The ABA Retirement Funds Program has been serving the retirement needs of the legal community for more than 55 years.

Transcription

1 ABA Retiremet Fuds Program We are a differet kid of retiremet pla The ABA Retiremet Fuds Program has bee servig the retiremet eeds of the legal commuity for more tha 55 years. I 1963, the ABA Retiremet Fuds Program ( the Program ) was established to offer uique retiremet solutios exclusively to the legal commuity. Created as a ot-for-profit corporatio, the ABA Retiremet Fuds ecourages savigs by lawyers ad leverages its membership to budle some of the largest ad best-kow fiacial services providers i the idustry. The ABA Retiremet Fuds Program is committed to providig legal professioals with the educatio, motivatio, tools, advice, ad retiremet pla ecessary to help achieve retiremet security.

2 Our Value Propositio ad Structure Program Overview...1 Fiduciary Oversight....2 Ivestmet Platform...3 Program Services...5 Program Fees...6

3 Our Value Propositio ad Structure The Program is desiged to provide uique, full service 401(k) plas to the legal commuity. By leveragig its size, the Program brigs together more tha 4,000 law firm retiremet plas to offer a fud lie-up ad service package typically available to oly the largest of corporate retiremet plas. This leverage allows the Program to budle some of the largest ad best-kow fiacial services providers i the idustry: Ivestmet fiduciary, trust ad custody services from Mercer Trust Compay, a leadig provider of fiduciary services Self-directed brokerage services through TD Ameritrade, Ic. Ivestmet advisory services provided by Voya Retiremet Advisors, LLC ad powered by Fiacial Egies Recordkeepig ad admiistratio services from Voya Istitutioal Pla Services, LLC, oe of the largest recordkeepig firms i the idustry Couple these beefits with the oversight that the ABA Retiremet Fuds provides over the etire Program ad you have a retiremet solutio that helps firms hire ad retai quality employees, cotrol expeses ad meet their fiduciary resposibilities. PROGRAM OVERVIEW The Program brigs together over 4,000 law firm retiremet plas to offer a platform of ivestmets ad a service package typically available to oly the largest of corporate retiremet plas. ABA Retiremet Fuds Oversight Resposibility Board of Directors comprised of o fewer tha 10 attoreys Board of Directors supported by: Full-time Staff; Executive Director, Program Operatios Director Outside experts icludig idepedet cousel & cosultats ABA Retiremet Fuds Program sposor; ot-for-profit corporatio Over 4,000 law firm retiremet plas 1 Over $6 billio i assets 1 More tha 55 years of service to the legal commuity Service Providers Ivestmet Fiduciary, Trustee, ad Custodia Recordkeepig, Cliet Service ad Sales Self-Directed Brokerage Accout Mercer Trust Compay ad its affiliates globally have 45+ years of ivestmet experiece, advisig over $10.9 trillio of assets 2 Has cosulted to 6 of the 10 largest U.S. pesio fuds 3 A leadig provider of fiacial products ad services i the U.S. Oe of the largest defied cotributio recordkeepers with over 48,200 plas 4 Offers over 13,000 domestic ad iteratioal mutual fuds Received 5 stars overall ad was raked #2 out of 13 olie brokers i the StockBrokers.com Olie Broker Review As of December 31, Assets uder advisemet icludes aggregated data for Mercer Trust Compay ad its affiliated compaies globally ( Mercer ). Data is derived from a variety of sources, icludig, but ot limited to, third-party custodias or ivestmet maagers, regulatory filigs, ad cliet self-reported data. Mercer has ot idepedetly verified the data. Where available, data is provided as of Jue 30, 2017 ( Reportig Date ). If data was ot available as of the Reportig Date, iformatio from a date closest i time to the Reportig Date, which may be of a more recet date tha the Reportig Date, was icluded. Data icludes assets of cliets that have egaged Mercer to provide project-based services withi the 12-moth period edig o the Reportig Date, ad assets of cliets that subscribe to Mercer s Maager Research database. 3 Pesios & Ivestmets (P&I), P&I 1,000 largest retiremet plas: 2018, raked by total assets as of September 30, 2017, published o February 5, Pesios & Ivestmets Special Report of DC Recordkeepers as of April 2018 (based o September 2017 data). 5 Reviewed agaist 12 other olie brokers, TD Ameritrade received five stars for Overall Broker i the StockBrokers.com 2018 Olie Broker Review. Read the full article at ABA Retiremet Fuds Program 1

4 FIDUCIARY OVERSIGHT A Employer s decisio to sposor a retiremet pla typically brigs with it certai fiduciary resposibilities uder the Employee Retiremet Icome Security Act of 1974 ( ERISA ). These resposibilities iclude: The selectio ad moitorig of service providers for your pla such as recordkeeper, admiistrator, trustee ad custodia, alog with their respective fees reasoableess. The selectio ad moitorig of brokers, cosultats, ivestmet advice service providers, alog with moitorig associated fees. The selectio ad moitorig of ivestmet maagers, ivestmet optios available i the pla, alog with moitorig of ivestmet expeses. Take a deeper look at your Fiduciary Resposibilities Through a uique desig, the ABA Retiremet Fuds Program provides employers with the most comprehesive protectio from ivestmet fiduciary liability uder ERISA. Other providers of retiremet pla platforms may claim that their platforms provide limited liability uder ERISA because the providers of these platforms make available fiduciaries uder Sectio 3(21) of ERISA or ivestmet maagers as defied i Sectio 3(38) of ERISA. Because of the way the Program is structured, these other desigated fiduciaries are ot ecessary to protect employers from ivestmet fiduciary liability uder ERISA for those who egage the Program. Fiduciary Liability to Your Firm No Outside Fiduciary Sectio 3(21) Fiduciary Sectio 3(38) Fiduciary ABA Retiremet Fuds Program FIDUCIARY ACTS AND DECISIONS RESPONSIBLE FIDUCIARY Adoptio ad cotiued use of a pla provider Selectio ad periodic moitorig of trustee, ivestmet maager, ad recordkeeper Selectio ad moitorig of ivestmet advice service provider to participats Developmet ad maiteace of Ivestmet Policy 1 Selectio, termiatio, ad moitorig of all fud maagers ad ivestmet optios cosistet with the Ivestmet Policy 1 Ivestmet Maager Moitorig of all ivestmet maager purchase/sale activity for compliace with ivestmet guidelies Ivestmet Maager Ivestmet Maager Determiig applicability of, ad compliace of fud ivestmet lie-up with, certai ERISA requiremets icludig prudece, broad rage, ad suitability Ivestmet Maager Ivestmet Maager 1 Subject to acceptace by ABA Retiremet Fuds. 2 ABA Retiremet Fuds Program

5 INVESTMENT PLATFORM To relieve law firms from the ivestmet selectio process, the Program has hired Mercer Trust Compay to act as Ivestmet Fiduciary, Ivestmet Maager, Trustee ad Custodia. Mercer Trust Compay ad its global affiliates are a leadig provider of ivestmet advice ad services. For the Program, Mercer Trust Compay is resposible for the decisios regardig the ivestmet platform. Ivestmet Maagemet ad Fud Costructio There are three distict processes associated with Mercer Trust Compay s ivestmet platform maagemet role for the Program. Research & Due Diligece Portfolio Maagemet Oversight Fidig high-quality maagers, globally Idetifyig maagers with soud operatioal practices Focusig o forward lookig potetial Fit for cliet use Multi-maager costructio 1 Focus o high covictio Next geeratio maagers Risk/retur characteristics Iovative strategies Orgaizatioal fit Ogoig moitorig ad replacemet of maagers Desiged to provide trasparecy ad security, as well as a proactive ad quick respose whe eeded Solutios For Every Type of Participat A diverse selectio of ivestmet optios is importat to esure every participat has suitable choices to help meet his or her retiremet goals. The Program has optios for a variety of ivestors. The Program s platform of ivestmets is desiged ito three simple tiers, all of which are available o matter what type of participat you are. Delegators Validators Self-Directed Less experieced ivestor or the idividual that lacks the time or iterest i regularly makig ivestmet decisios A ivestor who takes a more hads o approach to makig ivestmet decisios, but may seek validatio as well TIER III Self-Directed Brokerage TIER II (Core) Portfolio Buildig Blocks TIER I (Core) Pre-Mixed Diversified Fuds The ivestor who selects idividual ivestmets icludig stocks, bods, or mutual fuds TIER III Self-Directed Brokerage Buildig Blocks TIER I (CORE) Pre-mixed Diversified Fuds TIER II (CORE) Portfolio Buildig Blocks TIER III Self-Directed Brokerage 1 Assets of multi-maager Fuds are allocated to differet ivestmet maagers, actig idepedetly from the others based o their ow ivestmet style. Geerally, Mercer Trust Compay will use a multi-maager Fud structure; however, certai asset classes may ot led themselves to multi-maager solutios. As a result, each Fud will be separately aalyzed to fid the best ivestmet solutio. ABA Retiremet Fuds Program 3

6 Program Ivestmets Meu TIER I (Core) Pre-Mixed Diversified Fuds TIER II (Core) Portfolio Buildig Blocks TIER III Self-Directed Brokerage New! New! New! New! New! RETIREMENT DATE FUNDS Retiremet Date Fud 2055 Retiremet Date Fud 2050 Retiremet Date Fud 2045 Retiremet Date Fud 2040 Retiremet Date Fud 2035 Retiremet Date Fud 2030 Retiremet Date Fud 2025 Retiremet Date Fud 2020 Retiremet Date Fud Icome Retiremet Date Fud TARGET RISK FUNDS Coservative Risk Fud Moderate Risk Fud Aggressive Risk Fud New! U.S. EQUITY FUNDS Large Cap Equity Fud Large Cap Idex Equity Fud Small-Mid Cap Equity Fud Small-Mid Cap Idex Equity Fud All Cap Idex Equity Fud NON-U.S. EQUITY FUNDS Iteratioal All Cap Equity Fud 2 Iteratioal Idex Equity Fud 2 FIXED-INCOME FUNDS Bod Core Plus Fud Bod Idex Fud Stable Asset Retur Fud 2 NON-TRADITIONAL DIVERSIFYING FUNDS Alterative Alpha Fud 2 Real Asset Retur Fud SELF-DIRECTED BROKERAGE ACCOUNTS 3 No Aual Fee 4 Discout Service Stocks Bods Mutual Fuds Over 13,000 Fuds from over 500 Fud Families Over 4,500 fuds with o load or trasactio fees 5 Access to over 1,500 Exchage Traded Fuds (ETF) Over 300 ETFs available at o commissio 6 For Tier III oly: Before ivestig i a mutual fud or ETF, carefully cosider the fud's ivestmet objectives, risks, charges ad expeses. For a prospectus cotaiig this ad other importat iformatio, cotact the fud or cotact a TD Ameritrade represetative at (866) Please read the prospectus carefully before ivestig. Foototes to the Program s Ivestmet Optios: 1 Geerally speakig, Target Date fuds target a certai date rage for retiremet, or the date the ivestor plas to start withdrawig moey. Ivestors ca select the fud that correspods to their target date. They are desiged to rebalace to a more coservative approach as the date ears. A ivestmet i the Target Date fud is ot guarateed at ay time, icludig o or after the target date. 2 Fuds may iclude tradig restrictios. Cosult the Aual Disclosure Documet (April 2018) for details. 3 Brokerage services provided by TD Ameritrade, Ic., member FINRA/SIPC. TD Ameritrade is a trademark joitly owed by TD Ameritrade IP Compay, Ic. ad the Toroto Domiio Bak. Used with permissio. 4 Commissios, service ad exceptio fees still apply. 5 No-Trasactio-Fee (NTF) mutual fuds are o-load mutual fuds for which TD Ameritrade does ot charge a trasactio fee. TD Ameritrade receives remueratio from mutual fud compaies, icludig those participatig i its o-load, o-trasactio-fee program, for recordkeepig, shareholder services, ad other admiistrative ad distributio services. The amout of TD Ameritrade s remueratio for these services is based i part o the amout of ivestmets i such fuds by TD Ameritrade cliets. No-trasactiofee mutual fuds ad other fuds offered through TD Ameritrade have other fees ad expeses that apply to a cotiued ivestmet i the fud ad are described i the prospectus. 6 For iformatio about ETFs, please visit our website at The risk factors that pertai to ivestmet i the Fuds are described i detail i the descriptio of each Fud icluded i the Aual Disclosure Documet (April 2018) which is available to you. These risk factors may iclude, but are ot limited to, risks of ivestig i equity securities, risks of ivestig i equity securities of o-u.s. compaies ad smaller compaies, iterest rate risk applicable to ivestmet i fixed-icome securities, credit risk applicable to ivestmet i fixed-icome securities, icludig those of lower credit quality, risks of ivestig i REITs, risk of reliace o idustry research, risks of ivestig i U.S. Govermet obligatios, risks related to securities ledig, risk of TBA commitmets, risk of whe-issued securities, risks related to market disruptios ad govermetal itervetios, risks associated with structure of the collective trust, ad risks associated with commodity ivestmets ad derivatives. The Collective Trust ad the Fuds are ot Regulated Ivestmet Compaies or subject to SEC Disclosure Requiremets. The Collective Trust ad the Fuds are ot registered as ivestmet compaies uder the Ivestmet Compay Act of 1940 ad, therefore, are ot subject to compliace with the requiremets of that Act. 4 ABA Retiremet Fuds Program

7 PROGRAM SERVICES The quality of our service is oe of may reasos the Program has a curret cliet retetio rate of 99%.1 Coversio ad Pla Implemetatio Services: Service is t just somethig we talk about. We measure Pla desig cosultatio it, maage it, ad deliver it. We take service stadards Preparatio of coversio year Form 5500 seriously because we uderstad that by deliverig Cash ad/or I-kid coversio outstadig service day after day, we keep our cliets Trasfer of assets ad loas Recordkeepig Services: satisfied year after year. Daily valuatio ad recociliatio Pla Sposors Elapsed time vestig calculatios The Program focuses o deliverig superior Pla Accout rebalacig Sposor Services from pla coversio to ogoig Ogoig moitorig of participat data testig ad reportig. Wheever possible, we deliver sigature-ready documetatio so you ca sped time o the maagemet of your busiess ad practicig law. From the very begiig at coversio ad pla implemetatio, right through recordkeepig services ad compliace services, we are there to help. Throughout the process Pla Sposors will have access to easy-to-use, state-of-the art tools, ad will receive importat commuicatios to stay educated about their pla. Compliace Services: Form 5500 preparatio assistace No-discrimiatio testig (ADP/ACP) Top heavy testig Audit package Olie Resources: O demad reportig 24/7 Access to ivestmet iformatio Participat Erollmet Cotributio ad loa repaymet submissio Pla Participats NEW! Participat fiacial welless experiece Commuicatios: The key to a successful retiremet program is employee participatio. Ad the key to participatio Aual caledar with importat dates is usig a egagig ad iformative employee Report Card highlightig aual activities commuicatios strategy that helps illustrate the value Program customized pla admiistrator bulleti of the beefits your pla provides. For that reaso, The Retiremet Pla Library bider to keep all of your Program documetatio at your figertips the Program has developed a suite of participat commuicatios ad services that meets the specific Educatio: eeds of the legal commuity ad focuses o key Erollmet areas, icludig erollmet, educatio, ogoig Ivestmet advisory services offered through Voya Retiremet Advisors2 support, commuicatio ad ivestmet. NEW! Be Ready! Retiremet ad Fiacial Plaig Support Dowload the Voya Retire app at mobile.voyaplas.com for mobile access to your accout. Ogoig educatio All services listed above are available with o out-of-pocket expese to your firm or participats. Neither your firm, or your employees, will see a ivoice from the Program.3 1 Measured as the percetage of Cliets who remaied with the Program from Jauary 2013 through December 2015, calculated as the average of aual retetio rates for 2013, 2014 ad Icludes oly pla coversios to aother provider. 2 Advisory Services provided by Voya Retiremet Advisors, LLC (VRA). For more iformatio, please read the Voya Retiremet Advisors Disclosure Statemet, Advisory Services Agreemet ad your pla s Fact Sheet. 3 All ABA Retiremet Fuds Program fees are allocated to each ivestmet optio (excludig brokerage accouts) ad are reflected i each Fud s expese ratio. These fees are the oly costs charged to participats (or employers) for participatig i the Program. There are o additioal costs to the employer or out-of-pocket expeses for participats. Cliets may icur additioal expeses through the use of outside service providers, such as a TPA or CPA, to support their pla desig or resposibilities as a pla sposor. Participats may icur costs by optig for certai advisory services or by utilizig the self-directed brokerage accout optio. ABA Retiremet Fuds Program 5

8 PROGRAM FEES The Program leverages its size to offer its Program historical weighted average expese ratios (%) services with o out-of-pocket expeses 1 to your firm. For more tha 55 years, the Program has leveraged the collective purchasig power of its membership to offer services typically oly available to the largest retiremet plas. Because of its structure, the Program has bee able to cosistetly reduce the average ivestmet expese Average Expese Ratio (%) 1.10% 1.05% 1.00% 0.95% 0.90% 0.85% 0.80% 0.75% 0.70% 1.03% 1.01% 0.99% 0.95% 0.93% 0.85% 0.80% 0.79% 0.75% 0.74% over the past 10 years. 0.65% HIGH VALUE LOW PRICE 0.74 % As Program assets grow, scale advatages are gaied ad passed o to participats i the form of lower weighted average expese ratios. 2 The oly Program costs are the fees associated with each Fud i.e., each Fud s aual expese ratio. These fees curretly rage from a low of 0.61% to a high of 1.60% depedig o the Fud. The weighted average expese ratio across all Fuds offered through the Program is 0.74%. 3 May providers use a variety of ways to collect reveue from retiremet plas; some are more trasparet tha others. Here is a short list of possible ways your curret retiremet pla may be payig fees today: Recordkeepig ad geeral admiistratio fees are typically billed mothly directly to your firm or deducted from participat assets through a basis poits fee. Ivestmet advisory fees are ofte billed quarterly ad paid either by the firm or deducted from participat assets. Fees that apply to certai trasactios such as loa set-up ad maiteace, rollovers, QDRO, erollmet meetigs, ad erollmet packages are oe-time fees. Other fees may be charged for year-ed ad other miscellaeous processes such as pla redesig, IRS pla determiatio filigs, fud adjustmets, correspodece with IRS ad DOL, etc. Trust fees are usually billed quarterly ad either paid by the firm or deducted from participat assets. Ivestmet fees also kow as the fuds expese ratios ca rage widely depedig o the fuds, ad share class to which they apply. 1 All ABA Retiremet Fuds Program fees are allocated to each ivestmet optio (excludig brokerage accouts) ad are reflected i each Fud s expese ratio. These fees are the oly costs charged to participats (or employers) for participatig i the Program. There are o additioal costs to the employer or out-of-pocket expeses for participats. Cliets may icur additioal expeses through the use of outside service providers, such as a TPA or CPA, to support their pla desig or resposibilities as a pla sposor. Participats may icur costs by optig for certai advisory services or by utilizig the self-directed brokerage accout optio. 2 Expese ratios depicted o the graph are associated with iformatio disclosed i Program Prospectus ad/or Aual Disclosure Documets. Expese ratios are weighted ad reflect a approximate cost for a participat ivested i all core Fuds accordig to Program allocatios as of 12/31/2017. All ABA Retiremet Fud Program fees are allocated to each ivestmet optio (excludig brokerage accouts) ad are reflected i each Fud s expese ratio. These fees are the oly costs charged to participats (or employers) for participatig i the Program. There are o additioal costs to the employer or out-of-pocket expeses for participats. Cliets may icur additioal expeses through the use of outside service providers, such as a TPA or CPA, to support their pla desig or resposibilities as a pla sposor. Participats may icur costs by optig for certai advisory services or by utilizig the self-directed brokerage accout optio. 3 Fees are displayed as weighted averages across all core Fuds available through the Program. These averages were calculated by takig the ivestmet expese ratio of each Program fud as of April 30, 2018, ad multiplyig it by its weight percetage based o the amout of assets held i each fud as of 12/31/2017. Each ivestmet has its ow expese ratio ad a participat will bear the cost of the expese ratios of the fuds they choose i their accouts. 6 ABA Retiremet Fuds Program

9 A Closer Look at Expese Ratios How do they work? The expese ratio represets the percetage of the fud s assets that go toward the expeses of ruig the fud. The expese ratio covers the ivestmet maager fee, the admiistrative costs ad other operatig expeses. The practical aspect of the expese ratio is that it wraps all these various costs ad expeses ito oe umber that s easy to calculate. A 25-participat pla with $1.25M is payig 1.35% ivestmet expese o average. 1 Assume a asset balace of $1,250,000 ad expese ratio of 1.35%. The aual expeses bore by that pla are equal to $16,875 ($1,250,000 x = $16,875). Breakig dow the Program s fees The Program is committed to providig full fee trasparecy. For illustrative purposes, the table below breaks dow Program Fee compoets based o averages across all core Fuds available through the Program. 2 Ivestmet Advisor Fees % Acquired Fud Fees ad Expeses % Other Fees % Subtotal Fees 0.18% Program Expese Fees 0.48% Trust, Maagemet, ad Admiistratio Fees 0.09% Total Fees* 0.74% *Amouts may ot add up to total due to roudig. Geerally speakig, the fee that is most comparable to idustry average expese ratio is the subtotal of 0.18%. Because of the uique structure of the Program ad its desire to simplify ad clarify the full fee structure, the Program icludes costs associated with Program Expeses ad Trust, Maagemet, ad Admiistratio i the expese ratio, whereas may other retiremet pla providers choose to state these fees separately. 4 Whe comparig fees across differet retiremet pla products, make sure to iclude all sources of fees whether they are asset-based such as expese ratios, or hard-dollar billable fees such as participat loa fees. With the Program, either your firm or your pla participats will ever see a ivoice. 5 The Fud expese ratios cover all fees related to the Program, icludig but ot limited to: Trustee Ivestmet maagemet Pla set-up/coversio/ Recordkeepig Custom participat commuicatio istallatio Tax reportig ad educatio services Fiduciary service Compliace testig Participat distributio (loas, withdrawals) Termiatio 1 401k Averages Book, 17th editio, Victory Capital, as of Fees are displayed as weighted averages across all core Fuds available through the Program. These averages were calculated by takig the ivestmet expese ratio of each Program fud as of April 30, 2018, ad multiplyig it by its weight percetage based o the amout of assets held i each fud as of 12/31/2017. Each ivestmet has its ow expese ratio ad a participat will bear the cost of the expese ratios of the fuds they choose i their accouts. 3 These fees are based o weighted averages but may vary depedig o ivestmet optio. 4 Typical idustry expese ratio icludes ivestmet maager fees as well as recordkeepig ad admiistratio fees, but typically excludes ay trust, maagemet, or other admiistrative fees icludig 3(38) ivestmet maagemet service fees. 5 If your pla requires a more complex profit sharig calculatio ad a actuary is required, there will be a aual fee to cover the cost of the actuary. Participats who choose to use the Program s Self-Directed Brokerage Services or the Voya Retiremet Advisors Professioal Maagemet Service may be subject to additioal fees depedig o the trasactio or service. ABA Retiremet Fuds Program 7

10 Program Fud Fees The table to the right provides a summary of the various costs ad expeses of the Collective Trust with respect to a ivestmet i each of the listed Pre-Mixed Diversified Fuds ad the Portfolio Buildig Block Fuds. The total aual Fud operatig expeses are stated as a percetage of the assets of each Fud. Except otherwise oted, expeses show are calculated based o the amouts icurred by the Collective Trust for the year eded December 31, A explaatio of the maer i which certai deductios ad fees are calculated ad the portios of these deductios ad fees paid to certai parties i coectio with the Program ca be foud i the Program Aual Disclosure Documet (April 2018). 1 Total Aual Fud Operatig Expeses for the 2025 Retiremet Date Fud, 2035 Retiremet Date Fud, 2045 Retiremet Date Fud, 2055 Retiremet Date Fud, 2060 Retiremet Date Fud, Coservative Risk Fud, Moderate Risk Fud, Aggressive Risk Fud ad Small-Mid Cap Idex Equity Fud are based o estimated fees ad expeses ad estimated assets for From time to time, the Fuds may hold ivestmets i busiess developmet compaies, or BDCs. BDCs are a specialized type of closed-ed ivestmet compay that ivest i, ad ofte provide maagerial advice ad support to, smaller, developig, ofte privately-held compaies. The acquired fud fees ad expeses of the Fud s ivestmets i BDCs, if ay, are ot icluded i the table above. Such fees ad expeses, if icluded i the table above, would have icreased Total Aual Fud Operatig Expeses of the Small-Mid Cap Equity Fud ad Bod Core Plus Fud by 0.003% ad 0.011%, respectively, as of December 31, Total Aual Fud Operatig Expeses for the Stable Asset Retur Fud do ot iclude 0.202% (as of December 31, 2017) i aual wrap cotract fees; these fees are charged agaist the creditig rate of the Fud. Ivestmet Advice for Participats TOTAL ANNUAL FUND OPERATING EXPENSES TIER I: PRE-MIXED DIVERSIFIED FUNDS Retiremet Date Fuds Icome Retiremet Date Fud 0.663% 2020 Retiremet Date Fud 0.651% 2025 Retiremet Date Fud % 2030 Retiremet Date Fud 0.651% 2035 Retiremet Date Fud % 2040 Retiremet Date Fud 0.654% 2045 Retiremet Date Fud % 2050 Retiremet Date Fud 0.679% 2055 Retiremet Date Fud % 2060 Retiremet Date Fud % Target Risk Fuds Coservative Risk Fud % Moderate Risk Fud % Aggressive Risk Fud % TIER II: PORTFOLIO BUILDING BLOCK FUNDS U.S. Equity Fuds Large Cap Equity Fud 0.854% Large Cap Idex Equity Fud 0.608% Small-Mid Cap Equity Fud % Small-Mid Cap Idex Equity Fud % All Cap Idex Equity Fud 0.628% No-U.S. Equity Fuds Iteratioal All Cap Equity Fud 1.068% Iteratioal Idex Equity Fud 0.665% Fixed Icome Fuds Bod Core Plus Fud % Bod Idex Fud 0.624% Stable Asset Retur Fud % No-Traditioal Diversifyig Fuds Real Asset Retur Fud 0.982% Alterative Alpha Fud 1.600% Participats lookig for ivestmet advice ca take advatage of the advisory services provided by Voya Retiremet Advisors, LLC ( VRA ), powered by Fiacial Egies. 4 VRA delivers advisory services i two ways ad participats select the way that works best for them. 1. Olie Advice 2. Professioal Maagemet NO ADDITIONAL COST! Get persoalized recommedatios you ca implemet yourself, at ay time, usig Olie Advice ad the olie tools, powered by Fiacial Egies. This service is desiged for the participat who would rather have ivestmet professioals proactively maage his/her retiremet savigs pla accout. A participat electig to receive these services will icur a mothly charge payable directly from the participat s accout based upo the followig fee schedule: First $100,000 Next $150,000 Over $250,000.50%.40%.25% ADVISED ACCOUNT ANNUALIZED BALANCE FEE 4 Advisory Services provided by Voya Retiremet Advisors, LLC (VRA). For more iformatio, please read the Voya Retiremet Advisors Disclosure Statemet, Advisory Services Agreemet ad your pla s Fact Sheet. These documets may be viewed olie by accessig the advisory services lik(s) through the Program s website at com after you log i to your accout. You may also request these from a VRA Ivestmet Advisor Represetative by callig the Program s Customer Service Ceter at Fiacial Egies Advisors, LLC acts as a sub-advisor for Voya Retiremet Advisors, LLC. Fiacial Egies Advisors LLC (FEA) is a federally registered ivestmet advisor ad wholly owed subsidiary of Fiacial Egies, Ic. Neither VRA or FEA provides tax or legal advice. If you eed tax advice, cosult your accoutat or if you eed legal advice cosult your lawyer. Neither Voya Retiremet Advisors or Fiacial Egies Advisors ca guaratee results ad past performace is o guaratee of future results. Fiacial Egies is a registered trademark of Fiacial Egies, Ic. All other marks are the exclusive property of their respective owers. 8 ABA Retiremet Fuds Program

11 Brokerage Commissio ad Service Fees The ivestor who wats more cotrol over the selectio of idividual stocks, bods, or mutual fuds ca take advatage of the self-directed brokerage services. Self-Directed Brokerage Services ( SDBS ): TD Ameritrade fees are applicable to the Self-Directed Brokerage Services ivestmet optio oly. There is NO aual asset-based cost for brokerage usage. Commissios Stocks Orders executed i multiple lots o the same tradig day will be charged a sigle commissio. Whe a order is partially executed over multiple tradig days, the order is subject to a separate commissio charge for each tradig day. TRADE UNLIMITED SHARES (MARKET, LIMIT AND STOP ORDERS) PRICE Iteret orders $6.95 Iteractive Voice Respose (IVR) phoe system orders $6.95 Broker-assisted orders $24.99 Bods All buy orders for bods are subject to a five-bod ($5,000 par value) miimum. Olie CD buy orders are subject to a two-cd ($2,000 par value) miimum. TD Ameritrade may act as pricipal o ay fixed-icome trasactio. Whe actig as pricipal, TD Ameritrade will add a markup to ay purchase, ad subtract a markdow from every sale. This markup or markdow will be icluded i the price quoted to the participat. Mutual Fuds FUND TYPE No Load $25 Load NTF PRICE No Fee* No Fee No-Trasactio-Fee (NTF) mutual fuds are o-load mutual fuds for which TD Ameritrade does ot charge a trasactio fee. TD Ameritrade receives remueratio from mutual fud compaies, icludig those participatig i its o-load, o-trasactio-fee program, for recordkeepig, shareholder services, ad other admiistrative ad distributio services. The amout of TD Ameritrade s remueratio for these services is based i part o the amout of ivestmets i such fuds by TD Ameritrade cliets. No-trasactio-fee mutual fuds ad other fuds offered through TD Ameritrade have other fees ad expeses that apply to a cotiued ivestmet i the fud ad are described i the prospectus. * The Fud Family will charge fees as detailed i the fud prospectus. Fee Schedule 1 TD AMERITRADE OFFERS LOW COMMISSIONS, BUT SOME SERVICES REQUIRE ADDITIONAL CHARGES. Reorgaizatio Fees Deposit 2 $25 Madatory 3 $20 No-madatory ad teder offers 4 $30 Duplicate Statemets ad Cofirmatios Research Fee 5 $5 per copy (o charge for electroic documets) $60 per hour Fees are subject to chage upo 30 days otice to you. 1 All service fees subject to chage. TD Ameritrade reserves the right to pass through Regulatory Fees, foreig trasactio taxes, ad other fees to cliet accouts, which may be assessed uder various US regulatios or imposed by foreig govermets. Fees may iclude ay of the followig: a sales fee o certai sell trasactios (assessed at a rate cosistet with Sectio 31 of the Securities Exchage Act of 1934), the Optios Regulatory Fee (applicable to optios trasactios), ad foreig trasactio taxes ad fees, amog other charges. 2 Applies whe a security has goe through a madatory reorgaizatio before the certificate is deposited ito a accout. 3 Applies whe a security has goe through a madatory reorgaizatio for all shares held i a accout, icludig those pedig trade settlemet, o the effective date of the reorgaizatio. 4 Applies whe a cliet chooses to participate i a o-madatory reorgaizatio offer. 5 Research is coducted subsequet to specific ad usually disputed accout activities. Carefully cosider the ivestmet objectives, risks, charges ad expeses before ivestig. A prospectus, obtaied by callig , cotais this ad other importat iformatio about a ivestmet compay. Read carefully before ivestig. Ivestmet Products: Not FDIC Isured No Bak Guaratee May Lose Value Brokerage services provided by TD Ameritrade, Ic., member FINRA/SIPC. TD Ameritrade is a trademark joitly owed by TD Ameritrade IP Compay, Ic. ad The Toroto-Domiio Bak. Used with permissio. ABA Retiremet Fuds Program 9

12 JOIN OUR COMMUNITY! ABA Retiremet Fuds Program ABA Retiremet Fuds Program ABA Retiremet Fuds Program P.O. Box Bosto, MA Please read the Program Aual Disclosure Documet (April 2018) carefully before ivestig. This Disclosure Documet cotais importat iformatio about the Program ad ivestmet optios. For iquiries, cotact us at: Securities offered through Voya Fiacial Parters, LLC (member SIPC). Voya Fiacial Parters, Voya Retiremet Advisors, ad Voya Istitutioal Pla Services are members of the Voya family of compaies ( Voya ). Voya, the ABA Retiremet Fuds, Mercer Trust Compay, Fiacial Egies Advisors, L.L.C., ad TD Ameritrade, Ic. are separate, uaffiliated etities, ad ot resposible for oe aother s products ad services. CN D