Transcript Document

COUNTY OF ORANGE
1.62% DEFINED
CONTRIBUTION PLAN
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 1 877 209-3140
•
Telephone Counseling Center at 1 800 842-2252
•
24/7 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.
2
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.
3
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 you’re age 50 or older).
•
Loans and Hardship Withdrawals are not available under the 1.62%
Defined Contribution Plan.
4
Employer Matching Contributions
•
For the first one-year period following plan commencement (5/7/20105/6/2011), 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.
5
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 at 1 877 209-3140.
6
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 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.
7
Resources & Tools
www.tiaa-cref.org/oc162dcplan
•
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 TIAACREF consultant from the Newport Beach Office
at 1 877 209-3140
1 800 842-2252
• 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
8
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.
9
INVESTMENT
DECISIONS
YOUR NEW INVESTMENT MENU
GUARANTEED
MONEY MARKET
FIXED INCOME
REAL ESTATE
N/A
N/A
CREF Inflation-Linked
Bond Variable Annuity
Account
ING Global Real
Estate Fund A (IGLAX)
Wells Fargo Stable
Return - Share Class J
Templeton Global Bond
(TPINX)
MULTI-ASSET
EQUITIES
TIAA-CREF Lifecycle Fund
2050
(TFTIX)
TIAA-CREF S&P 500 Fund
(TRSPX)
TIAA-CREF Lifecycle Fund
2045
(TTFIX)
TIAA-CREF Small-Cap Blend
Index Fund
(TRBIX)
TIAA-CREF Lifecycle Fund
2040
(TCOIX)
TIAA-CREF International
Equity Index
(TRIEX)
TIAA-CREF Lifecycle Fund
2035
(TCIIX)
PIMCO Total Return
Admin
(PTRAX)
TIAA-CREF Lifecycle Fund
2030
(TCRIX)
TIAA-CREF Lifecycle Fund
2025
(TCYIX)
TIAA-CREF Lifecycle Fund
2020
(TCWIX)
TIAA-CREF Lifecycle Fund
2015
(TCNIX)
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)
TIAA-CREF Lifecycle Fund
2010
(TCTIX)
TIAA-CREF Lifecycle
Retirement Income Fund
(TLIRX)
LOWER RISK
MEDIUM RISK
HIGHER RISK
Investing involves risk, including possible loss of principal.
11
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
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 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 and
expenses associated with the underlying mutual funds as well.
12
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-CREF’s Asset Allocation Evaluator
at www.tiaa-cref.org/calcs

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.
13
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?
14
QUESTIONS?
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 877 518-9161 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 10017
C47741
16