Savings and Investment Plan for the Employees of Jackson County Memorial Hospital Upcoming changes

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1 Savings and Investment Plan for the Employees of Jackson County Memorial Hospital Upcoming changes There are enhancements that will soon become available to you in your Savings and Investment Plan for the Employees of Jackson County Memorial Hospital (the Plan ) effective February 18, The Plan will transition to a different system available through Schwab Retirement Plan Services, Inc. This newsletter provides you with important information that will allow you to become familiar with the upcoming changes to the Plan and the different ways to access your account once the transition is complete. Overall, your Plan features will remain the same. For instance, third-party retirement plan advice powered by Morningstar Associates, LLC ( Morningstar ), 1 an independent registered investment advisor, remains the same for your plan. If you are eligible for the Plan but not participating in it, this transition offers you the opportunity to take full advantage of everything the Plan has to offer. Take some time to assess your goals, carefully review your investment strategy, and try out some of the various resources and tools available through Schwab Retirement Plan Services, Inc. Some of the updates coming to the Plan in February: A selection of target date funds Workplace.schwab.com, a new website for accessing your account A new toll-free number, , so that you can speak directly with a Participant Services Representative Please visit the transition website at jacksoncounty.schwabplan.com regularly for important communications that will keep you informed during this period.

2 About the brief period of no activity Important transition information At this point, no action is required on your part. Your account access will remain the same until the transition begins. Your current account will automatically transfer to the new recordkeeping system on February 18, There will be a brief period of no activity, during which you will not be able to transact in your account. During this period of no activity, all information pertaining to your account will be transferred over to the new system. Your investments and elections for future contributions that are on file at the time of the transfer will be moved to the new recordkeeping system, as will any beneficiary designations. Your contributions and loan repayments, if any, will continue to be deducted from your paycheck and deposited into your account after the transition is complete. Whether or not you are planning retirement in the near future, we encourage you to carefully consider how this transition may affect your retirement planning, as well as your overall financial plan. Calendar of events Please review the information in this table carefully. If you wish to make changes to your account, note the important deadlines for certain types of transactions. Calendar of events Access account as usual: From now until 3:00 p.m. CT on February 18, 2015 Last day to request a distribution: February 12, 2015 (3:00 p.m. CT) Last day for account setting changes: February 15, 2015 (3:00 p.m. CT) Last day to execute a transfer: February 18, 2015 (3:00 p.m. CT) Period of no activity begins: February 18, 2015, at 3:00 p.m. CT Period of no activity anticipated to end: Week of February 23, 2015 You may continue to access your retirement account online at or by calling The deadline for distribution requests such as loans is 3:00 p.m. CT on February 12, The deadline to change your deferral rate or to enroll in the Plan is 3:00 p.m. CT on February 15, The deadline to execute a fund transfer or make an investment election change is 3:00 p.m. CT on February 18, During this time, you will not be able to transact in your account. Participants may not change investment elections during the stated period of no activity. Participants who are concerned about the volatility of the market may want to consider reallocating their current investment mix prior to the period of no activity. After this point, you will have access to your account and may make investment changes at workplace.schwab.com or by calling Participant Services at The date set forth for the end of the period of no activity is an estimate. Experience with your Plan may differ. This estimate should not be considered a guarantee for any purpose. 2

3 Investment options Along with the transition to the new system at Schwab Retirement Plan Services, Inc., the following changes to the Plan-selected funds are occurring, as determined by the Plan. Your existing account balances and investment elections for future contributions will be transferred as demonstrated in the table below. Some of the options will remain in the Plan and will transfer in kind. These in-kind transfers are in bold. For additional information on each of the investment options, visit jacksoncounty.schwabplan.com. Fund name New fund name Asset category Stable Value Fund (n/a) Stable Value Fund (n/a) Stable Value PIMCO Total Return D (PTTDX) PIMCO Total Return D (PTTDX) Intermediate-Term Bond Invesco Real Estate A (IARAX) Invesco Real Estate A (IARAX) Specialty Real Estate American Funds Washington Mutual A (AWSHX) American Funds Growth Fund of Amer A (AGTHX) Perkins Small Cap Value T (JSCVX) Sentinel Small Company A (SAGWX) American Funds Washington Mutual A (AWSHX) American Funds Growth Fund of Amer A (AGTHX) Perkins Small Cap Value T (JSCVX) Sentinel Small Company A (SAGWX) Large Cap Value Large Cap Growth Small Cap Value Small Cap Growth Templeton Foreign A (TEMFX) Templeton Foreign A (TEMFX) Foreign Large Value American Funds EuroPacific Growth A (AEPGX) Conservative Model (n/a) Moderate Model (n/a) Moderate Aggressive Model (n/a) Aggressive Model (n/a) American Funds EuroPacific Growth A (AEPGX) Schwab Managed Trust Fund closest to your 65th birthday Schwab Managed Trust Fund closest to your 65th birthday Schwab Managed Trust Fund closest to your 65th birthday Schwab Managed Trust Fund closest to your 65th birthday Foreign Large Growth Target date fund Target date fund Target date fund Target date fund Please see page 4 for more information on the Schwab Managed Retirement Trust Funds. 3

4 Target date funds With the transition, your Plan will now offer target date funds in place of the Ibbotson models. Like asset allocation models, target date funds are designed to be a single investment option. Each target date fund offers a diversified investment mix and is professionally managed based on the target date of the fund. However, unlike asset allocation models, target date funds adjust to become more conservative as each fund s target date approaches. When selecting a target date fund, consider choosing a fund with a date or description that best matches your expected retirement date, in addition to considering any other financial goals or factors that are important to you. It is important that you regularly review your investment decisions and make certain that your elections are in line with your savings goal. The Plan now offers target date funds in five-year increments. This lineup provides you with the opportunity to select a fund that you feel is most appropriate. If you are currently invested in an asset allocation model, assets in the model will be transferred, or mapped, to one of the Schwab Managed Retirement Trust Funds on February 18, Assets will be mapped based on your year of birth, as selected by the Plan (see the table that follows). If you do not want your model portfolio balance to be transferred to a target date fund, you will need to allocate your assets to Plan selected funds before February 18, You may want to take this opportunity to make sure that you are in the target date fund that best represents your retirement goals. Target date retirement funds These target date retirement funds are designed and professionally managed based on a target date. These funds adjust over time to help meet changing risk and return objectives up to and beyond the target date. Year of birth Fund by expected year of retirement 1988 and after Schwab Managed Retirement Trust Fund Schwab Managed Retirement Trust Fund Schwab Managed Retirement Trust Fund Schwab Managed Retirement Trust Fund Schwab Managed Retirement Trust Fund Schwab Managed Retirement Trust Fund Schwab Managed Retirement Trust Fund Schwab Managed Retirement Trust Fund Schwab Managed Retirement Trust Fund Schwab Managed Retirement Trust Fund 2010 Prior to 1943 Schwab Managed Retirement Trust Income Fund* *Schwab Managed Retirement Trust Fund 2030 is used if Schwab Retirement Plan Services, Inc. does not know your year of birth when contributions are made. The values of the target fund will fluctuate up to and after the target date. There is no guarantee the funds will provide adequate income at or through retirement. 4

5 Retirement plan advice After the transition, you can get help managing your account with Morningstar Retirement Manager SM, which can provide and implement a point-in-time savings and investment recommendation based on your current situation. This service can be accessed online at any time through workplace.schwab.com. It is important that you regularly review your account and revisit the recommendations at least once a year. To learn more, call and speak with a Participant Services Representative at Next steps Once the transition is complete, Schwab Retirement Plan Services, Inc. will send you a letter that will provide a new login and password. You re encouraged to take this opportunity to visit the participant website or speak to a Participant Services Representative to take full advantage of everything the Plan has to offer. Take some time to assess your goals, carefully review your investment strategy, and, once the transition is complete, take advantage of the various resources and tools available through Schwab Retirement Plan Services, Inc. As an additional feature, you will have access to an online interactive tool that can provide and implement a point-in-time savings rate and asset allocation recommendation based on your current situation. These recommendations are formulated and provided by Morningstar Retirement Manager SM and can be accessed through workplace.schwab.com. 5

6 Resources available once the transition is complete Retirement plan website You can check balances, request investment information, choose investments, change how much you contribute, elect or update your beneficiary designations, opt in to electronic delivery of communications from Schwab Retirement Plan Services, Inc., use investment education tools, and more at workplace.schwab.com. Participant Services While the phone number will change, your access to Participant Services Representatives remains the same. You ll be able to choose investments, request investment information, elect or update your beneficiary designations, check balances, and more by phone at from 6:00 a.m. to 10:00 p.m. CT, Monday through Friday. Schwab Workplace Retirement app for Android, iphone, and Kindle Fire Get on-the-go access to your retirement savings progress with the free Schwab Workplace Retirement app for Android, iphone, and Kindle Fire. You can check your retirement plan account balance, view your contribution rate and year-to-date performance, and more. 6

7 1 Retirement plan investment advice is formulated and provided by Morningstar Retirement Manager SM ( Morningstar ), which is not affiliated with or an agent of Charles Schwab & Co., Inc. (CS&Co.), a federally registered investment advisor; Schwab Retirement Plan Services Company (SRPS); or any of their affiliates. The Morningstar service is available to participants enrolled in plans that use the recordkeeping and related services of SRPS. Participant access to the Morningstar service is facilitated through CS&Co. Neither CS&Co., SRPS, nor their affiliates supervise, make recommendations with respect to, or take responsibility for monitoring the advice provided to participants by Morningstar. At the Plan Sponsor s direction, participants may also have access to an online interactive tool, currently available at no additional cost. This tool can provide them a point-in-time savings rate and asset allocation recommendation based on the participant s current situation. These recommendations are formulated and provided by Morningstar and can be accessed through workplace.schwab.com. The ongoing discretionary management which Morningstar provides as part of Managed Account Services does not apply to point-in-time recommendations. The Schwab Managed Retirement Trust Funds and Schwab Institutional Trust Funds are collective trust funds maintained by Charles Schwab Bank ( Schwab Bank ), as trustee of the Funds. They are available for investment only by eligible retirement plans and entities. Schwab Bank Collective Trust Funds ( Funds ) are not insured by the FDIC or any other type of deposit insurance; are not deposits or other obligations of, and are not guaranteed by, Schwab Bank or any of its affiliates; and involve investment risks, including possible loss of principal invested. The Funds are not mutual funds and are exempt from registration and regulation under the Investment Company Act of 1940 ( 1940 Act ), and their units are not registered under the Securities Act of 1933, or applicable securities laws of any state or other jurisdiction. Unit holders of the Funds are not entitled to the protections of the 1940 Act. The decision to invest in the Funds should be carefully considered. The Funds unit values will fluctuate and may be worth more or less when redeemed, so unit holders may lose money. The Funds are not sold by prospectus and are not available for investment by the public; Fund prices are not quoted in newspapers. Diversification and asset allocation strategies do not ensure a profit and cannot protect against losses in a declining market. The Funds are subject to market volatility and risks associated with the underlying investments. Risks include exposure to international and emerging markets, small company and sector equity securities, and fixed income securities subject to changes in inflation, interest rates, market valuations, liquidity, prepayments, and early redemption. The funds are built for investors who expect to start gradual withdrawals of fund assets on the target date, to begin covering expenses in retirement. The principal value of the funds is not guaranteed at any time, and will continue to fluctuate up to and after the target date. Apple, the Apple logo, iphone, and ipad are trademarks of Apple Inc., registered in the U.S. and other countries. Kindle Fire and Amazon are trademarks of Amazon.com, Inc. or its affiliates. Android is a trademark of Google Inc. Use of this trademark is subject to Google Permissions. Access to electronic services may be limited or unavailable during periods of peak demand, market volatility, systems upgrade or maintenance, or for other reasons. Schwab Retirement Plan Services, Inc. provides recordkeeping and related services with respect to retirement plans and has provided this communication to you as part of the recordkeeping services it provides to the Plan.

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