Your Anne Arundel County Public Schools Supplemental Retirement Program Initial Election Period: October 18 – November 30, 2009 EducateEvaluateElect

Meeting Agenda Whats Changing? Why Change Now? What are Your Choices? How You Can Prepare Retirement Program Events Additional Resources Sources of Retirement Evaluate Your Site One-on-One Meeting Provider Comparison Evaluate Your Investment Options Evaluating a Financial Advisor Your Decision Guide Ready. Set. How to Enroll Whats Retirement Manager? How Will You Elect Your New Investment Providers? Using Retirement Manager What Happens After You Enroll Your Action Plan EDUCATE EVALUATE ELECT

EDUCATE In this section, well discuss: Whats changing and when Who are the new investment providers for the AACPS Supplemental Retirement Program What can you do to educate yourself on your new options

Whats Changing? Investment providers will offer mutual funds in the 403(b) and 457(b) plans. No individual annuity contracts will be offered. Advantages include: –Lower fees and expenses –Flexibility to mix and match fund options to meet your needs –Easily move balances between funds without penalty (although short-term trading fees may apply) –Diverse range of investment options

Why Change Now? IRS has issued new regulations that govern 403(b) plans: –AACPS has increased reporting, oversight, and plan administration duties, and –Must actively select investment options that are appropriate for the plans to offer

Whats Changing? These investment providers will no longer be offered in 2010: –Horace Mann –INA –Merrill Lynch –Northwestern Mutual Financial (John Hancock) –Prudential Retirement/Securities –Symetra (Safeco)

What Are Your Choices? Effective January 1, 2010 Choose from: –Lincoln Financial –MetLife –VALIC –And a new provider, ING Choose to invest with one or more investment providers

Whats Changing? Investment Options Money Market Short Term Bond Core Bond Balanced Extended Market Index International Lifecycle Large Cap Value Large Cap Index Large Cap Growth Mid Cap Value Mid Cap Growth Small Cap Value Small Cap Growth A diverse range of investment options will be available to you. Visit the AACPS intranet for a list of funds in each asset class.

How You Can Prepare Look at your recent SRP statement to review your current investment options Brush up on investment fundamentals –Time horizon, diversification, compound interest Read all communication materials you receive Meet with one or more investment provider representatives

Retirement Program Events EventDate Employee MeetingsOctober 14 – 24, 2009 Decision GuideOctober 18, 2009 National Save for Retirement WeekOctober 18 – 24, 2009 Pre-Retirement SeminarNovember 7, 2009 Investment Provider Office HoursOctober 26 – November 12 Election Period/Web Site –Make your election October 18 – November 30, 2009 Confirmation Statements December 2010 Investment Elections Effective January 1, 2010 First payroll deduction January 13, 2010

How You Can Prepare What youll find on the AACPS intranet (aacps.org>HR/Employment>Benefits): –FAQs and articles –Enrollment instructions –Links to online resources –Fund lineup by asset class

Additional Resources These websites can also help: Use tools and online resources to help you plan for retirement as part of National Save for Retirement week – – Access online tools, resources and FAQs to get all of your 403(b)/457 questions and concerns answered – Tips on how to save for retirement including the ballpark estimate feature that can help you figure out how much you will need for retirement - Learn about investing and how to build your financial knowledge

EVALUATE In this section, well discuss: What should you consider as you Evaluate your choices? What tools will be available?

Sources of Retirement Income Social Security + Medicare State of Maryland YouGovernment- Provided Maryland State Retirement System Personal Savings + Supplemental Retirement Program Contributions + Previous Employer Benefits Target 75% – 90% of pre-retirement income* *The amount of pre-retirement income needed will vary for each individual and could be outside this range.

Evaluate Your Situation Career goals –How long do you plan to work at AACPS? –What is your current and estimated future compensation? Retirement goals –At what age do you plan to retire? –Will you work part-time? Family needs –Are you single or married? –Do you have beneficiaries? Investment experience –Are you comfortable managing your retirement assets? –Do you believe there is risk of inflation?

One-on-One Meetings Meeting with a representative from one or more of the AACPS investment providers can help you evaluate your options What youll need: –Current statements for your investments –Recent Social Security benefit statement –W-2s –Recent MSRA statement (if a participant in the MRSA program) and/or other defined benefit retirement plan statement (if you worked with another employer)

Evaluate Your Investment Options Fund performance Fund volatility Fund managers history Fees and share classes Diversification among funds Your own personal risk tolerance

Your Decision Guide Coming to home address in mid October: Detailed comparison of investment providers Easy to read and understand Highlights key decision factors to help you make your investment fund choices Provides contact information for all approved investment providers

AACPS Retirement Tools EducateEvaluateElect Decision Guide Employee Meetings National Save for Retirement Week Ongoing Print and Web-based Communications Supplemental Retirement Program Statement Social Security Statement Maryland State Retirement Statement Personal Financial Advisor Investment Provider Web Sites Retirement Manager Individual Investment Provider Web Sites

ELECT In this section, well discuss: How will I make my election in Retirement Manager?

Ready. Set. How to Enroll Enroll online or in-person during your one-on-one meeting with an investment provider representative Make your elections during the initial Election Period, October 18 – November 30, 2009

What is Retirement Manager? Its where you start Your online Supplemental Retirement Program election web site Access from the internet or intranet Links to each of the four investment providers under our program Offers online tools – including calculators, worksheets, reports, and more!

How Will You Elect Your New Investment Providers? Go to Retirement Manager web site at Make your deferral election –Decide how much to contribute per pay period –Elect your investment provider or providers If more than one provider, indicate the % to each –Submit

Using Retirement Manager Go to home page:

Using Retirement Manager You will click the Im a New User link at the top and you will be directed to select your school system:

Using Retirement Manager After selecting Anne Arundel County Public Schools, you will enter your data to login:

After logging in, you will see the Anne Arundel County Public Schools Retirement Manager home page: Using Retirement Manager Click here to enroll or make a change.

How Will You Elect Your New Investment Providers? To select investments with one investment provider: –Click on the link to the investment provider from the Retirement Manager –Once on the investment provider site, enter your investment allocations in each of your elected funds totaling 100% of your contribution amount –Select a beneficiary and include your beneficiary information To select investments with multiple providers: –Repeat above steps for each provider elected –Establish your account with the provider at each investment provider site, then elect investment allocations, then a beneficiary (or beneficiaries)

What Happens After You Enroll? You will receive a confirmation statement on the website –You will also receive a confirmation statement from each of the investment providers you select You may change your elections up until midnight on November 30, 2009 Your 2009 deferrals will be invested in your current contracts through December 31, 2009 Your new deferral amount and investment elections will be effective January 1, 2010 The first payroll deduction will take effect on January 13, 2010

If You Dont Select Investments Your future deferrals will be defaulted into a lifecycle fund To change your default election in the future, visit the investment provider web site Your changes will be effective as soon as administratively possible after the first pay of the year

Your Action Plan Take advantage of your resources –Review your current SRP statement –Read all materials you receive and go online to learn more –Review your overall retirement strategy with a financial advisor Ask each of the investment providers whats available –Make your election! Your Supplemental Retirement Program investment fund elections must be registered by Monday, November 30 to be effective for the first payroll of 2010.

Breakout Sessions Introductions –INGRoom –LincolnRoom –MetLifeRoom –VALICRoom

EducateEvaluateElect Your AACPS Supplemental Retirement Program. Its up to you.