact Sheets, and consult with your investment advisor. For more detailed information on the new investment lineup, including investment objectives, expense ratios and performance information please review the fund fact sheets. Fund materials can be obtained from Investing 101 What are target date funds? Target date funds are broadly diversified portfolios that invest across numerous asset classes based on a projected retirement date. You simply choose a target date fund based on the date you expect to begin withdrawing money for retirement. While target date funds offer a diversified portfolio in a single fund, you should continue to monitor your plan account and adjust contributions as needed. What are index funds? Index funds are designed to produce results that mirror the performance of the index they track by buying and holding the stocks or bonds included in the index. That s why these funds are often described as passively managed. If you want to invest in a certain asset class, such as the stocks or bonds of large U.S. companies, an index fund gives you a convenient way to invest without having to choose individual stocks or bonds. What is an index? A fund s performance is usually compared with its market benchmark or index. An index is a grouping of stocks or bonds selected to represent the market. The best-known index is the Dow Jones Industrial Average that follows 30 of the largest U.S. companies. The Standard & Poor s 500 Index widens the range to include 500 of the largest U.S. companies for a broader reading of the market. An index is not managed and cannot be invested in directly. Please carefully review the information in this brochure on fund mapping.

4 Your opportunity to make a new choice. Assets in the current funds will be transferred to the new funds with similar objectives and risk levels, through a process called mapping. We urge you to carefully review your Plan investments in conjunction with the fund information and mapping tables below to ensure that you continue to meet your overall asset allocation requirements. If you find it necessary to make changes to your fund election(s) you have the opportunity to do so anytime prior to the start of the Quiet Period on October 2 at 1:00 p.m. Pacific Time or after the Quiet Period ends at 6:00 a.m. Pacific Time on October 7, Help-Me-Do-It Target Retirement Date Funds A diversified portfolio in a single fund. CalPERS Target Retirement Date Fund Mapping The Target Retirement Date Funds are a series of diversified funds, each of which has a pre-determined underlying asset mix that will adjust over time toward a more conservative allocation until the selected target date. The new Target Retirement Date Funds will be invested in underlying portfolios that use a passive or indexing approach to investing, by which the portfolio manager attempts to match, before expenses, the performance of the benchmark. State Street Global Advisors (SSgA) serves as the manager of the underlying portfolios and the CalPERS Investment Office provides oversight of the asset allocation. Risk-Based Asset Allocation Fund Mapping The Risk-Based Asset Allocation Funds are being eliminated from the Plan s investment lineup. If you have an account balance in one or more of the three risk-based asset allocation funds, those balances will be mapped to one of the new CalPERS Target Retirement Date Funds based on your date of birth. Current Funds being eliminated CalPERS Target Retirement Income Fund CalPERS Target Retirement 2005 Fund CalPERS Target Retirement 2010 Fund CalPERS Target Retirement 2015 Fund CalPERS Target Retirement 2020 Fund CalPERS Target Retirement 2025 Fund CalPERS Target Retirement 2030 Fund CalPERS Target Retirement 2035 Fund CalPERS Target Retirement 2040 Fund CalPERS Target Retirement 2045 Fund CalPERS Target Retirement 2050 Fund For example, if you were born in 1965 and have a balance in the CalPERS Moderate Asset Allocation Fund that balance will map to the CalPERS Target Retirement 2025 Fund. Risk-Based Asset Allocation Fund Mapping to the CalPERS Target Retirement Date Funds If your birthday is... On or before 1952 On or between On or between 1958 and 1962 On or between 1963 and 1967 On or between 1968 and 1972 On or between 1973 and 1977 On or between 1978 and 1982 On or between 1983 and 1987 On or between 1988 and 1992 On or after 1993 Current Fee 1 The New Fund Lineup New Fee 1 CalPERS Target Retirement Income Fund 0.42% Current target date funds transfer to the NEW CalPERS Target Retirement Date Fund with the same target date, but a new lower fee. Your CalPERS Target Retirement Date Fund is... CalPERS Target Retirement Income Fund CalPERS Target Retirement 2015 Fund CalPERS Target Retirement 2020 Fund CalPERS Target Retirement 2025 Fund CalPERS Target Retirement 2030 Fund CalPERS Target Retirement 2035 Fund CalPERS Target Retirement 2040 Fund CalPERS Target Retirement 2045 Fund CalPERS Target Retirement 2050 Fund CalPERS Target Retirement 2055 Fund 0.42% 0.43% 0.43% No current fund CalPERS Target Retirement 2055 Fund 1 Other expenses may apply. Based on assumption that retirement age is 60. Current fees for the risk-based asset allocation funds are vs. 0.42% - for the new CalPERS Target Retirement Date Funds. Other expenses may apply. See the CalPERS Target Retirement Date Fund mapping table above for specific fund fees.

5 CalPERS has selected State Street Global Advisors (SSgA) as the asset manager for the new core funds. SSgA is one of the world s leading providers of financial services to institutional investors, and is the asset management business of State Street Corporation a publicly traded Fortune 500 company (ticker: STT). SSgA is a global leader in institutional asset management, entrusted with more than $2.18 trillion* in assets under management. As one of the premier managers for U.S. Defined Contribution ( DC ) retirement plans, SSgA has more than 30 years of experience in the DC market with over $261.6 billion in global DC assets as of March 31, * This AUM includes the assets of the SPDR Gold Trust (approx. $62.7 billion as of March 31, 2013), for which State Street Global Markets, LLC, an affiliate of State Street Global Advisors, serves as the marketing agent. Do-It-Myself Core Funds A carefully curated list of passively managed investment options. Core Fund Mapping The core funds will be mapped to a streamlined set of index funds. All existing balances and ongoing contributions to the current core funds will be redirected to the new index funds. The New Fund Lineup New Current Funds being eliminated Current Fee 1 Fee 1 Core Funds Index Funds SSgA Short-Term Investment Fund 0.50% SSgA U.S. Government Short-Term Investment Fund 0.45% PIMCO Short-Term Bond Fund 0.55% SSgA U.S. Short-Term Government/ CalPERS Treasury Inflation Protected Securities Fund 0.55% Credit Bond Index Fund 0.45% No current fund SSgA Real Asset Fund 0.55% CalPERS Total Return Bond Fund 0.55% SSgA U.S. Bond Index Fund 0.40% CalPERS S&P 500 Equity Index Fund 0.35% CalPERS Small & Mid Cap Equity Index Fund 0.40% The Boston Company Small/Mid Cap Growth Fund 0.98% SSgA Russell All Cap Index Fund 0.41% The Boston Company Small/Mid Cap Value Fund 0.98% CalPERS International Index Fund 0.40% SSgA Global All Cap Equity Pyramis Select International Fund 0.94% ex U.S. Index Fund 0.46% 1 Other expenses may apply. Investing 102 The importance of asset allocation when building your investment portfolio. Asset allocation helps to reduce investment risk by spreading your money among different investments, or across the main asset classes. Combining different types of investments, i.e. stocks, bonds and cash equivalents, may help you manage risk and maximize your return potential by smoothing out market fluctuations, while still taking advantage of the market s potential for higher returns. Diversification through asset allocation, does not ensure a profit or protect against loss. WE RE ENTERING A QUIET PERIOD Mark your calendar and plan ahead! To implement the new investment fund lineup we will need to enter a Quiet Period beginning on Wednesday, October 2, 2013 at 1:00 p.m. Pacific Time and ending on Monday, October 7, 2013 at 6:00 a.m. Pacific Time. Investment Election Changes After careful review of the fund mapping information in this brochure and that in the fund fact sheets posted online at if you wish to make changes to your fund elections you may do so online or by phone before the Quiet Period begins on October 2 nd, or after it ends on October 7 th. Online: Phone: (800) During the Quiet Period, any account balances and future contributions in the eliminated funds will transfer to the new Plan funds as illustrated in the fund mapping tables in this brochure. All future contributions will be made into the new funds. It will be necessary to suspend all account access during the Quiet Period. You will not be able to make changes to your account, or to make transactions of any kind, including transferring money among funds or requesting withdrawals, during the Quiet Period. If you have any questions, please call a Participant Service Representative at (800) Monday Friday, 6:00 a.m. 5:00 p.m. Pacific Time (except on stock market holidays). Important Transition Dates Your current funds will map automatically to the new fund lineup. If you want to make changes to your account before the transition begins, you must complete your transactions before 1:00 p.m. Pacific Time on October 2 nd. October 2, 2013 Quiet Period Begins at 1:00 p.m. Pacific Time Temporary suspension of all account access, including the ability to make transactions begins Conversion of fund assets to the new investment options begins October 7, 2013 Quiet Period Ends at 6:00 a.m. Pacific Time Full access to accounts restored All account transactions accessible through: > > (800)

6 Member service is a CalPERS priority! CalPERS is committed to making your account easier to access and manage. Recent changes bring additional opportunities for in-person and by-phone assistance. We provide online access to tools and educational resources on retirement planning and personal finance. Many Plan features and services are available today to make it more convenient for you to manage your account with more coming soon. One-on-one assistance. Phone review Fridays. Toll free dedicated Plan Information Line. To-Do List Redesigned Plan Website Mobile app. Experienced local ING representatives are ready to help you develop a plan for meeting your retirement objectives and review your account and investments with you. To schedule an appointment go to or call toll free (888) weekdays, 8:00 a.m. 5:00 p.m. Do you have questions about the Plan or your Plan account? Go to to set up time to talk with a local ING representative. You will receive a confirmation and reminder of your appointment by . You can request information and get help with transactions or questions about your account by calling (800) Monday Friday, 6:00 a.m. 5:00 p.m. Pacific Time (except on stock market holidays). Coming soon an even better online experience for managing your Plan account and investments. You can access your Plan account using your iphone, ipod touch or Android device. Try the new savings calculator, too! Download the app at no charge directly from the App Store or the Google Play Store (keywords: ING Retire). iphone, ipod touch are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Android is a trademark of Google Inc. Now through October 1st Attend an investment lineup informational meeting or webinar. To find a meeting near you: Check with your employer or look for posters in your building. Call the Plan Information Line toll free at (888) to speak with a local ING representative. Visit the website at to review an updated schedule. Perform a Plan Tune-Up Review your current asset allocation to ensure your account is properly diversified. Check your contribution level to help ensure you re able to meet your retirement goals. Review your beneficiary information. Before October 2nd at 1:00 p.m. Complete all account transactions, including making changes to investment elections. August 19, 2013 Important Notice Concerning Your Rights Under CalPERS Supplemental Income Plans This notice is to inform you that the CalPERS Supplemental Income Plans will be introducing new investment offerings in addition to replacing some of those offerings currently in place for the Plan. As a result of these changes, you temporarily will be unable to have any access to your account, direct or diversify investments in your individual accounts, or obtain a distribution from the plan. This period, during which you will be unable to exercise these rights otherwise available under the plan, is called a Quiet Period. Whether or not you are planning retirement in the near future, we encourage you to carefully consider how this Quiet Period may affect your retirement planning, as well as your overall financial plan. The Quiet Period for the Plan will begin on Wednesday, October 2, 2013 at 1:00 p.m. Pacific Time and end on Monday, October 7, 2013 at 6:00 a.m. Pacific Time. During the Quiet Period you will be unable to direct or diversify the assets held in your Plan account. For this reason, it is very important that you or your beneficiary review and consider the appropriateness of your current investments in light of your inability to direct or diversify those investments during the Quiet Period. For your long-term retirement 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. Investments that have wide price swings might have a large loss during the Quiet Period, and you would not be able to direct the sale of such investments from your account during the Quiet Period. For those participants using the Self-Managed Account, you should be aware that there is a risk to holding a substantial portion of your assets in the securities of any one company, as individual securities tend to have wider price swings, up and down, in short periods of time, than investments in diversified funds. If you have any questions concerning this notice, you should contact a Participant Service Representative by calling (800) Monday Friday, 6:00 a.m. 5:00 p.m. Pacific Time (except on stock market holidays). You may also contact your Plan Administrator via mail at: Regular Mail: ING Placer County 401(k) Plan P.O. Box 5166 Boston, MA Overnight Mail: ING Placer County 401(k) Plan 30 Braintree Hill Office Park Braintree, MA PLC G.P (8/13)