Date: December 2, 2014 To: Participants in the Retirement and Tax-Deferred Annuity Plans who have terminated employment Important News about Changes to Your Retirement Program As you may already know, the Stanford Health Care and Lucile Packard Children s Hospital Stanford retirement program provides an important retirement planning opportunity to help you achieve your retirement savings goals and the Hospitals continually look for ways to improve the program. That s why, earlier this year, we decided to take steps to simplify the plan design and make it easier for participants to take advantage of tools and services available with Transamerica Retirement Solutions. The first phase of these improvements was completed in July 2014: streamlining to one platform and consolidating investment options. A new online portal was introduced to help you with your retirement planning needs. The next step is to merge the Tax-Deferred Annuity Plan (the TDA ) and the Retirement Plan (the RP ) to create the Stanford Health Care Retirement Savings Plan (the RSP ) effective January 1, 2015. This package includes information and important notices with details of how the merger will work and what you should consider for your accounts before the administrative changes to implement the merger will occur. Transamerica accounts How your account will be affected Accounts that are currently at Transamerica (including brokerage accounts) will be combined automatically in early January. Your existing balances will continue to be invested in the same funds they were invested in before the merger. You will not need to do anything. Your beneficiary designations Beneficiary elections are held online at Transamerica. TDA beneficiary designations will not transfer to the merged plan. Once the merger is complete in January, make sure to complete this important step. Visit shclpch.trsretire.com. Select Beneficiaries from the Quick Links list on the Home page. Provide your user ID and passcode (first time users will be asked to set up this information). Instructions are provided to walk you through this process. Your self-directed brokerage account Self-directed brokerage accounts will merge automatically and your existing balances will be invested in the same funds you ve selected today. More information will be sent to you at your home address about how the transfer works and how you will continue to access your account.
Account access during the transition The administrative activities necessary to support the merging of the plans will take place in the first two weeks of January. To make sure your accounts are merged accurately, there will be a brief blackout period. During this time, you will not be able to access your account at Transamerica to initiate any transactions, including withdrawals or investment changes. The blackout period will begin at 1:00 p.m. PT on January 5, 2015, and is expected to be over the week ending January 16, 2015. Because you won t have access to your account for a short time, plan ahead. Be sure to carefully review the diversification, balance, and appropriateness of your investments before the blackout period starts. Once the blackout period is over, you can access your new merged account at shclpch.trsretire.com. Plan merger at a glance Transamerica accounts December 26, 2014 January 2, 2015 January 5, 2015 prior to 1 p.m. PT January 6, 2015 Week ending January 16, 2015 Recommended last day to request rollover or distribution paperwork before the blackout period Last day to submit any withdrawal or rollover paperwork to Transamerica Blackout period starts Accounts are merged at Transamerica Blackout period ends In order to complete these transactions prior to the blackout period, which starts on January 5, generally you will need to request any paperwork from Transamerica by this date. In order to complete these transactions prior to the blackout period, which starts on January 5, you must submit accurately completed and signed forms to Transamerica by this date. Account access will not be available for a short period while accounts are combined. Account access to merged RSP is available at Transamerica TIAA-CREF accounts How your account will be affected Accounts that are currently at TIAA-CREF will remain at TIAA-CREF. If you have a TDA account at TIAA-CREF it will be merged into the RSP at TIAA-CREF and will be renamed as an RSP account. You will not need to do anything. Your investments Your RP and TDA accounts at TIAA-CREF will be combined automatically and will continue to be invested as they are today. Continue contacting TIAA-CREF to make appropriate updates to those accounts. The current TIAA-CREF funds will be available to you for distribution during and after the merger. Your current account balance Your current account balance will remain at TIAA-CREF unless you request a transfer to Transamerica.
Your account beneficiary The beneficiary designations for your TIAA-CREF RP and TDA accounts will remain in effect for your merged RSP account at TIAA-CREF. Keep in mind that you may have more than one individual contract with TIAA-CREF, so you should make sure that your designations for each contract are up to date. Account access during the merger You will be able to access your TIAA-CREF account during the merger without interruption, except that you cannot make transfers to Transamerica during the blackout period. Other Frozen Vendor Accounts Accounts that are currently at Lincoln, T Rowe Price, Prudential, and Merrill Lynch will remain at these vendors. You will not need to do anything. The current funds at these vendors will be available to you during and after the transition (there is no blackout period). Continue contacting these vendors if you wish to make updates to these accounts. Your current account balance will remain at these vendors unless you request a transfer to Transamerica. Your beneficiary designations for your accounts with these vendors will remain unchanged. A word about recordkeeping fees in the merged plan (the RSP) at Transamerica Like today, the majority of program administration costs will continue to be embedded in each fund s return. Each fund has a management fee that reduces the fund s overall return credited to your account. With most of the funds available under the program, a portion of these fund management fees are then used to pay program administration costs and recordkeeping expenses. Tier I, the Vanguard retirement date funds, are passively managed funds and do not have embedded recordkeeping fees. The Vanguard funds generally have lower fund management fees. Instead of embedding recordkeeping expenses in the fund management fee, you will see a small fee deducted from your account each month. The annual fee is equal to 0.07% of your balance in each of these funds. The fee will accrue daily and be deducted at the end of each month (or when you move all the assets out of an impacted fund). This fee will be shown as a plan service fee on your quarterly account statement. Tier II is a broad core of diversified funds consisting of both active and passive fund management styles. In this tier, all funds except the Vanguard funds have management and recordkeeping fees embedded in the fund returns. If you invest in the Vanguard funds, fees will be as described in Tier I. Tier III, the Schwab Personal Choice Retirement Account 1 (PCRA), has funds individually selected by you with fees that will vary by investment choice. There is a $50 annual fee to maintain a PCRA. For general information about fees and expenses, you may wish to consult the Department of Labor s video, A Look at 401(k) Plan Fees, available at www.dol.gov. To find the video on the Department of Labor s website, enter A Look at 401(k) Fees in the search box on the home page. 1 Schwab Personal Choice Retirement Account (PCRA) is not a fund but rather a participant self-directed brokerage account maintained at Charles Schwab & Co., Inc. Participants must individually apply for PCRA and are solely responsible for their fund selections made under the PCRA. Commissions and transaction fees may apply to fund trades placed outside of the Schwab Mutual Fund OneSource program or trades on other investment vehicles available through Schwab. An annual fee of $50 will be applied by Transamerica Retirement Solutions if you invest in the Schwab PCRA. Securities purchased through the PCRA are available through Charles Schwab & Co. Inc., (Member SIPC). Charles Schwab & Co., Inc. is not affiliated with Transamerica.
Important notices enclosed 1) Blackout Period To ensure that your TDA and RP accounts are combined efficiently under the RSP, there will be a brief period of time in January during which you will be unable to access your RSP account with Transamerica. This is common during a change like this, and is done to ensure the overall accuracy of the merger process. Please see the enclosed Blackout Notice for details, including when the blackout period begins and ends. During this blackout period, you will not have access to your account at Transamerica to view your balance(s) and make other changes to your account, make investment changes, or initiate or complete transfers or distributions. 2) Investments The enclosed Investment Mapping Notice includes a chart which outlines how the merger will take place; how your existing account balances will be combined under the new RSP and how investments will be mapped (or defaulted for participants who have not made affirmative investment elections). The notice also includes information about how you can make a different investment election with Transamerica. Please take a few minutes to review these important notices for more information, visit shclpch.trsretire.com or call 800-755-5801. TISC distributes securities products. Any mutual fund offered under the plans is distributed by that particular fund s associated fund family and its affiliated broker-dealer or other broker-dealers with effective selling agreements such as TISC. Group annuity contracts are made available through the applicable insurance company. Any guarantee of principal and/or interest under a group annuity contract is subject to the claims-paying ability of the applicable insurer. Certain investment options made available under the plan may be offered through various Transamerica company affiliates of Transamerica Retirement Solutions and TISC. Stanford Health Care and Lucile Packard Children s Hospital Stanford have selected Transamerica as your retirement plan provider, but there are no other affiliations between Stanford Health Care and Lucile Packard Children s Hospital Stanford and Transamerica or its affiliate, TISC. 13499-PT_SHCLPCH Terminees (11/14)
Blackout Notice for the Stanford Health Care Retirement Savings Plan Relating to the Merger of the Stanford Hospital and Clinics Tax-Deferred Annuity Plan (TDA) and the Stanford Hospital and Clinics Retirement Plan (RP) Date of Notice: December 2, 2014 This notice is to inform you that the Stanford Hospital and Clinics Tax-Deferred Annuity Plan (the TDA ) will merge into the Stanford Hospital and Clinics Retirement Plan (the RP ) to create the Stanford Health Care Retirement Savings Plan (the RSP ) effective January 1, 2015, and to provide important information about the administrative activities necessary to support the merging of the TDA and the RP. As a result of the merger, you will be temporarily unable to direct or diversify investments in your individual account, change your contribution amounts, obtain a loan, or obtain a distribution from your Transamerica account under the RSP. This period, during which you will be unable to exercise these rights otherwise available under the RSP, is called a blackout period. It is very important that you review and consider the appropriateness of your current investments in light of your inability to direct or diversify those investments during the blackout period. Whether or not you are planning retirement in the near future, we encourage you to carefully consider how this blackout period may affect your retirement planning, as well as your overall financial plan. For your long-term retirement security, you should give careful consideration to the importance of a well-balanced and diversified investment portfolio, taking into account all your assets, income, and investments. Blackout Period Dates: The blackout period for the RSP is expected to begin as of the close of business at 1:00 p.m. Pacific Time on January 5, 2015, and end during the week ending January 16, 2015. During these weeks, you can determine whether the blackout period has started or ended by calling the RSP s recordkeeper, Transamerica Retirement Solutions, toll-free at 800-755-5801. Combination of your Transamerica Accounts: In connection with the merger, your contributions and investments with Transamerica will be combined. Review the Investment Mapping Notice on the following page to see details of how the Transamerica accounts will be combined. Your first 2015 quarterly statement will be for the RSP and will reflect any transactions in your account as a result of the merger. Your RSP Account with Frozen Vendors: You will be able to access your RSP account with TIAA-CREF, Lincoln, Merrill Lynch, Prudential, and T. Rowe Price during the blackout period described above, except that you will not be able to make transfers to Transamerica. If you have any questions concerning this notice, you should contact: Stanford Hospital and Clinics 300 Pasteur Drive, M/C 5513 Stanford, CA 94305 SHC: hrbenefits@stanfordmed.org LPCH: (650) 721-5400 or submit question to AskHR
Investment Mapping Notice for the Stanford Health Care Retirement Savings Plan Relating to the Merger of the Stanford Hospital and Clinics Tax-Deferred Annuity Plan (TDA) and the Stanford Hospital and Clinics Retirement Plan (RP) Date of Notice: December 2, 2014 Your Right to Direct Investments: Although the investment options in the Retirement Savings Plan (the RSP ) are determined by your employer, you have the right to direct the investment of your individual account balance and your contributions under the RSP into one or more of the investment options. You have the right to transfer your money and/or change the allocation of your future contributions prior to the blackout period described in the Blackout Notice by making an affirmative investment transfer election prior to the blackout period. After the blackout period, you will have the right to transfer any of your assets held in the funds and/or redirect your contributions allocated to such funds to one or more of the RSP s other investment options. How to Make an Investment Election and/or Obtain Additional Information: Visit shclpch.trsretire.com and sign in to your account Call Transamerica at 800-755-5801 Contact your Plan Administrator by calling 650-723-4748. Investment of Future Contributions to the merged RSP: The chart on the following page provides important information about the impact of the merger on your future contributions and the investment of those future contributions with Transamerica Retirement Solutions under the RSP. Please review your current investment elections and, if desired, make changes prior to or after the blackout period described in the Blackout Notice. Your RSP Account with Frozen Vendors: The investment of any RSP account with TIAA-CREF, Lincoln, Merrill Lynch, Prudential, and T. Rowe Price will remain unchanged. Prospectus Availability For more information on any registered fund, please call Transamerica at 800-755-5801 for a free summary prospectus (if available) and/or prospectus. You should consider the investment objectives, risks, charges, and expenses of an investment carefully before investing. The summary prospectus and prospectus contain this and other information. Read them carefully before you invest. Certain investment funds may impose trading restrictions and/or redemption fees as a result of frequent trading activity. Please contact Transamerica for more information. Transamerica Investors Securities Corporation (TISC), 440 Mamaroneck Avenue, Harrison, NY, distributes securities products. Any mutual fund offered under the plan is distributed by that particular fund s associated fund family and its affiliated broker-dealer or other broker-dealers with effective selling agreements such as TISC. Bank collective trusts funds, if offered under the plan, are not insured by the FDIC, the Federal Reserve Bank or any other government agency and are not registered with the Securities and Exchange Commission. Group annuity contracts, if offered under the plan, are made available through the applicable insurance company. Any guarantee of principal and/or interest under a group annuity contract is subject to the claims-paying ability of the applicable insurer. Certain investment options made available under the plan may be offered through affiliates of Transamerica Retirement Solutions and TISC. These may include: (1) the Transamerica Funds (registered mutual funds distributed by Transamerica Capital, Inc. (TCI) and advised by Transamerica Asset Management, Inc. (TAM)); (2) the Diversified Investment Advisors Collective Trust, a collective trust fund of Massachusetts Fidelity Trust Company (MFTC) (includes the Stable Pooled Fund); (3) group annuity contracts issued by Transamerica Financial Life Insurance Company (TFLIC), 440 Mamaroneck Avenue, Harrison, NY 10528 (includes the Stable Fund, the Fixed Fund, the Guaranteed Pooled Fund, and SecurePath for Life); and (4) group annuity contracts issued by Transamerica Life Insurance Company (TLIC), 4333 Edgewood Road NE, Cedar Rapids, IA 52499 (includes SecurePath for Life). Transamerica, TISC, TCI, TAM, MFTC, TFLIC, and TLIC are affiliated companies. 13501-PT_SHCLPCH (11/14)
Plan(s) you participate in today Retirement Plan only Tax-Deferred Annuity Plan only Both plans (where you have directed current investments to the same options) Both plans (where you have directed current investments to different options) MERGER OF THE TDA INTO THE RP How your future contributions will be combined under the RSP Your current contribution percentage will transfer to the merged plan. Your current contribution percentage will transfer to the merged plan. Your current contribution percentages to both plans will transfer to the merged plan. Your current contribution percentages to both plans will transfer to the merged plan. How your investments will be combined under the RSP Your existing balances will continue to be invested in the same funds they were invested in before the merger. Your future contributions will be invested in the funds you ve selected under the RP. Your existing balances will continue to be invested in the same funds they were invested in before the merger. Your future contributions will be invested in the funds you ve selected under the TDA. Your existing balances will continue to be invested in the same funds they were invested in before the merger. After the merger, your future contributions will be invested in the same funds you ve selected today. After the merger, your existing balances will continue to be invested in the same funds they were invested in before the merger. If you have chosen funds under the RP, your future contributions will be invested in the funds you ve chosen under the RP. If you haven t chosen funds under the RP, your future contributions will be invested in the funds you ve chosen under the TDA. If you haven t chosen investment options in the RP or TDA, today your account is invested in the default investment option, a Vanguard Target Retirement Date Fund* based on a retirement age of 65. Your future contributions will continue to be invested in that fund until you actively choose a different allocation. *Target date options generally invest in a mix of stocks of bonds, cash equivalents, and potentially other asset classes, either directly or via underlying investments, and may be subject to all of the risks of these asset classes. The allocations become more conservative over time: The percentage of assets allocated to stocks will decrease while the percentage allocated to bonds will increase as the target date approaches. The higher the allocation is to stocks, the greater the risk. The principal value of the investment option is never guaranteed, including at and after the target date.