AFSCME-Represented Employees Deferred Comp Benefit The City of Eugene, the AFSCME Union and YOU – partners in your future! Use Page Up/Down, Return Key, or Arrow Keys to navigate. Press Esc to end the presentation.

What’s Deferred Comp? …and why should I care??

 Voluntary Supplemental 457(b)Retirement Program  All benefitted employees are eligible to participate (Regular, Limited Duration, RAE, IATSE)  Easy contribution through Payroll Deduction  You can start, stop or change contributions at any time, with changes effective the 1st of following month  Variety of investment options available Deferred Comp Basics

What’s a Deferred Comp Benefit? Short answer:  City-paid money added to your Deferred Comp Account! Longer answer:  AFSCME and COE agreed to add DCB effective July 1, 2014  Encourage saving to ensure adequate income in retirement  You put in some; the City puts in some

…and why should I care?? Short answer:

How Does the DCB Work?

 You contribute at least 1% of your gross base salary (minimum $12.50) per pay period to either a Roth or Pre-tax Deferred Comp Account  The City will contribute 1% of your gross base salary to your Pre-Tax Deferred Comp Account effective 7/1/14 (2% of salary effective 7/1/15)  Per IRS Rules, the City cannot contribute to a Roth account  Both contributions count toward your annual Deferred Comp Maximum limit How Does the DCB Work?

Can I Afford to Save 1%?

You Can’t Afford NOT To! Base Salary = $1,500 per pay period As of 7/1/14Per Pay PeriodPer Year 1% Employee Contribution$15 1% City-paid Contribution$15 Total Deferred Comp Contribution$30 $390 $780 As of 7/1/15Per Pay PeriodPer Year 1% Employee Contribution$15 2% City-paid Contribution$30 Total Deferred Comp Contribution$45 $390 $780 $1,170

The Beauty of Compound Interest Assumed 6% interest compounded monthly Based on 2014 Contributions ($780 per year) After 10 years$10,705 After 20 years$30,183 After 30 years$65,620 Based on 2015 Contributions ($1,170 per year) $16,058 $45,274 $98,430

For the cost of a cup of coffee… …you could have a more comfortable retirement!

Investment Choices? Portfolio Mix? HELP!

Target Date Retirement Funds You lead a busy life  No time or inclination to focus on your retirement plan?  Vanguard Target Date Retirement Funds  Simple way to invest throughout your career and into retirement  A single Target Retirement Fund can serve as a complete, diversified retirement portfolio

 Each Target Retirement Fund invests in several Vanguard funds, primarily low-cost index funds, to create a broadly diversified mix of stocks and bonds.  The year in a Target Retirement Fund’s name is its target date, the approximate year in which you expect to retire  Subject to the risks of its underlying funds. Returns are not guaranteed, and investing in one does not ensure that you will have enough income in retirement. How Target Retirement Funds Work

*Approximate allocation targets for each fund as of May As time passes, allocations for the date-specific funds will gradually shift their emphasis toward a more conservative allocation (from stocks to bonds) over time based on an assumed retirement age of 65.

What Do I Need to Do?

 Enroll in Deferred Compensation  Contribute at least 1% of salary (min. $12.50) each pay period  Possibly adjust contribution amount if currently maxing out your contributions

 Enroll in Deferred Comp Contact Voya, the City’s Deferred Comp Carrier, at , or Request an EZ Enrollment Packet from Benefits Staff or  Increase Contribution Complete new DC Participation Agreement and send directly to PayrollDC Participation Agreement

Want More Information?  Employee Benefits Internet Website  Deferred Compensation Enrollment Forms  Roth Option FAQ  Calendar with Dates & Times of Info Sessions and Voya Consultations  Info on the City’s DC Plans  Risk/Return Charts  And Lots More!  Employee Benefits Staff  or