Welcome to your new 401(k) home

Transcription

1 Welcome to your new 401(k) home

2 Introducing Vanguard... your new 401(k) partner We are excited to welcome Vanguard to the Anheuser-Busch 401(k) Savings and Retirement Plan as our new investment manager, trustee, and record keeper. Vanguard will be the sole 401(k) Plan provider, replacing Mercer, State Street Global Advisors, and Bank of New York Mellon. You ll be able to start managing your account at Vanguard during the week of July 5, Vanguard is one of the leading administrators of employer-sponsored retirement plans, delivering best-in-class 401(k) management and retirement planning services to more than 2,500 retirement plans serving 3.5 million-plus members. They are focused on helping you understand all that our 401(k) Plan has to offer and giving you the tools and personalized attention to align the Plan with your financial goals. At Vanguard, you can look forward to some new features: Vanguard investment options. Financial planning and investment help. Lower fees for many of the 401(k) Plan s services and investments. For example, we re happy to let you know that moving the Plan to Vanguard will mean a lower Plan administration fee. The fee will be reduced from $68 to $46 a year, a drop of over 30%. You ll see the lower rate reflected in your account starting in the fourth quarter of Reminder: During the transition, your 401(k) account activity will be restricted for a brief interval known as a blackout period. The blackout period is necessary to ensure an orderly transition to Vanguard, and will begin June 23, 2015, and end during the week of July 5, During this period you will not be able to request any transactions and your current 401(k) investments will be transferred to Vanguard mutual funds and collective trusts. The A-B InBev Company ADR Stock Fund will continue to be available at Vanguard. Refer to your previous communications about the transition or access these documents at vanguard.com/abconversion. This newsletter is intended to be a Summary of Material Modifications (SMM) as required by federal law. Please keep this document with your Summary Plan Description for the 401(k) Plan. Read this communication carefully for a better understanding of the new features available and any changes to your 401(k) Plan. Sincerely, Bob Zimmer Director, Retirement Plans Anheuser-Busch Companies, LLC 2

3 Your new 401(k) website the Vanguard connection NEW When the Anheuser-Busch 401(k) Plan moves to Vanguard, you ll need to know how to contact Vanguard. Vanguard s website provides a powerful, easy way for you to access your account, research investments, use financial planning tools, and get answers to your questions. Please note that the prior Anheuser-Busch 401(k) website address and phone number will no longer apply. Once the transition to Vanguard is completed during the week of July 5, 2015, you will be able to log on to your account anytime at vanguard.com /retirementplans. Be sure to save this web address as a favorite on your browser. Since this is a new website, you will need to create a new user name, password, and security credentials to access your 401(k) Plan account online. To register for the first time, go to vanguard.com/retirementplans, click Register for account access, and follow the prompts. You will need your 401(k) Plan number, , to sign up. If you already have an account at Vanguard, you can use your existing user name and password to access your Anheuser-Busch 401(k) Plan account. You can also view other Vanguard accounts you hold on the same page, including personal investments, IRAs, and other retirement plans. You ll also be able to connect with Vanguard in the following ways... With your mobile device. Go to vanguard.com/bemobile to download the Vanguard app so you can access your account on the go. By phone. Call to reach Vanguard s 24-hour interactive VOICE Network. You ll need your Social Security number and a personal identification number (PIN) to use VOICE. To create a PIN, follow the prompts. Or you can speak with a Vanguard Participant Services associate Monday through Friday from 8:30 a.m. to 9 p.m., Eastern time. 3

4 New Vanguard investment options NEW The move to Vanguard will provide you with a new investment lineup made up almost entirely of Vanguard mutual funds and collective trusts. You ll also still be able to invest in the company stock fund: A-B InBev Company ADR Stock Fund. During the transition, your current account balances and future contribution elections will move to Vanguard investments with similar investment objectives and strategies to those in which you currently invest. In the case of the Indexed Balanced Fund, however, your balance in and contributions to that fund will move to the Vanguard Target Retirement Trust Plus with the target date closest to the year when you will reach age Your money will move from here... Short-Term Investment Fund Medium-Term Fixed Income Fund Treasury Inflation Protection Fund (no current option) Target Retirement 2055 Fund Target Retirement 2050 Fund Target Retirement 2045 Fund Target Retirement 2040 Fund Target Retirement 2035 Fund Target Retirement 2030 Fund Target Retirement 2025 Fund Target Retirement 2020 Fund Target Retirement 2015 Fund (no current option) Target Retirement Income Fund Indexed Balanced Fund Large Cap Stock Index Fund Mid/Small Cap Stock Index Fund International Equity Fund A-B InBev Company ADR Stock Fund To new Vanguard investments Vanguard Prime Money Market Fund Institutional Shares Vanguard Total Bond Market Index Fund Institutional Plus Shares Vanguard Inflation-Protected Securities Fund Vanguard Target Retirement 2060 Trust Plus Vanguard Target Retirement 2055 Trust Plus Vanguard Target Retirement 2050 Trust Plus Vanguard Target Retirement 2045 Trust Plus Vanguard Target Retirement 2040 Trust Plus Vanguard Target Retirement 2035 Trust Plus Vanguard Target Retirement 2030 Trust Plus Vanguard Target Retirement 2025 Trust Plus Vanguard Target Retirement 2020 Trust Plus Vanguard Target Retirement 2015 Trust Plus Vanguard Target Retirement 2010 Trust Plus Vanguard Target Retirement Income Trust Plus The Vanguard Target Retirement Trust Plus with the target date closest to the year when you will reach age 65 Vanguard Institutional Index Fund Institutional Plus Shares (a similar S&P 500 index fund) Vanguard Extended Market Index Fund Institutional Plus Shares (a similar mid-/small-cap fund) Vanguard FTSE All-World ex-u.s. Index Fund Institutional Plus Shares A-B InBev Company ADR Stock Fund

5 As a participant in the 401(k) Plan, you have the right to direct the investments in your individual account. If you do not want your transferred balances to remain invested in the 401(k) Plan s investments outlined in the mapping chart on page 4, you may reallocate your investments among any of the investments in the 401(k) Plan on any business day after the transition is complete during the week of July 5, For more information about the move to Vanguard, including fact sheets for your new investment lineup, visit vanguard.com/abconversion. A note about risk All investing is subject to risk, including the possible loss of the money you invest. Each Target Retirement Trust invests in several Vanguard funds to form a broadly diversified investment mix. Investments in Target Retirement Trusts are subject to the risks of their underlying funds. The year in the trust name refers to the approximate year (the target date) when an investor in the trust would retire and leave the workforce. The trust will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. An investment in a Target Retirement Trust is not guaranteed at any time, including on or after the target date. While U.S. Treasury or government agency securities provide substantial protection against credit risk, they do not protect investors against price changes due to changing interest rates. Unlike stocks and bonds, U.S. Treasury bills are guaranteed as to the timely payment of principal and interest. Bond funds are subject to the risk that an issuer will fail to make payments on time, and that bond prices will decline because of rising interest rates or negative perceptions of an issuer s ability to make payments. Prices of mid- and small-cap stocks often fluctuate more than those of large-company stocks. Investments in stocks or bonds issued by non-u.s. companies are subject to risks including country/regional risk and currency risk. Because the A-B InBev Company ADR Stock Fund concentrates on a single stock, it is considered riskier than a diversified stock fund. Diversification does not ensure a profit or protect against a loss. Changes in the company stock fund When the A-B InBev Company ADR Stock Fund moves to Vanguard, it will be managed as though it were a mutual fund, which means it will consist of common stock and a small cash holding for liquidity purposes (less than 1% of the fund). One result of this change will be lower transaction fees. Currently, you are charged $0.03 cents per share every time you move money into or out of the A-B InBev Company ADR Stock Fund. At Vanguard, these transactions will cost an average of only $0.005 per share. The cost of all participant transactions will be included in the annual cost of operating the fund, which will be reflected in the fund s expense ratio. Vanguard s frequent-trading policy Vanguard makes every effort to offer its investment options at the lowest possible costs. Because constantly transferring money into and out of investments in an effort to time the markets drives up operating costs, Vanguard has a policy intended to minimize excess trading. If you move money out of a Vanguard fund, you cannot move money back into the same fund for 60 days either online on by phone. You can, however, conduct transfers into or out of that fund within that period by U.S. mail. The policy does not apply to money market funds, employer securities, or regular payroll contributions. 5

6 Financial planning and investing help NEW Planning and preparing for retirement is an important component of your overall financial wellness. Here s a brief look at some of the 401(k) Plan s planning resources available to you at Vanguard: New features to help you plan and prepare for retirement > > On-site meetings Vanguard will conduct regular meetings at Anheuser-Busch locations, focusing on such important financial topics as saving strategies, approaches for creating a suitable investment mix, and ways to turn your 401(k) account into retirement income. > > Vanguard Financial Planning Services If you are age 50 or older, you can speak with a Certified Financial Planner (CFP ) professional free of charge. Your CFP professional can help you work through questions about choosing investments, saving for college, and transitioning into retirement. If you have more complicated issues, you may want to consider a comprehensive Vanguard Financial Plan. If you are age 50 or older, the plan won t cost you anything. If you are younger than age 50, you can get a financial plan for a fee based on your investable assets at Vanguard. > > Automatic rebalancing service Market changes can cause your Plan balance to stray from the way your contributions are invested. Vanguard offers an automatic rebalancing service to help you bring your balance back in line with your investing approach. > > An annual personal contribution rate increase option At Vanguard, the 401(k) Plan will offer a feature that can help you save more in a gradual way. This option will permit you to have your personal contribution rate automatically increased each year in whichever month you choose. Financial Engines programs will still be available Services powered by Financial Engines (Personal Online Advisor for investment advice and the Managed Account Program for professional account oversight) can be a big help in investing and managing your savings in the 401(k) Plan. If you currently have an account in either program, it will automatically carry over to Vanguard. > > Vanguard Managed Account Program Great news! The cost of participating in the Managed Account Program at Vanguard will drop by one-third. Review the Fee Disclosure you received with the transition announcement letter or at vanguard.com/abconversion. > > Personal Online Advisor This service will work the same way at Vanguard as it does currently, except that it will recommend the new 401(k) Vanguard investment options. 6

7 What s not changing your 401(k) Plan highlights The following features have not changed and continue to be available to you at Vanguard. Please note the new addresses at Vanguard. Feature Eligibility Enrollment Employee Contributions Company Contributions Investment Options Company Stock Fund Limits Valuation of Accounts Rollovers Plan Loans Hardship Withdrawals and Qualified Domestic Relations Orders Forms/Service Center Hours Description Full-time employees are eligible to participate as soon as they are hired; part-time employees become eligible after a year of service in which they work 1,000 hours. Eligible participants can enroll at any time by going to vanguard.com/enroll and following the prompts. The 401(k) Plan number (097452) is needed to sign up. Enrollment by phone is available at Participants can contribute: 1% to 50% of base pay each paycheck. Before-tax, Roth after-tax, and traditional after-tax contributions. $18,000 annually, before-tax, Roth, or a combination of the two. Limits may apply to certain highly compensated employees. Catch-up contributions are permitted if you are age 50 or over; annual maximum of $6,000. Your payroll contributions will automatically carry over to Vanguard. Company contributions will continue and not be affected by the move to Vanguard. See page 4 of this newsletter. Investments in the A-B InBev Company ADR Stock Fund are limited to 33% of your total 401(k) Plan balance. Your account is updated for market value changes and transactions at the end of every business day and will be reflected on vanguard.com later that evening. When Vanguard is open for business, an account transaction submitted by 4 p.m., Eastern time, will be processed that day. Money from other eligible employers plans and qualifying IRAs can be rolled over to your 401(k) Plan account. Provisions for Plan loans are as follows: Up to $50,000, or 50% of account balance if less. Up to 5-year repayment terms; 10 years for purchase of principal residence. Immediately taxable if participant defaults on loan. Multiple loan payments totaled on paycheck. Send your application and supporting documentation to the following address: Vanguard Attn: Plan P.O. Box 1101 Valley Forge, PA Forms are required for certain transactions, such as rollovers to the 401(k) Plan and hardship withdrawals. Paper copies are available by calling Vanguard Participant Services at Monday through Friday from 8:30 a.m. to 9 p.m., Eastern time. The return address is provided on the form. For more information about the move to Vanguard, visit vanguard.com/abconversion. 7

8 Questions you may have about the move to Vanguard Q. Who do I call if I have questions about my account before the 401(k) Plan moves to Vanguard? A. Mercer will continue to provide recordkeeping services for the Plan until June 26, If you have any questions about your account before then, call Mercer at or go to the Mercer website at ab401k.com. Q. When can I contact Vanguard about my account? Q. The communications I received said there was a June 23 deadline for transactions at Mercer. What happens if I miss the deadline? A. If you request a transaction after 3 p.m., Eastern time, on June 23, 2015, Mercer will not be able to process it. If you still want to place the transaction, you will need to resubmit your request to Vanguard after the transition has ended. A. The transition to Vanguard is expected to end during the week of July 5, When it does, you ll be notified. You can then contact Vanguard about your account either online at vanguard.com/retirementplans or by phone at Connect with Vanguard vanguard.com/retirementplans > For more information about any fund, including investment objectives, risks, charges, and expenses, call Vanguard at to obtain a prospectus. The prospectus contains this and other important information about the fund. Read and consider the prospectus information carefully before you invest. You can also download Vanguard fund prospectuses at vanguard.com. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in such a fund. Target Retirement Trusts are not mutual funds. They are collective trusts available only to tax-qualified plans and their eligible participants. Investment objectives, risks, charges, expenses, and other important information should be considered carefully before investing. The collective trust mandates are managed by Vanguard Fiduciary Trust Company, a subsidiary of The Vanguard Group, Inc. Vanguard Financial Planning Services are provided by Vanguard Advisers, Inc., a federally registered investment advisor. Eligibility restrictions may apply. The Vanguard Group has partnered with Financial Engines Advisors LLC to provide subadvisory services to the Vanguard Managed Account Program and Personal Online Advisor. Financial Engines Advisors LLC is an independent, federally registered investment advisor that does not sell investments or receive commission for the investments it recommends. Advice is provided by Vanguard Advisers, Inc. (VAI), a federally registered investment advisor and an affiliate of The Vanguard Group, Inc. (Vanguard). Eligibility restrictions may apply. Vanguard is owned by the Vanguard funds, which are distributed by Vanguard Marketing Corporation, a registered broker-dealer affiliated with VAI and Vanguard. Neither Vanguard, Financial Engines, nor their respective affiliates guarantee future results. Vanguard, VOICE, and Connect with Vanguard are trademarks of the Vanguard Group, Inc. All rights reserved. Financial Engines is a trademark of Financial Engines, Inc. All rights reserved. Used with permission. Vanguard Marketing Corporation, Distributor of the Vanguard Funds. BBBBJYGG