Relax Everything you need to know about our move to Prudential Retirement.
WHAT S INSIDE: Important Dates Plan Enhancements Beneficiary Designation Investment Options Meetings Tools and Resources
Welcome to Prudential Retirement! As you may know, your plan sponsor has chosen to transfer recordkeeping of the JPS Health Network and Acclaim Physician Group Retirement Plans to Prudential, with good reason: Whether you re a long-time saver or just getting started, we can help you plan for a life after work that could last two or three decades or more. Indeed, we have nearly 90 years experience in helping people just like you reach retirement confident they ll have the income they ll need for all the days that follow. This guide offers an overview of what you can expect and what you may need to do in the coming weeks. / 3
Important dates The following chart tells you what will happen when and what you may wish to do before your account moves to Prudential Retirement. (To conduct transactions before the move, contact Voya for instructions.) DATE AFFECTED ACCOUNT WHAT S HAPPENING This is the last day to: July 18, 2017 before 3 p.m. CT Current account with Voya Request a distribution Request a loan Make a change to your contribution amount Move your assets among investments July 18, 2017 through approximately August 8, 2017 Current account with Voya Blackout period: You re temporarily unable to make most changes to your account including fund transfers or distributions. July 26, 2017 Current account with Voya Your account transfers to Prudential. On or about August 8, 2017 New account at Prudential You once again have full access to your account and can make transactions online and by phone. / 4
Plan enhancements ROTH CONTRIBUTIONS The 403(b) and 457(b) plans will offer a new way to save for retirement Roth contributions. Instead of having all of your contributions deducted from your paycheck before taxes, you may decide to make Roth contributions on an after-tax basis and have the ability to withdraw qualified money at retirement without paying federal taxes.* A Roth contribution is a new feature that allows you to save today s after-tax dollars for your future. Here are two key benefits of making Roth contributions: There are no income restrictions. You can make Roth contributions to the plan even if you ve been restricted from contributing to a Roth IRA. You may be able to withdraw your Roth contributions and any qualified investment gains federal tax free and penalty free when you reach age 59½ and have had a Roth account for at least five years.* *Qualified distributions are federal income tax free, provided that the Roth account has been open for at least five tax years, which begins January 1 of the first year you make a contribution to a Roth account, and the owner has reached age 59½, has died or has become disabled. Qualified Roth distributions may be subject to state and local taxes. SELF-DIRECTED BROKERAGE If you re the type of person who wants more control and more choice when it comes to investing, you ll be happy to know that the JPS Health Network and Acclaim Physician Group Retirement Plans will now offer a self-directed brokerage option. To learn more about this feature, contact Prudential Retirement after the transition is complete. Self-Directed Brokerage products and services are offered through Prudential Investment Management Services LLC (PIMS), Newark, NJ. PIMS is a Prudential Financial company. Self-Directed Brokerage Accounts are carried and maintained by National Financial Services LLC pursuant to a clearing agreement with PIMS. Loans NEW LOANS The provisions of new loans are changing. New loan initiations will be paid back via coupon or ACH. EXISTING LOANS If you have an existing loan which was initiated prior to July 18, 2017, your balance will transfer to Prudential and your repayments will continue as payroll deduction. In most cases, your loan repayment schedule will remain the same, however, there may be circumstances when your loan may need to be recalculated. You will be notified if this is this case. / 5
Beneficiary designation A beneficiary is the person or persons who would receive the money remaining in your plan account if you die. Naming a beneficiary is an important but often neglected part of sound financial planning. It is a good idea to periodically review who your beneficiaries are and update as needed. That way you will be sure your plan account is distributed according to your wishes. Once your account has been moved to Prudential, you can review and make updates as instructed below. To add or update your beneficiary information online: Log in to your account at prudential.com/online/retirement. Choose Personal Information from the menu bar. Beneficiary information is on the right. Add or update your beneficiary and follow the instructions to confirm. If you would prefer to update your beneficiary over the phone, please call Prudential at 877-285-4119. Representatives are available weekdays, from 7 a.m. to 8 p.m. CT. If you are married and wish to designate someone other than your spouse as your primary beneficiary, you must complete a beneficiary designation form with your spouse s notarized consent. The form is available on the plan website or by calling Prudential. / 6
Investment options Once your account is transferred to Prudential, you ll have access to new investment options and plan features. You can learn more about them at jps-acclaim.retirepru.com. INVESTMENT CATEGORY Fixed Income Stable Value Fixed Income Intermediate Fixed Income Index Fixed Income High Yield Large-Cap Value Large-Cap Index Large-Cap Growth Mid-Cap Blend Mid-Cap Index Mid-Cap Growth Small-Cap Value Small-Cap Index Small-Cap Growth International Blend International Developing Markets Moderate Allocation Balanced *Registered mutual fund FUND NAME Guaranteed Income Fund Prudential Total Return Bond Z (PDBZX)* BlackRock US Total Bond Index Investor A (BMOAX)* Prudential High-Yield Z (PHYZX)* Invesco Diversified Dividend Y (LCEYX)* BlackRock S&P 500 Index Investor A (BSPAX)* T. Rowe Price Blue Chip Growth (TRBCX)* JPMorgan Mid Cap Value Sel (JMVSX)* BlackRock Midcap Index Investor A (BRMAX)* Hartford MidCap R5 (HFMTX)* Prudential QMA Small-Cap Value Z (TASVX)* BlackRock Small Cap Index A (MDSKX)* Voya SmallCap Opportunities I (NSPIX)* Hartford International Opportunities R5 (IHOTX)* Oppenheimer Developing Markets Y (ODVYX)* American Funds American Balanced R4 (RLBEX)* Prudential Day One Income R3 (PDAFX)* Prudential Day One 2020 R3 (PDDFX)* Prudential Day One 2025 R3 (PDEFX)* Prudential Day One 2030 R3 (PDFFX)* Prudential Day One 2035 R3 (PDGFX)* Prudential Day One 2040 R3 (PDHFX)* Prudential Day One 2045 R3 (PDIKX)* Prudential Day One 2050 R3 (PDJFX)* Prudential Day One 2055 R3 (PDKFX)* Prudential Day One 2060 R3 (PDLFX)* / 7
GOALMAKER GoalMaker is an easy-to-use, optional asset allocation program available at no additional cost. It takes the guesswork out of selecting and managing your investments by using two key pieces of information your investor style and your years to retirement to guide you to one of 12 model portfolios. GoalMaker also ensures your asset allocation stays in line with your chosen investment allocation through automatic rebalancing. Your GoalMaker portfolio then automatically adjusts to become more conservative over time. That s important because the closer you are to retirement, the more conservative you may want to be with your investments. Regardless of your investment choices, you should continue to monitor your investments at least annually to ensure they continue to meet your investment objectives. Keep in mind that asset allocation and diversification do not ensure a profit or protect against loss in a declining market. You can lose money by investing in securities. PRUDENTIAL DAY ONE FUNDS Prudential Day One Funds provide a professionally-crafted portfolio based on two key investment criteria: your age and when in retirement you plan to begin tapping into your money. You typically select the fund with the target date that most closely matches when you expect to retire and may begin withdrawing your money. If you re already retired or are about to retire, you might opt for the most conservative of the Day One Funds, the Day One Income Fund. While it s always wise to periodically review your investments to ensure that your strategy is in line with your goals, Day One Funds work to help you along the way by providing two types of automatic rebalancing: Daily, to keep portfolios balanced and on track, regardless of market volatility Annually, to shift fund allocations to a more conservative approach in accordance with the funds glide path as you move closer to retirement, and beyond Meetings Mark your calendar! Representatives from Prudential Retirement will be conducting education sessions, to answer your questions. They ll also provide information about the tools and resources available to you. Be on the lookout for details about upcoming meeting dates, times and locations. / 8
Tools and resources During the transition, jps-acclaim.retirepru.com is your online resource for all the information you need about your account s transfer to Prudential. You may also call Prudential at 877-285-4119 during the transition, until it ends around August 8, 2017. PRUDENTIAL S FINANCIAL WELLNESS PORTAL With interactive, financial education content on prudential.com/guidance, you can learn the fundamentals of saving for retirement, managing day-to-day finances, achieving long-term financial goals and preparing for the unexpected. Then, no matter what stage of retirement planning you are in, you will be empowered to make sound decisions for your future. WHEN CAN YOU TAKE ACTION? The transition to Prudential will be complete on or about August 8, 2017. Make sure you understand all your options, and then do what it takes to build the retirement of your dreams. QUESTIONS? During the transition you may call Prudential at 877-285-4119. Representatives are available weekdays, from 7 a.m. to 8 p.m. CT. / 9
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Investors should consider the fund s investment objectives, risks, charges and expenses before investing. The prospectus and, if available, the summary prospectus, contain complete information about the investment options available through your plan. Please call 877-778-2100 for a free prospectus and, if available, a summary prospectus that contain this and other information about our mutual funds. You should read the prospectus and the summary prospectus, if available, carefully before investing. You can lose money when investing in securities. Shares of the registered mutual funds and self directed brokerage products and services are offered through Prudential Investment Management Services LLC (PIMS), Newark, NJ, a Prudential Financial company. Retirement Counselors are registered representatives of PIMS. For informational or educational purposes only. This material is not intended as advice or recommendation about investing or managing your retirement savings. By sharing it, Prudential Retirement is not acting as your fiduciary as defined by the Department of Labor s fiduciary rule or otherwise. If you need investment advice, please consult with a qualified professional. The Guaranteed Income Fund (GIF) is a group annuity product issued by Prudential Retirement Insurance and Annuity Company (PRIAC), Hartford, CT 06103. Amounts contributed to the contract are deposited in PRIAC s general account. Payment obligations and the fulfillment of any guarantees specified in the group annuity contract are insurance claims supported by the full faith and credit of PRIAC. PRIAC periodically resets the interest rate credited on contract balances, subject to a minimum rate specified in the group annuity contract. Past interest rates are not indicative of future rates. This product is neither a mutual fund nor a bank product. The obligations of PRIAC are not insured by the FDIC or any other federal governmental agency. Contract form # GA-2020-IA-0805 or state variation thereof. Prudential Retirement is compensated in connection with this product when general account investment returns exceed the interest credited on contract balances. Prudential Retirement may earn fee revenue in addition to the foregoing compensation if your plan has agreed to pay contract charges, which are sometimes paid in respect of plan and participant recordkeeping and distribution services. For some plans, Prudential Retirement uses a portion of its aggregate compensation to satisfy the plan s request for allowances and for payments to defray plan expenses. If Prudential Retirement s aggregate compensation from this product and from other plan investment products exceeds the costs of servicing your plan, Prudential Retirement earns a profit; otherwise we incur a loss. Frequent exchanging between plan investment options may harm long-term investors. Your plan or the plan s investment funds may have provisions to deter exchanges that may be abusive. These policies may require us to modify, restrict or suspend purchase or exchange privileges and/or impose redemption fees. The target date is the approximate date when investors plan to start withdrawing their money. The asset allocation of the target-date funds will become more conservative as the target date approaches by lessening your equity exposure and increasing your exposure in fixed income type investments. The principal value of an investment in a target-date fund is not guaranteed at any time, including the target date. A target-date fund should not be selected based solely on age or retirement date, is not a guaranteed investment and the stated asset allocation may be subject to change. As with all investments, there are a number of factors and risks to consider in selecting a target-date fund. In addition to anticipated retirement date, relevant factors for Fund selection may include age, risk tolerance, other investments owned, and planned withdrawals. In addition, participants should carefully consider the investment objectives, risks, charges, and expenses of any Fund before investing. It is possible to lose money in a Fund including near or following retirement and there is no guarantee that the Funds will provide adequate retirement income. Investments in the Funds are not deposits of obligations of any bank and are not insured or guaranteed by any governmental agency or instrumentality. GoalMaker s model allocations are based on generally accepted financial theories that take into account the historic returns of different asset classes. But, of course, past performance of any investment does not guarantee future results. Participants should consider their other assets, income and investments (e.g. equity in a home, Social Security benefits, individual retirement plan investments, etc.) in addition to their interest in the plan, to the extent those items are not taken into account in the model. Participants should also periodically reassess their GoalMaker investments to make sure their model portfolio continues to correspond to their changing attitudes and retirement time horizon. Generally, for your distribution to become qualified for federal income tax purposes you have to wait at least five tax years after making your first Roth contribution before taking a withdrawal and your withdrawals must begin after: you have reached age 59½; you have died; or you have become disabled. If your withdrawal does not meet these qualifications, your accumulated Roth earnings but not your Roth contributions will be taxed and may be subject to a 10% early distribution penalty if you have not reached age 59½.State tax treatment may vary. Prudential Financial and its affiliates do not provide tax or legal advice for which you should consult your qualified professional. Retirement products and services are provided by Prudential Retirement Insurance and Annuity Company (PRIAC), Hartford, CT or its affiliates. PRIAC is a Prudential Financial company. 2017 Prudential Financial, Inc. and its related entities. Prudential, the Prudential logo, the Rock symbol and Bring Your Challenges are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. 0306231-00001-00 JPS001BRRE1 06/2017