S ta te of Connecticut de fer red co mpensatio n Plan. distribution options TAKING WITHDRAWALS FROM YOUR PLAN ACCOUNT

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1 S ta te of Connecticut de fer red co mpensatio n Plan distribution options TAKING WITHDRAWALS FROM YOUR PLAN ACCOUNT

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3 by participating in the State of Connecticut Deferred Compensation 457 Plan, you ve taken an important step in preparing for retirement. You ve enjoyed the ease of payroll-deducted contributions, as well as the advantages of tax-deferral on both your contributions and any earnings. As a participant, you ll eventually need to take another important step deciding how to take distributions (or withdrawals) from your plan account. there are a number of distribution options available to you. understanding those options can help you avoid receiving payments in a method you may not want, or from paying income taxes earlier than you have to. this brochure provides you with an overview of the distribution options available. For additional information, please contact your local Voya representative at You should consider the investment objectives, risks, and charges and expenses of the investment options carefully before investing. Fund prospectuses and other information can be obtained by contacting your Voya local representative. Please read the information carefully before investing.

4 At Voya, we are committed to providing you with all the information you need to make decisions that are right for you. Following are questions and answers to help you better understand the distribution options available through the State of Connecticut Defined Contribution Plans. When can I receive a distribution of my benefits under the 457(b) Plan? The IRS and Plan rules only allow you to receive a distribution when you incur a triggering event. Triggering events for the Plan are: Separation from service; Retirement; Death; or Unforeseeable emergency What do I need to do when I become entitled to a distribution from the Plan? You are not required to make a benefit election when you retire or separate from service. You can choose from several options: Postpone any decision on the payment of your benefits to a future date (no later than April 1st following the calendar year in which you reach age 70½ or separate from employment, if later); Receive your benefits immediately, under one of the distribution options available under the Plan; or Roll over your benefits into another employersponsored, eligible retirement plan or IRA. (An eligible retirement plan is a 401 qualified plan, a 403(b) tax deferred annuity program, or another governmental 457(b) deferred compensation plan). Amounts rolled from a governmental 457(b) plan to another plan type are subject to any applicable 10% premature penalty tax if distributed prior to age 59½ (unless exception applies). Why should I consider leaving my assets in the Plan(s) when I become entitled to a distribution? There are several advantages to leaving your assets in the Plan(s) including: Access to diversified investment options with low fund expenses; Continued deferral of taxes on prior contributions and accumulated earnings; and personalized investment and financial education from your local Voya Representative. Once I choose a payment method, can I change how I d like to receive my benefits? Unless you previously selected an annuity payment option, you may change the method for receiving benefits. When am I required to begin receiving distributions? The IRS requires that distributions begin no later than April 1st of the calendar year following the calendar year in which you reach age 70½ or separate from service, whichever occurs later. If you fail to receive the Required Minimum Distribution (RMD) for any tax year, a 50% excise tax is imposed on the required amount that was not timely distributed. What happens if I die? Upon your death, benefits would be payable to the beneficiary(ies) that you designated under the Plan. The Plan will provide a variety of options for the payment of death benefits. Your beneficiary must notify Voya of your death and make a payment election in accordance with the Plan.

5 What are my payment options? The options available are designed to give you the maximum flexibility in planning for your retirement income needs. As you select your payment option, you should consider the tax consequences of your election. All distributions are taxable in the year they are distributed. Therefore, you may want to consult a tax advisor before making your final decision. Voya does not offer legal or tax advice. Seek the advice of a tax attorney or of a tax advisor prior to making a tax-related insurance or investment decision. You may receive your account value in any one of the following ways: 1. Lump Sum Total Lump Sum You can receive your total account value in one lump sum payment. Before you choose this option, we suggest you consult with your accountant or tax attorney about your income tax liability. Partial Lump Sum You may elect to receive part of your account value now and defer the remaining balance of your account until a later date. 2. Systematic Withdrawal Option (SWO) this option provides you with a regular stream of income payments, which can be made monthly, quarterly, semiannually or annually. It allows you to continue to invest your money during the distribution period in any or all of the investment options offered under the Plan. You have the flexibility to transfer your account balance among the Plan s various investment options. there are two different ways you can structure your SWO payments: Specified Payment Under this option, you select a specific dollar payment. The amount of the payment chosen must be at least $250. Your payment will remain constant, unless you need to take additional distributions in order to meet the federal RMDs imposed at the time you turn 70½. Specified Period You may elect to receive payments for a designated time period. The specified period must be at least three years and the first distribution must be at least $250. The maximum specified period is limited to your life expectancy, or joint life expectancy of you and your designated primary beneficiary that is your spouse. For example, if you elect to receive your payments monthly for three years, your initial payment will be equal to 1 36 of your account balance; the second payment will be 1 35 of your account balance; the third 1 34, and so on. 3. estate Conservation Option (ECO) unlike a SWO, payments under the ECO are based on recalculating your life expectancy each year. Because this recalculation method typically produces a longer life expectancy after the first year, the ECO provides lower payments each year. That, in turn, leaves more of your assets to continue accumulating tax deferred within your account, preserving more of your assets for your beneficiary(ies). ECO is designed to make annual payments to you in accordance with the Required Minimum Distributions of federal tax laws. You may select the month in which these payments are distributed to you from your account. You are eligible to begin receiving ECO payments in December of the calendar year in which you reach 70½ or retire, whichever is later. Your annual benefit payment is determined by dividing the value of your account as of December 31 of the previous year by a life expectancy factor. You may elect either a single or joint life expectancy factor for your ECO payments. In order to elect a joint life expectancy factor, your spouse must be your sole primary beneficiary and at least 11 years younger than you.! If you are 70½ or older and must meet the Required Minimum Distributions but are less interested in generating current income, you may want to consider the Estate Conservation Option (ECO). Like SWO, this option allows you to continue to invest your account balance in any or all of the investment options offered under the Plan. You must be age 70½ or older to choose ECO.

6 How will distributions of my pre-tax benefits be taxed? Amounts distributed directly to you from the Plan will be taxable to you when actually paid, and will be reported on IRS Form 1099R and be subject to 20% federal tax withholding (to the extent that the distribution is rollover eligible). Governmental 457(b) plan benefits are generally not subject to any applicable 10% premature distribution penalty tax if you receive that distribution prior to reaching age 59½. However, any distribution from the 457(b) Plan that is attributable to an amount you rolled over from either another type of employer plan or an IRA, would be subject to any applicable 10% premature penalty tax, provided you receive that distribution before age 59½ (unless another exception applies; see below). How will distributions of my Roth benefits be taxed? You pay income taxes up front, at your current tax rate, when you make Roth contributions. You are eligible for a tax-free qualified distribution only if both (1) the five-year holding period requirement is met (generally, 5 calendar years from the first Roth 457 contribution made to the Plan), and (2) the distribution is due to attainment of age 59½ and separation from service, disability as defined by the Internal Revenue Code, or death. Note: Distributions from the Roth 457 are subject to taxation on the portion attributable to earnings if made before qualified distribution provisions are satisfied. Can I roll over my benefits to another plan? Yes. At retirement or separation from employment, you are permitted to roll over your benefits to another employer-sponsored eligible retirement plan or IRA. All distributions are eligible for rollover except for: An unforeseeable emergency withdrawal; IRS required minimum distributions payable on or after you reach age 70½; and Periodic payments made over your life or a specified period of 10 years or more. Amounts rolled from the Plan to another plan type (other than another governmental 457 plan) would be subject to any applicable 10% premature penalty tax if distributed prior to age 59½ (unless an IRS exception applies). IRS exceptions to the 10% premature distribution penalty tax include payments made: to your beneficiary as a result of your death; upon your separation from employment or retirement after age 55; in substantially equal amounts over your life/life expectancy; or As a result of your total and permanent disability. Can I withdraw funds while still employed with the State? In accordance with IRS regulations, payment prior to severance from employment is permitted if you qualify for an unforeseeable emergency withdrawal. If you are age 70½ and still employed by the State, you may elect to receive distribution of all or a portion of your account under the Plan; however, you will no longer be able to make contributions to the Plan. The Plan also includes a provision allowing the in-service distribution of accounts that do not exceed $5,000 if: 1) you have not made any contributions to the Plan during the prior two years; and 2) you have not received this type of in-service distribution in the past. What is an unforeseeable emergency withdrawal? Internal Revenue Service (IRS) guidelines define an unforeseeable emergency as a severe financial hardship to the participant resulting from: An illness or accident of the participant, the participant s spouse or dependent; Loss of the participant s property due to casualty; or Similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the participant. Withdrawals are permitted only to the extent the hardship cannot be relieved: Through reimbursement or compensation from insurance or otherwise; By liquidation of the participant s assets, to the extent the liquidation of such assets would not itself cause severe financial hardship; or By cessation of deferrals under the Plan. Only the amount necessary to satisfy the emergency need can be distributed. The purchase of a home or an automobile, or the need to pay a child s college expenses, are not considered unforeseeable emergencies. If you need more information on emergency withdrawals, please call toll-free and a Voya Customer Service Associate will assist you.

7 How do I find out more? For additional assistance in making the right choice for your specific situation, contact your local Voya representative* and visit the Plan website at * Registered Representative of Voya Financial Advisors, member SIPC

8 / Third-party administration provided by Voya Retirement Insurance and Annuity Company (VRIAC), One Orange Way, Windsor, CT Securities distributed by Voya Financial Partners, LLC (member SIPC) or other Broker-Dealers with which Voya Financial Partners, LLC has a selling agreement. These companies are members of the Voya Financial family of companies Voya Services Company. All rights reserved. CN G.P-4