Northwestern University 403(b) Retirement Plan and Northwestern University Voluntary Savings Plan

Transcription

1 Northwestern University 403(b) Retirement Plan and Northwestern University Voluntary Savings Plan IMPORTANT PLAN AND INVESTMENT-RELATED INFORMATION FOR PLAN ACCOUNTS, INCLUDING THE PLAN S INVESTMENT OPTIONS, PERFORMANCE HISTORY, FEES AND EXPENSES

2 August 2012 Northwestern University maintains the Northwestern University 403(b) Retirement Plan and the Northwestern University Voluntary Savings Plan (collectively, the Plan ). Please note that all the information set forth in this brochure applies to both the Northwestern University 403(b) Retirement Plan and the Northwestern University Voluntary Savings Plan, and you may be a participant of one or both plans. 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. The information consolidated in this brochure is intended to help you better understand these Plan features, so that you are aware of your rights and responsibilities related to directing the investment of assets held in or contributed to your Plan account. Whether you have an account in the Plan already or are eligible to participate in the Plan, this information can help you make informed investment decisions regarding your participation in the Plan and your Plan account. Information about the following investment providers for the Plan has been consolidated in this brochure: The Plan administrator has directed ( Fidelity ), one of the Plan s providers, to collect information from the Plan s investment providers listed above, consolidate it, and provide you with the information in this brochure. Inside, you will find: An overview of factors to consider when making investment decisions To obtain more up-to-date investment performance or Plan information, please go to the website or call the telephone number shown for each provider on page 2, or go to mv.participantdisclosure.com (Password: 56005). Certain 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 What s Inside SECTION 1: Understanding the Basics... 1 Learn more about factors to consider when making investment decisions SECTION 2: Key Plan Information for You to Review... 2 Understand your rights to direct investments in the Plan Learn about restrictions imposed by the Plan Review the types of plan administrative and individual fees and expenses that may be deducted from your account SECTION 3: Evaluating the Plan s Investment Options... 6 Review information about the Plan s investment options, including historical or stated rates of return, fees and expenses, and restrictions across the available investment options Various details about the Plan s investment options, which may include historical rates of return, benchmark information, and other fees and restrictions that may be imposed Please review these materials carefully. Although no action is required at this time, please keep this information in mind when managing or monitoring any account you may have in the Plan. If you already have an account in the Northwestern University 403(b) Retirement Plan or the Northwestern University Voluntary Savings Plan and would like to initiate any future changes, log on to the provider websites outlined on page 2. Sincerely, Pamela S. Beemer Associate Vice President The Office of Human Resources at Northwestern University *Section 404(a) of the Employee Retirement Income Security Act of 1974, as amended (ERISA), and Department of Labor (DOL) Regulation Section a-5.

3 Understanding the Basics SECTION 1: Understanding the Basics As you review the investment options in the Plan, which are outlined in Section 3 of this brochure, keep in mind there are several factors that may influence how you choose to invest among them. When choosing the mix of investments that fits your needs, it s important to consider: your time horizon. How many years do you have until you expect to retire? your risk tolerance. Do you prefer conservative investments, or are you willing to assume more risk in exchange for the potential to earn a greater return? the role your investments in the Plan will play in your overall investment strategy. Is your account in the Plan your primary way of saving for retirement, or do you have other savings vehicles (e.g., savings accounts, IRAs, etc.)? the fees you pay. What is the relationship between the fees you pay and the services and potential investment returns you may receive? Your answers to these questions will assist you as you consider the Plan s investment options. Here are a few other investment-related concepts to keep in mind: Investment Type There are three basic investment types: stocks (equities), bonds (fixed income), and short-term investments. Your asset allocation is based on the mix of investments among stocks, bonds and short-term investments that you choose. SECTION 2: Key Plan Information for You to Review Northwestern University has selected the following providers from whom you may choose to establish and maintain your account in the Plan and to direct your investments: Provider Website Phone Number Address P.O. Box # Cincinnati, OH P.O. Box 1259 Charlotte, NC To request additional Plan information, or a paper copy of certain information available online, free of charge, call or write the applicable provider(s) using the contact information outlined in the above chart. Right to Direct Investments You have the right to direct your account balance, and any future contributions, among the Plan s investment options, subject to any restrictions summarized in this document. Your rights under the Plan, and any restrictions, are subject to the terms of the Plan. Key Plan Information for You to Review Investment Objectives Rate of Return Management and Investment Fees Transaction Fees and Trading Different types of investments will have different goals and objectives that can influence the investment s potential for return and risk. You may consider each investment s objective to help you manage how your assets are allocated across the different investment options. Historical performance of an investment option at a given point in time. Different investment options will have different management styles and corresponding investment fees. As with other factors, the amount of investment fees will affect the investment return. Some investment options charge transaction fees or have restrictions on exchanges or withdrawals. It is important to be aware of these fees and/or restrictions when selecting your investments or effecting transactions. Investment Options The Plan offers a choice of investment options that allow you to create a diversified portfolio to help you meet your individual needs. The Plan s investment options, along with certain information about each of them, are listed in Section 3 of this brochure. Additional information regarding the investments, restrictions, fees and expenses for each of the providers included in this brochure are outlined on the following pages. 1 2

4 Key Plan Information for You to Review There may be certain restrictions, as summarized below, on how investment directions may be made in the Plan maintained by Fidelity. Investment elections for MetLife Fixed - Old Account are not allowed. Exchanges into MetLife Policy Credit Account are not allowed. Investment elections for MetLife Policy Credit Account are not allowed. Any frequent trading restrictions imposed by the Plan and/or by the Plan s investment options are listed in Section 3 of this brochure. 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 following investments you may have in your Plan account that is maintained by Fidelity: Mutual Funds If you have an account in the Plan, it may be subject to the following types of fees and expenses: Asset-based fees Plan administrative fees and expenses Individual fees and expenses Plan Administrative Plan administrative fees may include auditing, 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 that is maintained by Fidelity. Based on the information and direction Fidelity had on file at the time this brochure was prepared, no plan administrative fees were to be deducted from Plan accounts maintained by Fidelity. Please keep in mind that fees are subject to change. If any plan administrative fees are actually deducted from your account, they will be reflected on your Fidelity account statement. Individual Individual fees and expenses include those associated with a service or transaction that an individual may select. In some instances, they may be deducted from the accounts of those individuals who utilize the service or engage in the transaction. If you have an account maintained by Fidelity in the Plan and you select or execute the following service(s) or transaction(s), the fee(s) outlined below may be deducted from your account maintained by Fidelity based on the information and direction Fidelity had on file at the time this brochure was prepared. As you review this information, please keep in mind that fees are subject to change and that certain individual fees may not be deducted in some circumstances. Type of Individual Fee Loan Maintenance Fee Loan Setup Fee Overnight Mailing Fee Amount $50.00 per loan per year $25.00 per loan $25.00 per transaction Key Plan Information for You to Review Asset-Based Fees Participant Hired Advisory (Adv) Fee Varies based on advisor Asset-based fees reflect an investment option s total annual operating expenses and include management and other fees. They are often the largest component of retirement plan costs and are paid by all shareholders of the investment option. Typically, asset-based fees are reflected as a percentage of assets invested in the option and often are referred to as an expense ratio. You may multiply the expense ratio by your balance in the investment option to estimate the annual expenses associated with your holdings. Refer to Section 3 of this brochure for information about the Plan s investment options, including their expense ratios (where applicable). Also please note that you may incur short-term redemption fees, commissions, and similar expenses in connection with transactions associated with your Plan s investment options. Please see Section 3 for details regarding the specific fees that may apply to the investment options available under the Plan. If any individual fees are actually deducted from your account, they will be reflected on your Fidelity account statement. Asset-based fees are deducted from an investment option s assets, thereby reducing its investment return. Fee levels can vary widely among investment options, depending in part on the type of investment option, its management (including whether it is active or passive), and the risks and complexities of the option s strategy. There is not necessarily a correlation between fees and investment performance, and fees are just one component to consider when determining which investment options are right for you. 3 4

5 Key Plan Information for You to Review Changes to how future contributions are directed take place on the payroll period following receipt. Changes to existing investments usually take place at the close of the business day if a change is requested prior to 4:00 p.m. ET. Any frequent trading restrictions imposed by the Plan and/or by the Plan s investment options are listed in Section 3 of this brochure. Keep in mind that restrictions are subject to change. Exercising Voting, Tender and Similar Rights Certain investments that you may hold may give you the opportunity to vote on proposals or exchange your investments. If and when such opportunities arise, you will receive a notice with the instructions on how to take advantage of what is being offered. Plan Administrative Based on the information and direction on file at the time this brochure was prepared, no plan administrative fees were to be deducted from the Plan accounts that are maintained by. Please keep in mind that fees are subject to change. If any plan administrative fees are actually deducted from your account, they will be reflected on your account statement. Individual If you have an account maintained by in the Plan and you select or execute the following service(s) or transaction(s), the fee(s) outlined below may be deducted from your account maintained by based on the information and direction on file at the time this brochure was prepared. As you review this information, please keep in mind that fees are subject to change and that certain individual fees may not be deducted in some circumstances. SECTION 3: This section provides information about the investment options in the Plan, including performance, fees and expenses, and any investment restrictions. This data was compiled as of December 31, 2011, unless otherwise specified. On the following pages, the investment options will be separated into 4 different tables depending on their investment type. The different tables and a general description of the information shown in each table includes: Variable Return Investments Provides details on most equity, bond, money market, and other types of investment options with a variable rate of return. Information shown includes: Investment name and category Historical investment return rates Historical investment return rates for a similar benchmark fund Fees or operational expenses as a % of investment, and as also a dollar amount (based upon an investment of ) Other fees and restrictions that may be applicable to the investment option Information on where to receive additional information regarding the investment option Fixed Return Investments Provides details on most investment products with a fixed rate of return: Investment name Current fixed rate of return, duration for this return, and other details describing how the rate of return may be determined if it can be adjusted prospectively Fees associated with the investment option Description of any restrictions that may be applicable to the purchase, transfer or withdrawal of the investment Information on where to receive additional information regarding the investment option If any individual fees are actually deducted from your account, they will be reflected on your account statement. Type of Individual Fee Amount Variable Annuities Provides details on annuity contracts with variable rates of return. Information shown includes: Investment name and category Fixed Annuities Provides details on any annuity contracts with fixed rates of return. Information shown includes: Investment name Advisor Fee Retirement Plan Loan Purchase, Withdrawal, and Redemption fees for certain investments Please refer to your advisor s fee schedule. The cost to you based on the difference between what you earn on collateral and what you pay in interest. Varies, see prospectus. Historical investment return rates Historical investment return rates for a similar benchmark fund Fees or operational expenses as a % of investment, and as also a dollar amount (based upon an investment of ) Other fees and restrictions that may be applicable to the investment options Objectives and goals of the investment, including the method and timing of payment Pricing details, including how current prices are determined or fees associated with the investment option Information on where to receive additional information regarding the investment option Objectives and goals of the investment, including the method and timing of payment Information on where to receive additional information regarding the investment option Additional information about the Plan s investment options, including an extended glossary of investment terms to help you better understand the Plan s investment options, is available online at mv.participantdisclosure.com (Password: 56005). To request additional investment-related information, or a paper copy of certain information available online, free of charge, contact a Fidelity representative at, PO Box # , Cincinnati, OH or call FIDELITY. As you review this information, you may want to think about whether an investment in a particular option, along with your other investments, will help you achieve your financial goals. Keep in mind that the cumulative effect of fees and expenses can substantially reduce the growth of your retirement savings but is only one of many factors to consider when you decide to invest in an option. Visit the Department of Labor s website at for an example of the long-term effect of fees and expenses. 5 6

6 Variable Return Investments The chart below lists the Plan s investment options that do not have a fixed or stated rate of return, along with the benchmark against which each investment option s performance is generally measured. Keep in mind that you cannot invest in the benchmark indices, which are set forth in italics on the chart underneath the name of each investment option. Understanding Investment Performance: As you review the following information, please remember that the performance data stated represents past performance, which does not guarantee future results. Investment return and principal value of an investment will fluctuate; therefore, you may have a gain or loss when money is received or withdrawn. Current performance may be higher or lower than the performance stated. To learn more or to obtain the most recent month-end performance, visit mv.participantdisclosure.com (Password: 56005). ASSET CLASS: LIFE CYCLE FUNDS Fidelity Freedom K 2000 Fund Fidelity Freedom K 2005 Fund Fidelity Freedom K 2010 Fund Lifecycle 2010 Fund Fidelity Freedom K 2015 Fund Lifecycle 2015 Fund Fidelity Freedom K 2020 Fund Lifecycle 2020 Fund Fidelity Freedom K 2025 Fund Lifecycle 2025 Fund Fidelity Freedom K 2030 Fund Lifecycle 2030 Fund 2.07% 0.36% -0.19% 1.69% -0.34% 0.74% -1.24% -0.29% -2.50% -1.29% -3.09% -2.32% 2.68% 6.50% 2.10% 1.31% 0.62% -0.14% 8.22% 7.24% 10.66% 7.24% 11.25% 7.24% 4.50% 5.49% 11.53% 16.89% 4.37% 4.34% 12.63% 16.89% 4.04% 4.34% 12.84% 16.89% 3.74% 4.34% 13.20% 16.89% 3.36% 4.34% As of 01/17/2007 1/17/ /17/ /17/ /17/ % $ % $ % $ % $5.40 ** 0.52% $ % $5.60 ** 0.56% $ % $5.70 ** 0.59% $ % $5.80 ** 0.61% $ % $5.90 ** Lifecycle 2045 Fund Fidelity Freedom K 2050 Fund Lifecycle 2050 Fund Fidelity Freedom K 2055 Fund Lifecycle 2055 Fund Fidelity Freedom K Income Fund Lifecycle Retirement Income Fund ASSET CLASS: ASSET ALLOCATION Fidelity Asset Manager 20% Fidelity Asset Manager 30% Fidelity Asset Manager 40% Fidelity Asset Manager 50% Fidelity Asset Manager 60% Fidelity Asset Manager 70% Fidelity Asset Manager 85% Managed Allocation Fund Institional -3.63% -5.50% -3.56% 2.12% 2.78% 2.63% 1.69% 0.49% -0.65% -2.16% -3.75% -6.10% 0.31% 3.74% 6.50% 2.54% 1.07% 0.12% 1.59% ASSET CLASS: MONEY MARKET (OR SHORT TERM) -3.24% -1.38% 13.22% 16.89% -3.28% -1.38% % -7.78% 7.96% 7.24% 2.26% 6.32% 5.19% 5.78% 2.36% 6.79% 1.54% 6.79% 3.87% 0.04% % 2.68% 2.70% 1.64% As of 11/30/ /30/ /01/ /29/ /30/ /01/ /09/ /09/ /28/ /09/ /30/ /24/ /31/ % $6.50 ** 0.65% $ % $7.00 ** 0.67% $ % $12.40 ** 0.41% $ % $6.10 ** 0.56% $ % $ % $ % $ % $ % $ % $ % $4.80 ** Fidelity Freedom K 2035 Fund Lifecycle 2035 Fund -4.53% -3.37% -0.47% 13.03% 16.89% 3.32% 4.34% 01/17/ % $ % $6.00 ** Fidelity Cash Reserves 7-Day Yield % as of 12/31/2011: 0.03 CG 3-Month Treasury Bill 0.01% 0.08% 1.71% 1.36% 1.97% 1.85% 05/10/ % $3.70 Fidelity Freedom K 2040 Fund Lifecycle 2040 Fund Fidelity Freedom K 2045 Fund -4.64% -3.58% -4.95% -0.35% 13.22% 16.89% 3.60% 4.34% 13.25% 16.89% 01/17/ % $ % $6.00 ** 0.64% $6.40 Fidelity Government Money Market Fund 7-Day Yield % as of 12/31/2011: Day Restated Yield as of 12/31/2011: CG 3-Month Treasury Bill 0.01% 0.08% 1.49% 1.36% 1.84% 1.85% 02/05/ % $

7 Fidelity Money Market Fund 7-Day Yield % as of 12/31/2011: Day Restated Yield as of 12/31/2011: 0.01 CG 3-Month Treasury Bill Fidelity Money Market Trust Retirement Government Money Market Portfolio 7-Day Yield % as of 12/31/2011: Day Restated Yield as of 12/31/2011: CG 3-Month Treasury Bill Fidelity Money Market Trust Retirement Money Market Portfolio 7-Day Yield % as of 12/31/2011: Day Restated Yield as of 12/31/2011: CG 3-Month Treasury Bill Fidelity U.S. Government Reserves 7-Day Yield % as of 12/31/2011: Day Restated Yield as of 12/31/2011: CG 3-Month Treasury Bill Fidelity U.S. Treasury Money Market Fund 7-Day Yield % as of 12/31/2011: Day Restated Yield as of 12/31/2011: CG 3-Month Treasury Bill 0.01% 0.08% 0.01% 0.08% 0.01% 0.08% 0.01% 0.08% 0.01% 0.08% 1.71% 1.36% 1.51% 1.36% 1.72% 1.36% 1.55% 1.36% 1.18% 1.36% 1.98% 1.85% 1.85% 1.85% 1.99% 1.85% 1.90% 1.85% 1.60% 1.85% As of 01/23/ /16/ /02/ /03/ /05/ % $ % $ % $ % $ % $4.20 Spartan Long-Term Treasury Bond Index Fund Fidelity Advantage Class BC US Long Treasury Spartan Short-Term Treasury Bond Index Fund Fidelity Advantage Class BC US 1-5 Year Treasury DIVERSIFIED Fidelity Conservative Income Bond Fund BC US 3-6 Mo T-Bills Fidelity Corporate Bond Fund BC US Credit Bond Fidelity Intermediate Bond Fund BC US Int Govt/Cr Bond Fidelity Investment Grade Bond Fund Fidelity Mortgage Securities Fund BC US MBS Fidelity Short-Term Bond Fund BC US 1-3 Yr Govt/Cr Bond Fidelity Strategic Income Fund BofA ML US HY/HY Const Bl Fidelity Total Bond Fund 29.49% 29.93% 3.31% 3.38% 11.09% 8.35% 6.15% 5.80% 7.91% 6.51% 6.23% 1.78% 1.59% 4.64% 4.37% 7.39% 10.84% 11.00% 4.69% 4.81% 5.54% 5.88% 5.29% 6.50% 4.78% 6.54% 2.12% 3.99% 7.21% 7.54% 6.56% 6.50% 9.44% 9.61% 4.52% 4.64% 10.09% 7.53% 5.09% 5.20% 5.24% 5.78% 4.82% 5.69% 2.94% 3.63% 8.42% 8.74% 5.99% 5.49% As of 12/20/ /20/ /03/ /04/ /23/ /06/ /31/ /15/ /01/ /15/ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $4.50 Select Money Market Portfolio 7-Day Yield % as of 12/31/2011: 0.11 CG 3-Month Treasury Bill ASSET CLASS: BOND GOVERNMENT Fidelity GNMA Fund BC US GNMA Fidelity Government Income Fund BC US Government Bond Fidelity Short- Intermediate Government Fund BC US 1-5 Year Government Fidelity Intermediate Government Income Fund BC US Intermediate Govt 0.06% 0.08% 7.91% 7.90% 7.88% 9.02% 2.88% 3.21% 5.71% 6.08% 1.77% 1.36% 7.14% 6.95% 6.59% 6.56% 4.61% 4.76% 5.82% 5.86% 2.02% 1.85% 5.74% 5.83% 5.54% 5.59% 3.91% 4.05% 4.84% 4.89% 08/30/ /08/ /04/ /10/ /02/ % $ % $ % $ % $ % $4.50 Fidelity Ultra-Short Bond Fund BC 6 Month Swap Spartan U.S. Bond Index Fund Fidelity Advantage Class Short-Term Bond Fund BC US 1-5 Year Government/Credit Bond INFLATION-PROTECTED Fidelity Inflation-Protected Bond Fund BC US TIPS (Ser L) 0.05% 0.22% 7.70% 2.62% 3.14% 12.99% 13.56% -2.22% 2.31% 5.91% 6.50% 4.18% 4.84% 6.94% 7.95% 0.06% 2.43% 5.55% 5.78% 4.32% 4.92% 6.38% 7.13% 08/29/ /08/ /31/ /26/ % $ % for shares 60 days 0.17% $ % $3.20 ** 0.45% $4.50 Spartan Intermediate Treasury Bond Index Fund Fidelity Advantage Class 13.03% 8.41% 7.49% 12/20/ % $1.00 BC US 5-10 Year Treasury 13.22% 8.56% 7.64% 9 10

8 HIGH YIELD Fidelity Capital & Income Fund BofA ML US HY/HY Const Bl Fidelity Floating Rate High Income Fund S&P/LSTA Lev Perf Loan Fidelity Focused High Income Fund BofA ML BB US HY Const Fidelity Global High Income Fund BofA ML Glb HY & Emrg Mkt Fidelity High Income Fund BofA ML US HY/HY Const Bl -1.91% 4.37% 1.72% 1.49% 5.87% 6.20% 3.41% 4.37% 6.94% 7.54% 3.92% 4.26% 5.60% 8.03% 6.82% 7.54% 9.98% 8.74% 4.29% 5.10% 5.91% 7.55% 8.50% 8.74% As of 11/01/ /16/ /08/ /11/ /29/ % $ % $ % $ % $ % $ days CONVERTIBLES Fidelity Convertible Securities Fund BofA ML All US Convt INTERNATIONAL/GLOBAL Fidelity Global Balanced Fund MSCI World (Net MA) Fidelity Global Strategies Fund MSCI AC World (Net MA) -7.33% -5.18% -2.49% -5.19% -5.30% -7.04% ASSET CLASS: DOMESTIC EQUITIES LARGE VALUE Fidelity Blue Chip Value Fund Russell 1000 Value Fidelity Equity Dividend Income Value -8.02% 0.39% -2.61% -0.10% 2.21% 2.10% 3.25% -1.98% -5.72% -2.64% -2.86% -2.58% 5.18% 4.88% 7.26% 4.01% -0.59% -5.80% 2.26% 4.87% 2.40% 4.08% As of 01/05/ /01/ /31/ /17/ /21/ % $ % $ % $ % $ % $5.40 High-Yield Fund BofA ML BB-B US Csh Py HY Const INTERNATIONAL/GLOBAL Fidelity New Markets Income Fund JPM EMBI Global ASSET CLASS: BALANCED/HYBRID 6.14% 5.43% 7.94% 8.46% 7.54% 6.85% 8.39% 8.08% 7.68% 7.17% 11.94% 11.04% 03/31/ /04/ % $ % $8.70 Redemption Fee: 2.00% if held <60 days ** Fidelity Equity-Income Fund Class K Value Fidelity Large Cap Value Enhanced Index Fund Russell 1000 Value Fidelity Stock Selector Large Cap Value Fund Russell 1000 Value Fidelity Strategic Dividend & Income Fund -4.54% -0.10% 2.46% 0.39% -0.28% 0.39% 7.30% -3.28% -2.58% -4.64% -2.64% 0.38% 2.54% 4.08% -4.14% -3.70% 2.35% 3.89% 4.98% 3.81% 05/16/ /19/ /15/ /23/ % $ % $ % $ % $8.40 Calvert Balanced Portfolio Class A Russell 1000 Fidelity Balanced Fidelity Four-in-One Index Fund Fidelity Puritan 3.28% 1.50% 1.76% -1.39% 0.74% 0.80% -0.02% 2.20% 0.04% 1.91% 2.79% 3.34% 6.02% 4.08% 4.97% 10/21/ /06/ /29/ /16/ % $ % $ % $ % $4.80 Strategic Advisers Value Multi-Manager Fund Russell 1000 Value Vanguard Value Index Fund Signal Shares MSCI US Prime Mkt Val Vanguard Windsor Fund Investor Share Russell 1000 Value 1.16% 1.24% -4.00% 0.39% -3.30% -2.64% -4.46% -4.48% 2.50% 3.89% 11/16/ /04/ /23/ % $ % $ % $3.30 Fidelity Strategic Real Return Fund BC US TIPS (Ser L) 1.68% 13.56% 3.42% 7.95% 3.69% 6.37% 09/07/ % $ days Large-Cap Value Fund Russell 1000 Value Large-Cap Value Index Fund Russell 1000 Value -5.67% 0.39% 0.31% 0.39% -2.59% -2.64% -2.66% -2.64% 7.24% 6.73% 6.65% 6.73% 10/01/ /01/ % $4.90 ** 0.09% $0.90 ** 11 12

9 LARGE BLEND Domini Social Equity Fund Investor Class Fidelity 130/30 Large Cap Fund Fidelity Disciplined Equity Fidelity Dividend Growth Fidelity Fidelity Growth & Income Portfolio Class K Fidelity Large Cap Core Enhanced Index Fund Fidelity Large Cap Stock Fund Fidelity Mega Cap Stock Fund Fidelity Value Discovery Fund Class K Value Spartan 500 Index Fund Advantage Class Spartan 500 Index Fund Class Spartan Total Market Index Fund Fidelity Advantage Class DJ US Total Stk Mkt 0.74% -3.77% -2.96% -8.34% -2.19% 1.52% 4.73% -1.62% 2.34% -2.13% -0.10% 2.06% 5.11% 2.09% 1.01% 1.08% -0.43% -3.09% -0.56% -0.11% -6.56% 0.78% 0.26% -1.70% -2.58% -0.27% -0.26% 0.22% 0.24% 2.16% -8.81% 0.89% 2.28% 1.83% 2.63% -1.41% -1.07% -1.14% 2.61% 2.87% 7.01% 6.28% 2.86% 2.86% 3.77% 3.86% As of 06/03/ /31/ /28/ /27/ /30/ /30/ /19/ /22/ /28/ /10/ /17/ /17/ /05/ % $ % for shares 1.97% $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % for shares Index Fund Social Choice Equity Fund LARGE GROWTH Fidelity Fifty Fidelity Blue Chip Growth Russell 1000 Growth Fidelity Capital Appreciation Fidelity Contrafund Class K Fidelity Export and Multinational Fidelity Focused Stock Fund Fidelity Growth Company Growth Fidelity Growth Discovery Growth Fidelity Independence Fund Class K Fidelity Large Cap Growth Enhanced Index Fund Russell 1000 Growth Fidelity Large Cap Growth Fund Russell 1000 Growth Fidelity Magellan Fund Class K 2.01% -0.05% -0.78% -2.56% 2.64% -2.49% -0.02% -3.47% 0.57% 0.81% 2.18% 0.70% 2.18% % 4.43% 2.64% -0.72% 2.64% % -0.29% 0.37% -1.69% 3.13% 2.50% 0.11% 2.68% -0.57% 4.14% 4.08% 2.46% 1.89% 2.46% 0.62% -1.41% 2.50% -3.23% 6.37% 6.46% 3.75% 3.51% 3.93% 2.40% 2.60% 4.87% 7.01% 4.06% 2.77% 4.83% 2.74% 3.60% 2.74% 4.05% 0.98% 1.59% 1.29% 2.60% -0.09% As of 10/01/ /01/ /17/ /31/ /26/ /17/ /04/ /12/ /17/ /31/ /25/ /19/ /15/ /02/ % $0.80 ** 0.20% $2.00 ** 0.71% $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $4.60 Strategic Advisers Core Multi-Manager Fund 11/16/ % $11.20 Fidelity Nasdaq Composite Index Fund NASDAQ Composite -0.96% -0.83% 2.30% 2.43% 5.05% 5.29% 09/25/ % $5.90 Equity Index Fund Growth & Income Fund 0.99% 2.98% 0.00% 2.74% 3.47% 3.51% 4.16% 07/01/ /01/ % $0.80 ** 0.48% $4.80 ** Fidelity New Millennium Fund Fidelity OTC Portfolio Class K NASDAQ 2.52% -0.29% -0.79% 3.55% 5.88% 2.50% 5.49% 5.98% 3.74% 12/28/ /31/ % $ % $

10 Fidelity Stock Selector All Cap Fidelity Trend Fund Russell 1000 Growth Strategic Advisers Growth Multi-Manager Fund Russell 1000 Growth Vanguard Growth Index Fund Signal Shares MSCI Prime Mkt Gro Vanguard PRIMECAP Fund Investor Shares Large-Cap Growth Fund Russell 1000 Growth Large-Cap Growth Index Fund -4.96% -0.76% 2.64% 1.88% 1.96% -1.84% 1.64% 2.64% -0.89% 2.55% 2.50% 2.34% 2.17% 2.50% 2.65% 4.42% 2.60% 0.65% 0.71% 5.34% 2.25% 3.18% As of 09/28/ /16/ /16/ /04/ /01/ /31/ % 2.41% 6.75% 10/01/2002 Russell 1000 Growth 2.64% 2.50% 6.86% MID VALUE Fidelity Mid Cap Value Fund Russell Midcap Value Fidelity Value Russell Midcap Value -4.23% -1.38% -6.58% -1.38% -0.15% 0.04% -1.99% 0.04% 6.16% 7.67% 5.81% 7.67% 11/15/ /01/ % $ % $ % $ % $ % $ days 0.50% $5.00 ** 0.09% $0.90 ** 0.91% $ % $4.40 Fidelity Small Cap Stock Fund Russell 2000 Fidelity Value Strategies Russell Midcap Value Spartan Extended Market Index Fund Fidelity Advantage Class DJ US Completion TSM Spartan Mid Cap Index Fund Fidelity Advantage Class Russell MidCap Vanguard Mid-Cap Index Fund Signal Shares MSCI Md Cap 450 MID GROWTH Calvert Capital Accumulation Fund Class A Russell Midcap Growth Fidelity Growth Strategies Russell Midcap Growth Fidelity Mid Cap Growth Fund Russell Midcap Growth % -4.18% -9.16% -1.38% -3.79% -3.76% -1.99% -1.91% 2.20% -1.65% -8.72% -1.65% -8.36% -1.65% 0.75% 0.15% -1.02% 0.04% 1.88% 1.80% 3.67% 2.44% -0.58% 2.44% -2.69% 2.44% 5.85% 5.62% 4.51% 7.67% 6.75% 6.83% 0.45% 0.49% 2.48% 5.29% -0.10% 5.29% 1.96% 5.29% As of 03/12/ /31/ /05/ /08/ /30/ /31/ /28/ /15/ % $ % for shares 0.68% $ % $ % $ % $ % $ % $ % $7.90 Mid-Cap Value Fund Russell Midcap Value MID BLEND -2.17% -1.38% 0.57% 0.04% 11.04% 10.01% 10/01/ % $4.90 ** Fidelity Mid-Cap Stock Fund Class K S&P MidCap % -1.73% 1.33% 3.32% 4.12% 7.04% 03/29/ % $4.30 Fidelity Leveraged Company Stock % -0.84% 12.25% 12/19/ % $6.90 Mid-Cap Growth Fund Russell Midcap Growth SMALL VALUE -5.23% -1.65% 2.45% 2.44% 10.13% 10.23% 10/01/ % $5.20 ** Fidelity Low-Priced Stock Russell 2000 Fidelity Mid Cap Enhanced Index Fund Russell MidCap 0.06% -4.18% -1.63% -1.55% 2.12% 0.15% 8.66% 5.62% 0.48% 0.54% 12/27/ /20/ % $ % $6.10 Fidelity Small Cap Value Russell 2000 Value SMALL BLEND Calvert Small Cap Fund Class A Russell 2000 Value -3.64% -5.50% -5.03% -5.50% -3.02% -1.87% -1.83% -1.87% 8.23% 3.58% 1.69% 3.73% 11/03/ /01/ % $ % $

11 Fidelity Small Cap Discovery Fund Russell 2000 Fidelity Small Cap Enhanced Index Fund Russell 2000 Fidelity Stock Selector Small Cap Fund Russell 2000 Spartan Small Cap Index Fund Fidelity Advantage Class Russell % -4.18% -1.07% -4.18% -2.59% -4.18% 7.14% 0.15% -0.40% 0.15% 7.49% 5.62% 0.49% 0.55% 4.35% 5.62% As of 09/26/ /20/ /28/ /08/ % $ % $ % $ % $2.30 Fidelity International Capital Appreciation Fund MSCI AC Wld xus (Net MA) Fidelity International Discovery MSCI EAFE (Net MA) Fidelity International Enhanced Index Fund MSCI EAFE (Net MA) Fidelity International Growth Fund MSCI EAFE Growth (Net MA) % % % % % % -8.95% % -4.03% -2.78% -3.95% -4.57% 4.13% 6.48% 6.35% 4.84% -8.70% -7.36% -4.76% -7.94% As of 11/01/ /31/ /20/ /01/ % $ % $ % $ % $15.30 Vanguard Small Cap Index Fund Signal Shares MSCI Sm Cap 1750 (G) -2.68% -2.75% 1.91% 1.79% 1.73% 1.61% 12/15/ % $1.70 Fidelity International Small Cap Fund MSCI EAFE Sm Cap (Net MA) % % -1.38% -4.03% 14.08% 10.48% 09/18/ % $ % for shares Small-Cap Blend Index Fund Russell 2000 Small-Cap Equity Fund Russell 2000 SMALL GROWTH Fidelity Small Cap Growth Fund Russell 2000 Growth -4.12% -4.18% -3.90% -4.18% -2.83% -2.91% 0.19% 0.15% -0.36% 0.15% 2.48% 2.09% 9.21% 9.27% 9.08% 9.27% 7.41% 5.23% 10/01/ /01/ /03/ % $ % $ % $9.50 Redemption Fee: 2.00% if held <60 days Redemption Fee: 2.00% if held <60 days ** ** Fidelity International Small Cap Opportunities Fund MSCI EAFE Sm Cap (Net MA) Fidelity International Value Fund MSCI EAFE Val (Net MA) Fidelity Overseas Fund Class K MSCI EAFE (Net MA) -9.56% % % % % % -6.94% -4.03% -6.99% -6.15% -6.23% -4.57% 1.53% 1.68% -4.30% -2.90% 3.24% 4.84% 08/02/ /18/ /04/ % $ % $ % $5.60 2% for shares ASSET CLASS: INTERNATIONAL/GLOBAL DIVERSIFIED Fidelity Total International Equity Fund MSCI AC Wld exus (Net MA) % % -8.82% -8.01% 11/01/ % $14.20 Calvert International Equity Fund Class A MSCI EAFE (G) Fidelity Canada Fund S&P/TSX Composite Index Fidelity Diversified International MSCI EAFE (Net MA) % % % % % % -9.52% -4.26% 2.90% 4.05% -4.41% -4.57% 1.15% 5.12% 11.83% 11.95% 5.87% 4.84% 07/02/ /17/ /27/ % $ % $ % $7.30 Fidelity Worldwide Fund MSCI World (Net MA) Spartan Global ex U.S. Index Fund Fidelity Advantage Class MSCI AC Wld exus (Net MA) Spartan International Index Fund Fidelity Advantage Class MSCI EAFE (Net MA) -6.73% -5.19% % % -0.13% -1.98% -4.62% -4.57% 5.27% 4.01% 4.67% 4.84% 05/30/ /08/ /05/ % $ % $ % $

12 International Equity Fund MSCI EAFE International Equity Index Fund MSCI EAFE REGIONAL Fidelity Emerging Asia Fund MS AC Asia exjpn (Net MA) Fidelity China Region Fund MSCI Golden Dragon Fidelity Europe Capital Appreciation Fund MSCI Europe (Net MA) Fidelity Europe Fund MSCI Europe (Net MA) Fidelity Japan Fund TOPIX Fidelity Japan Smaller Companies Fund Russell/Nom Mid Small Cap Fidelity Latin America Fund MSCI EM Latin America (G) Fidelity Nordic Fund FTSE Capped Nordic Index Fidelity Pacific Basin Fund MS AC Pac Fr (Net MA) EMERGING MARKETS Fidelity Emerging Markets Discovery Fund MSCI EM Sm Mid Cap (TR) % % % % % % % % % % % % % % -5.79% -8.09% % % % % % % -6.17% -4.72% -4.66% -4.72% 1.38% 2.82% 4.65% 1.60% -6.01% -4.97% -4.96% -4.97% -7.30% -5.91% -6.44% -3.59% 4.15% 6.84% -4.21% -1.64% -0.55% -1.87% 4.32% 4.70% 7.67% 7.75% 11.65% 11.62% 9.89% 8.55% 4.57% 4.58% 4.94% 4.58% 2.71% 3.39% 4.68% 5.75% 17.65% 18.91% 7.00% 7.53% 8.12% 6.99% As of 07/01/ /01/ /19/ /01/ /21/ /01/ /15/ /01/ /19/ /01/ /01/ /01/ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $15.60 Redemption Fee: 2.00% if held < 60 days Redemption Fee: 2.00% if held < 60 days 2% for shares ** ** Fidelity Total Emerging Markets Fund MSCI Emerging Markets (G) Fidelity Emerging Europe, Middle East, Africa (EMEA) Fund MSCI EM Eur ME Africa (G) Fidelity Emerging Markets MSCI Emerging Markets (G) Spartan Emerging Markets Index Fund - Fidelity Advantage Class FTSE Emerging Index SPECIALTY Fidelity International Real Estate Fund MSCI EAFE (Net MA) ASSET CLASS: SPECIALTY Fidelity Global Commodity Stock Fund MSCI AC World (Net MA) Fidelity Real Estate Income Fund Fidelity Real Estate Investment Portfolio Fidelity Telecom and Utilities Fund Select Air Transportation Portfolio Select Automotive Portfolio % % % % % % % -7.04% 4.71% 8.29% 11.87% -6.07% % -1.21% 2.70% % -4.57% 3.34% -1.91% 1.13% 0.26% -1.42% -5.16% -7.58% 11.92% 14.20% 0.92% 3.93% 13.81% 16.98% 6.97% 6.64% 10.16% 5.00% 5.64% 4.07% As of 11/01/ /08/ /01/ /08/ /08/ /25/ /04/ /17/ /27/ /16/ /30/ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $

13 Select Banking Portfolio Select Biotechnology Portfolio Select Brokerage and Investment Management Portfolio Select Chemicals Portfolio % 18.18% % 0.29% % 5.83% -8.17% 9.54% -1.74% 2.85% 2.76% 11.69% As of 06/30/ /16/ /29/ /29/ % $ % $ % $ % $9.00 Select Energy Portfolio Select Energy Service Portfolio Select Environment and Alternative Energy Portfolio Select Financial Services Portfolio -4.85% % % % 2.20% 0.70% -2.03% % 10.73% 9.60% 2.37% -2.94% As of 07/14/ /16/ /29/ /10/ % $ % $ % $ % $13.20 Select Communications Equipment Portfolio % 1.68% 1.64% 06/29/ % $9.10 Select Gold Portfolio % 9.17% 18.26% 12/16/ % $9.10 Select Computers Portfolio -4.48% 6.42% 3.55% 07/29/ % $8.90 Select Health Care Portfolio 7.82% 4.83% 4.83% 07/14/ % $8.20 Select Construction and Housing Portfolio 2.89% -0.63% 6.76% 09/29/ % $9.80 Select Industrial Equipment Portfolio -7.69% 2.40% 5.70% 09/29/ % $8.90 Select Consumer Discretionary Portfolio -1.66% 1.33% 3.38% 06/29/ % $9.60 Select Industrials Portfolio -4.88% 4.06% 7.91% 03/03/ % $9.00 Select Consumer Finance Portfolio -0.99% % -7.87% 12/16/ % $10.10 Select Insurance Portfolio -5.16% -6.78% 1.92% 12/16/ % $9.30 Select Consumer Staples Portfolio 8.84% 7.43% 8.43% 07/29/ % $8.60 Select IT Services Portfolio 2.25% 7.59% 6.36% 02/04/ % $9.40 Select Defense and Aerospace Portfolio 7.33% 2.86% 9.68% 05/08/ % $8.80 Select Leisure Portfolio 5.85% 6.03% 7.86% 05/08/ % $9.00 Select Electronics Portfolio -8.49% 0.74% -0.79% 07/29/ % $8.60 Select Materials Portfolio -8.20% 7.32% 12.81% 09/29/ % $

14 Select Medical Delivery Portfolio Select Medical Equipment and Systems Portfolio Select Multimedia Portfolio Select Natural Gas Portfolio Select Natural Resources Portfolio Select Pharmaceuticals Portfolio 10.23% -3.42% 1.83% -7.67% -9.25% 13.70% 4.19% 5.45% 1.73% -1.26% 3.90% 7.78% 10.00% 7.91% 5.59% 8.92% 11.51% 5.51% As of 06/30/ /28/ /30/ /21/ /03/ /18/ % $ % $ % $ % $ % $ % $9.40 Select Wireless Portfolio Spartan Real Estate Index Fund Fidelity Advantage Class DJUS Sel Real Estate Sec Real Estate Securities Fund FTSE NAREIT All Equity REITs -0.96% 6.97% 8.28% 3.10% -2.22% -1.42% 4.78% 10.29% 10.70% As of 09/21/ /08/ /01/ % $ % $ % $5.90 ** *Performance provided is Life of Fund, which is as of the inception date noted, when the investment option has been in existence for less than 10 years. Life of fund figures are from the inception date to the period shown. For unitized funds, the inception date shown may be that of the fund s underlying investment option. For non-mutual fund pools and trusts whose strategies may be offered to multiple clients, and whose returns may be based on a composite, the inception date shown may be the beginning date of the composite s returns. Total returns are historical and include change in share price and reinvestment of dividends and capital gains, if any. These figures do not include the effect of sales charges, if any, as these fees are waived for contributions made through your retirement plan. If sales charges were included, returns would have been lower. The current yield reflects the current earnings of the fund, while the total return refers to the specific past holding period. The 7-Day Yield is based on a calculation prescribed by the SEC. It is the average income return over the previous seven days, assuming the rate stays the same for one year and that dividends are reinvested. It is the Fund s total income net of expenses, divided by the total number of outstanding share. This yield does not allow for the inclusion of capital gains or losses. A portion of the fund s expenses was voluntarily reimbursed and/or waived. Restated Yield is the 7-Day Yield without applicable waivers or reimbursements. Please see the disclosure section at the back of this brochure for additional performance and index disclosures. Select Retailing Portfolio Select Software and Computer Services Portfolio Select Technology Portfolio Select Telecommunications Portfolio Select Transportation Portfolio Select Utilities Portfolio 3.36% 2.18% -9.56% -4.24% -5.28% 13.09% 6.24% 7.07% 5.02% -0.55% 3.66% 1.65% 7.49% 6.95% 3.68% 3.06% 7.96% 5.37% 12/16/ /29/ /14/ /29/ /29/ /10/ % $ % $ % $ % $ % $ % $9.00 Expense Ratio For a mutual fund, the expense ratio is the total annual fund or class operating expenses (before waivers or reimbursements) paid by the fund and stated as a percent of the fund s total net assets. Where the investment option is not a mutual fund, the figure displayed in the expense ratio field is intended to reflect similar information. However, it may have been calculated using methodologies that differ from those used for mutual funds. Mutual fund data has ben drawn from the most recent prospectus and has been provided by FMR LLC for Fidelity mutual funds and for non-fidelity mutual funds. For non-mutual fund investment options, the information has been provided by, Morningstar, LLC, the trustee or plan sponsor. When no ratio is shown for these options, it is due to the fact that none was available. Nevertheless, there may be fees and expenses associated witht he investment option. Investment Risk Investments in mid-sized companies may involve greater risk than those of larger, more well known companies, but may be less volatile than investments in smaller companies. Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Foreign investments, especially those in emerging markets, involve greater risk and may offer greater potential returns than U.S. investments. This risk includes political and economic uncertainties of foreign countries, as well as the risk of currency fluctuation. Investments in smaller companies may involve greater risk than those in larger, more well known companies. Because of their narrow focus, sector funds may be more volatile than funds that diversify across many sectors. Changes in real estate values or economic downturns can have a significant negative effect on issuers in the real estate industry. Fidelity Freedom Funds are designed for investors expecting to retire around the year indicated in each fund s name. Except for the Freedom Income Fund, the funds asset allocation strategy becomes increasingly conservative as it approaches the target date and beyond. Ultimately, they are expected to merge with the Freedom Income Fund. The investment risks of each Fidelity Freedom Fund change over time as its asset allocation changes. They are subject to the volatility of the financial markets, including equity and fixed income investments in the U.S. and abroad and may be subject to risks associated with investing in high yield, small cap and, commodity-related, foreign securities. Principal invested is not guaranteed at any time, including at or after their target dates. Lower-quality debt securities involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. In general the bond market is volatile and bonds entail interest rate risk (as interest rates rise bond prices usually fall and vice versa). This effect is usually pronounced for longer-term securities. Bonds also entail the risk of issuer default, issuer credit risk and inflation risk. An investment in a money market fund is not insured or guaranteed by the FDIC or any other government agency. Although money market funds seek to preserve the value of your investment at $1 per share, it is possible to lose money by investing in these funds. Frequent trading in this investment option and/or other investment options subject to such restrictions will result in the limitation or prohibition of additional purchases (other than contributions and loan repayments) for 85 calendar days or a 12-month period. **Round Trip: You cannot exchange into the fund within of exchanging out of the fund

15 Fixed Return Investments Variable Annuities The following chart lists the Plan s investment options that have a fixed or stated rate of return. Fixed Rate Term ASSET CLASS: BONDS/STABLE VALUE MetLife Fixed New Account MetLife Fixed Old Account MetLife Policy Credit Account = Not Applicable / None 3.00% 3.00% 3.00% Start : 04/1/2011 End : 03/31/2012 Start : 04/1/2011 End : 03/31/2012 Start : 04/1/2011 End : 03/31/ = Not Available Closed to new investments including contributions and exchanges Rate Subject to Adjustment? Minimum Guaranteed Rate Fees Surrender Charge Limit: 20% Surrender Charge Penalty: 4% Surrender Charge Limit: 20% Surrender Charge Penalty: 4% / Other The following chart lists the Plan s investment options that are variable annuity insurance contracts, along with the benchmark against which each investment option s performance is generally measured. Investments in insurance contracts allow you to receive a guaranteed stream of payments at regular intervals upon distribution that is guaranteed by the contract issuer. Guarantees of an insurance company are subject to its long-term financial strength and claims-paying ability. Keep in mind that you cannot invest in the benchmark indices, which are set forth in italics on the chart underneath the name of each investment option. Understanding Investment Performance: As you review the following information, please remember that the performance data stated represents past performance, which does not guarantee future results. Investment return and principal value of an investment will fluctuate; therefore, you may have a gain or loss when money is received or withdrawn. Current performance may be higher or lower than the performance stated. To learn more or to obtain the most recent month-end performance, visit (Password: ). ASSET CLASS: DOMESTIC EQUITIES As of Expense Ratio Per Shareholder Fees Investment Risk A fixed return annuity contract is an annuity contract issued by an insurance company. It is not a mutual fund. The amount invested in the contract is guaranteed by the issuing insurance company. Guarantees of an insurance company are subject to its long-term financial strenth and claims-paying ability and are solely its responsibility. Information about the fixed return annuity contract was furnished by the issuing insurance company, which is not affiliated with any company. LARGE BLEND CREF Equity Index Account CREF Stock Account 0.66% -4.94% -0.39% -1.10% 3.11% 3.51% 3.49% 3.51% 04/29/ /01/ % $ % $4.70,,, ****,,,, ****, LARGE GROWTH CREF Growth Account Russell 1000 Growth 1.19% 2.64% 2.23% 2.50% 1.66% 2.60% 04/29/ % $4.50,,, ****, ASSET CLASS: INTERNATIONAL/GLOBAL CREF Global Equities Account MSCI World -7.74% -5.54% -2.65% -2.37% 3.08% 3.59% 05/01/ % $4.90,,, ****, ASSET CLASS: BONDS/STABLE VALUE CREF Inflation-Linked Bond Account BC US TIPS (Ser L) 13.16% 13.56% 7.45% 7.95% 7.10% 7.57% 05/01/ % $4.40,,, ****, CREF Bond Market Account 6.96% 5.56% 6.50% 5.26% 5.78% 03/01/ % $4.40,,, ****, ASSET CLASS: MONEY MARKET (OR SHORT TERM) CREF Money Market Account 7-Day Yield % as of 12/27/2011: Day Restated Yield % as of 12/27/2011: 0.00 imoneynet Money Fund Report Averages-All Taxable 0.00% 0.02% 1.47% 1.38% 1.82% 1.67% 04/01/ % $4.20,, ****, ASSET CLASS: ASSET ALLOCATION CREF Social Choice Account 1.82% 2.29% 4.36% 3.51% 03/01/ % $4.30,,, ****, 25 26

16 ASSET CLASS: SPECIALTY TIAA Real Estate Account = Not Applicable / None 12.99% -1.98% -- = Not Available 3.95% As of 10/02/1995 Expense Ratio Per Shareholder Fees 1.01% $10.10 ***,,, ****, *Performance provided is Life of Fund, which is as of the inception date noted, when the investment option has been in existence for less than 10 years. Life of fund figures are from the inception date to the period shown. For unitized funds, the inception date shown may be that of the fund s underlying investment option. For non-mutual fund pools and trusts whose strategies may be offered to multiple clients, and whose returns may be based on a composite, the inception date shown may be the beginning date of the composite s returns. Total returns are historical and include change in share price and reinvestment of dividends and capital gains, if any. These figures do not include the effect of sales charges, if any, as these fees are waived for contributions made through your retirement plan. If sales charges were included, returns would have been lower. Please see the disclosure section at the back of this brochure for additional performance and index disclosures. Round Trip: If a round trip is made within 60 days, exchanges into the same account will be restricted for. ***Transfers out: Limit 1 per quarter. Limitations may apply to any transaction resulting in a balace > $150,000. You may not begin a one-life annuity after you attain age 90, nor may you begin a two-life annuity after you or your annuity partner attains age 90. Subject to contract terms, if your accumulation is less than $5,000 on your anuity starting date, TIAA may choose instead to pay your accumulations to you in a single sum. ****If your TIAA annuity payment would be less than $100, TIAA has the right to change the payment frequency which would result in a payment of $100 or more. Once you have elected a lifetime annuity, your election is irrevocable. Objectives/Goals To provide a variable stream of income for your life and, if you choose, the life of an annuity partner. This lifetime annuity provides a variable income that you cannot outlive. A variable annuity can be part of a diversified retirement portfolio that may include guaranteed, stocks (equities), bonds (fixed income), real estate, and money market investments. Electing a life annuity is just one of many payout options available. Pricing Factors The amount of your lifetime income is dependent upon many factors including the type of annuity selected (single life, joint life, with or without guaranteed minimum periods), the amount of accumulations converted to a life annuity, your age (and, if applicable, the age of your annuity partner), and the investment performance of the variable annuity account your annuity is based upon. Variable annuity accounts don t guarantee a minimum income. Income fluctuates based on market performance and is directly tied to the account s investment returns. A 4% annual investment return is assumed. Generally, if the actual return in a given year is greater than 4%, the amount of annuity income will increase; if it is less than 4% the income will decrease. To learn more about investments that offer lifetime annuity income, visit (Password: ). Expense Ratio For a mutual fund, the expense ratio is the total annual fund or class operating expenses (before waivers or reimbursements) paid by the fund and stated as a percent of the fund s total net assets. Where the investment option is not a mutual fund, the figure displayed in the expense ratio field is intended to reflect similar information. However, it may have been calculated using methodologies that differ from those used for mutual funds. Mutual fund data has ben drawn from the most recent prospectus and has been provided by FMR LLC for Fidelity mutual funds and for non-fidelity mutual funds. For non-mutual fund investment options, the information has been provided by, Morningstar, LLC, the trustee or plan sponsor. When no ratio is shown for these options, it is due to the fact that none was available. Nevertheless, there may be fees and expenses associated with the investment option. Investment Risk In general the bond market is volatile and bonds entail interest rate risk (as interest rates rise bond prices usually fall and vice versa). This effect is usually pronounced for longer-term securities. Bonds also entail the risk of issuer default, issuer credit risk and inflation risk. Because of their narrow focus, sector funds may be more volatile than funds that diversify across many sectors. Foreign investments, especially those in emerging markets, involve greater risk and may offer greater potential returns than U.S. investments. This risk includes political and economic uncertainties of foreign countries, as well as the risk of currency fluctuation. Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Changes in real estate values or economic downturns can have a significant negative effect on issuers in the real estate industry. Fixed Annuities The following chart lists the Plan s investment options that are fixed annuity insurance contracts. Investments in insurance contracts allow you to receive a guaranteed stream of payments at regular intervals upon distribution that is guaranteed by the contract issuer. Guarantees of an insurance company are subject to its long-term financial strength and claims-paying ability. Fixed Rate Term Fees /Other TIAA Traditional-Group Retirement Annuity TIAA Traditional-Group Supplemental Retirement Annuity 3.00% Through 02/28/2013,, ****,, 3.00% Through 02/28/2013,, ****,, TIAA Traditional-Retirement Annuity 3.00% Through 02/28/2013,, ****,, TIAA Traditional-Supplemental Retirement Annuity = Not Applicable / None Investment Risk -- = Not Available 3.00% Through 02/28/2013,, ****,, You may not begin a one-life annuity after you attain age 90, nor may you begin a two-life annuity after you or your annuity partner attains age 90. Subject to contract terms, if your accumulation is less than $5,000 on your anuity starting date, TIAA may choose instead to pay your accumulations to you in a single sum. ****If your TIAA annuity payment would be less than $100, TIAA has the right to change the payment frequency which would result in a payment of $100 or more. Once you have elected a lifetime annuity, your election is irrevocable. The current rate shown applies to premiums remitted during the month of May 2012 and will be credited through 2/28/2013. This rate is subject to change in subsequent months. Up to date rate of return information is available on your plan-specific website noted above or at TIAA Traditional guarantees your principal and a minimum annual interest rate. The guaranteed minimum interest rate is 3.00%, and is effective while the funds remain in the contract. The account also offers the opportunity for additional amounts in excess of the guaranteed minimum interest rate. When declared, additional amounts remain in effect for the twelve-month period that begins each March 1. Subject to the terms of your plan, lump-sum withdrawals are available within 120 days after termination of employment and are subject to a 2.5% surrender charge. All other withdrawals and transfers must be spread over ten annual installments (over five years for withdrawals after termination of employment). The current rate shown applies to premiums remitted during the month of May 2012 and will be credited through 2/28/2013. This rate is subject to change in subsequent months. Up to date rate of return information is available on your plan-specific website noted above or at TIAA Traditional guarantees your principal and a minimum annual interest rate. The guaranteed minimum interest rate is 3.00%, and is effective while the funds remain in the contract. The account also offers the opportunity for additional amounts in excess of the guaranteed minimum interest rate. When declared, additional amounts remain in effect for the twelve-month period that begins each March 1. The current rate shown applies to premiums remitted during the month of May 2012 and will be credited through 2/28/2013. This rate is subject to change in subsequent months. Up to date rate of return information is available on your plan-specific website noted above or at TIAA Traditional guarantees your principal and a minimum annual interest rate. The guaranteed minimum interest rate is 3.00%, and is effective while the funds remain in the contract. The account also offers the opportunity for additional amounts in excess of the guaranteed minimum interest rate. When declared, additional amounts remain in effect for the twelve-month period that begins each March 1. Subject to the terms of your plan, once your TIAA Traditional balance exceeds $2,000 withdrawals and transfers out must be spread out in ten annual installments. The current rate shown applies to premiums remitted during the month of May 2012 and will be credited through 2/28/2013. This rate is subject to change in subsequent months. Up to date rate of return information is available on your plan-specific website noted above or at TIAA Traditional guarantees your principal and a minimum annual interest rate. The guaranteed minimum interest rate is 3.00%, and is effective while the funds remain in the contract. The account also offers the opportunity for additional amounts in excess of the guaranteed minimum interest rate. When declared, additional amounts remain in effect for the twelve-month period that begins each March 1. Objectives/Goals To provide a guaranteed stable stream of income for your life and if you choose, the life of a partner. A TIAA Traditional Annuity provides income stability by providing a minimum guaranteed interest rate as well as the potential for additional interest. TIAA Traditional can be a part fo a diversified retirement portfolio that may include stocks (equities), bonds (fixed income), real estate, and money market investments. Electing a life annuity is just one of many payout options available under the TIAA Traditional Annuity. Price Factors The amount of your lifetime income is dependent upon many factors including the type of annuity selected (single life, joint life, with or without guaranteed minimum periods), and your selection of either the standard or graded benefit method; the amount of accumulations converted to a life annuity; your age (and, if applicable, the age of your annuity partner), and the projected returns of the TIAA Traditional Annuity. Under no circumstances will you receive less than the guaranteed amount of income required under the annuity contracts. To learn more about investments that offer lifetime annuity income, visit (Password: ). Investment Risk A fixed return annuity contract is an annuity contract issued by an insurance company. It is not a mutual fund. The amount invested in the contract is guaranteed by the issuing insurance company. Guarantees of an insurance company are subject to its long-term financial sterngth and claims-paying ability and are solely its responsibility. Information about the fixed return annuity contract was furnished by the issuing insurance company, which is not affiliated with any company