2 TIAA-CREF is the 1.62% Defined Contribution Plan Administrator TIAA-CREF offers:Noncommissioned Consultants*Objective Third-Party Investment AdviceLocal Office in Newport Beach atTelephone Counseling Center at24/7 Online ServicesFinancial 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 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.33
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 (and up to an additional $5,500 if you’re age 50 or older).Loans and Hardship Withdrawals are not available under the 1.62% Defined Contribution Plan.44
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.55
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 you’re 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 at66
7 Managing Your AccountYour 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 Plan’s 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. You’ll 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 Resources & Tools www.tiaa-cref.org/oc162dcplan 1 800 842-2252 8 TIAA-CREF Telephone Counseling CenterRepresentatives are available:Mon-Fri 5 am – 7 pm PSTSat. 6 am – 3 pm PSTObjective third-party investment advice availableReview your account balanceTransfer between fundsChange your allocationsUpdate your beneficiariesUse asset allocation toolsFind educational information on retirement planning and investingPerform paycheck comparisonsReview available fundsSet up your account for Automatic RebalancingSchedule an individual meeting with a local TIAA- CREF consultant from the Newport Beach Office at88
9 Benefits Of Participating Employer matching contributionsEasy payroll deductionContributions and any earnings grow on a tax-deferred basisWide variety of investment choicesManage your account online 24/7Noncommissioned TIAA-CREF consultants* are available to assist you Monday-Friday 5 am – 7 pm and Saturday 6 am – 3 pm PSTAccess 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 subjectto a 10% penalty tax, in addition to ordinary income tax.99
11 YOUR NEW INVESTMENT MENU GUARANTEEDMONEY MARKETFIXED INCOMEREAL ESTATEMULTI-ASSETEQUITIESTIAA-CREF Lifecycle Fund (TFTIX)TIAA-CREF Lifecycle Fund (TTFIX)TIAA-CREF Lifecycle Fund (TCOIX)TIAA-CREF Lifecycle Fund (TCIIX)TIAA-CREF Lifecycle Fund (TCRIX)TIAA-CREF Lifecycle Fund (TCYIX)TIAA-CREF Lifecycle Fund (TCWIX)TIAA-CREF Lifecycle Fund (TCNIX)TIAA-CREF Lifecycle Fund (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)N/AN/ACREF Inflation-Linked Bond Variable Annuity AccountWells Fargo Stable Return - Share Class JTempleton Global Bond (TPINX)PIMCO Total Return Admin (PTRAX)ING Global Real Estate Fund A (IGLAX)LOWER RISKMEDIUM RISKHIGHER RISKInvesting 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.111111
12 Lifecycle FundsUse a Fund of Funds representing different asset classesChoose the Fund with the “End Date” that most closely matches the approximate year you'll begin withdrawals (target retirement date)Funds Are Professionally ManagedAllocation 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 isn’t 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 Fund’s 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 andexpenses associated with the underlying mutual funds as well.
13 Building Your Own Portfolio New investment menu features a variety of funds fromdifferent companiesMake your own selectionsChoose from a variety of mutual funds and variable annuitiesGet guidance with TIAA-CREF’s Asset Allocation Evaluator atGet 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 Investment Advice Personalized Fund-Level Advice based on your goals developed through partnership with Ibbotson Associates1. How much do I need to save now?2. How should I allocate my portfolio?3. When can I retire?TIAA-CREF has partnered with Ibbotson Associates, an independent analyst, providing the underlying methodology, which ensures that you will receive completely objective advice. Let me ask you this...raise your hand if you would you like help with answering one of these three questions: 1) how much do I need to save now; 2) how should I allocate my portfolio; and 2) when can I retire.Previously, TIAA-CREF consultants provided portfolio advice on an asset class level only, and we are excited to now be able to offer you specific fund-level advice. You can take advantage of this offer over the phone or by setting up an appointment on-campus or at the lab, or at our TIAA-CREF Pasadena Office at the corner of Colorado and Lake.Finally, as you may know, TIAA-CREF consultants receive no commissions. Phone- and field-based consultants are paid through a salary-plus-incentive program based on client service excellence and financial results. The bottom line is that we are truly committed to putting your interests first.1414