PASTORAL CENTER: HUMAN RESOURCES DEPARTMENT 13280 CHAPMAN AVENUE, GARDEN GROVE, CA 92840 NEW RETIREMENT SAVINGS PLANS FOR DIOCESAN PRIESTS Dear Presbyterate, The Diocese of Orange is pleased to announce the creation of a new retirement savings plan available to all active serving priests of the Diocese of Orange. The Diocese is committed to helping you prepare for the retirement you want and deserve. Beginning January 2, 2017, you will have a new way to help you supplement your retirement savings: The Diocese of Orange Priest Savings Plan. You will receive pension benefits through the Diocese of Orange Priests Pension Plan and Social Security will be part of your retirement plan too. But you will most likely need additional savings to live comfortably in retirement. Participating in the Diocese of Orange Priest Savings Plan is a convenient way to save more for your retirement. Since it is a tax-deferred savings plan, pretax contributions can be deducted automatically from your paycheck. That will lower what you owe in taxes now and puts that money to work for your future instead. Contributions can be invested according to the style and preference of your personal investment goals or retirement profile. The Diocese and their independent investment advisor, Investing for Catholics, have designed a streamlined investment menu that provides a faith-consistent way to help simplify investing decisions and offer flexibility. Together, with TIAA as recordkeeper, the plan is designed to provide you with the education, tools and resources to help you on your journey to retirement. I highly recommend all of our actively assigned diocesan priests to join this new savings plan and begin saving now for their future retirement. Sincerely, Fr. Ted Olson Chair, Priests Retirement Plan Committee CNA 4103-5102 (11/16)
Introducing The Diocese of Orange Priest Savings Plan It s easier than ever to plan and save for retirement. Whether it s years down the road or just around the corner, you can get started right now.
The Diocese of Orange is pleased to provide you with a new opportunity to save and invest for retirement The Diocese is committed to helping you prepare for the retirement you want and deserve. Beginning January 2, 2017, you will have a new way to help you supplement your retirement savings: The Diocese of Orange Priest Savings Plan. Even though you receive pension benefits through the Diocese of Orange Priests Pension Plan, you will most likely need additional savings to prepare for retirement. Participating in the Diocese of Orange Priest Savings Plan is a convenient way to contribute more for your retirement. Since it is a tax-deferred savings plan, pretax contributions are deducted automatically from your paycheck and reduce your current taxable income. That lowers what you owe in taxes now and puts that money to work for your future instead. The Diocese and their independent investment advisor, Investing for Catholics, have designed a streamlined investment menu that provides a faith-consistent way to help simplify investing decisions and offer flexibility. Together, with TIAA as recordkeeper, your plan is designed to provide you with the education, tools and resources to help you on your journey to retirement. Getting started is easy. Just go to TIAA.org/rcbo and select Ready to Enroll, beginning January 2, 2017. Then follow the prompts to Register or Log in. You will be asked to select your contribution amount, choose your investments and provide your beneficiary information. Just confirm your information to complete your enrollment. Questions? Call 800-842-2888 or visit TIAA.org/rcbo
The Diocese of Orange Priest Savings Plan offers valuable benefits: Convenience Contributions are automatically applied to your account. Tax deferral No income taxes are taken on your contributions or their earnings, until you take money out of the plan. 1 Diverse investments You can build a portfolio of professionally managed investments to suit your personal goals and risk tolerance. Pretax savings Every dollar you save is on a pretax basis, which can reduce your current taxable income. Commitment to keeping costs low The Diocese leverages their economy of scale to keep costs low so more of your money works toward your retirement. Why it s important to act now People are living longer these days. That s a good thing, but it means you ll probably need more money to cover daily expenses and healthcare when you retire. On average, Social Security will provide only 40% of the money you will need during your retirement years. 2 Time is on your side: The earlier you act, the more it can do for you. Time and compounding can significantly impact your retirement savings. Enroll today because the earlier the start, the more time and money can work through the power of compounding. It provides not only the potential for growth on the funds contributed to an account, but also the potential for growth on their earnings. And, the longer you save, the more opportunity there is for compounding to work for you. Total Savings (in thousands) $250 200 This graph shows how much money a person would have if they saved $100 a month for 20, 30 and 40 years. $192,000 150 100 $98,000 $144,000 $46,000 $62,000 50 $22,000 $24,000 $36,000 $48,000 0 20 Years 30 Years 40 Years Amount from Contributions + Amount from Compounded Earnings = Total Savings Assumes a 6% annual return, which is purely hypothetical and not intended to predict or project the actual performance of any account. Actual returns will vary. Does not reflect expenses that would result in lower returns. Assumes no withdrawals during the period indicated. All figures are rounded to the nearest thousand. 1 All withdrawals are subject to ordinary income tax. Withdrawals prior to age 59 ½ may be subject to an additional 10% penalty. 2 Social Security Administration, http://ssa.gov/pubs/10035.html#a0=1 Questions? Call 800-842-2888 or visit TIAA.org/rcbo 1
What type of investor are you? You can see details about all the new investment options online at TIAA.org/ rcbo. Click on Investment Options to view the portfolios and their underlying investments as well as the individual investment information. Do you prefer to let financial professionals make some investment decisions for you? Investing for Catholics and the Diocese of Orange Retirement Investment Committee selected low-cost investment options that align with the Catholic values espoused by the Diocese. These choices include an asset allocation service that provides a complete portfolio in a single choice. You can choose an Investing for Catholics model portfolio or build your own portfolio from the plan s investment options. Strategy 1: If you would like the convenience of a complete retirement portfolio in a single choice The Investing for Catholics Portfolios, available through TIAA s Custom Portfolio Model Service, help simplify investing by providing a complete retirement portfolio in a single choice. Each model portfolio includes a professionally selected mix of investments from the plan s investment menu that corresponds to criteria developed by the Diocese of Orange in consultation with Investing for Catholics, their independent investment advisor. Investing for Catholics (IFC) provides the ongoing management and annual rebalancing to help your model stay in step with your goals. 1 The IFC Target Retirement Portfolios target a specific retirement date ranging from 2015 to 2060. As you approach the target retirement date, the investment mix gradually changes with more of your savings automatically directed to investments that help manage risk and volatility in your portfolio. The IFC Target Risk Portfolios are managed to maintain a specific level of risk: conservative, moderate or aggressive. This approach to investing takes into account your tolerance for investment risk, as well as financial principles related to risk versus reward. As your risk tolerance changes, you may want to update your risk profile and a new model may be suggested. Custom Portfolio Models share the risks associated with the types of securities held by each of the underlying funds in which they invest. For a detailed discussion of risk, consult the prospectuses of the underlying funds that make up the model. 2 Questions? Call 800-842-2888 or visit TIAA.org/rcbo continued 1 TIAA as the Program Sponsor is not responsible for developing or selecting your Model. Please see the program disclosure document for complete information.
Strategy 2: If you prefer to build your own portfolio with the core investment lineup Or do you have the desire and skills to select your own investments? These new choices include index-style options and a guaranteed account that may offer you flexibility to create a retirement portfolio that matches your investment preferences and goals. Investment TIAA Stable Value 1 DFA Social Fixed Income DFA Short-Term Government I DFA US Social Core Equity 2 DFA Global Real Estate Securities I DFA International Social Core Equity Institutional DFA Emerging Markets Social Core Equity Ticker Guaranteed Annuity DSFIX DFFGX DFUEX DFGEX DSCLX DFESX You don t have to do it alone. A TIAA financial consultant can help you build your own portfolio using the core investment lineup. To schedule a session, call TIAA at 800-732-8353, weekdays, 5 a.m. to 5 p.m. (PT). 1 TIAA Stable Value 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. All investment options have expenses and other fees that can be found in the prospectuses at TIAA.org/rcbo. Some investment options may also have redemption and other fees. In addition to investment fees, there is an annual TIAA Plan Servicing Fee of 0.15% and an annual non-tiaa Plan Servicing Fee of 0.15% that is paid to Investing for Catholics as the independent advisor for the plan. These fees are deducted in quarterly installments of 0.0375% (deducted pro rata from the investment options in your account). The deductions will be identified as TIAA Plan Servicing Fee and Non-TIAA Plan Servicing Fee on your statement and when you view your account online. Investment products may be subject to market and other risk factors. See the applicable product literature, or visit TIAA.org/rcbo for details. To provide the performance, stability and liquidity attributes of a stable value option, participant transfers from stable value options are subject to an industry standard 90-day Equity Wash rule. This means participants are prohibited from transferring from TIAA Stable Value directly to Competing Funds. Competing Funds are plan investment options that exhibit a pattern of performance consistent with stability and includes the DFA Short-Term Government I Fund. Participants wishing to transfer amounts from TIAA Stable Value to Competing Funds must first transfer to Non-Competing Funds, where the amount originally transferred must remain for 90 days before the participant can then transfer the amount to one or more Competing Funds. Questions? Call 800-842-2888 or visit TIAA.org/rcbo 3
Retirement plan investment advice How to access TIAA s advice Online Get quick, convenient answers using the TIAA Retirement Advisor online tool at TIAA.org/retirementadvisor. By phone or in person You can receive personalized retirement plan investment advice either over the phone or in person. To schedule your advice session, call 800-732-8353, weekdays, 5 a.m. to 5 p.m. (PT). As a participant in the plan, you have access to personalized retirement plan advice on the core investment lineup (Strategy 2) from a TIAA financial consultant. 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 important questions, including: 1. Am I on track to reach my retirement savings goals? TIAA can 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. 4 Questions? Call 800-842-2888 or visit TIAA.org/rcbo
About TIAA and CREF 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, 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. 1918 TIAA Teachers Insurance and Annuity Association of America created 1952 CREF College Retirement Equities Fund created About Investing for Catholics, a division of Index Fund Advisors, Inc. (IFA) Investing for Catholics (IFC) provides faith-consistent investments rooted in financial science. IFC was developed to meet the unique needs of Catholic investors investing responsibly in line with the Catholic faith while maximizing returns for the risk taken. As an independent advisor to the plans, IFC has tailored an investment lineup of carefully selected, lower-cost options for the retirement plans, including one decision portfolios designed as easy-to-use alternatives to choosing your own investments. A division of Index Fund Advisors, Inc. Questions? Call 800-842-2888 or visit TIAA.org/rcbo 5
We re here to help Not sure where to begin? Let us help you take the next step! Starting January 2, 2017, to enroll, go to TIAA.org/rcbo and select Ready to Enroll. New users will need to Register to establish a user ID and password. Then follow the prompts to complete your enrollment. If you have any questions or would like help enrolling, call TIAA at 800-842-2888, weekdays, 5 a.m. to 7 p.m., or Saturday, 6 a.m. to 3 p.m. (PT). To schedule an advice session with TIAA, call 800-732-8353, weekdays, 5 a.m. to 5 p.m. (PT). There is no additional cost to you for this service. A division of Index Fund Advisors, Inc. 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. You should consider the investment objectives, principal strategies, principal risks, portfolio turnover rate, performance data, and fee and expense information of each underlying investment carefully before directing an investment based on the model. For a free copy of the program description and the prospectus or other offering documents for each of the underlying investments (containing this and other information), call TIAA at 877-518-9161. Please read the program description and the prospectuses or other offering documents for the underlying investments carefully before investing. The Model is an asset allocation recommendation developed by your Plan Sponsor in consultation with consultants and other investment advisors designated by the Plan Sponsor whereby assets are allocated to underlying mutual funds and annuities that are permissible investments under the plan. Model-based accounts will be managed on the basis of the plan participant s personal financial situation and investment objectives. Changes in your personal financial situation or investment objective may require a change in the model recommended for your model-based account. Please contact us at 800-842-2888, visit our website or contact your Plan Sponsor if you need to update your financial situation or investment objective. As a participant in the Program, you may wish to request a reasonable restriction on the management of your model-based account. Please contact your Plan Sponsor to discuss your options for requesting a reasonable restriction or a modification to an existing restriction. No registration under the Investment Company Act, the Securities Act or state securities laws The Model is not a mutual fund or other type of security and will not be registered with the Securities and Exchange Commission as an investment company under the Investment Company Act of 1940, as amended, and no units or shares of the Model will be registered under the Securities Act of 1933, as amended, nor will they be registered with any state securities regulator. Accordingly, the Model is not subject to compliance with the requirements of such acts, nor may plan participants investing in underlying investments based on the Model avail themselves of the protections thereunder, except to the extent that one or more underlying investments or interests therein are registered under such acts. No guarantee Investments based on the Model are not deposits of, or obligations of, or guaranteed or endorsed by TIAA, the Investment Advisor, The Plan or their affiliates, and are not insured by the Federal Deposit Insurance Corporation, or any other agency. An investment based on the Model is not guaranteed, and you may experience losses, including losses near, at, or after the target date. There is no guarantee that investments based on the Model will provide adequate income at and through your retirement. Investors should not allocate their retirement savings based on the Model unless they can readily bear the consequences of such loss. The TIAA Custom Portfolio Program Model-Based Service (the Program ) has been implemented by your Plan Sponsor to meet the unique retirement requirements of your plan. The Program is administered by Teachers Insurance and Annuity Association of America ( TIAA ) as plan recordkeeper. Should you have any questions about the Program off ring, please contact your Plan Sponsor directly. TIAA-CREF Individual & Institutional Services, LLC, Teachers Personal Investors Services, Inc., and Nuveen Securities, LLC, Members FINRA and SIPC, distribute securities products. If offered under your plan, TIAA and CREF annuity contracts and certificates are issued by Teachers Insurance and Annuity Association of America (TIAA) and College Retirement Equities Fund (CREF), New York, NY, respectively. Each is solely responsible for its own financial condition and contractual obligations. Transactions in the underlying investments invested in based on the Model on behalf of the plan participants are executed through TIAA-CREF Individual & Institutional Services, LLC, member FINRA. 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. 2016 Teachers Insurance and Annuity Association of America-College Retirement Equities Fund, 730 Third Avenue, New York, NY 10017 C35521 4103_5101 (12/16)