New opportunities for your retirement strategy. Announcing updates to the Sanford Burnham Prebys Medical Discovery Institute TDA Plan

Transcription

1 New opportunities for your retirement strategy Announcing updates to the Sanford Burnham Prebys Medical Discovery Institute TDA Plan

2 Table of contents A new chapter is about to start 1 Action plan for the updates 2 Your new options 3 For all plan participants 4 For TIAA participants 5 For Lincoln Financial Group participants 6 Transfer chart for current TIAA participants 7-8 Transfer chart for Lincoln Financial Group participants 9 Retirement plan investment advice 10 What s your investment style? 11 On-site events 12 About TIAA 13 Q&A Understanding retirement plan fees 17 We re here to help Back cover 2 Questions? Call or visit TIAA.org/sbpdiscovery

3 A new chapter is about to start Helping you plan and save for the future is important to us here at Sanford Burnham Prebys Medical Discovery Institute (SBP). That s why we re pleased to announce the following updates to the Sanford Burnham Prebys Medical Discovery Institute TDA Plan. What you need to know TIAA will become the single service provider for the retirement plan. TIAA was selected by SBP in order to deliver comprehensive retirement services at a reasonable cost. As a result of this change, your balance currently with Lincoln Financial Group will be transferred to TIAA. New investment options. The new investments, carefully selected by SBP for its employees, may give you the ability to create a diversified retirement portfolio. New Retirement Choice and Retirement Choice Plus contracts will be issued. TIAA mutual fund balances will be transferred to the new TIAA contracts and all new contributions will be directed to the new investment menu. Any annuity balance(s) you have with TIAA will remain in your existing account(s), although no new contributions, rollovers or transfers may be made to them. Lower fees. SBP and Marsh & McLennan Agency, a third-party retirement plan advisor, have negotiated lower fees and selected investment options, which provides you a lower overall cost. You can receive personalized advice on the plan s investment options by a TIAA financial consultant. This service is available as part of your retirement plan at no additional cost to you. Investment advice is available online, by phone or through a one-on-one advice session. Blackout Period for Lincoln Financial Group balances. To facilitate a smooth transfer of current investment balances to TIAA, a brief Blackout Period will take place. During this time, you will not be able to change your investment choices, make withdrawals or transfer funds. The Blackout Period applies to balances currently invested at Lincoln Financial Group. Please review the enclosed Blackout Notice for additional details. Any scheduled payroll contributions will continue to be deducted from your paycheck during the Blackout Period. No longer employed by SBP? You are receiving this guide because you have investments in one or more of the SBP Retirement Plans. Even though you are not actively contributing, you should review this information carefully to learn how your account could be affected. Important Note: If you have a foreign mailing address on file, there may be restrictions due to international securities laws on investing in the new options. If you have a legitimate U.S. mailing address in Puerto Rico, or an Army Post Office (APO), Diplomatic Post Office (DPO), or Fleet Post Office (FPO) box, the restrictions may not apply to you. Please call TIAA for more information at , weekdays, 5 a.m. to 7 p.m. or Saturday, 6 a.m. to 3 p.m. (PT). Retirement plan updates start November 21, 2017 Key dates (2017) Week of November 13 Beginning week of November 20 Week of November 20 Week of November 27 November 28 at 4 p.m. (ET) November 30 December 4 On or before December 15 Event On-site seminars begin. Retirement plan investment advice is available online, by phone or in person through a one-on-one advice session. TIAA participants will be enrolled in a new TIAA account and receive a confirmation kit with important information on making the most of your participation with TIAA. Lincoln Financial Group participants will be enrolled in a new TIAA account and receive a confirmation kit with important information on making the most of your participation with TIAA. Blackout Period expected to begin for Lincoln Financial Group participants. See accompanying notice for details. Your new TIAA contract(s) receive the first payroll contribution. On or about this date, account balances transfer from Lincoln Financial Group to TIAA. TIAA becomes the single service provider for the retirement plan. Please note: The date of the transfer depends on the accurate, timely transfer of data from Lincoln Financial Group to TIAA. If this does not occur, the transfer could be delayed. Blackout Period for Lincoln Financial Group participants expected to end. You can now access and update your entire retirement account at TIAA, including balances transferred from Lincoln Financial Group. Please note: The end of the Blackout Period depends on the accurate, timely transfer of data from Lincoln Financial Group to TIAA. If this does not occur, the end of the Blackout Period could be delayed. TIAA mutual fund balances will be transferred from existing TIAA contract(s) to your new TIAA contract(s) and will be invested according to the chart on page 7. TIAA annuity account balances will remain where they are. Questions? Call or visit TIAA.org/sbpdiscovery 1

4 Action plan for the updates Once your new contract is issued, you can: Access your new account online at TIAA.org/sbpdiscovery. Update your investment allocations for future contributions and any balances that will be transferred from Lincoln Financial Group and TIAA Mutual Funds. Review your beneficiary designation and update if needed.* Once the transition is complete, you will be able to make changes to your existing balances. For details on how the balances and future contributions will transfer to the new menu, refer to pages 7-9. Have questions? Attend a seminar to get a guided tour of the plan changes (page 12). Use the online Retirement Advisor tool. It provides investment advice based on your goals and risk tolerance. You can access this tool after logging in to your new account, under the WHAT WE OFFER tab, then under Insights, select Retirement Advisor. Schedule an advice session with a financial consultant to get personalized retirement plan advice (page 10). * For married participants: Under many retirement plans, spouses are entitled to receive 50% of the participant s retirement plan assets. If you would like to direct less than 50% to your spouse, you and your spouse will need to complete a spousal waiver form for each affected contract. 2 Questions? Call or visit TIAA.org/sbpdiscovery

5 Your new options These new choices offer you more flexibility to create a diversified retirement portfolio. Below are your new options, which include the following asset classes: Guaranteed Interest, Money Market, Multi-Asset (Asset Allocation), Fixed Income (Bonds), and Equities (Stocks). You can see details about the new investment options online at TIAA.org/sbpdiscovery. Click on Investment Options and then select View All Investments to view the individual investment information. Your Guaranteed interest option is a fixed annuity that pays you interest at competitive crediting rates that are announced in advance. There is no explicit expense ratio because this is a fixed annuity. TIAA Traditional Annuity* Annual Fund Operating Expenses Plan Servicing Fee Calculations (A + B = C) Fund Ticker Gross Expense Ratio (%) Net Expense Ratio (%) A. Revenue Sharing** (%) B. Plan Servicing Fee/Credit (%) C. Total Administrative Fee (%) American Funds EuroPacific Growth R6 RERGX Cohen & Steers Realty Shares CSRSX Columbia Mid Cap Index R5 CPXRX Columbia Small Cap Index R5 CXXRX JHancock Disciplined Value R6 JDVWX JPMorgan Large Cap Growth R6 JLGMX MassMutual Select Mid Cap Growth Equity II R5 MGRFX MFS Value R6 MEIKX Oppenheimer Developing Markets I ODVIX Prudential Total Return Bond Q PTRQX T. Rowe Price Blue Chip Growth I TBCIX Templeton Global Bond R6 FBNRX TIAA Traditional Annuity TIAA# TIAA-CREF Equity Index Institutional TIEIX TIAA-CREF Inflation Link Bond Institutional TIILX TIAA-CREF International Equity Index Institutional TCIEX TIAA-CREF Large-Cap Growth Index Institutional TILIX TIAA-CREF Large-Cap Value Index Institutional TILVX TIAA-CREF Lifecycle Index 2010 Institutional TLTIX TIAA-CREF Lifecycle Index 2015 Institutional TLFIX TIAA-CREF Lifecycle Index 2020 Institutional TLWIX TIAA-CREF Lifecycle Index 2025 Institutional TLQIX TIAA-CREF Lifecycle Index 2030 Institutional TLHIX TIAA-CREF Lifecycle Index 2035 Institutional TLYIX TIAA-CREF Lifecycle Index 2040 Institutional TLZIX TIAA-CREF Lifecycle Index 2045 Institutional TLXIX TIAA-CREF Lifecycle Index 2050 Institutional TLLIX TIAA-CREF Lifecycle Index 2055 Institutional TTIIX TIAA-CREF Lifecycle Index 2060 Institutional TVIIX TIAA-CREF Lifecycle Index Retirement Income Institutional TRILX TIAA-CREF Money Market Institutional TCIXX TIAA-CREF Small-Cap Equity Institutional TISEX Vanguard Energy Admiral VGELX Vanguard REIT Index Admiral VGSLX Vanguard Total Bond Market Index Admiral VBTLX Victory Sycamore Established Value R6 VEVRX Victory Sycamore Small Company Opportunity I VSOIX * TIAA Traditional Annuity is a guaranteed insurance contract and not an investment for federal securities law purposes. Any guarantees under annuities issued by TIAA are subject to TIAA s claims-paying ability. Interest credited includes a guaranteed rate, plus additional amounts as may be established by the TIAA Board of Trustees. Such additional amounts, when declared, remain in effect for the declaration year which begins each March 1 for accumulating annuities and January 1 for payout annuities. Additional amounts are not guaranteed for periods other than the period for which they were declared. Investment products may be subject to market and other risk factors. See the applicable product literature, or visit TIAA.org/sbpdiscovery for details. Annuity account options are available through annuity contracts issued by TIAA or CREF. These contracts are designed for retirement or other long-term goals, and offer a variety of income options, including lifetime income. Payments from the variable annuity accounts are not guaranteed and will rise or fall based on investment performance. ** Revenue Sharing is a term that describes the practice when investment providers share in the cost of plan administration. Please note that TIAA Traditional, TIAA Real Estate, TIAA Stable Value, and all CREF Annuity accounts do not have an explicit revenue share. Rather they have a plan services offset that is applied to your plan s administrative and recordkeeping costs. Questions? Call or visit TIAA.org/sbpdiscovery 3

6 For all plan participants How your future contributions and current account balances will be directed to the new investment options Starting November 30, 2017, your future contributions will be directed to your new account and the new investment options. On or about December 4, 2017, current account balance(s) with Lincoln Financial Group are scheduled to be transferred to your new TIAA account. Please note: The date of the plan changes and the end of the Blackout Period depend on the accurate, timely transfer of data from Lincoln Financial Group to TIAA. If this does not occur, transfers and the end of the Blackout Period could be delayed. Your contributions and balance(s) will be transferred as shown on pages 7-9. SBP selected investment options that are similar to those in the prior lineup. Changes to the retirement plan s investment lineup SBP is taking this opportunity to change the investment options available through the plan. The new investments, carefully selected by SBP for its employees, may give you the ability to create a diversified retirement portfolio that matches your investment goals and preferences.1 SBP will remove several investment options from the lineup and replace them with new options. SBP will restrict several annuity investment options and they will no longer accept new money. Future contributions will be directed to replacement options. In addition, SBP has decided to change the plan s default investment option. The new default option is a TIAA-CREF Lifecycle Index Fund. Each lifecycle fund provides a diversified retirement portfolio in a single fund. Choosing different investments You can change the way future contributions are directed once your new accounts are issued. Lower-cost share class Some investment options will be directed to a lower-cost share class of the same fund and reduce your investment expenses. The affected investments are shown on page 3. There is no investment strategy difference between different share classes of the same fund. Investing in a lower-cost share class means that less of your money goes toward fees. As a result, you keep a larger portion of the potential returns generated by each investment. While returns cannot be guaranteed, paying lower fees may help you reach your retirement goals faster. Action Steps Select investments. Once your new account is issued, you can update your investment choices for future contributions. If you do not make changes, your future contributions will be directed to the selected replacement investment options shown on pages 7-9. Check your beneficiary designation. Since it s important to keep your beneficiary information up to date, please confirm your choice(s). Attend a seminar. Find out about the retirement plan changes and steps you may wish to take. (See page 12.) Get advice. Has it been a while since you reviewed your investment mix? You re eligible to receive retirement plan investment advice at no additional cost. It s all about helping you retire on your terms. 1 Diversification is a technique to help reduce risk. It is not guaranteed to protect against loss. 4 Questions? Call or visit TIAA.org/sbpdiscovery

7 For TIAA participants New TIAA accounts You will be enrolled in a new TIAA account(s) on November 21, 2017 and will be sent an enrollment confirmation. TIAA will copy the beneficiary information you currently have on file to your new account. Since it s important to keep your beneficiary information up to date, please confirm your choice(s). Current contract Group Retirement Annuity (GRA) Retirement Annuity (RA) Group Supplemental Retirement Annuity (GSRA) Supplemental Retirement Annuity (SRA) New contract Retirement Choice (RC) Retirement Choice (RC) Retirement Choice Plus (RCP) Retirement Choice Plus (RCP) How your future contributions and current account balances will be affected Starting with the November 30, 2017 paycheck, your future contributions will be directed to your new account and the new investment options as shown on pages 7-8. Mutual fund balances will be transferred to the new TIAA accounts according to the transfer chart on pages 7-8 during the week of December 15, Annuity account balances will remain in the old contracts. The annuity accounts in the old contracts will no longer be able to accept contributions, transfer or rollovers. If you would like to transfer balances to your new account, contact a TIAA financial consultant for more information. Understanding your new account(s) There are a number of differences between your Group Retirement Annuity and Group Supplemental Retirement Annuity contracts, and the new Retirement Choice and Retirement Choice Plus contracts. Most of the differences apply to the TIAA Traditional Annuity and are highlighted below. If you re thinking about transferring some or all of your account balances to your new contract, make sure you understand the differences before you initiate a transfer. Under the RC and RCP contracts, TIAA Traditional has a rate guarantee that is between 1% and 3%, determined annually, which may be lower than the guaranteed rate in your current contract.* The adjustable rate guarantee in the new contracts allow TIAA to be more responsive to the prevailing interest rate environment, and provides the potential for higher credited rates through the crediting of additional amounts.** When TIAA Traditional balances are transferred out of an existing contract(s), you risk giving up a favorable crediting rate(s) on older contributions. TIAA Traditional balances in the RC contract can be liquidated within a shorter time frame than under the existing Group Retirement Annuity contract. Moving money from an existing RA, GRA, SRA and/or GSRA contract to a new contract is a permanent decision. Once moved, money cannot be moved back. For details, see the Contract Comparison chart located at TIAA.org/sbpdiscovery. If you have questions, call * Guarantees are subject to TIAA s claims-paying ability. ** TIAA s Board of Trustees declares whether additional amounts will be paid in March of each year. Additional amounts are not guaranteed.such additional amounts, when declared, remain in effect for the declaration year which begins each March 1 for accumulating annuities and January 1 for payout annuities. Additional amounts are not guaranteed for periods other than the period for which they were declared. Questions? Call or visit TIAA.org/sbpdiscovery 5

8 For Lincoln Financial Group participants New TIAA accounts You will be enrolled in new TIAA accounts on November 27, 2017, and sent an enrollment confirmation. Retirement Choice (RC) contracts will hold employee contributions and Retirement Choice Plus (RCP) contracts will hold any employer contributions. Your beneficiary designation will be defaulted to Estate. Naming a beneficiary is an important aspect of managing your retirement account. Please complete this task at your earliest convenience once your new TIAA account is established. How your future contributions and current account balances will be affected Starting with the November 30, 2017 paycheck, your future contributions will be directed to your new account and the new investment options. On or about December 4, 2017, your current account balance(s) with Lincoln Financial Group are scheduled to be transferred to your new TIAA account. Your contributions and balance(s) will be transferred as shown on page 9. Blackout Period To help ensure the smooth transfer of account balance(s) from Lincoln Financial Group, there will be a brief Blackout Period. During this time, you will not be able to perform transactions (i.e., change investments, make withdrawals, take a loan, transfer funds, etc.). The Blackout Period is expected to begin at Lincoln Financial Group on or around November 28, 2017 at 4 p.m. (ET). Please note: The date of the plan changes and the end of the Blackout Period depend on the accurate, timely transfer of data from Lincoln Financial Group to TIAA. If this does not occur, the end of the Blackout Period could be delayed. Payroll contributions to the Sanford Burnham Prebys Medical Discovery Institute TDA Plan will continue to be withheld during the Blackout Period. See the enclosed Blackout Notice for more details. Choosing different investments You can change the way future contributions are directed once your new account is issued. How your account balance(s) will transfer Your account balance(s) will move from Lincoln Financial Group to the TIAA platform following a fund-to-fund transfer process. This process directs balances and contributions to a replacement fund on the TIAA menu as shown in the chart on page 9. Account balance(s) from Lincoln Financial Group will be applied to the new investment option(s) as of 4 p.m. (ET) on the date the balance(s) are received. Your account will not be invested in the new funds for one business day. You ll receive two confirmations: One from Lincoln Financial Group showing the transfer out of your account and a second from TIAA showing the balance(s) applied to your TIAA account. 6 Questions? Call or visit TIAA.org/sbpdiscovery

9 Transfer chart for current TIAA participants The chart below shows how SBP will transfer current account balances and direct future contributions to the new investment options. Current Investment Option Ticker Future Investment Option Ticker American Funds EuroPacific Growth R4 REREX American Funds EuroPacific Growth R6 RERGX Cohen & Steers Realty Shares CSRSX Cohen & Steers Realty Shares No Change Columbia Mid Cap Index A NTIAX Columbia Mid Cap Index R5 CPXRX Columbia Small Cap Index A NMSAX Columbia Small Cap Index R5 CXXRX CREF Money Market Account R2* QCMMPX TIAA-CREF Money Market Institutional TCIXX CREF Stock Account R2* QCSTPX TIAA-CREF Equity Index Institutional TIEIX JHancock Disciplined Value R5 JDVVX JHancock Disciplined Value R6 JDVWX Loomis Sayles Bond Admin LBFAX Prudential Total Return Bond Q PTRQX Oak Ridge Small Cap Growth A ORIGX TIAA-CREF Small-Cap Equity Institutional TISEX Oppenheimer Developing Markets Y ODVYX Oppenheimer Developing Markets I ODVIX Prudential Jennison Mid Cap Growth Z PEGZX MassMutual Select Mid Cap Gr Eq II R5 MGRFX Prudential Total Return Bond Z PDBZX Prudential Total Return Bond Q PTRQX T. Rowe Price Blue Chip Growth TRBCX T. Rowe Price Blue Chip Growth I TBCIX Templeton Global Bond Advisor TGBAX Templeton Global Bond R6 FBNRX TIAA Traditional Annuity TIAA# TIAA Traditional Annuity No Change TIAA-CREF Equity Index Retirement TIQRX TIAA-CREF Equity Index Institutional TIEIX TIAA-CREF Inflation Link Bond Retirement TIKRX TIAA-CREF Inflation Link Bond Institutional TIILX TIAA-CREF International Equity Index Retirement TRIEX TIAA-CREF International Equity Index Institutional TCIEX TIAA-CREF Large-Cap Growth Index Retirement TRIRX TIAA-CREF Large-Cap Growth Index Institutional TILIX TIAA-CREF Large-Cap Value Index Retirement TRCVX TIAA-CREF Large-Cap Value Index Institutional TILVX TIAA-CREF Lifecycle 2010 Retirement TCLEX TIAA-CREF Lifecycle Index 2010 Institutional TLTIX TIAA-CREF Lifecycle 2015 Retirement TCLIX TIAA-CREF Lifecycle Index 2015 Institutional TLFIX TIAA-CREF Lifecycle 2020 Retirement TCLTX TIAA-CREF Lifecycle Index 2020 Institutional TLWIX TIAA-CREF Lifecycle 2025 Retirement TCLFX TIAA-CREF Lifecycle Index 2025 Institutional TLQIX TIAA-CREF Lifecycle 2030 Retirement TCLNX TIAA-CREF Lifecycle Index 2030 Institutional TLHIX TIAA-CREF Lifecycle 2035 Retirement TCLRX TIAA-CREF Lifecycle Index 2035 Institutional TLYIX TIAA-CREF Lifecycle 2040 Retirement TCLOX TIAA-CREF Lifecycle Index 2040 Institutional TLZIX TIAA-CREF Lifecycle 2045 Retirement TTFRX TIAA-CREF Lifecycle Index 2045 Institutional TLXIX TIAA-CREF Lifecycle 2050 Retirement TLFRX TIAA-CREF Lifecycle Index 2050 Institutional TLLIX TIAA-CREF Lifecycle 2055 Retirement TTRLX TIAA-CREF Lifecycle Index 2055 Institutional TTIIX TIAA-CREF Lifecycle 2060 Retirement TLXRX TIAA-CREF Lifecycle Index 2060 Institutional TVIIX TIAA-CREF Lifecycle Retirement Income Retirement TLIRX TIAA-CREF Lifecycle Index Retirement Income Institutional TRILX Vanguard Dividend Growth Investor VDIGX TIAA-CREF Equity Index Institutional TIEIX Vanguard Energy Admiral VGELX Vanguard Energy Admiral No Change Vanguard Total Bond Market Index Admiral VBTLX Vanguard Total Bond Market Index Admiral No Change Victory Sycamore Established Value A VETAX Victory Sycamore Established Value R6 VEVRX Victory Sycamore Small Company Opportunity A SSGSX Victory Sycamore Small Company Opportunity I VSOIX SBP has instructed TIAA to transfer any account balances in any investment option not listed above to the lifecycle fund that corresponds to the year you turn age 65. continued * Existing balances will remain in this investment option. Any new contributions will be directed to the new investment option as shown on the right hand side of the chart As with all mutual funds, the principal value of a lifecycle fund isn t guaranteed at any time and will fluctuate with market changes. The target date approximates when investors may plan to start making withdrawals. However, you are not required to withdraw the funds at that target date. After the target date has been reached, some of your money may be merged into a fund with a more stable asset allocation. Lifecycle funds share the risks associated with the types of securities held by each of the underlying funds in which they invest. In addition to the fees and expenses associated with the lifecycle funds, there is exposure to the fees and expenses associated with the underlying mutual funds. Questions? Call or visit TIAA.org/sbpdiscovery 7

10 Transfer chart for current TIAA participants continued Target-date fund birth chart Please refer to the chart below to identify the age-appropriate TIAA Lifecycle Index Fund that corresponds to the year closest to when you turn age 65. These are also the plan s default investment options selected by SBP. Birth year New investment option Ticker TIAA-CREF Lifecycle Index 2010 Fund Institutional Class TLTIX TIAA-CREF Lifecycle Index 2015 Fund Institutional Class TLFIX TIAA-CREF Lifecycle Index 2020 Fund Institutional Class TLWIX TIAA-CREF Lifecycle Index 2025 Fund Institutional Class TLQIX TIAA-CREF Lifecycle Index 2030 Fund Institutional Class TLHIX TIAA-CREF Lifecycle Index 2035 Fund Institutional Class TLYIX TIAA-CREF Lifecycle Index 2040 Fund Institutional Class TLZIX TIAA-CREF Lifecycle Index 2045 Fund Institutional Class TLXIX TIAA-CREF Lifecycle Index 2050 Fund Institutional Class TLLIX TIAA-CREF Lifecycle Index 2055 Fund Institutional Class TTIIX TIAA-CREF Lifecycle Index 2060 Fund Institutional Class TVIIX 8 Questions? Call or visit TIAA.org/sbpdiscovery

11 Transfer chart for Lincoln Financial Group participants The chart below shows how SBP will transfer current account balances and direct future contributions to the new investment options. Current Investment Option Ticker Future Investment Option Ticker American Funds EuroPacific Growth Fund R4 REREX American Funds EuroPacific Growth R6 RERGX Columbia Small Cap Index Class A NMSAX Columbia Small Cap Index R5 CXXRX Dreyfus S&P 500 Index PEOPX TIAA-CREF Equity Index Institutional TIEIX Federated Mid-Cap Index FMDCX Columbia Mid Cap Index R5 CPXRX John Hancock Disciplined Value Class R5 JDVVX John Hancock Disciplined Value Class R6 JDVWX JPMorgan Large Cap Growth R5 JLGRX JPMorgan Large Cap Growth R6 JLGMX Lincoln Stable Value No Ticker TIAA Traditional TIAA# Loomis Sayles Bond Admiral LBFAX Prudential Total Return Bond Q PTRQX MFS International New Discovery R4 MIDJX American Funds EuroPacific Growth R6 RERGX Oak Ridge Small Cap Growth I ORIYX TIAA-CREF Small Cap Equity Institutional TISEX Oppenheimer Developing Mkts Class Y ODVYX Oppenheimer Developing Markets I ODVIX Prudential Jennison Mid Cap Growth Fund Z PEGZX MassMutual Select Mid Cap Growth R5 MGRFX Prudential Total Return Bond Class Z PDBZX Prudential Total Return Bond Q PTRQX T. Rowe Price Real Estate TRREX Cohen & Steers Realty Shares CSRSX Templeton Global Bond Fund Advisor TGBAX Templeton Global Bond R6 FBNRX TIAA-CREF Large Cap Growth Index Retirement TRIRX TIAA-CREF Large Cap Growth Index Institutional TILIX TIAA-CREF Large Cap Value Index Retirement TRCVX TIAA-CREF Large Cap Value Index Institutional TILVX Vanguard Dividend Growth Fund Investor VDIGX TIAA-CREF Equity Index Institutional TIEIX Vanguard Total Bond Mkt Index Fund Investor VBMFX Vanguard Total Bond Mkt Index Fund Admiral VBTLX Victory Sycamore Established Value Class A VETAX Victory Sycamore Established Value R6 VEVRX Victory Sycamore Small Company Opp I VSOIX Victory Sycamore Small Company Opp I VSOIX As with all mutual funds, the principal value of a lifecycle fund isn t guaranteed at any time and will fluctuate with market changes. The target date approximates when investors may plan to start making withdrawals. However, you are not required to withdraw the funds at that target date. After the target date has been reached, some of your money may be merged into a fund with a more stable asset allocation. Lifecycle funds share the risks associated with the types of securities held by each of the underlying funds in which they invest. In addition to the fees and expenses associated with the lifecycle funds, there is exposure to the fees and expenses associated with the underlying mutual funds. Questions? Call or visit TIAA.org/sbpdiscovery 9

12 Retirement plan investment advice How you can access TIAA s advice Online You can get quick, convenient answers via the Retirement Advisor online tool. Visit TIAA.org/retirementadvisor and log in to your account. By phone or in person You can receive personalized retirement plan investment advice either over the phone or in person. You can schedule your advice session by calling , weekdays, 5 a.m. to 5 p.m. (PT). You can also schedule online at TIAA.org/schedulenow. As a participant in the plan, you have access to personalized retirement plan advice on the plan s investment options from a TIAA financial consultant representative. This service is available as part of your retirement program at no additional cost to you. TIAA s advice is designed to help you answer key questions including: 1. Am I on track to reach my retirement savings goals? We ll help you analyze how your investments are performing, and determine if you re saving enough to help meet your needs. 2. Which combination of retirement plan investments is right for me? Get assistance picking the right investments, based on your plan s investment options, diversifying properly and allocating contributions to balance your need for growth potential with your tolerance for risk. 3. How can I meet my income needs in retirement? Get help determining the amount you ll need to meet your retirement income goals. IMPORTANT: The projections or other information generated by the Retirement Advisor tool regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. Results may vary with each use and over time. 10 Questions? Call or visit TIAA.org/sbpdiscovery

13 Choose your investment path Option 1: Selecting a lifecycle fund A diversified retirement portfolio in a single fund of funds How do lifecycle funds work? Each target-date fund is a fund of funds, primarily invested in shares of other mutual funds.* The fund s investments are adjusted from more aggressive to more conservative over time as the target date approaches. What are some other considerations? As with all mutual funds, the principal value of a target-date fund isn t guaranteed and will fluctuate. The target date indicates when investors may plan to start making withdrawals. However, you are not required to withdraw funds at the target date. After the target date, your money may be merged into a fund with a more stable asset allocation. A TIAA financial consultant can help you decide whether a lifecycle fund is right for you. Option 2: Building your own portfolio A retirement portfolio of your own design What types of investments are included? The new investment menu offers you a wide range of investment options. These options cover the major asset classes, and give you the flexibility to create a diversified retirement portfolio. What are some other considerations when choosing my own investments? Consider your risk tolerance when selecting investments. If you prefer to work with a financial professional, you may wish to have a TIAA financial consultant suggest a portfolio based on the options available in your retirement plan. This retirement plan investment advice is available at no extra cost. Please keep in mind that there are risks associated with investing in securities including possible loss of principal. Your retirement plan is designed to work for both types of investment styles. * Lifecycle funds share the risks associated with the types of securities held by each of the underlying funds in which they invest. In addition to the fees and expenses associated with the lifecycle funds, there is exposure to the fees and expenses associated with the underlying mutual funds. Questions? Call or visit TIAA.org/sbpdiscovery 11

14 On-site events Real-time answers to your questions Seminars Consider attending a one-hour seminar presented by a TIAA financial consultant to learn more about the updates to the Sanford Burnham Prebys Medical Discovery Institute TDA Plan at the following dates and times: La Jolla Date Time Location Wednesday, November 15, a.m. or 12 p.m. (PT) Building 10 Auditorium Thursday, November 16, p.m. or 2 p.m. (PT) Fishman Auditorium Lake Nona Date Time Location Wednesday, November 15, p.m. or 3 p.m. (ET) Magic 1- A1300 and Magic 2- A1330 Thursday, November 16, p.m. or 5 p.m. (ET) Magic 1- A1300 and Magic 2- A1330 One-on-one advice session You can get personalized retirement plan advice on the plan s investment options from a TIAA financial consultant. This service is available as part of your retirement plan at no additional cost to you. You can schedule an advice session with TIAA by calling , weekdays, 5 a.m. to 5 p.m. (PT) or visit TIAA.org/schedulenow. 12 Questions? Call or visit TIAA.org/sbpdiscovery

15 About TIAA 1918 TIAA Teachers Insurance and Annuity Association of America created Providing strong support on the road to retirement no matter where you are today TIAA s purpose has remained constant since TIAA was established nearly 100 years ago: We re here to help you save for and generate income during retirement. Over the years, we ve regularly enhanced the ways we deliver on our purpose. As an organization with deep roots among nonprofits in higher education, government, hospital/medical, research, religious institutions and K-12 TIAA is committed to continuous learning. And when we see opportunities to enhance our retirement plan services, we share them with the institutions we serve. Not sure where to begin? You can meet with us to help you take the next step! Personalized retirement plan advice is available on the plan s investment options from a TIAA financial consultant. This service is available as part of your retirement program at no additional cost to you. You can schedule a session by calling , weekdays, 5 a.m. to 5 p.m. (PT). You can also visit TIAA.org/schedulenow.

16 Q&A 1. Why is SBP updating the Sanford Burnham Prebys Medical Discovery Institute TDA Plan? SBP is committed to providing you with competitive retirement benefits and recently conducted a review of the retirement plan. As a result of this review, SBP selected TIAA as the single provider for administrative recordkeeping and education services because TIAA offered the best overall value. The resulting updates are intended to give you the investments, services and tools you need to pursue your retirement savings goals. 2. How can I learn about the new investment options? A list of the new investment options is included in this guide. You can visit the dedicated retirement plan website at TIAA.org/sbpdiscovery for additional information. 3. What if I would like help making investment choices? You can get personalized advice on the plan s investment options from a TIAA financial consultant. This service is available as part of your retirement program at no additional cost to you. To schedule an advice session, call TIAA at , weekdays, 5 a.m. to 5 p.m. (PT). You can also schedule online at TIAA.org/schedulenow. 4. What should I expect from an advice session? You can expect a thorough review of your account and an action plan for moving forward. Advice sessions last approximately one hour. Bring all your investment account statements, including any retirement investments outside of the retirement plan and your most recent Social Security statement, if available. A TIAA financial consultant will use this information to understand your current financial situation and develop an action plan. You may bring anyone you like to your session with you. 5. What happens to my current outstanding loan, systematic withdrawal, TPA (transfer payout annuity), or required minimum distribution? You will receive separate communications if any actions are required on your part. 6. Will loans continue to be available? Yes. Loans will continue to be offered, but effective with these changes, SBP will move to retirement plan loans and no longer offer collateralized loans. In addition, all new loan requests will be available through TIAA only. There will be no changes to any existing loans you may have. For more information on retirement plan loans and fees, visit TIAA.org/public/support/faqs/loans. continued 14 Questions? Call or visit TIAA.org/sbpdiscovery

17 Q&A continued 7. Will I pay any fees to invest in the retirement plan(s)? All investment options have expenses and other fees that can be found by entering the investment s ticker symbol into the search feature at TIAA.org. See page 3 for more details. 8. How do lifecycle funds work? Each lifecycle fund consists of underlying mutual funds that invest in a broad range of asset classes. The allocations and risk level depend on how many years remain until the fund s target date. To help reduce risk as the fund s target date approaches, the fund s mix of stocks, bonds and other types of investments is adjusted to a more conservative mix. 9. What else should I know about lifecycle funds? As with all mutual funds, the principal value of a lifecycle fund isn t guaranteed and will fluctuate with market changes. The target date indicates when investors may plan to start making withdrawals. However, you are not required to withdraw your money at the target date. After the target date, some of your money may be merged into a fund with a more stable asset allocation. 1 A TIAA financial consultant can help you decide whether a lifecycle fund is right for you. 10. I am currently contributing to TIAA. What happens to my current account balances and future contributions? Mutual fund balances will transfer on or before December 15 to the options on the new menu. All annuity balances will remain where they are there. Starting November 22, 2017, you can direct future contributions to other options on the new investment menu. If no action is taken, SBP has provided instructions to invest future contributions according to the chart on pages Does it make sense to consolidate my retirement accounts? Many people find it easier to manage their retirement money by working with only one provider. That said, transferring balances can sometimes trigger costs. Before consolidating outside retirement balances, check with your employee benefits office to see if you can transfer those balances directly to your TIAA retirement account. You should carefully consider all your options. For instance, you may be able to leave money with a prior provider, roll over money to an IRA, or cash out all or part of the account value. Weigh the advantages and disadvantages of each option carefully, including investment options and services, fees and expenses, withdrawal options, required minimum distributions, tax treatment and your particular financial needs. You should seek the guidance of your financial professional and tax advisor before consolidating balances. continued 1 Lifecycle funds share the risks associated with the types of securities held by each of the underlying funds in which they invest. In addition to the fees and expenses associated with the lifecycle funds, there is exposure to the fees and expenses associated with the underlying mutual funds. Questions? Call or visit TIAA.org/sbpdiscovery 15

18 Q&A continued 12. Can I move money from an existing TIAA account to a new one? Yes, but it s a move you ll want to weigh carefully. You may move money out of your existing TIAA contracts to the new contracts, subject to any restrictions that apply to the investments. However, any money that you move out of your existing contract(s) cannot be moved back into them. Money in the TIAA Traditional Annuity deserves special attention. For instance, money moved out of TIAA Traditional in the existing contracts will no longer receive the 3% minimum guaranteed rate. In short, the pros and cons are different for every participant. A TIAA financial consultant can help you explore your options. 13. What are annuities? There are different types of annuities but they are typically designed to give you the opportunity to grow your money while you re working and provide you with the option to receive income for life when you retire. In fact, annuities are the only retirement products that can guarantee to pay you (or you and a spouse or partner) income for life. There are two types of annuities: Guaranteed Annuities (also known as Fixed Annuities): Earn a minimum guaranteed interest rate on your contributions, plus the potential for additional amounts of interest. In retirement, guaranteed annuities can offer you income for life that will never fall below a certain guaranteed level and provide income that is guaranteed to last for your lifetime. 1 Variable Annuities: Invest in a variety of asset classes and account values will fluctuate based on the performance of the investments in the accounts. In retirement, variable annuities can offer you income for life that varies based on the performance of the account and that is guaranteed to last for your lifetime. (It is possible to lose money in variable annuities.) For more information on annuities in employersponsored retirement plans see: TIAA.org/public/offer/ products/annuities/retirement-plan-annuities 1 Guarantees are based on the claims-paying ability of the issuing company. To learn more about annuities, visit: TIAA.org/public/offer/products/annuities/ retirement-plan-annuities. 16 Questions? Call or visit TIAA.org/sbpdiscovery

19 Understanding retirement plan fees SBP strives to keep the plan current with industry best practices. Please know that there have always been costs to participate in the program. However, your current cost to participate is paid for by the plan investment options. You have not seen an explicit charge before because these charges are currently bundled within the annual operating expense ratios of the investments. Under the new arrangement, your fees will be transparent. Plan Servicing Fee The annual Plan Servicing Fee of 14 basis points or 0.14% covers recordkeeping, administrative, compliance and employee services that TIAA performs on behalf of the plan. For accounts recordkept by TIAA starting in the first quarter of 2018, an annual Plan Servicing Fee will be divided into four quarterly payments of 3.5 basis points (0.035%) of the value of your investments at TIAA, and deducted from your plan accounts quarterly. This Plan Servicing Fee will be reduced, though, by subtracting from your plan s annual fee of 0.14% the amount of revenue share provided by each investment option you choose. Revenue sharing is the practice by annuity and mutual fund providers of paying plan service providers (i.e., third-party administrators and recordkeepers, such as TIAA) for performing services that the annuity or mutual fund might otherwise be required to perform. For example, if you choose to invest in a fund that shares 0.10% in revenue, TIAA will reduce the 0.14% fee by 0.10% of the value of the balances in that fund, resulting in a net 0.04% Plan Service Fee to be deducted annually from your account balances in that investment. See the chart on page 3 for the list of fees and expenses under each investment offered under your plan and the resulting administrative fee. On statements, these fees will be listed as a TIAA Plan Servicing Fee and will appear as a debit for each investment option that you hold as of the last day of each quarter. If your account balance is less than $25 on the date that a quarterly fee is to be assessed, no fee will be charged. The annual Plan Servicing Fee of 0.14% covers recordkeeping, administrative, compliance and employee services that TIAA performs on behalf of the plan. Investment fund performance information on performance cards found at TIAA.org/sbpdiscovery and elsewhere on the TIAA website is gross of plan servicing fees. That is, the annual Plan Servicing Fee should be subtracted from the listed annual returns to obtain your approximate net performance. Investment management fees Each of the investment options in the plan has an associated total expense ratio, which is the percentage of balances an investment provider charges each year in exchange for its services. These total expense ratios are different for each mutual fund in which you may choose to invest. Your total return is net of these investment management fees. In other words, your return is calculated after these fees have been deducted from the investment. This allows you to compare the performance of investments that have different fees. An investment option s total expense ratio covers the costs of managing the portfolio of securities along with other fees that may cover items such as, but not limited to, accounting and legal fees, shareholder servicing fees, and marketing expenses. For example, an expense ratio of 1.0% means that 1.0% of the investment s total balance are used to cover its operating expenses every year. You can find the expense ratios for each investment option in the plan at TIAA.org/ sbpdiscovery or in the prospectuses/fact sheets that you receive for funds available under the plan. In the prospectus, such fees are called Annual fund operating expenses. All things considered Fees are important, but they are just one factor in your decision-making process. In addition to fees and expenses, you should be sure your investment choices reflect your personal risk tolerance, the time frame until your retirement, and the appropriate balance allocation to suit your investment needs. Questions? Call or visit TIAA.org/sbpdiscovery 17

20 We re here to help Not sure where to begin? Let us help you take the next step! In person Phone Online You can schedule a one-on-one advice session by calling TIAA at , weekdays, 5 a.m. to 5 p.m. (PT) or visit TIAA.org/schedulenow. There is no additional cost to you for this service. If you have any questions or would like assistance selecting your new investment options, you can call TIAA at , weekdays, 5 a.m. to 7 p.m., or Saturday, 6 a.m. to 3 p.m. (PT). You can update your account online by going to TIAA.org/sbpdiscovery and selecting Log In. If you re new to TIAA, select Log in, then click on Register for Online Access. Follow the on-screen directions to gain online access to your account. This material is for informational or educational purposes only and does not constitute a recommendation or investment advice in connection with a distribution, transfer or rollover, a purchase or sale of securities or other investment property, or the management of securities or other investments, including the development of an investment strategy or retention of an investment manager or advisor. This material does not take into account any specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made in consultation with an investor s personal advisor based on the investor s own objectives and circumstances. Distributions from 403(b) plans before age 59½, severance from employment, death or disability may be prohibited, limited and/or subject to substantial tax penalties. Different restrictions may apply to other types of plans. Investment, insurance and annuity products are not FDIC insured, are not bank guaranteed, are not bank deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value. You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call or go to TIAA.org/sbpdiscovery for current product and fund prospectuses that contain this and other information. Please read the prospectuses carefully before investing. TIAA-CREF Individual & Institutional Services, LLC, Teachers Personal Investors Services, Inc., and Nuveen Securities, LLC, Members FINRA and SIPC, distribute securities products. Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association of America (TIAA) and College Retirement Equities Fund (CREF), New York, NY. Each is solely responsible for its own financial condition and contractual obligations Teachers Insurance and Annuity Association of America-College Retirement Equities Fund, 730 Third Avenue, New York, NY MT (10/17)