Helping bring health & well-being to your financial future. Your Bon Secours Retirement Savings Plan Enrollment Guide

Transcription

1 Helping bring health & well-being to your financial future Your Bon Secours Retirement Savings Plan Enrollment Guide

2 Invest some of what you earn today for what you plan to accomplish tomorrow. Dear Employee: The Bon Secours Charity Health System Tax Sheltered Annuity Plan offers outstanding convenience and a variety of investment options. Take a look and see what a difference enrolling in the plan could make in achieving your goals. Benefit from: Tax savings now. Your pretax contributions are deducted from your pay before income taxes are taken out. This means that you can actually lower the amount of current income taxes you pay each period. Retirement planning tools. You have access to online tools designed to help you manage your assets as you plan for retirement. Convenience. Your contributions are automatically deducted from your paycheck. Investment options. You have the flexibility to select from investment options that Bon Secours has selected. The options range from more conservative to more aggressive, making it easy for you to develop a well-diversified investment portfolio. For more experienced investors additional options are also available through Fidelity BrokerageLink. Automatic annual increases. Save a little more each year, the easy way the Annual Increase Program gives you the option to automatically increase your contribution each year. Online beneficiary. With Fidelity s Online Beneficiaries Service, you can designate your beneficiaries, receive instant online confirmation, and check your beneficiary information virtually any time. Catch-up contributions. If you make the maximum contribution to your plan account, and you are 50 years of age or older during the calendar year, you can make an additional catch-up contribution of $6,000 in To learn more about what your plan offers, see Frequently asked questions about your plan beginning on the next page. Enroll in your plan and invest in yourself today.

3 Frequently asked questions about your plan. Here are answers to questions you may have about the key features, benefits, and rules of your plan. When can I enroll in the plan? You are eligible to enroll in the Plan on the date you have completed one hour of service. To enroll, visit Click on the "Enroll- Sign up Now" box in the center of the home page and the system will guide you through the enrollment process. You can also enroll by contacting the Fidelity Retirement Service Center at (800) How much can I contribute? Through automatic payroll deduction, you can contribute between 1% and 85% of your eligible pay on a pretax basis, up to the annual IRS dollar limits. In addition, you can automatically increase your retirement savings plan contributions each year through the Annual Increase Program. What is the IRS contribution limit? The IRS contribution limit for 2016 is $18,000. What "catch-up" contribution can I make? If you have reached age 50 or will reach 50 during the calendar year January 1 December 31 and are making the maximum plan or IRS pretax contribution, you may make an additional catch-up contribution each pay period. Going forward, catch-up contribution limits will be subject to cost of living adjustments (COLAs) in $500 increments. You make catch-up contributions through payroll deduction, the same way you make regular contributions. If, at the end of the calendar year, your pretax contributions do not exceed the Plan contribution limit or the IRS annual dollar limit, some or all of your catch-up contributions will be recharacterized as regular pretax contributions. When is my enrollment effective? Your enrollment becomes effective once you elect a deferral percentage, which initiates deduction of your contributions from your pay. These salary deductions will generally begin with your next pay period after we receive your enrollment information, or as soon as administratively possible. Does the Employer Contribute to My Account? Information regarding contributions made to the Plan by Bon Secours is available to you on AskHR, the online HR resource for Bon Secours employees. To access AskHR, go to IRIS and click on AskHR and sign in. If you still have questions you can contact the HR Operations Center (HROC) by calling (885) or in the 804 area code please call (804) How do I designate my beneficiary? You should designate your beneficiary as you complete your enrollment in the plan. Fidelity s Online Beneficiaries Service, available through Fidelity NetBenefits, offers a straightforward, convenient process that takes just minutes. Simply log on to NetBenefits at and click on Beneficiaries in the About You section of Your Profile. If you do not have access to the Internet or prefer to complete your beneficiary information by paper form, please contact (800) What are my investment options? To help you meet your investment goals, the Plan offers you a range of options. You can select a mix of investment options that best suits your goals, time horizon, and risk FAQs For more information visit or call (800)

4 FAQs tolerance. The many investment options available through the Plan include conservative, moderately conservative, and aggressive funds. A complete description of the Plan s investment options and their performance, as well as planning tools to help you choose an appropriate mix, are available online at Fidelity NetBenefits. Please also refer to the "Investment Options" section of this guide beginning on page 5. Lifecycle. The plan offers a lifecycle fund family which offers a blend of stocks, bonds, and short-term investments within a single fund. The lifecycle funds have an asset allocation based on the number of years until the fund s target retirement date. Lifecycle funds are designed for investors expecting to retire around the year indicated in each fund s name. The investment risk of each lifecycle fund changes over time as each fund s asset allocation changes. The funds 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, commodity-linked and foreign securities. Principal invested is not guaranteed at any time, including at or after the fund s target date. Fidelity Portfolio Advisory Service at Work. The Bon Secours Charity Health System Tax Sheltered Annuity Plan has teamed up with Fidelity to offer a valuable managed account service that lets you delegate the day-to-day management of your workplace savings plan account to professional investment managers. Fidelity s experienced professionals evaluate the investment options available in your plan and identify a model portfolio of investments appropriate for an investor like you. The service then invests your account to align with this model portfolio and provides ongoing management of your account to address changes in the markets, your plan s investment lineup, and changes in your personal or financial situation. With a managed account, you can take advantage of Fidelity s resources and experience to help ensure that: Your investments are managed through the ups and downs of the market. You re keeping your accounts aligned with your goals through annual reviews and check-ins. Your account is actively managed to create an opportunity for long-term gains while managing the risk associated with investing. To see if Fidelity Portfolio Advisory Service at Work is right for you, log onto NetBenefits at netbenefits.fidelity.com/pas where you can easily enroll in the Service and learn more. Fidelity Guidance Professionals are available to answer any questions you may have about this managed account service. Call for more information. Fidelity Portfolio Advisory Service at Work is a service of Strategic Advisers, Inc., a registered investment adviser and a Fidelity Investments company. This service provides discretionary money management for a fee. Please note that performance of the model portfolios depends on the performance of the underlying investment options. These investments are subject to the volatility of the financial markets in the U.S. and abroad and may be subject to additional risks with investing in high yield, small-cap, and foreign securities. Where can I find details on the investment options available in my plan? Log on to Select your Bon Secours plan account then click on Investment Choices and Research from the side-bar menu. From there, click on any of the investment options offered in your plan for detailed information, including performance, fees and expenses. You can also refer to the "Investment Options" section of this guide beginning on page 5. 2

5 What if I don t make an investment election? We encourage you to take an active role in the Plan and choose investment options that best suit your goals, time horizon, and risk tolerance. If you do not select specific investment options in the Plan, your contributions will be invested in the T. Rowe Price Retirement Date Fund with the target retirement date closest to the year you might retire, based on your current age and assuming a retirement age of 65, at the direction of Bon Secours. Please refer to the chart in the Investment Options section for more detail. If no date of birth or an invalid date of birth is on file at Fidelity your contributions may be invested in the T. Rowe Price Retirement 2005 Fund. For more information about the T. Rowe Price Retirement Date Fund options, log on to How much should I save for retirement? Fidelity s planning tools are designed to help you manage your assets as you plan for retirement. Simply log on to Fidelity NetBenefits at to access these tools. When am I vested? When you are "vested" in your savings, it effectively means the money is yours to keep. You are always 100% vested in your contributions to the Plan, as well as any earnings on them. You will be vested for any employer contributions after reaching 2 years of service. A year of service is a 12 month period in which you complete at least 780 hours of service. Can I take a loan from my account? Although your plan account is intended for the future, you may borrow from your account for any reason. Generally, plan rules allow you to borrow up to 50% of your vested account balance. You are limited to taking one loan in any 12 month period. A maximum of two loans outstanding at a time, across all Plans, is allowed- one general loan and one home loan. You may not have two loans of the same type at one time. The minimum loan amount is $1,000, and a loan must not exceed $50,000. Any outstanding loan balances from the previous 12 months may reduce the amount you have available to borrow. You then pay the money back into your account, plus interest, through ACH deductions from your bank account. Note: If you fail to repay your loan (based on the original terms of the loan), it will be considered in "default" and treated as a distribution, making it subject to income tax and possibly to a 10% early withdrawal tax penalty. Defaulted loans may also impact your eligibility to request additional loans. To learn more about or request a loan, log on to or call the Fidelity Retirement Service Center at (800) Can I make withdrawals from my account? Withdrawals from the Plan are permitted when you reach age 59½, terminate employment, retire, become permanently disabled or have severe financial hardship as defined by your Plan. Keep in mind that withdrawals are subject to income taxes and possibly to early withdrawal penalties. The taxable portion of your withdrawal that is eligible for rollover into an individual retirement account (IRA) or another employer s retirement plan is subject to 20% mandatory federal income tax withholding, unless it is rolled directly over to an IRA or another employer plan. (You may owe more or less when you file your income taxes.) If you are under age 59½, the taxable portion of your withdrawal is also subject to a 10% early withdrawal penalty, unless you qualify for an exception to this rule. To learn more about and/or to request a withdrawal, log FAQs For more information visit or call (800)

6 FAQs on to Fidelity NetBenefits at or call the Fidelity Retirement Service Center at (800) The plan document and current tax laws and regulations will govern in case of a discrepancy. Be sure you understand the tax consequences and your plan s rules for distributions before you initiate a distribution. You may want to consult your tax adviser about your situation. When you leave the Employer, you can withdraw contributions and any associated earnings or, if your vested account balance is greater than $5,000, you can leave contributions and any associated earnings in the Plan. After you leave the Employer, if your vested account balance is equal to or less than $5,000, it will automatically be distributed to you. Can I move money from another retirement plan into my account in the Bon Secours Charity Health System Tax Sheltered Annuity Plan? You are permitted to roll over eligible pretax contributions from another 401(k) plan, 403(b) plan or a governmental 457(b) retirement plan account or eligible pretax contributions from conduit and nonconduit Individual Retirement Accounts (IRAs), including SEP & Simple IRAs. Contact your Fidelity Investments Representative for details. You should consult your tax adviser and carefully consider the impact of making a rollover contribution to your employer s plan because it could affect your eligibility for future special tax treatments. Where can I find information about exchanges and other plan features? You can learn about exchanges, withdrawals and more online through Fidelity NetBenefits at In particular, you can access a withdrawal modeling tool, which shows the amount of federal income taxes and early withdrawal penalties you might pay, along with the amount of earnings you could potentially lose by taking a withdrawal. You can also obtain more information about exchanges, withdrawals, and other plan features, by calling the Fidelity Retirement Service Center at (800) to speak with a representative or use the automated voice response system, virtually 24 hours, 7 days a week. Additional services Fidelity Workplace Planning & Guidance Consultants are available to provide free one-on-one guidance for participants in the plan. Visit and click "Meet" at the bottom of the page to view a schedule of available times for your location. Account statements are available on demand through NetBenefits or by calling the Fidelity Retirement Service Center at (800) How do I access my account? You can access your account online through Fidelity NetBenefits at or call the Fidelity Retirement Service Center at (800) to speak with a representative or use the automated voice response system, virtually 24 hours, 7 days a week. 4

7 Investment Options Here is a list of investment options for the Bon Secours Charity Health System Tax Sheltered Annuity Plan. For up-to-date performance information and other fund specifics, go to To discuss your objectives and options, contact a Fidelity Retirement Representative for a one-on-one discussion at (800) Tier 1: Lifecycle Funds Placement of investment options within each risk spectrum is only in relation to the investment options within that specific spectrum. Placement does not reflect risk relative to the investment options shown in the other risk spectrums. Investment options to the left have potentially more inflation risk and less investment risk T. Rowe Price Retirement 2005 Fund T. Rowe Price Retirement 2010 Fund T. Rowe Price Retirement 2015 Fund Lifecycle Funds T. Rowe Price Retirement 2020 Fund T. Rowe Price Retirement 2025 Fund T. Rowe Price Retirement 2030 Fund T. Rowe Price Retirement 2035 Fund Investment options to the right have potentially less inflation risk and more investment risk T. Rowe Price Retirement 2040 Fund T. Rowe Price Retirement 2045 Fund T. Rowe Price Retirement 2050 Fund T. Rowe Price Retirement 2055 Fund Target date investments are generally designed for investors expecting to retire around the year indicated in each investment s name. The investments are managed to gradually become more conservative over time. The investment risks of each target date investment 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 foreign securities. Principal invested is not guaranteed at any time, including at or after their target dates. The chart below lists the assigned fund the Bon Secours Charity Health System Tax Sheltered Annuity Plan believes will best fit your diversification needs should you not select an investment option. Your Birth Date* Fund Name Target Retirement Years Before 1940 T. Rowe Price Retirement 2005 Fund Retired before 2005 January 1, December 31, 1944 T. Rowe Price Retirement 2010 Fund Target Years January 1, December 31, 1949 T. Rowe Price Retirement 2015 Fund Target Years January 1, December 31, 1954 T. Rowe Price Retirement 2020 Fund Target Years January 1, December 31, 1959 T. Rowe Price Retirement 2025 Fund Target Years January 1, December 31, 1964 T. Rowe Price Retirement 2030 Fund Target Years January 1, December 31, 1969 T. Rowe Price Retirement 2035 Fund Target Years January 1, December 31, 1974 T. Rowe Price Retirement 2040 Fund Target Years January 1, December 31, 1979 T. Rowe Price Retirement 2045 Fund Target Years January 1, December 31, 1984 T. Rowe Price Retirement 2050 Fund Target Years January 1, 1985 and later* T. Rowe Price Retirement 2055 Fund Target Years 2050 and beyond Investment Options For more information visit or call (800) *Dates selected by Plan Sponsor 5

8 Investment Options Tier 2: Core Investment Options Investment options to the left have potentially more inflation risk and less investment risk CONSERVATIVE Investment options to the right have potentially less inflation risk and more investment risk AGGRESSIVE SHORT-TERM INVESTMENT BOND STOCKS AND BONDS STOCKS Money Market Bond Balanced/ Hybrid Domestic Equities International/ Global Vanguard Federal Money Market Fund Investor Shares International / Global Legg Mason BW Global Opportunities Bond Fund Class IS Diversified Metropolitan West Total Return Bond Fund Plan Class Vanguard LifeStrategy Conservative Growth Fund Investor Shares Vanguard LifeStrategy Growth Fund Investor Shares Vanguard LifeStrategy Moderate Growth Fund Investor Shares Large Value Invesco Diversified Dividend Fund Class R6 Large Blend Vanguard FTSE Social Index Fund Institutional Shares Vanguard Institutional Index Fund Institutional Shares Mid Blend Vanguard Mid-Cap Index Fund Institutional Shares Small Blend Large Growth Nuveen Winslow Large-Cap Growth Fund Class I Small Growth Baron Small Cap Fund Institutional Class Diversified Harbor International Fund Institutional Class Emerging Markets DFA Emerging Markets Value Portfolio Institutional Class Touchstone Small Cap Value Opportunities Fund Class Y Vanguard Small- Cap Index Fund Institutional Shares This spectrum, with the exception of the Domestic Equity category, is based on Fidelity s analysis of the characteristics of the general investment categories of the investment options and not on the actual security holdings, which can change frequently. Investment options in the Domestic Equity category are based on the options Morningstar categories as of 05/31/2016. Morningstar categories are based on a fund s style as measured by its underlying portfolio holdings over the past three years and may change at any time. These style calculations do not represent the investment options objectives and do not predict the investment options future styles. Investment options are listed in alphabetical order within each investment category. Risk associated with the investment options can vary significantly within each particular investment category, and the relative risk of categories may change under certain economic conditions. For a more complete discussion of risk associated with the mutual fund options, please read the prospectuses before making your investment decision. The spectrum does not represent actual or implied performance. 6

9 Fidelity BrokerageLink Fidelity BrokerageLink combines the convenience of your workplace retirement plan with the additional flexibility of a brokerage account. It gives you expanded investment choices to manage your retirement contributions. BrokerageLink includes investments beyond those in your plan s lineup. The plan fiduciary neither evaluates nor monitors the investments available through BrokerageLink. It is your responsibility to ensure that the investments you select are suitable for your situation, including your goals, time horizon, and risk tolerance. See the fact sheet and commission schedule for applicable fees and risks. Fidelity BrokerageLink For more information visit or call (800)

10 8Fidelity BrokerageLink

11 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. Baron Small Cap Fund Institutional Class VRS Code: Fund Objective: The investment seeks capital appreciation through investments primarily in securities of small-sized growth companies. Fund Strategy: The fund invests 80% of its net assets in equity securities in the form of common stock of small-sized growth companies. BAMCO, Inc. ("BAMCO" or the "Adviser") defines small-sized companies as those, at the time of purchase, with market capitalizations up to the largest market cap stock in the Russell 2000 Growth Index at reconstitution, or companies with market capitalizations up to $2.5 billion, whichever is larger. Fund Risk: The securities of smaller, less well-known companies can be more volatile than those of larger companies. Growth stocks can perform differently from the market as a whole and can be more volatile than other types of stocks. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, economic or other developments. These risks may be magnified in foreign markets. Additional risk information for this product may be found in the prospectus or other product materials, if available. Someone who is seeking the potential for long-term share-price appreciation. Someone who is willing to accept the generally greater price volatility associated both with growth-oriented stocks and with smaller companies. The Russell 2000 Growth Index is an unmanaged market capitalization-weighted index of growth-oriented stocks of U.S. domiciled companies that are included in the Russell 2000 Index. Growth-oriented stocks tend to have higher price-to-book ratios and higher forecasted growth values. Except for Life of Fund returns, the analysis on these pages may be based, in part, on adjusted historical returns for periods prior to the class s actual inception of 05/29/2009. These calculated returns reflect the historical performance of the oldest share class of the fund, with an inception date of 09/30/1997, adjusted to reflect the fees and expenses of this share class (when this share class s fees and expenses are higher.) Please refer to a fund s prospectus for information regarding fees and expenses. These adjusted historical returns are not actual returns. Calculation methodologies utilized by Morningstar may differ from those applied by other entities, including the fund itself. DFA Emerging Markets Value Portfolio Institutional Class VRS Code: Fund Objective: The investment seeks long-term capital appreciation. Fund Strategy: The Portfolio is a Feeder Portfolio and pursues its objective by investing substantially all of its assets in its corresponding master fund, the Dimensional Emerging Markets Value Fund (the "Emerging Markets Value Fund" or "master fund"), which has the same investment objective and policies as the Portfolio. As a non-fundamental policy, under normal circumstances, it will invest at least 80% of its net assets in emerging markets investments that are defined in the Prospectus as Approved Markets securities. Investment Options For more information visit or call (800)

12 Investment Options Fund Risk: Foreign securities are subject to interest-rate, currency-exchange-rate, economic, and political risks, all of which may be magnified in emerging markets. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, economic or other developments. Additional risk information for this product may be found in the prospectus or other product materials, if available. Someone who is willing to accept the higher degree of risk associated with investing in emerging markets. Someone who is seeking to complement a portfolio of domestic investments and/or international investments in developed countries with investments in developing countries, which can behave differently. Harbor International Fund Institutional Class VRS Code: Fund Objective: The investment seeks long-term total return, principally from growth of capital. Fund Strategy: The fund invests normally in a minimum of ten countries throughout the world, focusing on companies located in Europe, the Pacific Basin and emerging industrialized countries whose economies and political regimes appear stable. It invests primarily (no less than 65% of its total assets) in common and preferred stocks of foreign companies, including those located in emerging market countries. Companies in the fund s portfolio generally have market capitalizations in excess of $1 billion at the time of purchase. Fund Risk: Foreign securities are subject to interest-rate, currency-exchange-rate, economic, and political risks, all of which may be magnified in emerging markets. Value and growth stocks can perform differently from other types of stocks. Growth stocks can be more volatile. Value stocks can continue to be undervalued by the market for long periods of time. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, economic or other developments. Additional risk information for this product may be found in the prospectus or other product materials, if available. Someone who is seeking to complement a portfolio of domestic investments with international investments, which can behave differently. Someone who is willing to accept the higher degree of risk associated with investing overseas. Invesco Diversified Dividend Fund Class R6 VRS Code: Fund Objective: The investment seeks long-term growth of capital and, secondarily, current income. Fund Strategy: The fund invests primarily in dividend-paying equity securities. It invests in securities that the portfolio managers believe are undervalued based on various valuation measures. The fund may invest up to 25% of its net assets in securities of foreign issuers. Fund Risk: Value stocks can perform differently than other types of stocks and can continue to be undervalued by the market for long periods of time. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, economic or other developments. These risks may be magnified in foreign markets. Additional risk information for this product may be found in the prospectus or other product materials, if available. Someone who is seeking the potential for long-term share-price appreciation and, secondarily, dividend income. Someone who is comfortable with the volatility of large-cap stocks and value-style investments. 10

13 Except for Life of Fund returns, the analysis on these pages may be based, in part, on adjusted historical returns for periods prior to the class s actual inception of 09/24/2012. These calculated returns reflect the historical performance of the oldest share class of the fund, with an inception date of 12/31/2001, adjusted to reflect the fees and expenses of this share class (when this share class s fees and expenses are higher.) Please refer to a fund s prospectus for information regarding fees and expenses. These adjusted historical returns are not actual returns. Calculation methodologies utilized by Morningstar may differ from those applied by other entities, including the fund itself. Legg Mason BW Global Opportunities Bond Fund Class IS VRS Code: Fund Objective: The investment seeks to maximize total return consisting of income and capital appreciation. Fund Strategy: The fund normally invests at least 80% of its net assets in fixed income securities of issuers located in developed market countries. It will invest in both investment grade and below investment grade fixed income securities, and the advisor intends to invest less than 35% of its net assets in below investment grade fixed income securities (commonly known as "high yield debt" or "junk bonds"). The fund may invest up to 25% of its net assets in convertible debt securities. It is non-diversified. Fund Risk: Foreign securities are subject to interest-rate, currency-exchange-rate, economic, and political risks, all of which may be magnified in emerging markets. The fund may invest in lower-quality debt securities that 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 fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible. Additional risk information for this product may be found in the prospectus or other product materials, if available. Someone who is seeking potential returns primarily in the form of interest dividends rather than through an increase in share price. Someone who is seeking to complement his or her core bond holdings with international bond investments and who can tolerate the greater risks associated with foreign investments. Metropolitan West Total Return Bond Fund Plan Class VRS Code: Fund Objective: The investment seeks to maximize long-term total return. Fund Strategy: The fund pursues its objective by investing, under normal circumstances, at least 80% of its net assets in investment grade fixed income securities or unrated securities that are determined by the Adviser to be of similar quality. Up to 20% of the fund s net assets may be invested in securities rated below investment grade. The fund also invests at least 80% of its net assets plus borrowings for investment purposes in fixed income securities it regards as bonds. Fund Risk: In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible. Additional risk information for this product may be found in the prospectus or other product materials, if available. Someone who is seeking potential returns primarily in the form of interest dividends rather than through an increase in share price. Someone who is seeking to diversify an equity portfolio with a more conservative investment option. Investment Options For more information visit or call (800)

14 Investment Options Except for Life of Fund returns, the analysis on these pages may be based, in part, on adjusted historical returns for periods prior to the class s actual inception of 07/29/2011. These calculated returns reflect the historical performance of the oldest share class of the fund, with an inception date of 03/31/1997, adjusted to reflect the fees and expenses of this share class (when this share class s fees and expenses are higher.) Please refer to a fund s prospectus for information regarding fees and expenses. These adjusted historical returns are not actual returns. Calculation methodologies utilized by Morningstar may differ from those applied by other entities, including the fund itself. Nuveen Winslow Large-Cap Growth Fund Class I VRS Code: Fund Objective: The investment seeks long-term capital appreciation. Fund Strategy: The fund invests at least 80% of the sum of its net assets and the amount of any borrowings for investment purposes in equity securities of U.S. companies with market capitalizations in excess of $4 billion at the time of purchase. It may invest up to 20% of its net assets in non-u.s. equity securities. Fund Risk: Growth stocks can perform differently from the market as a whole and can be more volatile than other types of stocks. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, economic or other developments. These risks may be magnified in foreign markets. Additional risk information for this product may be found in the prospectus or other product materials, if available. Someone who is seeking the potential for long-term share-price appreciation. Someone who is willing to accept the generally greater price volatility associated with growth-oriented stocks. T. Rowe Price Retirement 2005 Fund VRS Code: Fund Objective: The investment seeks the highest total return over time consistent with an emphasis on both capital growth and income. Fund Strategy: The fund pursues its objective by investing in a diversified portfolio of other T. Rowe Price stock and bond funds that represent various asset classes and sectors. It is managed based on the specific retirement year (target date 2005) included in its name and assumes a retirement age of 65. While the fund is non-diversified, it invests in diversified underlying holdings. Fund Risk: The target date funds are designed for investors expecting to retire around the year indicated in each fund s name. The funds are managed to gradually become more conservative over time as they approach their target date. The investment risk of each target date fund changes over time as its asset allocation changes. They are subject to the volatility of the financial markets, including that of 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 foreign securities. Principal invested is not guaranteed at any time, including at or after their target dates. Additional risk information for this product may be found in the prospectus or other product materials, if available. Someone who is seeking an investment option intended for people in or very near retirement and who is willing to accept the volatility of diversified investments in the market. Someone who is seeking a diversified mix of stocks, bonds, and short-term investments in one investment option or who does not feel comfortable making asset allocation choices over time. 12

15 T. Rowe Price Retirement 2010 Fund VRS Code: Fund Objective: The investment seeks the highest total return over time consistent with an emphasis on both capital growth and income. Fund Strategy: The fund invests in a diversified portfolio of other T. Rowe Price stock and bond funds that represent various asset classes and sectors. Its allocation between T. Rowe Price stock and bond funds will change over time in relation to its target retirement date. The fund is managed based on the specific retirement year (target date 2010) included in its name and assumes a retirement age of 65. While the fund is non-diversified, it invests in diversified underlying holdings. Fund Risk: The target date funds are designed for investors expecting to retire around the year indicated in each fund s name. The funds are managed to gradually become more conservative over time as they approach their target date. The investment risk of each target date fund changes over time as its asset allocation changes. They are subject to the volatility of the financial markets, including that of 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 foreign securities. Principal invested is not guaranteed at any time, including at or after their target dates. Additional risk information for this product may be found in the prospectus or other product materials, if available. Someone who is seeking an investment option intended for people in or very near retirement and who is willing to accept the volatility of diversified investments in the market. Someone who is seeking a diversified mix of stocks, bonds, and short-term investments in one investment option or who does not feel comfortable making asset allocation choices over time. T. Rowe Price Retirement 2015 Fund VRS Code: Fund Objective: The investment seeks the highest total return over time consistent with an emphasis on both capital growth and income. Fund Strategy: The fund invests in a diversified portfolio of other T. Rowe Price stock and bond funds that represent various asset classes and sectors. Its allocation between T. Rowe Price stock and bond funds will change over time in relation to its target retirement date. The fund is managed based on the specific retirement year (target date 2015) included in its name and assumes a retirement age of 65. While the fund is non-diversified, it invests in diversified underlying holdings. Fund Risk: The target date funds are designed for investors expecting to retire around the year indicated in each fund s name. The funds are managed to gradually become more conservative over time as they approach their target date. The investment risk of each target date fund changes over time as its asset allocation changes. They are subject to the volatility of the financial markets, including that of 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 foreign securities. Principal invested is not guaranteed at any time, including at or after their target dates. Additional risk information for this product may be found in the prospectus or other product materials, if available. Someone who is seeking an investment option intended for people in or very near retirement and who is willing to accept the volatility of diversified investments in the market. Someone who is seeking a diversified mix of stocks, bonds, and short-term investments in one investment option or who does not feel comfortable making asset allocation choices over time. Investment Options For more information visit or call (800)

16 Investment Options T. Rowe Price Retirement 2020 Fund VRS Code: Fund Objective: The investment seeks the highest total return over time consistent with an emphasis on both capital growth and income. Fund Strategy: The fund invests in a diversified portfolio of other T. Rowe Price stock and bond funds that represent various asset classes and sectors. Its allocation between T. Rowe Price stock and bond funds will change over time in relation to its target retirement date. The fund is managed based on the specific retirement year (target date 2020) included in its name and assumes a retirement age of 65. While the fund is non-diversified, it invests in diversified underlying holdings. Fund Risk: The target date funds are designed for investors expecting to retire around the year indicated in each fund s name. The funds are managed to gradually become more conservative over time as they approach their target date. The investment risk of each target date fund changes over time as its asset allocation changes. They are subject to the volatility of the financial markets, including that of 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 foreign securities. Principal invested is not guaranteed at any time, including at or after their target dates. Additional risk information for this product may be found in the prospectus or other product materials, if available. Someone who is seeking an investment option that gradually becomes more conservative over time and who is willing to accept the volatility of the markets. Someone who is seeking a diversified mix of stocks, bonds, and short-term investments in one investment option or who does not feel comfortable making asset allocation choices over time. T. Rowe Price Retirement 2025 Fund VRS Code: Fund Objective: The investment seeks the highest total return over time consistent with an emphasis on both capital growth and income. Fund Strategy: The fund invests in a diversified portfolio of other T. Rowe Price stock and bond funds that represent various asset classes and sectors. Its allocation between T. Rowe Price stock and bond funds will change over time in relation to its target retirement date. The fund is managed based on the specific retirement year (target date 2025) included in its name and assumes a retirement age of 65. While the fund is non-diversified, it invests in diversified underlying holdings. Fund Risk: The target date funds are designed for investors expecting to retire around the year indicated in each fund s name. The funds are managed to gradually become more conservative over time as they approach their target date. The investment risk of each target date fund changes over time as its asset allocation changes. They are subject to the volatility of the financial markets, including that of 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 foreign securities. Principal invested is not guaranteed at any time, including at or after their target dates. Additional risk information for this product may be found in the prospectus or other product materials, if available. Someone who is seeking an investment option that gradually becomes more conservative over time and who is willing to accept the volatility of the markets. Someone who is seeking a diversified mix of stocks, bonds, and short-term investments in one investment option or who does not feel comfortable making asset allocation choices over time. 14

17 T. Rowe Price Retirement 2030 Fund VRS Code: Fund Objective: The investment seeks the highest total return over time consistent with an emphasis on both capital growth and income. Fund Strategy: The fund invests in a diversified portfolio of other T. Rowe Price stock and bond funds that represent various asset classes and sectors. Its allocation between T. Rowe Price stock and bond funds will change over time in relation to its target retirement date. The fund is managed based on the specific retirement year (target date 2030) included in its name and assumes a retirement age of 65. While the fund is non-diversified, it invests in diversified underlying holdings. Fund Risk: The target date funds are designed for investors expecting to retire around the year indicated in each fund s name. The funds are managed to gradually become more conservative over time as they approach their target date. The investment risk of each target date fund changes over time as its asset allocation changes. They are subject to the volatility of the financial markets, including that of 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 foreign securities. Principal invested is not guaranteed at any time, including at or after their target dates. Additional risk information for this product may be found in the prospectus or other product materials, if available. Someone who is seeking an investment option that gradually becomes more conservative over time and who is willing to accept the volatility of the markets. Someone who is seeking a diversified mix of stocks, bonds, and short-term investments in one investment option or who does not feel comfortable making asset allocation choices over time. T. Rowe Price Retirement 2035 Fund VRS Code: Fund Objective: The investment seeks the highest total return over time consistent with an emphasis on both capital growth and income. Fund Strategy: The fund invests in a diversified portfolio of other T. Rowe Price stock and bond funds that represent various asset classes and sectors. Its allocation between T. Rowe Price stock and bond funds will change over time in relation to its target retirement date. The fund is managed based on the specific retirement year (target date 2035) included in its name and assumes a retirement age of 65. While the fund is non-diversified, it invests in diversified underlying holdings. Fund Risk: The target date funds are designed for investors expecting to retire around the year indicated in each fund s name. The funds are managed to gradually become more conservative over time as they approach their target date. The investment risk of each target date fund changes over time as its asset allocation changes. They are subject to the volatility of the financial markets, including that of 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 foreign securities. Principal invested is not guaranteed at any time, including at or after their target dates. Additional risk information for this product may be found in the prospectus or other product materials, if available. Someone who is seeking an investment option that gradually becomes more conservative over time and who is willing to accept the volatility of the markets. Someone who is seeking a diversified mix of stocks, bonds, and short-term investments in one investment option or who does not feel comfortable making asset allocation choices over time. Investment Options For more information visit or call (800)

18 Investment Options T. Rowe Price Retirement 2040 Fund VRS Code: Fund Objective: The investment seeks the highest total return over time consistent with an emphasis on both capital growth and income. Fund Strategy: The fund invests in a diversified portfolio of other T. Rowe Price stock and bond funds that represent various asset classes and sectors. Its allocation between T. Rowe Price stock and bond funds will change over time in relation to its target retirement date. The fund is managed based on the specific retirement year (target date 2040) included in its name and assumes a retirement age of 65. While the fund is non-diversified, it invests in diversified underlying holdings. Fund Risk: The target date funds are designed for investors expecting to retire around the year indicated in each fund s name. The funds are managed to gradually become more conservative over time as they approach their target date. The investment risk of each target date fund changes over time as its asset allocation changes. They are subject to the volatility of the financial markets, including that of 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 foreign securities. Principal invested is not guaranteed at any time, including at or after their target dates. Additional risk information for this product may be found in the prospectus or other product materials, if available. Someone who is seeking an investment option that gradually becomes more conservative over time and who is willing to accept the volatility of the markets. Someone who is seeking a diversified mix of stocks, bonds, and short-term investments in one investment option or who does not feel comfortable making asset allocation choices over time. T. Rowe Price Retirement 2045 Fund VRS Code: Fund Objective: The investment seeks the highest total return over time consistent with an emphasis on both capital growth and income. Fund Strategy: The fund invests in a diversified portfolio of other T. Rowe Price stock and bond funds that represent various asset classes and sectors. Its allocation between T. Rowe Price stock and bond funds will change over time in relation to its target retirement date. The fund is managed based on the specific retirement year (target date 2045) included in its name and assumes a retirement age of 65. While the fund is non-diversified, it invests in diversified underlying holdings. Fund Risk: The target date funds are designed for investors expecting to retire around the year indicated in each fund s name. The funds are managed to gradually become more conservative over time as they approach their target date. The investment risk of each target date fund changes over time as its asset allocation changes. They are subject to the volatility of the financial markets, including that of 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 foreign securities. Principal invested is not guaranteed at any time, including at or after their target dates. Additional risk information for this product may be found in the prospectus or other product materials, if available. Someone who is seeking an investment option that gradually becomes more conservative over time and who is willing to accept the volatility of the markets. Someone who is seeking a diversified mix of stocks, bonds, and short-term investments in one investment option or who does not feel comfortable making asset allocation choices over time. 16