The Scripps Research Institute Employee Retirement Plan

Transcription

1 The Scripps Research Institute Employee Retirement Plan Your guide to the updated TSRI retirement program Understanding Your TSRI Retirement Plans Employee Retirement Plan Highlights Key Dates Your Plan s Investment Options Fees and Expenses Next Steps Please refer to this Transition Guide for the information that will reflect the plan information at the time the transition occurs. In addition to this Transition Guide, you will receive a disclosure of Important Plan and Investment-Related Information, which may not include the most up-to-date information about your plan.

2 Understanding Your TSRI Retirement Plans A new Employee Retirement Plan will be available to replace The Scripps Research Institute Cash Balance Retirement Plan, effective January 1, We understand the important role your retirement plan plays in helping to secure your financial future. TSRI is committed to helping employees save for long-term financial security. The new Employee Retirement Plan will allow TSRI to continue offering a competitive retirement plan with a 5% employer contribution that employees manage by choosing their own investment options for their accounts. This approach supports the strategy for the Institution and for employees to share in the responsibility of saving and preparing for retirement. Now, more than ever, it is important to take the time to review what is happening with the TSRI retirement program and to take the necessary steps to manage your plan accounts. This guide provides a brief review of the upcoming retirement program changes, information about managing your account, news about your investments, key dates, details about upcoming meetings with Fidelity Investments, and other resources to help you make informed decisions. 2

3 Employee Retirement Plan Highlights At TSRI, we believe in offering a strong benefits program to our employees. Together with Fidelity, we will offer a new level of service and commitment to help you prepare for retirement. The new Employee Retirement Plan will feature the following: An expanded investment lineup whereby you can select where contributions will be invested and make changes at any time. The TSRI employer contribution becomes fully vested upon completing three years of eligible service in an eligible position. Prior years of service in The Scripps Research Institute Cash Balance Retirement Plan counts toward the waiting period and vesting in the new plan. Fidelity BrokerageLink, an integrated brokerage service that combines the convenience of your workplace savings account with the additional flexibility of a brokerage account. It gives you expanded investment choices and the opportunity to more actively manage your retirement contributions. Portfolio Review, an online tool that helps you identify your savings goals, analyzes your current investment mix, and suggests an investment mix to help you better align your portfolio with your goals.* Full View, an online service available through the Fidelity NetBenefits Web site that allows you to view and manage your finances, including retirement, bank, brokerage, and credit card accounts, in one place. A new array of account and planning services available online and by phone. * Portfolio Review is an educational tool. 3

4 Key Dates Whether or not you are planning retirement in the near future, we encourage you to utilize resources available to you to update your retirement planning and your overall financial plan. Plan Transition Activity Calendar Review the calendar of events to understand how account activities may be affected during the transition period. KEY DATE PLAN ACTIVITY WHAT IT MEANS TO YOU December 2, 2013, 1 p.m. Pacific time The Fidelity Retirement Service Center and Fidelity NetBenefits Web site open. You can now do the following: Choose your investment for future contributions. December 31, 2013 Your accrued benefit in The Scripps Cash Balance Retirement Plan will be frozen. You will not earn any additional deposit credits in The Scripps Research Institute Cash Balance Retirement Plan after this date. Your Cash Balance account will continue to earn annual interest credits, as provided in the plan document. January 1, 2014, 1 p.m. Pacific time An account will be opened for you on January 1, You should become familiar with your new investment choices and make a decision about where you d like your contributions to be invested. After January 1, go online to activate your Fidelity account, set up your preferences, and put your plan into action. Familiarize yourself with the resources available to you online with Fidelity. January 1, 2014, 1 p.m. Pacific time You will receive an automatic employer contribution to the new Employee Retirement Plan. The employer contribution is equal to 5% of your eligible pay. The contributions will start with the first effective pay date in January After this date, all future contributions will be directed to the new Employee Retirement Plan. On or after January 1, 2014, you can change your investment elections. January 1, 2014, 1 p.m. Pacific time The Fidelity Retirement Service Center and Fidelity NetBenefits Web site open for full account management You can now do the following: Set up your NetBenefits online account, if you haven t already. Choose your account beneficiaries. Access online planning tools. Set up your preferences. Roll over eligible balances from other employer sponsored plans. Please note, January 1, 2014 is a holiday. 4

5 Your Plan s Investment Options Before investing in any investment option, consider the investment objectives, risks, charges, and expenses. Contact Fidelity for a mutual fund prospectus or, if available, a summary prospectus containing this information. Read it carefully. Federal law requires that certain plan- and investment-related information be provided to you because you have an account in the plan or are eligible to participate. This guide contains certain required Plan information, including an explanation of the right to direct investments, any plan restrictions, and a description of the types of fees and expenses associated with a plan account.* Investment Options Overview The investment options in your workplace savings plan give you a choice of mutual funds that cover the major asset classes: stocks, bonds, and short-term investments. These investment options give you the flexibility to build your own strategy to meet your needs. LIFECYCLE INVESTMENT OPTIONS JP MorganSmartRetirement Blend Income Fund Class R6 JP MorganSmartRetirement Blend 2015 Fund Class R6 JP MorganSmartRetirement Blend 2020 Fund Class R6 JP MorganSmartRetirement Blend 2025 Fund Class R6 JP MorganSmartRetirement Blend 2030 Fund Class R6 JP MorganSmartRetirement Blend 2035 Fund Class R6 JP MorganSmartRetirement Blend 2040 Fund Class R6 JP MorganSmartRetirement Blend 2045 Fund Class R6 JP MorganSmartRetirement Blend 2050 Fund Class R6 JP MorganSmartRetirement Blend 2055 Fund Class R6 SHORT-TERM INVESTMENT OPTION Fidelity Money Market Trust Retirement Money Market Portfolio STABLE VALUE INVESTMENT OPTION JIYBX JSBYX JSYRX JBYSX JRBYX JPYRX JOBYX JMYAX JNYAX JTYBX FRTXX Principal Fixed Account BOND INVESTMENT OPTIONS DIVERSIFIED PIMCO Total Return Fund Institutional Class Spartan U.S. Bond Index Fund Fidelity Advantage Class INFLATION PROTECTED Fidelity Inflation-Protected Bond Fund HIGH YIELD JPMorgan High Yield Fund Class R6 INTERNATIONAL/GLOBAL PIMCO Foreign Bond (Unhedged) Fund Institutional Class PTTRX FSITX FINPX JHYUX PFUIX * Section 404(a) of the Employee Retirement Income Security Act of 1974, as amended (ERISA) and Department of Labor (DOL) Regulation Section a-5. 5

6 BALANCED/HYBRID INVESTMENT OPTIONS INTERNATIONAL/GLOBAL BlackRock Global Allocation Fund Institutional Shares PIMCO All Asset Fund Institutional Class DOMESTIC EQUITY INVESTMENT OPTIONS MALOX PAAIX LARGE VALUE Diamond Hill Large Cap Fund Class I DHLRX MID VALUE Goldman Sachs Mid Cap Value Fund Institutional Class GSMCX SMALL VALUE American Century Investments Small Cap Value Fund Investor Class ASVIX LARGE BLEND American Century Investments Equity Growth Fund Institutional Class Spartan Total Market Index Fund Institutional Class AMEIX FSKTX MID BLEND Fidelity Low-Priced Stock Fund Class K FLPKX LARGE GROWTH Fidelity Contrafund Class K Fidelity Growth Company Class K Nuveen Winslow Large-Cap Growth Fund Class I FCNKX FGCKX NVLIX MID GROWTH Prudential Jennison Mid Cap Growth Fund Class Z PEGZX SMALL GROWTH Baron Small Cap Fund Institutional Class INTERNATIONAL/GLOBAL EQUITY INVESTMENT OPTIONS BSFIX DIVERSIFIED American Funds EuroPacific Growth Fund Class R-5 Fidelity International Small Cap Fund Morgan Stanley Institutional Fund, Inc. International Equity Portfolio Class I RERFX FISMX MSIQX EMERGING MARKETS Aberdeen Emerging Markets Fund Institutional Class ABEMX SPECIALTY Morgan Stanley Institutional Fund, Inc. Global Real Estate Portfolio Class I MRLAX 6

7 The Employee Retirement Plan Default Fund TSRI has determined that any future contributions to your account that you have not directed to a specific investment option in the Employee Retirement Plan will be invested in one of the JPMorgan SmartRetirement Funds. Your future contributions may be invested in the fund that has a target retirement date closest to the year you might retire, and assuming a retirement age of 65, at the direction of TSRI. Please use the following guidelines to determine in which JPMorgan SmartRetirement Fund your future contributions, as noted below, may be invested. DATE OF BIRTH FUND NAME TICKER SYMBOL TARGET RETIREMENT DATE Before or on 12/31/1947 JPMorgan SmartRetirement Blend Income R6 JIYBX 12/31/2012 or before 1/1/ /31/1952 JPMorgan SmartRetirement Blend 2015 R6 JSBYX 1/1/ /31/2017 1/1/ /31/1957 JPMorgan SmartRetirement Blend 2020 R6 JSYRX 1/1/ /31/2022 1/1/ /31/1962 JPMorgan SmartRetirement Blend 2025 R6 JBYSX 1/1/ /31/2027 1/1/ /31/1967 JPMorgan SmartRetirement Blend 2030 R6 JRBYX 1/1/ /31/2032 1/1/ /31/1972 JPMorgan SmartRetirement Blend 2035 R6 JPYRX 1/1/ /31/2037 1/1/ /31/1977 JPMorgan SmartRetirement Blend 2040 R6 JOBYX 1/1/ /31/2042 1/1/ /31/1982 JPMorgan SmartRetirement Blend 2045 R6 JMYAX 1/1/ /31/2047 1/1/ /31/1987 JPMorgan SmartRetirement Blend 2050 R6 JNYAX 1/1/ /31/2052 1/1/ /31/1992 JPMorgan SmartRetirement Blend 2055 R6 JTYBX 1/1/ /30/2057 Timeline was selected by TSRI. Fidelity BrokerageLink Also available January 1, 2014, TSRI is implementing Fidelity BrokerageLink, a self-directed brokerage account, for the plan. Fidelity BrokerageLink allows you to choose from investments beyond those options offered by the plan. This feature is intended for those who are comfortable actively managing a portfolio of expanded investment choices. The plan s fiduciaries do not monitor the investments available in Fidelity BrokerageLink. To utilize this feature, you must first open a separate brokerage account within the plan. To open an account, or if you have any questions about Fidelity BrokerageLink, please log on to or call Once you have opened an account, you may access, monitor, or change investments in your BrokerageLink account by contacting Fidelity. When you access your BrokerageLink account, there is additional information regarding available investment choices, which you should read before making any investment decisions. If you are purchasing a mutual fund through BrokerageLink, mutual fund minimums generally still apply. Prior to initiating a trade in your BrokerageLink account, you should review any fees associated with your transaction. Please refer to the Addendum included in this package for brokerage fees. A self-directed brokerage account may entail greater risk and is not appropriate for everyone. Additional fees apply to a Fidelity BrokerageLink account. Please refer to the fact sheet and commission schedule for a complete listing of brokerage fees. This information may be available at or you may request a copy by calling Fidelity toll free at

8 Fees and Expenses Right to Direct Investments To access your plan account with Fidelity, make any changes to your investment options, direct any future contributions, or seek additional information, log on to or call Restrictions There may be certain restrictions, as summarized below, on how investment directions may be made in the plan. The initial exchange into BrokerageLink requires a $2,500 minimum. Exchanges into BrokerageLink require a $1,000 minimum. Keep in mind that restrictions are subject to change. Exercising Voting, Tender, and Similar Rights You have the right to exercise voting, tender, and similar rights related to the annuities and mutual funds you may have in your plan account. You will receive information regarding such rights and how to exercise them at the time of a vote, tender, or other event. Fees and Expenses Based on the information and direction Fidelity had on file at the time this brochure was prepared, certain fees may be deducted from your account: Plan administrative fees and expenses Individual fees and expenses Plan Administrative Fees and Expenses Plan administrative fees may include legal, accounting, trustee, recordkeeping, and other administrative fees and expenses associated with maintaining the plan. In some instances, they may be deducted from individual accounts in the plan, either equally from all accounts or proportionately based on account balance. Based on the information and direction Fidelity had on file at the time this brochure was prepared, plan administrative fees and expenses may be deducted equally from all accounts. Please keep in mind that fees are subject to change. If any plan administrative fees are actually deducted from your account, they will be aggregated on your plan s account statement in the Administrative Fees line item. Please keep in mind that fees are subject to change. 8

9 Next Steps Visit Fidelity NetBenefits at Fidelity s easy-to-use online account site is designed so you can quickly and easily set up, monitor, and manage your workplace savings account. There is no action required on your part; however, you may want to revisit your investing strategy to make sure it is appropriate for your retirement savings goals. STEPS YOU SHOULD CONSIDER, BEGINNING JANUARY 1, 2014 Set up your username and password. Register your address and set your communication delivery preferences. Establish your beneficiaries. Access your plan virtually any time. Take advantage of online account access, tools, and calculators. Simply follow the step-by-step instructions. If you are a current Fidelity customer and already have a Username and Password, you can use them to access your plan account on the NetBenefits Web site. You can do both under the Your Profile tab in NetBenefits to ensure you ll receive important transition updates the way you prefer. Now is a good time to review or update your beneficiary information. If you haven t already done so, be sure to provide your beneficiary designation to Fidelity. Your prior Scripps Cash Balance Retirement Plan beneficiary designation will not transfer to Fidelity. On the NetBenefits Web site, you can enroll, make withdrawals, and adjust your contribution amount. Get details on all your investments, including account statements, current prices, and historical performance. Fidelity also provides many tools and calculators to help you create a successful savings and retirement strategy. 9

10 On-site Workshop Schedule Please plan to attend one of the workshops shown below, where you will get the guidance you need to make the most of your plan s transition to Fidelity. Making the Most of Your Workplace Savings Transition In this workshop, you will learn about the following: New services and plan features to help you reach your goals Key dates and actions you ll need to take New investment options, and how your current investments are affected by this transition Who should attend: This workshop is designed for any participant who is going through the plan s transition to Fidelity and wants to learn more about the plan changes. Please allow approximately one hour for each workshop session, and be sure to bring your Transition Guide to the workshop. Fidelity Investments will be on site for group workshops: LOCATION ROOM DATE TIME California W.M. Keck Foundation Amphitheater BCC-1 November 20, :00 p.m. California MEM Multipurpose Room, Podium Side MEM 1EP December 2, 2013 Noon California HR Training Room December 2, :30 p.m. California Dorris Center Auditorium, East DNC 1E December 16, 2013 Noon California Immunology East Conference Room IMM1E December 16, :00 p.m. LOCATION ROOM DATE TIME Florida Room B159 December 12, 2013 Noon Florida Room B159 December 16, 2013 Noon Florida Room B159 December 18, 2013 Noon Reservations not required for group workshops. 10

11 Notes 11

12 Your Retirement Plan is an easy way to save for your future goals. Follow these three steps to help you get started with the new services and features of the plan, as well as the new investment lineup. 1. Use this guide as a resource. 2. Review the key dates. 3. Take advantage of new services and features. Fidelity can help you every step of the way. Call the Fidelity Retirement Service Center at or visit Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money. Although consultations are one on one, guidance provided by Fidelity is educational in nature, is not individualized, and is not intended to serve as the primary or sole basis for your investment or tax-planning decisions. This document provides only a summary of the main features of The Scripps Employee Retirement Plan, and the plan document will govern in the event of any discrepancies. The plan is intended to be a participant-directed plan as described in Section 404(c) of ERISA, which means that fiduciaries of the plan are ordinarily relieved of liability for any losses that are the direct and necessary result of investment instructions given by a participant or beneficiary. Fidelity Brokerage Services LLC, Member NYSE, SIPC 900 Salem Street, Smithfield, RI FMR LLC. All rights reserved /1013