The Regional University System of Oklahoma

Transcription

1 The Regional University System of Oklahoma Plan Enhancements

2 Page 2 Important Information Any insurance products, annuities and funding agreements that you may have purchased are sold as securities and are issued by ING Life Insurance and Annuity Company, ("ILIAC"), One Orange Way, Windsor CT or ReliaStar Life Insurance Company. Fixed annuities are issued by ILIAC. ILIAC is solely responsible for meeting its obligations. Plan administrative services provided by ILIAC or ING Institutional Plan Services, LLC ("IIPS"). Neither ILIAC nor IIPS engage in the sale or solicitation of securities. Securities are distributed by ING Financial Advisers, LLC (member SIPC), Directed Services, LLC (member SIPC) or other broker-dealers with which it has a selling agreement. All companies are members of the ING family of companies. All products or services may not be available in all states ING North America Insurance Corporation.

3 Page 3 Important Information Cont. Variable annuities, group annuities or funding agreements are long-term investments designed for retirement purposes. If withdrawals are taken prior to age 59 1/2, an IRA 10% premature distribution penalty tax may apply. Money taken from the annuity will be taxed as ordinary income in the year the money is distributed. An annuity does not provide any additional tax deferral benefit, as tax deferral is provided by the plan. Annuities may be subject to additional fees and expenses to which other tax-qualified funding vehicles may not be subject. However, an annuity does provide other features and benefits, such as lifetime income payments and death benefits, which may be valuable to you. Variable investments, of any kind, are not guaranteed and are subject to investment risk including the possible loss of principal. The investment return and principal value of the security will fluctuate so that when redeemed, it may be worth more of less than the original investment. In addition, there is no guarantee that any variable investment option will meet its stated objective. For 403(b)(1) annuities, the Internal Revenue Code (IRC) generally prohibits withdrawals of 403(b) salary reduction contributions and earnings on such contributions prior to death, disability and age 50 ½, severance of employment, or financial hardship. Amounts held in a 403(b)(1) annuity as of 12/31/1988 are grandfathered and are not subject to these restrictions. For 403(b)(7) custodial accounts, the IRC generally prohibits withdrawals of any contributions and attributable earnings prior to death, disability, age 59 ½, severance of employment, or financial hardship. For both 403(b)(1) annuities and 403(b)(7) custodial accounts, the amount available for hardship is limited to the lesser of the amount necessary to relieve the hardship, or the account value as of 12/31/1988, plus the amount of any salary reduction contributions made after 12/31/1988 (exclusive of any earnings). All Guarantees are based on the financial strength and claims-paying ability of the issuing insurance company, who is solely responsible for all obligations under its policies. You should consider the investment objectives, risk, and charges and expenses of the investment options carefully before investing. Fund prospectuses contain this and other information and can be obtained by contacting your local ING representative. Please read carefully before investing.

4 Page 4 Agenda Contact Us Investment Options Technology, Tools, Calculators Key Transition Information 403b Overview

5 Get Information When You Need It And How You Want It! Local Service: Meet with one of three representatives OK2retire.com Attend educational presentations Plan specific information at OK2retire.com Central Service: Beginning February 24, you can access your account and key plan information Online by logging in to your account at OK2retire.com Online tools Calculators Brainshark presentations By calling ING at (800)

6 Page 6 Retirement Preference Spectrum Different People, Different Approaches Target-date funds Morningstar Retirement Manager Multiple Fund Options Local Financial Advisor(s)

7 Page 7 I ll Do it Myself Investment Asset Class Loomis Sayles Inflation Protected Secs I Inflation Protected Bond Dodge & Cox Income Fund Bonds Vanguard Total Stock Market Index Fund - Signal Shares Large Cap Value American Funds AMCAP Fund R-6 Large Cap Growth Vanguard Windsor Fund - Admiral Shares Large Cap Value Vanguard Mid Cap Index Admiral Shares Small/Mid/Specialty TIAA-CREF Mid-Cap Growth Fund - Institutional Class Small/Mid/Specialty Vanguard Mid-Cap Value Index Fund - Investor Shares Small/Mid/Specialty Vanguard Small-Cap Index Fund - Admiral Shares Small/Mid/Specialty Vanguard Explorer Fund - Admiral Shares Small/Mid/Specialty DFA U.S. Targeted Value Portfolio - Institutional Class Small/Mid/Specialty Vanguard REIT Index Fund - Signal Shares Small/Mid/Specialty TIAA-CREF Social Choice Equity Fund - Institutional Class Large Cap Value Dodge & Cox International Stock Fund Global / International Oppenheimer International Growth Fund - Class Y Global / International

8 Do it for me -- Target Date Funds Gives you access to professionally managed and monitored portfolios that adjust over time as your investment goals near You simply choose the target date fund option that s closest to the date you would like to retire As you approach this target date, the portfolio will automatically move from a more aggressive investment mix to a more conservative investment mix 8

9 Target Date Funds Research shows, that as your time horizon shortens, it s important that your mix becomes more conservative If you choose a target date fund, you don t have to worry about when to make these adjustments they ll be automatically made for you 9

10 Your Plan Offers The Help You Need I like to keep it simple: Give me a handy solution Designed for investors expecting to retire or to begin withdrawing assets around the year Asset mix becomes more conservative prior to retirement, as time elapses. Birth year: 1953 to to to to to to to to 1992 Born after 1992 Before 1953 Vanguard Target Retirement 2020 Fund Vanguard Target Retirement 2025 Fund Vanguard Target Retirement 2030 Fund Vanguard Target Retirement 2035 Fund Vanguard Target Retirement 2040 Fund Vanguard Target Retirement 2045 Fund Vanguard Target Retirement 2050 Fund Vanguard Target Retirement 2055 Fund Vanguard Target Retirement 2060 Fund Vanguard Target Retirement Income Fund 10

11 Morningstar Morningstar Retirement Manager SM Investment Advice (Managed by You) If you would like to maintain control of your investments, but wouldn t mind a helping hand, take a closer look at Managed by You. Managed Accounts (Managed by Morningstar) If you would prefer to have an investment professional manage your account on your behalf, take a closer look at Managed by Morningstar. A personalized asset allocation strategy Investment selections based on plan availability Automatic account rebalancing Ongoing monitoring of investment selections Transaction initiation requests Annual progress reports mailed to homes/ Quarterly progress reports available online Managed by You Managed by Morningstar * * * ** No additional charge. * ** 0.60% per participant electing this service.

12 Page 12 Participant Web You will be assigned a default personal identification number to access your new account online at OK2retire.com and on the automated toll-free line. Your PIN is the month and year of your birth (MMYY) and is effective beginning February 24. We encourage you to change this default PIN to one of your own preference.

13 Page 13 Convenient and Mobile Technology Convenient on-the-go Retirement Plan Account Access for your employees Inquiry & Action Investments: Balances/Fact Sheets/Performance Transaction History Personal Performance Estimated Monthly Income at Retirement Contribution History Change Contributions/ Incl. Catch-Up Reallocate Balances Transfer Among Funds Change Future Elections Historical Fund Graph Comparisons

14 Page 14 Tools and Calculators My Retirement Outlook ING Compare Me

15 Important Transition Dates Page 15

16 Page 16 Key Items Fee Transparency Annual asset-based fee of 0.17% charged to mutual fund accounts Excludes ING Fixed Plus Account III Pro-rata portion deducted quarterly.0425% 1 st Deduction will be on your June 30, 2014 quarterly statement Fee Type Process Date Money Source Investment Number of Units/Shares Unit/Share Price Transaction Amount Asset Base Fee 06/20/2014 Employee Deferral Mutual Fund $ $ /20/2014 Roth Mutual Fund $ $ /20/2014 Employee Deferral ING Fixed Plus Account III N/A N/A N/A Total Asset Base Fee -$8.50 This hypothetical chart illustrates the quarterly deduction of the annual asset-based fee and assumes an investment balance of $10,000 for each of the investment options displayed. Fund management fees and other fund operating expenses will apply. Fees depend on the investment option chosen. Please refer to the individual Fund prospectuses for fund fee information and the contract information booklet. You may also contact your local representative.

17 Page 17 Key Items Fixed Plus Account III March 25, 2014 through March 25, % Contract Guaranteed Minimum Interest Rate 1% To keep the fixed account log in to your account after 2/24/14 Guarantees are based on the claims-paying ability of ING Life Insurance and Annuity Company and do not apply to the investment return or principal value of the mutual funds under a 403(b)(7) custodial agreement.

18 Page 18 Key Items -- Loans Lincoln loans will transition to ING Your automatic payment to Lincoln will stop Look for instructions in the mail Establish ACH loan payment with ING by 3/17 Loans from other providers such as TIAA not impacted

19 What is a 403(b) Plan? A payroll deduct way to save pre-tax or after-tax dollars set aside for retirement Earnings grow tax-free if Qualified Distribution rule is satisfied You can: Increase, decrease or even suspend contributions Reallocate how your contributions are invested among available options under the plan 19

20 A Plan That Gives You a Tax Choice Traditional 403(b) Option Contributions go in pre-tax Earnings are tax deferred Taxes are due upon withdrawal Roth 403(b) Option Money goes in aftertax Earnings are tax free Tax-free withdrawals as long as certain qualifying conditions are met* Combination of both options * To qualify, Roth contributions must be held at least five years before the date of distribution and you must be 59½ (assuming separation from service, disability, or death). 20

21 Page 21 Financial Education Workshops Budgeting College Funding Estate Planning Getting Organized Debt Management Investment Basics Retirement Planning Retirement Income Market Volatility