Catskill Regional Medical Center Employees Profit Sharing Plan

Transcription

1 Introducing Important Investment Option Changes for Catskill Regional Medical Center Employees Profit Sharing Plan Important New Investment Option Changes The Catskill Regional Medical Center Employees Profit Sharing Plan (the Plan) is a great way to save for retirement. The goal of the plan is to continue helping you build a more secure financial future by providing a wide array of investment options. Recently, we restructured the investment option line-up. Read on for more details on the upcoming investment option changes and effective date. Summary of Changes A summary of the investment option changes and remaining investment options are listed below. Closing Investment Option Effective 01/15/2015 Total Return Instl Fund New Effective 01/15/2015 Loomis Sayles & Company Mellon Capital Mgmt Bond Market Index Inst Fund C Complete List of the Plan s Available Effective 01/15/2015 BlackRock Advisors, LLC BlackRock Health Sciences Opps Institutional Fund Capital Research and Mgmt Co Edge Asset Management, Inc. Capital Appreciation R5 Fund C Edge Asset Management, Inc. C Franklin Templeton Investments Heartland Mutual Funds JP Morgan Investment Mgmt Inc. Loomis Sayles & Company Mellon Capital Mgmt Bond Market Index Inst Fund C Multiple Sub-Advisors SAM Balanced R5 Portfolio C OppenheimerFunds, Inc. Real Return Admin Fund High Yield Fund (A) C C C C Principal Real Estate Inv Real Estate Securities R5 Fund C Prudential Investments, LLC Prudential Investments, LLC

2 RS Investment Management, LP RS Global Natural Resources Y Fund T. Rowe Price/Brown Advisory C # How the Changes Impact You Effective 01/15/2015, certain investment options will no longer be available. If you are currently directing contributions into one or all of these closed investment options, your investment direction and balances will be redirected as illustrated in the table below, unless you direct otherwise prior to the effective date. Effective 01/15/2015 the investment options currently being used for the Plan's RetireView populated models are changing. If you are using the RetireView populated models, your contributions and balances will be directed according to the RetireView populated models summary as illustrated, unless you direct otherwise by opting out of the RetireView asset allocation education service and elect from the Plan's other investment options prior to the effective date of this change. Please visit The Principal participant Web site for more information. If you have not elected an investment direction, regardless of whether you currently contribute, contributions and balances will be directed according to Retireview: Conservative based on your expected retirement age, unless you direct otherwise. If your expected retirement age is unknown, the Plan s normal retirement date will be used. If you do not change your investment direction prior to the effective date, you will be considered to have elected the RetireView asset allocation service, including features such as rebalancing and/or aging. Redirection for closing investment Option Effective 01/15/2015 Please note if the effective date is a closed market date the retirement funds will be redirected on the next open market date. Closed Investment Option New Investment Option Inv Manager or Sub-Advisor Existing Investment Option Redirected to Inv Manager or Sub-Advisor New Investment Options Total Return Instl Fund Loomis Sayles & Company Loomis Sayles Investment Grade Bond Y Fund G Participant investment direction and holdings involving a life cycle investment choice will be transferred according to the participant's current age and the plan's normal retirement date. Please see the attached information so you may compare the current and new investment options. If you are using the RetireView populated models, your contributions and balances will be directed according to the RetireView populated models summary as illustrated, unless you direct otherwise by opting out of the RetireView asset allocation education service and elect from the Plan's other investment options prior to the effective date of the change in the expense ratios. How To Get More Information

3 Prior to the effective date(s) outlined in this document, you may find it useful to review your investment allocation to determine if these investment changes impact you. To do so, please: Log into principal.com to view your account information, OR Call our automated phone system at Either of the above options will allow you to view and/or change how your current balances or future contributions are being invested. Take a few moments to review the Plan's investment option information today. Investors should carefully consider a mutual fund s investment objectives, risks, charges, and expenses prior to investing. A prospectus, or summary prospectus if available, containing this and other information can be obtained by contacting a financial professional, visiting principal.com, or calling Read the prospectus carefully before investing. Investment options are subject to investment risk. Shares or unit values will fluctuate and investments, when redeemed, may be worth more or less than their original cost. It is possible for an investment option to lose value. No investment strategy, such as asset allocation or diversification, can guarantee a profit or protect against loss in periods of declining values. C Sub-advised include Principal Funds, Inc. mutual funds. Principal Funds, Inc is distributed by Principal Funds Distributor, Inc. Securities are offered through Princor Financial Services Corporation, , member SIPC and/or independent broker/dealers. Securities sold by a Princor Registered Representative are offered through Princor. Principal Funds Distributor, Princor, and Principal Life are members of the Principal Financial Group, Des Moines, IA Certain investment options may not be available in all states or U.S. commonwealths. G - Mapping Balances and Future Contributions # Principal is the Group Annuity Contract - Custodial Guaranteed Interest Contract available through Principal Life Insurance Company, a member of the Principal Financial Group,Des Moines Iowa May not be available in all states. Fixed-income investment options are subject to interest rate risk, and their value will decline as interest rates rise. Neither the principal of bond investment options nor their yields are guaranteed by the U.S. government. High-yield investment options are subject to greater credit risk associated with high yield bonds. Small-cap and mid-cap investment options are subject to more fluctuation in value and may have additional risks than other investment options with stocks of larger, more stable companies. International and global investment options are subject to additional risk due to fluctuating exchange rates, foreign accounting and financial policies, and other economic and political environments. Specialty investment options may experience greater volatility than funds with a broader investment strategy due to sector focus. These investment options are not intended to serve as a complete investment program by itself. Real estate investment options are subject to some risks inherent in real estate and Real Estate Investment Trusts, such as risks associated with general and local economic conditions. Money market investment options are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the investment option may seek to preserve the value of $1.00 per share or unit value it is possible to lose money. Money market investment options are not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC), or any other government agency. Although the investment option may seek to preserve the value of an investment, it is possible to lose money by investing in the portfolio. Each index-based investment option is invested in the stocks or bonds of the index it tracks. Performance of indexes reflects the

4 unmanaged result for the market segment the selected stocks or bonds represent. There is no assurance an index-based investment option will match the performance of the index tracked. Equity investment options involve greater risk, including heightened volatility, than fixed-income investment options. Fixed-income investment options are subject to interest rate risk, and their value will decline as interest rates rise. Asset allocation does not guarantee a profit or protect against a loss. Investing in real estate, small-cap, international, and highyield investment options involves additional risk. Additionally there is no guarantee an asset allocation investment option will provide adequate income at or through retirement. Fixed-income and asset allocation investment options that invest in mortgage securities are subject to increased risk due to real estate exposure. The risk tolerance models (models) are intended to be used as an additional information source for retirement plan participants making investment allocation decisions. Pursuant to Department of Labor Interpretive Bulletin 96-1, such models (taken alone or in conjunction with this document) do not constitute investment advice for purposes of the Employee Retirement Income Security Act (ERISA) and there is no agreement or understanding between Ibbotson Associates, and us or any plan or plan fiduciary, or any participant who uses this Service, under which the latter receives information, recommendations or advice concerning investments that are to be used as a primary basis for any investment decisions relating to the plan. Accordingly, neither we nor Ibbotson Associates are a fiduciary with respect to your plan sponsor s plan for purposes of this Service, including the features of rebalancing and aging. Following an asset allocation model does not assure a profit or guarantee that you will not incur a loss. Performance of the individual models may fluctuate and will be influenced by many factors. In applying particular asset allocation models to their individual situations, participants or beneficiaries should consider their other assets, income and investments (e.g., equity in a home, IRA investments, savings accounts and interests in other qualified and nonqualified plans) in addition to their interests in the plan. t jp

5 November 17, 2014 RetireView Populated Models Investment Option Conservative Conservative Aggressive Aggressive 5 Years or less to Retirement Asset Allocation Model C1 MC1 M1 MA1 A % 8.5% 6-10 Years to Retirement Asset Allocation Model C2 MC2 M2 MA2 A % 18.5% Years to Retirement Asset Allocation Model C3 MC3 M3 MA3 A Years to Retirement Asset Allocation Model C4 MC4 M4 MA4 A RetireView asset allocation models are effective 07/01/2014 Note: RetireView populated model weightings are based on the RetireView asset allocation model effective date. These asset allocation targets may change periodically. If you are already utilizing the RetireView asset allocation education services and have not elected the most recent RetireView asset allocation models that are effective 07/01/2014 your investment direction weightings may not align with the weightings shown here.