How-To Guide for the. Plan and Investment Disclosure

Transcription

1 How-To Guide for the Plan and Investment Disclosure

2 T. Rowe Price has created this guide to assist you with reviewing and approving the annual participant disclosures. Using this guide will assist you (1) in reviewing your Plan and Investment Disclosure and (2) by outlining the approval and distribution steps you need to take if you choose to opt in to our service. At any time, if you have additional questions regarding the content of this guide, please contact your T. Rowe Price representative or Table of contents 1. Reviewing Your Disclosure 2. Providing Approval and Distribution Elections

3 Reviewing Your Disclosure T. Rowe Price has created this guide to assist you with reviewing the 2016 Plan and Investment Disclosure for your plan(s). The gray boxes will help to identify the information you will need to review or provide in that section on your actual Plan and Investment Disclosure. The areas identified by magenta text can be edited as applicable for your plan(s). Please note that while T. Rowe Price has provided a pre-populated Plan and Investment Disclosure, the plan fiduciary has the responsibility to ensure that the content of the document meets the disclosure requirements set forth in the participant fee disclosure regulation under ERISA 404(a) (29 CFR a-5). Accordingly, we suggest you review the Plan and Investment Disclosure with your Plan advisor and legal counsel. Fees, expenses, performance data, and Plan information shown throughout this guide are for illustrative purposes only. The data on the Plan and Investment Disclosure for your plan will vary. Important: Please review all of your plan information very carefully. Once approved and distributed to your participants, any subsequent changes affecting the content of the plan-related information on your Plan and Investment Disclosure will trigger the need for a notification of such change to your plan participants at least 30 days, but not more than 90 days, in advance of the effective date of the change. If you have any questions regarding the Plan and Investment Disclosure or the T. Rowe Price change notice service, please Troweprice_Participant_Disclosure@troweprice.com. Plan and Investment Disclosure November 2016 The Department of Labor requires disclosure of certain information that is intended to help you understand the investments offered by the plan referenced above ( Plan ) and the fees and expenses you may pay as a participant in the Plan. In conjunction with this requirement, this document provides information about the Plan, the investments in the Plan, and applicable fees and expenses. This document has two sections: A. Plan Information and B. Investment Information. Please review this information carefully to learn about the Plan s investments, fees and expenses and where to go for more information. This disclosure should be retained for future reference. If you need help understanding this document, please log in to rps.troweprice.com/participantnoticehelp. A. Plan Information This section provides information regarding your Plan and, if applicable, fees and expenses to which you may be subject. You can find out more about the Plan in the Summary Plan Description ( SPD ). Review section for accuracy Provide additional methods for giving investment instructions, if applicable Verify phone number for your plan Verify plan-specific limitations on investment instructions Indicate additional plan-specific limitations, if applicable If the plan offers company stock, verify any specified investment limitations under the terms of the plan PART I. GENERAL INFORMATION How to Give Investment Instructions. You may direct the investment of your account balance and future contributions among a range of investments available in the plan. To provide investment instructions, log in to the participant website at rps.troweprice.com or call the toll-free Plan Account Line at xxx-xxxx. Limitations on Investment Instructions. Investment instructions may be subject to an investment s trading guidelines and restrictions. Refer to section B. Investment Information under Part II. Fee and Expense Information of this document for an investment s limitations, if any.

4 Verify that any plan provisions relating to the exercise of voting, tender, and similar rights and restrictions with respect to an investment offered under the plan are represented accurately Indicate additional rights and restrictions, if applicable Verify the list of investments available in your plan to any participants (list should include all investments allowing exchanges in, exchanges out, or investment election change) If your plan offers a designated investment manager, verify the name of the manager or firm information that is maintained on the T. Rowe Price recordkeeping system. Designated investment managers may include third-party advisors, such as Morningstar or Financial Engines If your plan offers a model portfolio, review and verify that the language included accurately reflects this service Note: T. Rowe Price does not serve as a designated investment manager as defined for this section of the disclosure. If your plan offers TradeLink, review the default language Provide additional information describing TradeLink, as appropriate Note: The TradeLink fee schedule will be appended to the end of the disclosure. Review contents of chart displaying administrative expenses for accuracy and completeness Identify fees that are charged by the plan sponsor to distinguish such fees from those charged by T. Rowe Price or other service providers to the plan Please add or revise the language for fees and expenses such as legal, accounting, or advisor fees, as appropriate Include information on any amounts that may be credited to participant accounts Note: Plan administrative services that may be displayed in the table are limited to recordkeeping, trustee, compliance, consulting, legal, accounting, communication service, auditing, and advisor. If additional fees are applicable, please provide this information. Voting, Tender, and Similar Rights and Restrictions. Voting, tender, and similar rights with respect to investment options under the Plan are exercised by the Plan administrator. Investments Available in the Plan. Investment A Investment B Investment C Log in to the participant website at rps.troweprice.com or call the toll-free Plan Account Line at xxx-xxx to request fund prospectuses, financial statements, annual reports, and other information that is furnished to the Plan on the investments. These materials include investment objectives, risks, fees, expenses, and other information that you should read and consider before investing. Designated Investment Managers. You may give investment directions to the following investment manager designated under the Plan: XYZ Management Company, Inc. Your plan offers a service allowing you to choose a model portfolio. Model portfolios are comprised of some or all of the investments available in your Plan and are a method of allocating your account among the Plan s investments. They are not mutual funds, but are diversified portfolios composed of mutual funds and/ or common trust funds. Your eligible account balance and any future contributions are invested according to the asset allocation strategy of the model portfolio you have selected. Once you have selected a model portfolio, your account may be periodically rebalanced in accordance with your Plan s service. The model portfolios are not sponsored by, managed by, or affiliated with T. Rowe Price. Self-Directed Brokerage Accounts. Your Plan offers TradeLink*, a brokerage service that gives you access to investment alternatives beyond the investments available in the Plan. A TradeLink fee schedule is included at the end of this document that details fees associated with the TradeLink service. Before investing through the TradeLink service, obtain more information about this service, including fee and risk information, and request a TradeLink kit by logging in to the participant website at rps.troweprice.com or calling the toll-free Plan Account Line at xxx-xxxx. * Brokerage services offered by T. Rowe Price Investment Services, Inc., member FINRA/SIPC. PART II. ADMINISTRATIVE EXPENSES Plan Related Fees and Expenses. This chart shows fees and expenses for general Plan administrative services that may be charged to and withdrawn from your account and that are not included in the total annual operating expenses of any investment options offered in the Plan. Plan Administrative Service Recordkeeping Legal Accounting Investment D Investment E Investment F Fees and Expenses

5 Review content of the chart displaying individual expenses for accuracy and completeness. Provide additional participant fee information, if applicable Identify fees that are charged by the plan sponsor to distinguish such fees from those charged by T. Rowe Price or other service providers to the plan Include information on any amounts that may be credited to participant accounts Note: Plan individual services that may be displayed in the chart are limited to the services listed. Note: Although the Florida documentary stamp tax appears on participant statements when applicable, it is not included on the 404a-5 Plan and Investment Disclosure because it is generally not viewed by the industry as a plan expense but is instead a tax. However, stamp tax information can be added to your plan s disclosure at your direction. Review and verify the shareholder-type fees in section B. Investment Information Note: Changes to shareholder-type fees in section B. Investment Information require notification of such change to your Plan participants at least 30 days, but not more than 90 days, in advance of the effective date of the change. PART III. INDIVIDUAL EXPENSES Individual Fees and Expenses. This chart shows fees and expenses for services provided to you on an individual basis that may be charged to and withdrawn from your account and that are not included in the total annual operating expenses of any investments in the Plan. Individual Services Participant Loan Origination Qualified Domestic Relations Order (QDRO Processing) Express Delivery Service Fee Hardship Withdrawal Insurance Premium Services Investment Exchange Fee Investment Management Fee Loan Maintenance Service Fee Loan Origination Qualified Domestic Relations Order (QDRO) Processing State Document Stamp Tax Surrender Fee Third-Party Advice Services Other Fees and Expenses Fees and Expenses Shareholder-Type Fees. Shareholder-type fees, which are not reflected in the total annual operating expenses of any investments offered under the Plan, may be applicable to certain investments. Such fees could include commissions, sales loads, sales charges, deferred sales charges, redemption fees, surrender charges, exchange fees, account fees, and purchase fees. Refer to section B. Investment Information of this document for any shareholder-type fees that may be applicable to investments offered under the Plan. B. Investment Information Investments in the Plan as of September 1, This section includes important information to help you compare the investments in the Plan and is comprised of two parts: Part I reflects performance information indicating how well the investments have performed in the past. Part II outlines the fees and expenses applicable to each investment. Fees and expenses are only one of several factors that participants and beneficiaries should consider when making investment decisions. The cumulative effect of fees and expenses can substantially reduce the growth of your retirement savings. Please review the plan administrator s or designee s contact information If you want additional information about your investment options available in the Plan, including more current performance information, log in to the participant website at rps.troweprice.com and click on the Investments tab. Investment Fact Sheets can be located by clicking on Investment Documents. You can also call the toll-free Plan Account Line at [ ], or you can contact T. Rowe Price Retirement Plan Services, Inc., P.O. Box 17215, Baltimore, MD A free paper copy of the additional investment information available on the website can be obtained by contacting [administrator name], [ address], [phone number], [mailing address].

6 Review information in the following sections of the table to ensure completeness: investment name/type of investment and benchmark PART I. PERFORMANCE INFORMATION Table 1 focuses on the performance of investment alternatives that do not have a fixed or stated rate of return. This table shows how these alternatives have performed over time and allows you to compare them with an appropriate benchmark for the same time periods. Past performance does not guarantee how the investment will perform in the future. Your investment in these alternatives could lose money. Information about an investment s principal risks is available on the participant website at rps.troweprice.com. Table 1 Variable Return Investments Average Annual Total Return as of 6/30/2016 Benchmark Investment Name Type of Investment Retirement Funds Investment A Yr. 5 Yrs. 10 yr./ Inception Inception Date 1 Yr. 5 Yrs. 10 yr./ Inception 1.43% 3.16% 5.08% 7/15/ % 5.29% 5.40% S&P Target Date 20XX Index 2.38% 2.64% Combined Index Portfolio % 2.53% 7.68% 1/15/ % 4.68% 7.69% Investment B S&P Target Date 20XX Index 1.80% 2.17% Combined Index Portfolio 2010 Review information in the Fees and Expenses table to ensure completeness Note: Investment names shown are consistent with investment names that appear on quarterly participant account statements. Shareholder-type fees are maintained on T. Rowe Price systems. PART II. FEE AND EXPENSE INFORMATION Table 2 shows the Total Annual Operating Expenses and Shareholder-Type Fees. Total Annual Operating Expenses are expenses that reduce the rate of return of the investment. Shareholder-Type Fees are in addition to the Total Annual Operating Expenses. Table 2 Fees and Expenses Total Annual Operating Expenses Investment Name Type of Investment As a % Retirement Funds Investment A Investment B Per $1,000 As of Date 0.58% $5.80 7/15/ % $6.10 7/15/2015 Shareholder-Type Fees and Restrictions

7 Investment C Stocks Investment D Moderate Allocation Investment E Foreign Large Growth Investment F Mid-Cap Growth 0.65% $6.50 7/15/ % $6.90 7/15/ % $8.50 7/15/ % $8.00 7/15/2015 Redemption fee 2% on shares held for 90 days or less. Subject to a 30-day * This investment restricts a participant s exchange into an investment for a period of 30 calendar days after the participant has exchanged out of the same investment (30-Day Purchase Block). Preauthorized, systematic purchases and redemptions are exempt from the 30-Day Purchase Block. The initial exchange that occurs when adding automatic rebalance to your account is not considered a systematic transaction and is subject to the 30-Day Purchase Block; however, the subsequent automatic rebalances are considered systematic and are exempt from the 30-Day Purchase Block. In addition, the investment sponsor reserves the right to cancel or reject, without further notice, any exchange that is deemed to result in excessive or short-term trading. Helpful References: Visit the Department of Labor s website at dol.gov/ebsa/publications/401k_employee.html for an example showing the long-term effect of fees and expenses. You may also want to consider whether an investment in a particular investment type, along with your other investments, will help you achieve your financial goals. Log in to the participant website at rps.troweprice.com to learn more about the Plan and investment alternatives. For a glossary of investment terms relevant to the investments in the Plan, visit rps.troweprice.com/glossary. This document has been prepared by T. Rowe Price Retirement Plan Services, Inc., for informational purposes only. T. Rowe Price Retirement Plan Services, Inc., its affiliates, and its associates do not provide legal or tax advice. Please consult your independent legal counsel and/or professional tax advisor regarding your specific situation.

8 Providing Approval and Distribution Elections You will need to indicate via an response to whether you will or will not be using the 2016 Plan and Investment Disclosure. If you opt in to this service, please provide approval and a distribution option for your disclosure document. We will be delivering your Plan and Investment Disclosure at the plan level. This means that you may receive more than one from T. Rowe Price if you are the contact for more than one plan and T. Rowe Price is the recordkeeper. APPROVING YOUR DOCUMENT You can do this by expressing whether you approve, do not approve, or opt out by placing an x next to your answer in the fields provided in the sent to you in late September. These three responses indicate: Approved We are using the annual Plan and Investment Disclosure and the document is ready for distribution per our distribution elections selected. Not Approved We are using the annual Plan and Investment Disclosure, but we have changes to the plan information contained in the disclosure. If you have changes to the plan information, please include those comments in your reply to Troweprice_Participant_Disclosure@troweprice.com. Opt Out We are not using the annual Plan and Investment Disclosure or distribution services. Your approval must be received by T. Rowe Price no later than October 24, This deadline is to ensure timely distribution for those plan sponsors using our bundling feature. If you fail to respond by the deadline, you will automatically be opted out of the annual participant disclosure services. DISTRIBUTION SERVICES If the disclosure is approved, please elect one of the following distribution services for your plan(s). Enter your distribution service selection into your reply to the Troweprice_Participant_Disclosure@troweprice.com mailbox: Distribution Option #1 All Eligible Plan Participants Distribute the 2016 Plan and Investment Disclosure to all eligible plan participants on the T. Rowe Price recordkeeping system. This option includes eligible employees; active participants; as well as terminated employees, alternate payees, and beneficiaries who have a balance in their accounts and a valid or mailing address on T. Rowe Price recordkeeping systems. Distribution Option #2 Limited Eligible Plan Participants Distribute the 2016 Plan and Investment Disclosure to a limited audience only consisting of terminated employees, alternate payees, and beneficiaries on the T. Rowe Price recordkeeping system who have a balance in their accounts and a valid or mailing address on T. Rowe Price recordkeeping systems. We will handle the distribution to eligible employees and active participants on our own. Note: For distribution options 1 and 2 outlined above, you may incur an estimated printing and distribution charge of approximately $1.00 for each Plan and Investment Disclosure mailed by T. Rowe Price via U.S. mail. The default option for delivery of the Plan and Investment Disclosure will be a printed copy by U.S. mail unless the paperless delivery option was selected by the plan participant and agreed upon by the Plan Sponsor.. There will be no charge for disclosures that are distributed electronically. Distribution Option #3 PlanView Portal We will not be using T. Rowe Price s distribution services. We acknowledge that the 2016 Plan and Investment Disclosure will be posted on the PlanView Portal for our reference. C1718SJKY 2016-AX-21227