Complete your retirement picture. Suffolk County Public Employees Deferred Compensation Enrollment Kit A guide to your retirement Plan.
Retirement savings tips Why save for retirement? Many people underestimate the amount of income they will need to maintain their standard of living in retirement. With Americans living longer, your retirement could last to age 95 or beyond. Plus, inflation averages over 3% annually each year. The cost of everything is likely to keep rising in the future. How much should you save? T. Rowe Price believes that most people should contribute at least 15% of their pay each year that they work. If that sounds like a lot now, consider starting at a rate that is comfortable for you and increasing your contributions by 1% or 2% each year. How much will you need for retirement? T. Rowe Price believes that most people will need 75% of their preretirement income to maintain their lifestyle in retirement: 50% will most likely be replaced by savings and pension plans, 20% by Social Security, and the remaining 5% from other sources. You can calculate your potential monthly retirement income on the website at rps.troweprice.com. Or you can view your account statement, which provides an update of your retirement income estimate each quarter. Participating in the Plan Contributing to your employer-sponsored retirement plan gives you the support you need to prepare for a more financially secure future. Employee contributions Your Plan allows you to contribute up to 100% of your pay each year on a before-tax basis, subject to IRS limits. That means contributions to the Plan are made before income taxes are taken out of your paycheck. When you withdraw from your account, your contributions and any earnings are subject to taxes. Mandatory payroll deductions will be taken before salary deductions. Rollover contributions Maybe you ve changed jobs over time and left an old retirement plan account behind. You may have more options than you think when it comes to managing these assets, including rolling over in to the Suffolk County Deferred Compensation Plan. For more information, contact T. Rowe Price at 1-888-457-5770. Vesting Vesting refers to the portion of your account that you may take with you when you leave the County. You are always 100% vested in the part of your account balance that comes from your own contributions, including rollovers. 1
About investing The Plan offers a variety of investment options to choose from. Most investments fall into three categories: Stock investments invest primarily in stocks, which are actual shares of company ownership. The value of shares can grow, and the companies may also pay dividends to stockholders. Potential return and risk are highest. Bond investments invest primarily in bonds, which are loans to companies or governments that pay a set amount of interest over a period of time. Bond income may help reduce risk, but provides only moderate growth potential. Money market/stable value investments invest in money market instruments, certificates of deposit, U.S. Treasury bills, and guaranteed investment contracts. These are considered stable investments, with less risk of losing the money you invest. They do, however, have relatively low return potential. USING AGE AS A GUIDE It is important to have an appropriate mix of the different investment categories: stocks, bonds, and money market/stable value. The length of time a retirement investor plans to invest his or her savings can help determine how much money to allocate to each type of investment. As a retirement investor gets closer to retirement, his or her portfolio may move gradually from more aggressive (more stocks) to more conservative (fewer stocks). The T. Rowe Price age-based asset allocation models appear below. Stocks Bonds Money Market/Stable Value 0% 10% 0% 10% 0% 20% 0% 10% 5% 15% 90% 100% 90% 100% 80% 100% 20% 30% 60% 80% 25% 35% 50% 65% 15% 30% 20% 50% 35% 50% Age: 20s 30s 40s 50s 60s 70s and over DIVERSIFIED STOCK ALLOCATION A hypothetical stock allocation may include 55% large-cap (established companies), 15% mid-cap/small-cap (small to medium-sized companies), and 30% international (companies outside the U.S.) stocks. Diversification cannot assure a profit or protect against loss in a declining market. This hypothetical allocation may not align with your view of diversification. 55% Large-Cap Stocks 15% Mid-/Small-Cap Stocks 30% International Stocks These allocations are age-based only and do not take risk tolerance into account. Our asset allocation models are designed to meet the needs of a hypothetical investor with an assumed retirement age of 65 and a withdrawal horizon of 30 years. The model allocations are based on an analysis that seeks to balance long-term return potential with anticipated short-term volatility. The model allocations reflect our view of appropriate levels of trade-off between potential return and short-term volatility for investors of certain age ranges. The longer the time frame for investing, the higher the allocation is to stocks (and the higher the volatility) versus bonds or cash. Limitations: While the models have been designed with reasonable assumptions and methods, each model is hypothetical only and has certain limitations. The models do not take into account individual circumstances or preferences, and the model displayed for your age may not align with your accumulation time frame, withdrawal horizon, or view of the appropriate levels of trade-off between potential return and short-term volatility. Investing consistent with a model allocation does not protect against losses or guarantee future results. Please be sure to take other assets, income, and investments into consideration when reviewing results that do not incorporate that information. Other T. Rowe Price educational tools or advice services use different assumptions and methods and may yield different outcomes. 2
Investing your contributions Understanding that participants have different levels of experience and comfort with investing, the Suffolk County Public Employees Deferred Compensation Plan offers you two ways to invest. 1 AGE-BASED INVESTMENT: If you want a portfolio that automatically adjusts over time, consider investing in a pre-assembled target date investment. This approach provides a diversified portfolio in a single investment that becomes more conservative over time and through retirement. 2 BUILD-YOUR-OWN INVESTMENTS: If you want more control, consider building your own portfolio. You choose from your plan s professionally managed investment options and manage your portfolio and asset allocation over time to suit your risk tolerance, time horizon, and financial goals. AGE-BASED INVESTMENT: T. Rowe Price Retirement Trusts Retirement plans offer a variety of investment choices that can align with an investor s risk tolerance, time horizon, and financial situation. One option for those who want an investment that automatically adjusts over time is a T. Rowe Price Retirement Trust, which can offer a pre-assembled, diversified portfolio. Each Retirement Trust is a collection of trusts offering a mix of different investments in large and small companies, both domestic and foreign, as well as a range of bonds. TRUST CHOICES BY AGE GROUP The chart below can help you understand which Retirement Trust available in your plan that may be appropriate for you. If you were born... The trust designed for your age group is... In 1993 or after Retirement 2060 Trust 1988 1992 Retirement 2055 Trust 1983 1987 Retirement 2050 Trust 1978 1982 Retirement 2045 Trust 1973 1977 Retirement 2040 Trust 1968 1972 Retirement 2035 Trust 1963 1967 Retirement 2030 Trust 1958 1962 Retirement 2025 Trust 1953 1957 Retirement 2020 Trust 1948 1952 Retirement 2015 Trust 1943 1947 Retirement 2010 Trust In 1942 or before Retirement 2005 Trust Depending on your risk tolerance, time horizon, and financial situation, you may consider a Retirement Trust with a different target date. For a diversified portfolio that maintains a static asset allocation, consider the Retirement Balanced Trust. 3 The T. Rowe Price Retirement Trusts (the Trusts ) are not mutual funds. They are common trust funds established by T. Rowe Price Trust Company under Maryland banking law, and their units are exempt from registration under the Securities Act of 1933. Investments in the Trusts are not deposits or obligations of, or guaranteed by, the U.S. government or its agencies or T. Rowe Price Trust Company and are subject to investment risks, including possible loss of principal. The Retirement Balanced Trust maintains a static asset allocation of approximately 40% stocks and 60% bonds, which is a higher concentration of stocks compared with the Retirement 2005 Trust. The principal value of the Retirement Trusts is not guaranteed at any time, including at or after the target date, which is the approximate year an investor plans to retire (assumed to be age 65) and likely stop making new investments in the trust. If an investor plans to retire significantly earlier or later than age 65, the trusts may not be an appropriate investment even if the investor is retiring on or near the target date. The trusts allocations among a broad range of underlying T. Rowe Price stock and bond trusts will (with the exception of the Retirement Balanced Trust) change over time. The trusts (other than the Retirement Balanced Trust) emphasize potential capital appreciation during the early phases of retirement asset accumulation, balance the need for appreciation with the need for income as retirement approaches, and focus on supporting an income stream over a long-term postretirement withdrawal horizon. The trusts are not designed for a lump-sum redemption at the target date and do not guarantee a particular level of income. The trusts maintain a substantial allocation to equities both prior to and after the target date, which can result in greater volatility over shorter time horizons.
BUILD-YOUR-OWN investments offer added control* To help with your retirement investing, the Plan offers a variety of options: EQUITY DOMESTIC LARGE MID SMALL VALUE BLEND GROWTH American Century Equity Income Fund AEUDX Oppenheimer Value Fund OGRIX TRP Equity Income Trust TRP US Value Equity Trust Virtus Ceredex Mid-Cap Value Equity Fund SMVTX TRP Dividend Growth Fund PRDGX Vanguard Institutional Index Fund VINIX AMG Managers Fairpointe Mid Cap Fund ABMIX Dreyfus Mid Cap Index Fund PESPX American Funds Growth Fund of America RGAGX JP Morgan Large Cap Growth Fund JLGMX TRP Blue Chip Growth Trust TRP New America Growth Fund PRWAX TRP Spectrum Growth Fund PRSGX American Century Heritage Fund ATHDX Franklin Small-Mid Cap Growth Fund FMGGX Neuberger Berman Genesis Fund NRGSX TRP US Mid-Cap Growth Equity Trust American Beacon Small Cap Value Fund AVFIX Dreyfus Small Cap Stock Index Fund DISSX TRP New Horizons Trust TRP US Small Cap Value Equity Trust INTERNATIONAL SECTOR/SPECIALTY HYBRID American Funds EuroPacific Growth Fund RERGX American Funds New Perspective Fund RNPGX Dodge & Cox International Stock Fund DODFX Fidelity Advisor Diversified International Fund FDVIX Oppenheimer Developing Markets Fund ODVIX T. Rowe Price Africa & Middle East Fund TRAMX T. Rowe Price Emerging Europe Fund TREMX T. Rowe Price Emerging Markets Stock Fund PRMSX T. Rowe Price European Stock Fund PRESX T. Rowe Price International Growth Equity Trust T. Rowe Price International Small-Cap Equity Trust T. Rowe Price Japan Fund PRJPX T. Rowe Price Latin America Fund PRLAX T. Rowe Price New Asia Fund PRASX T. Rowe Price Overseas Stock Fund TROSX T. Rowe Price Spectrum International Fund PSILX INCOME AllianzGI Technology Fund DRGTX Fidelity Advisor Health Care Fund FHCIX Franklin Natural Resources Fund FNRAX T. Rowe Price Communications & Technology Fund PRMTX T. Rowe Price Financial Services Fund PRISX T. Rowe Price Global Technology Fund PRGTX T. Rowe Price Health Sciences Fund PRHSX T. Rowe Price New Era Fund PRNEX T. Rowe Price Real Estate Fund TRREX T. Rowe Price Science & Technology Fund PRSCX BOND INTERNATIONAL BOND STABLE VALUE American Century Gov t. Bond Fund ABTIX American Century Inflation Adj. Bond Fund AIANX Franklin Strategic Income Fund FGKNX PIMCO Total Return Fund PTTRX T. Rowe Price Bond Trust T. Rowe Price GNMA Fund PRGMX T. Rowe Price High Yield Fund PRHYX T. Rowe Price Short-Term Bond Fund PRWBX T. Rowe Price Spectrum Income Fund RPSIX T. Rowe Price U.S. Treasury Long Term Fund PRULX TRP = T. Rowe. Price T. Rowe Price Emerging Markets Bond Fund PREMX T. Rowe Price International Bond Fund RPIBX American Century Balanced Fund ABINX T. Rowe Price Balanced Fund RPBAX T. Rowe Price Capital Appreciation Trust T. Rowe Price Stable Value Common Trust Fund (Sch F) 4
* Investment options are generally classified as stock or bond investments based on overall allocations and may contain significant holdings in an asset class that is different from its identified category. All investments involve risk, including possible loss of principal. Diversification cannot assure a profit or protect against loss in a declining market. The T. Rowe Price common trust funds (Trusts) are not mutual funds. They are common trust funds established by T. Rowe Price Trust Company under Maryland banking law, and their units are exempt from registration under the Securities Act of 1933. Investments in the Trusts are not deposits or obligations of, or guaranteed by, the U.S. government or its agencies or T. Rowe Price Trust Company and are subject to investment risks, including possible loss of principal. Although the T. Rowe Price Stable Value Common Trust Fund seeks to preserve the value of your investment at $1.00 per unit, it is possible to lose money by investing in the Trust. For more information about the investments offered through your Plan, refer to the performance page or visit the website at rps.troweprice.com to access the fund descriptions and fact sheets. Visit rps.troweprice.com or call 1-888-457-5770 to request a fact sheet, a prospectus, or, if available, a summary prospectus; each includes investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing. Redemption fees Redemption fees are designed to deter short-term trading behavior and protect the funds and their long-term investors. By penalizing short-term trading activity, redemption fees encourage Plan participants to pursue long-term investment strategies. These fees are paid to the mutual fund to help offset any costs created by short-term traders. For more information about the investments in your Plan that have redemption fees, visit the website at rps.troweprice.com. Excessive trading Excessive or short-term trading occurs when a participant places frequent trades into and out of an investment, often holding shares for a very short period of time. This practice can drive up the investment s administrative costs and negatively impact the fund manager s strategy. As a result, many funds responded with additional monitoring and the implementation of short-term trading fees. A potential consequence of excessive trading for you may be the suspension of your trading privileges and possible redemption fees. 5
Take action Account access What We re you ready do next to help depends you feel on your confident specific about situation. taking the first step. As your life changes, talk to us. We can provide information to help you make progress toward your long-term financial goals online or by phone. Online: You will have access to your account anytime, day or night. Here are some examples of things you can do when you log in from your home, office, or while traveling: Manage your account. Review investment and market information. Use calculators and planning tools. Receive notification when your quarterly statement is available on the participant website for viewing, if you have elected to receive statements electronically. Enter your email address to get full use of our online services, including timely announcements about market events. For first-time account access over the Internet, follow the steps below: Go to rps.troweprice.com. Choose Register and follow the prompts to create a user name and password. You will need your date of birth, Social Security number, and ZIP code. The next time you go to rps.troweprice.com, enter your user name and click Log In. Then enter your pass word and click Log In again. By phone: Account information and transactions are also just a phone call away. Just dial 1-888-457-5770 and you will be connected to the Plan Account Line (PAL). You can use the PAL 24 hours a day, any day of the year for many of the same requests you can do online. If you have questions or need direct assistance, T. Rowe Price representatives are available during business days between 7 a.m. and 10 p.m. eastern time.
T. Rowe Price Retirement Plan Services, Inc. P.O. Box 17349 Baltimore, MD 21297-1349 About your retirement plan service provider Suffolk County has chosen T. Rowe Price, a recognized leader in retirement plan services, to provide services to you and your Plan. We currently help nearly 2 million people just like you to plan for retirement. This material is provided for general and educational purposes only and is not intended to provide legal, tax, or investment advice. This material does not provide fiduciary recommendations concerning investments or investment management; it is not individualized to the needs of any specific benefit plan or retirement investor, nor is it directed to any recipient in connection with a specific investment or investment management decision. T. Rowe Price Retirement Plan Services, Inc., its affiliates, and its associates do not provide legal or tax advice. Any tax-related discussion contained in this material, including any attachments/links, is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding any tax penalties or (ii) promoting, marketing, or recommending to any other party any transaction or matter addressed herein. Please consult your independent legal counsel and/or professional tax advisor regarding any legal or tax issues raised in this material. T. Rowe Price Investment Services, Inc., distributor, T. Rowe Price mutual funds. CD7PT943O_250923 SCEN 2/18 201802-422736