Bartholomew Consolidated Schools. 403(B) Plan 401(A) Plan VEBA HSA

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1 Bartholomew Consolidated Schools 403(B) Plan 401(A) Plan VEBA HSA 2017

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5 Two Brothers Ben Graduated from college, started teaching, and got married at 22 Had 2 children within the next 8 years Wife stayed home after second child; went back to work after second child went to high school Justin Also graduated from college, started teaching, and got married at 22 Had 2 children within the next 3 years; wife stayed home When kids started KG, wife started career

6 ANNUITY GROWTH CHART- TWINS Assume growth of 9% Ben Justin Year Age Deposit Deposit 1 22 $ 2,000 $ $ 2,000 $ $ 2,000 $ $ 2,000 $ $ 2,000 $ $ 2,000 $ $ 2,000 $ $ 2,000 $ $ - $ 2, $ - $ 2, $ - $ 2, $ - $ 2, $ - $ 2, $ - $ 2, $ - $ 2, $ - $ 2, $ - $ 2, $ - $ 2, $ - $ 2, $ - $ 2, $ - $ 2, $ - $ 2,000

7 ANNUITY GROWTH CHART- TWINS Assume growth of 9% Ben Justin Year Age Deposit Accum Deposit Accum 1 22 $ 2,000 $ 2,180 $ - $ $ 2,000 $ 4,556 $ - $ $ 2,000 $ 7,146 $ - $ $ 2,000 $ 9,969 $ - $ $ 2,000 $ 13,047 $ - $ $ 2,000 $ 16,401 $ - $ $ 2,000 $ 20,057 $ - $ $ 2,000 $ 24,042 $ - $ $ - $ 26,206 $ 2,000 $ 2, $ - $ 28,564 $ 2,000 $ 4, $ - $ 31,135 $ 2,000 $ 7, $ - $ 33,937 $ 2,000 $ 9, $ - $ 36,992 $ 2,000 $ 13, $ - $ 40,321 $ 2,000 $ 16, $ - $ 225,975 $ 2,000 $ 203, $ - $ 246,313 $ 2,000 $ 223, $ - $ 268,481 $ 2,000 $ 246, $ - $ 292,644 $ 2,000 $ 270, $ - $ 318,982 $ 2,000 $ 297, $ - $ 347,691 $ 2,000 $ 326, $ - $ 378,983 $ 2,000 $ 357, $ - $ 413,092 $ 2,000 $ 391,965

8 ANNUITY GROWTH CHART- Brother Jonathan Assume growth of 9% Ben Year Age Deposit Accum 1 22 $ 2,000 $ 2, $ 2,000 $ 4, $ 2,000 $ 7, $ 2,000 $ 9, $ 2,000 $ 13, $ 2,000 $ 16, $ 2,000 $ 20, $ 2,000 $ 24, $ 2,000 $ 28, $ 2,000 $ 33, $ 2,000 $ 38, $ 2,000 $ 43, $ 2,000 $ 50, $ 2,000 $ 56, $ 2,000 $ 429, $ 2,000 $ 470, $ 2,000 $ 514, $ 2,000 $ 563, $ 2,000 $ 616, $ 2,000 $ 673, $ 2,000 $ 736, $ 2,000 $ 805,056

9 All BCSC employees are eligible for 403(b) salary reduction. Deductions are taken out of 20 pays for noncontracted and non-year-round employees Deductions are taken out of 26 pays for contracted and year-round employees. All 3 vendors- Metlife, Valic, and Aspire- will have reps visiting the buildings after the start of school You can also call and schedule an appointment if you missed them

10 403(B) No hardship withdrawals No loans No catchup deferrals Blank salary reduction agreement on BCSC website; reps will have copies

11 403(B) Investment Choices METLIFE Annuities (57 choices) $30 Account Fee.50% Mortality Fee No Surrender Fee (except fixed fund) Mutual Funds (29 choices).28% Account Fee + expense ratio of fund(s)

12 403(B) Investment Choices VALIC Annuities (29 choices) No Account Fee % Mortality Fee No Surrender Fee (except fixed fund) Mutual Funds (Internet Only) (90 choices) $40 Account Fee + expense ratio of fund(s)

13 403(B) Investment Choices ASPire (403b ASP) $40 Account Fee +.10% Management Fee + expense ratio of fund(s) 40 Mutual Funds through Edward Jones Option of Self-directing through 403(b) ASP (Internet Only) Thousands of mutual funds to choose from Apply on the Aspire website When account is set up, fill out a BCSC salary reduction agreement, sign, and send to Business Office No rep or broker to work with

14 ROLLOVERS, EXCHANGES, AND TRANSFERS Rollovers- monies from a previous employer 403(b) or similar plan; check was received Transfers- monies from a previous employer 403(b) or similar plan; directly sent to new 403(b) vendor (no cash or check involved) Check to see if there are any surrender charges from the vendor losing the funds

15 401(A) BCSC matches up to 3% of your base salary Monies are sent to Metlife regardless of your 403(B) vendor An account will be set up with Metlife for the 401(A) match You invest the monies just like you would in your 403(B) 5 year vesting

16 403(b) 401(a) 9% 2% 3% 3% (Assumed grow th) YEARS IN (Assumed grow th) EMPLOYEE EMPLOYER TOTAL TOTAL EDUCATION AGE SALARY CONTRIBUTION MATCH CONTRIBUTION VALUE 0 22 $ 37,500 $ 1, $ 1, $ 2, $ 2, $ 38,899 $ 1, $ 1, $ 2, $ 5, $ 40,338 $ 1, $ 1, $ 2, $ 7, $ 41,820 $ 1, $ 1, $ 2, $ 11, $ 43,344 $ 1, $ 1, $ 2, $ 15, $ 44,912 $ 1, $ 1, $ 2, $ 19, $ 46,526 $ 1, $ 1, $ 2, $ 23, $ 48,188 $ 1, $ 1, $ 2, $ 29, $ 49,897 $ 1, $ 1, $ 2, $ 34, $ 68,993 $ 2, $ 2, $ 4, $ 138, $ 84,102 $ 2, $ 2, $ 5, $ 400, $ 102,520 $ 3, $ 3, $ 6, $ 1,037, $ 104,570 $ 3, $ 3, $ 6, $ 1,137, $ 106,662 $ 3, $ 3, $ 6, $ 1,246,024.03

17 2% 3% 3% (Assumed grow th) YEARS IN (Assumed grow th) EMPLOYEE EMPLOYER TOTAL TOTAL EDUCATION AGE SALARY CONTRIBUTION CONTRIBUTION CONTRIBUTION VALUE 0 22 $ 37,500 $ 1, $ 1, $ 2, $ 2, $ 38,250 $ 1, $ 1, $ 2, $ 4, $ 39,015 $ 1, $ 1, $ 2, $ 7, $ 39,795 $ 1, $ 1, $ 2, $ 11, $ 40,591 $ 1, $ 1, $ 2, $ 14, $ 41,403 $ 1, $ 1, $ 2, $ 18, $ 42,231 $ 1, $ 1, $ 2, $ 22, $ 43,076 $ 1, $ 1, $ 2, $ 27, $ 43,937 $ 1, $ 1, $ 2, $ 32, $ 53,559 $ 1, $ 1, $ 3, $ 123, $ 65,288 $ 1, $ 1, $ 3, $ 349, $ 79,586 $ 2, $ 2, $ 4, $ 895, $ 81,178 $ 2, $ 2, $ 4, $ 980, $ 82,801 $ 2, $ 2, $ 4, $ 1,074, %

18 BARTHOLOMEW CONSOLIDATED SCHOOLS 403(B) VENDORS REPRESENTATIVE REPRESENTATIVE ANNUITY VENDORFIRST NAME LAST NAME REPRESENTATIVE FIRM PHONE # -WEBSITE METLIFE Lottie Barcus Metlife Lbarcus@financialguide.com VALIC Gary Bridwell VALIC ext gary.bridwell@valic.com VALIC Stephanie Bunday VALIC ext stephanie.bunday@valic.com VALIC Nate Richardson VALIC ext nathan.richardson@valic.com ASPIRE Rick Colglazier CFD Investments rick.colglazier@cfdinvestments.com ASPIRE Ryan Burchfield Edward Jones ryan.burchfield@edwardjones.com ASPIRE Lisa Duke Edward Jones lisa.duke@edwardjones.com ASPIRE Ken Free Edward Jones ken.free@edwardjones.com ASPIRE John Hayden Edward Jones john.hayden@edwardjones.com ASPIRE Bob Lewis Edward Jones bob.lewis@edwardjones.com ASPIRE Andy Mann Edward Jones andy.mann@edwardjones.com ASPIRE Jim Ostermueller Edward Jones jim.ostermueller@edwardjones.com ASPIRE Eric Robbins Edward Jones eric.robbins@edwardjones.com ASPIRE David Weiss Edward Jones david.weiss@edwardjones.com ASPIRE Mike Engelstad Engelstad Wealth Advisors ASPIRE Jodi Engelstad Engelstad Wealth Advisors ASPIRE Warren Ward Warren Ward Assoc ASPIRE Philip Blum WestPoint Financial Group, LLC pblum@financialguide.com ASPIRE Jack Hettiger WestPoint Financial Group, LLC jhettiger@financialguide.com ASPIRE Jacob Martin WestPoint Financial Group, LLC jacobmartin@financialguide.com ASPIRE Gabriel Thomas Alpha Financial Services gabriel.thomas@cfdinvestments.com As of:4/3/2017

19 BCSC BUYS YOUR UNUSED SICK DAYS OVER 180 FOR $43 PER DAY FUNDS CAN ONLY BE USED FOR HEALTH-RELATED EXPENDITURES WHEN YOU RETIRE

20 VEBA ACCUMULATION GROWTH RATE= 9% ACCUM ANNUAL ANNUAL VALUE OF VALUE OF YEARS OF SICK DAYS SICK DAYS ACCUM DAYS DAYS DAYS COMPOUNDED VALUE OF AGE TEACHING GIVEN USED SICK DAYS BOUGHT BOUGHT BOUGHT GROWTH ONE DAY $ - $ $ - $ $ - $ $ 172 $ $ 344 $ $ 344 $ $ 344 $ 1,204 1, $ 344 $ 1,548 1, $ 344 $ 1,892 2, $ 344 $ 2,236 2, $ 344 $ 2,580 3, $ 344 $ 2,924 4, $ 344 $ 3,268 4, $ 344 $ 3,612 5, $ 344 $ 3,956 6, $ 344 $ 4,300 7, $ 344 $ 4,644 8, $ 344 $ 4,988 9, $ 344 $ 5,332 10, $ 344 $ 5,676 12, $ 344 $ 6,020 13, $ 344 $ 6,364 15,

21 VEBA ACCUMULATION GROWTH RATE= 9% 18 5 ACCUM ANNUAL ANNUAL VALUE OF VALUE OF YEARS OF SICK DAYS SICK DAYS ACCUM DAYS DAYS DAYS COMPOUNDED VALUE OF AGE TEACHING GIVEN USED SICK DAYS BOUGHT BOUGHT BOUGHT GROWTH ONE DAY $ - $ $ - $ $ - $ $ 86 $ $ 559 $ $ 559 $ 1,204 1, $ 559 $ 1,763 1, $ 559 $ 2,322 2, $ 559 $ 2,881 3, $ 559 $ 14,061 48, $ 559 $ 14,620 52, $ 559 $ 15,179 58,

22 VEBA ACCUMULATION GROWTH RATE= 9% 18 0 ACCUM ANNUAL ANNUAL VALUE OF VALUE OF YEARS OF SICK DAYS SICK DAYS ACCUM DAYS DAYS DAYS COMPOUNDED VALUE OF AGE TEACHING GIVEN USED SICK DAYS BOUGHT BOUGHT BOUGHT GROWTH ONE DAY $ - $ $ - $ $ - $ $ 774 $ $ 774 $ 1,548 1, $ 774 $ 2,322 2, $ 774 $ 3,096 3, $ 774 $ 14,706 35, $ 774 $ 15,480 39, $ 774 $ 16,254 43, $ 774 $ 17,028 48, $ 774 $ 17,802 53, $ 774 $ 18,576 59, $ 774 $ 19,350 65, $ 774 $ 20,124 72, $ 774 $ 20,898 79, $ 774 $ 21,672 87, $ 774 $ 22,446 96, $ 774 $ 23, , $ 774 $ 23, ,

23 Health Savings Account (HSA) What are they? HSAs are tax-advantaged medical savings accounts available to taxpayers who are enrolled in an HSAqualified high-deductible health plan. The funds contributed to the account are not subject to federal income tax at the time of deposit. Unused amounts in one year can be carried over to following years and added to subsequent contributions. HSA Contribution Limits: Individual: $3,400 for 2017 Family: $6,750 for 2017 Individuals age 55 and over may make an additional catch up contribution of up to $1,000.

24 Questions?????