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COUNTY OF ORANGE 1.62% DEFINED CONTRIBUTION PLAN.

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Presentation on theme: "COUNTY OF ORANGE 1.62% DEFINED CONTRIBUTION PLAN."— Presentation transcript:

1 COUNTY OF ORANGE 1.62% DEFINED CONTRIBUTION PLAN

2 2 TIAA-CREF is the 1.62% Defined Contribution Plan Administrator TIAA-CREF offers: Noncommissioned Consultants* Objective Third-Party Investment Advice Local Office in Newport Beach at Telephone Counseling Center at /7 Online Services Financial Education * TIAA-CREF compensates its consultants through a salary-plus-incentive program based on client service excellence and financial results. Consultants will only recommend products that help achieve their clients goals.

3 3 Defined Contribution Plans The County has two 457 Defined Contribution Plans. A 457 Plan is governed by the Internal Revenue Code. This presentation will focus only on the 1.62% Defined Contribution Plan. Employees hired on or after 5/7/2010 are eligible to elect the 1.62% at 65 Retirement Formula. Only employees who elect the 1.62% Retirement Formula are eligible to contribute to the 1.62% Defined Contribution Plan. You can voluntarily set aside a portion of your biweekly income on a pretax basis to the Plan. The Plan can help you save and invest money for retirement.

4 4 Voluntary Contributions Contributions to the 1.62% Defined Contribution Plan are voluntary and are in addition to your (mandatory) OCERS Defined Benefit Pension contributions. You may increase or decrease your employee contribution at any time. The minimum contribution amount is $1.00 biweekly. You can contribute 100% of your includible income up to $16,500 in 2010 (and up to an additional $5,500 if youre age 50 or older). Loans and Hardship Withdrawals are not available under the 1.62% Defined Contribution Plan.

5 5 Employer Matching Contributions For the first one-year period following plan commencement (5/7/ /6/2011), the County will match biweekly employee contributions to the Plan, up to 2% of base salary per pay period. Beginning in the second year (effective 5/7/2011) the County will match up to 50% of employee biweekly contributions to the Plan, up to 2% of base salary per pay period. Employee contributions vest immediately on behalf of the employee. Employer matching contributions vest on behalf of the employee after five (5) years of continuous employment with the County.

6 6 Maximizing Matching Contributions Employee contributions to the 1.62% Defined Contribution Plan and the County Voluntary 457 Plan (should you choose to participate) are subject to the same collective IRS yearly maximums ($16,500 for 2010, and up to an additional $5,500 if youre age 50 or older). Please contact TIAA-CREF to discuss your individual situation or to make an appointment to meet with an Individual Consultant from the Newport Beach Office at

7 7 Managing Your Account Your employee contributions will go into the 1.62% Defined Contribution Plan (457 plan) for you to manage. The employer matching contributions will go into a 401(a) plan for you to manage. Your 1.62% Defined Contribution Plans 457 Plan and your 401(a) accounts will be invested in the age-appropriate TIAA-CREF Lifecycle Fund unless you make an active investment election. To enroll, fill out the 1.62% Defined Contribution Election Form and Salary Remittance Form and return them to the County. Youll be Default Enrolled into the 457 and 401(a) Plans and your contributions will be applied to the age-appropriate TIAA-CREF Lifecycle Fund. Once you are enrolled, you may select and change your investment elections online or by calling a TIAA-CREF consultant.

8 8 Resources & Tools Use asset allocation tools Find educational information on retirement planning and investing Perform paycheck comparisons Review available funds Set up your account for Automatic Rebalancing Schedule an individual meeting with a local TIAA- CREF consultant from the Newport Beach Office at TIAA-CREF Telephone Counseling Center Representatives are available: Mon-Fri 5 am – 7 pm PST Sat. 6 am – 3 pm PST Objective third-party investment advice available Review your account balance Transfer between funds Change your allocations Update your beneficiaries

9 9 Benefits Of Participating Employer matching contributions Easy payroll deduction Contributions and any earnings grow on a tax-deferred basis Wide variety of investment choices Manage your account online 24/7 Noncommissioned TIAA-CREF consultants* are available to assist you Monday-Friday 5 am – 7 pm and Saturday 6 am – 3 pm PST Access your money when you: – Terminate employment from the County** – Retire * TIAA-CREF compensates its consultants through a salary-plus-incentive program based on client service excellence and financial results. Consultants will only recommend products that help achieve their clients goals. ** Withdrawals from a 401(a) plan prior to age 59½ are generally subject to a 10% penalty tax, in addition to ordinary income tax.

10 INVESTMENT DECISIONS

11 11 YOUR NEW INVESTMENT MENU N/ACREF Inflation-Linked Bond Variable Annuity Account Wells Fargo Stable Return - Share Class J Templeton Global Bond (TPINX) PIMCO Total Return Admin (PTRAX) ING Global Real Estate Fund A ( IGLAX) TIAA-CREF Lifecycle Fund 2050 (TFTIX) TIAA-CREF Lifecycle Fund 2045 (TTFIX) TIAA-CREF Lifecycle Fund 2040 (TCOIX) TIAA-CREF Lifecycle Fund 2035 (TCIIX) TIAA-CREF Lifecycle Fund 2030 (TCRIX) TIAA-CREF Lifecycle Fund 2025 (TCYIX) TIAA-CREF Lifecycle Fund 2020 (TCWIX) TIAA-CREF Lifecycle Fund 2015 (TCNIX) TIAA-CREF Lifecycle Fund 2010 (TCTIX) TIAA-CREF Lifecycle Retirement Income Fund (TLIRX) TIAA-CREF S&P 500 Fund (TRSPX) TIAA-CREF Small-Cap Blend Index Fund(TRBIX) TIAA-CREF International Equity Index (TRIEX) Columbia Mid-Cap Index A (NTIAX) AIM Small Cap Growth A (GTSAX) American Funds EuroPacific Growth R3(RERCX) Lazard Emerging Markets Equity Open(LZOEX) RS Value (RSVAX) Eaton Vance Large Cap Value A(EHSTX) GUARANTEED Investing involves risk, including possible loss of principal. TIAA-CREF Lifecycle Funds available through the Institutional Class of shares of TIAA-CREF Institutional Mutual Funds. TIAA-CREF Mutual Funds available through the Retirement Class of shares of TIAA-CREF Institutional Mutual Funds. 11 N/A MONEY MARKETFIXED INCOMEREAL ESTATEMULTI-ASSETEQUITIES LOWER RISKMEDIUM RISK HIGHER RISK

12 12 Lifecycle Funds Use a Fund of Funds representing different asset classes Choose the Fund with the End Date that most closely matches the approximate year you'll begin withdrawals (target retirement date) Funds Are Professionally Managed Allocation Mix Adjusted Automatically over the years as the retirement year approaches* Please note that as with all mutual funds, the principal value of a Lifecycle Fund isnt guaranteed. Also, please note that the target date of a Lifecycle Fund is an approximate date when investors may begin withdrawing from the Fund. * Approximately seven to ten years after a Lifecycle Funds target date, the fund may merge into the Lifecycle Retirement Income Fund or a similar fund. TIAA-CREF Lifecycle Funds share the risks associated with the types of securities held by each of the underlying funds in which they invest. In addition to the fees and expenses associated with the Lifecycle Funds, there is exposure to the fees and expenses associated with the underlying mutual funds as well.

13 13 Building Your Own Portfolio New investment menu features a variety of funds from different companies Make your own selections – Choose from a variety of mutual funds and variable annuities Get guidance with TIAA-CREFs Asset Allocation Evaluator at Get personalized, objective fund-level advice from noncommissioned TIAA-CREF consultants * * TIAA-CREF compensates the consultants through a salary-plus-incentive program based on client service excellence and financial results. Consultants will only recommend products that help achieve their clients goals.

14 14 Investment Advice Personalized Fund-Level Advice – based on your goals – developed through partnership with Ibbotson Associates 1. How much do I need to save now? 2. How should I allocate my portfolio? 3. When can I retire?

15 QUESTIONS?

16 16 Investment products are not FDIC insured, may lose value and are not bank guaranteed. You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call or visit tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing. The tax information contained herein is not intended to be used, and cannot be used, by any taxpayer for the purpose of avoiding tax penalties that may be imposed on the taxpayer. It was written to support the promotion of the products and services addressed herein. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor. TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc., members FINRA, distribute securities products. Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association (TIAA) and College Retirement Equities Fund (CREF), New York, NY. ©2010 Teachers Insurance and Annuity Association–College Retirement Equities Fund (TIAA-CREF), 730 Third Avenue, New York, NY C47741


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