CHE Trinity Health Retirement Program Effective 1/1/2015

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1 CHE Trinity Health Retirement Program Effective 1/1/2015 Dear CHE Trinity Health Colleague: CHE Trinity Health is committed to providing a retirement benefit that supports the needs of you and your family. We are equally committed to ensuring you understand the Retirement Program and what the changes in 2015 will mean to you. This is the second of two newsletters and is designed to walk you through the transition of the CHE Retirement Savings Plans from Lincoln Financial (Lincoln) to Transamerica Retirement Solutions (Transamerica). In the first newsletter mailed to you in October, you learned about the retirement program design that will be effective January 1, This design: Provides a meaningful retirement benefit. Provides employer contributions (match and core). Provides greater support for lower-paid colleagues. Is predictable and sustainable. Rewards colleagues with longer service. Offers consistent benefits across the organization. Included in this newsletter are more details about the transition of the CHE 403(b)/401(k) Retirement Savings Plans from Lincoln to Transamerica. Additionally, we will provide important dates regarding the account transaction quiet period and information about some of the unique tools and resources that you will have access to for retirement planning through Transamerica. Transamerica, our new retirement plan service provider as of January 1, 2015, has the tools and resources to help you achieve your retirement goals. Within this newsletter, we will outline the following: Transamerica Retirement Solutions and transition details (pg. 2). Changes to the investment options (pg. 2). After the transition (pg. 10). Colleague meetings (pg. 10). Reminder from newsletter 1: Sources of Retirement Income and features of the Retirement Savings Plan (pgs ). Tools and resources (pgs ). Where to go for more information (pg. 18). Frequently Asked Questions (pgs ). CHE Trinity Health will be announcing our new system name before the end of the year. As the new name is announced, the name of our Retirement Program will also change. The name change will not impact the benefits. Key Points about Your Retirement Program Your current retirement benefits are safe. You will continue to earn benefits under your current CHE Retirement Savings Plans through December 31, If you are at or close to retirement, there is no need or benefit to accelerating your retirement timeline or making changes to your retirement planning as a result of the changes to the Retirement Program design. Your benefit will not be greater if you retire before the new design goes into effect on January 1, You will receive information in December that will give you your estimated vesting and benefit service credit through December 31, You will receive more information. In addition to this newsletter, you will have the opportunity to meet with Transamerica representatives during informational sessions throughout November and December. For colleagues covered by a collective bargaining agreement, please contact your union leadership representative for information on this newsletter and its impact on you. E2-U

2 About Transamerica Retirement Solutions After careful research, CHE Trinity Health chose Transamerica Retirement Solutions to become CHE Trinity Health Retirement Savings Plan s service provider beginning January 1, Transamerica is a full-service retirement plan provider that has worked with retirement plans for more than 75 years, helping people save and invest wisely through their employer-sponsored plans. Today, over three million employees working for organizations across America invest their retirement assets through them. No matter what kind of investor you are, they can simplify your retirement planning with the expertise and resources you need to reach your retirement savings goals. Transition details The transition to Transamerica is designed to accomplish support for the merging of retirement savings plans. Understanding the mechanics of the transfer to Transamerica The transfer process entails the conversion of your account balances and records from Lincoln, your current retirement plan service plan administrator, to Transamerica. We have carefully designed the transfer process to minimize the impact on your retirement plan strategy. One important element is the transfer of your account from the funds in which you are currently invested. The transfer will be made to new funds that are similar in their investment objective and composition. This process is commonly known as fund mapping." As a result of fund mapping, your account will be invested in the asset classes and fund types you selected. The actual transfer will happen at the end of the day to be effective the end of the following business day. This means your account will be out of the market for the one day needed to complete the transfer. When the transfer process is initiated, there will be a period of time during which you will not have access to your current account for transfers, loans, withdrawals, or other transactions. This period of time is referred to as the quiet period and is necessary to allow time for Lincoln to prepare its records for the transition to Transamerica, and then for Transamerica to reconcile these records to establish your accounts. To view a short video with details about the transition, sign in to and click on the Transition Video link on the Home page. Changes to the investment options CHE Trinity Health is committed to providing you with an opportunity to meet your retirement goals through the CHE Trinity Health Retirement Savings Plans administered by Transamerica. As part of that commitment, the Defined Contribution Investment Selection Group (DC-ISG) diligently monitors the investment lineup on a range of factors including diversification, investment style, expenses, and performance. The DC-ISG members consist of CHE Trinity Health colleagues from both the Treasury and Retirement departments as well as the CHE Trinity Health third-party investment consultant. An important aspect of the process in combining the CHE and Trinity Health retirement plans was to conduct a review of investment funds and current market conditions. After careful consideration, the DC-ISG made determinations on the investment lineup. Some funds remain the same and will not need to be mapped, while others are changing, as reflected in the charts on pages 5, 6, and 7. If you invest in any of the funds being replaced, those assets and ongoing contributions will be automatically transferred ( mapped ) to the appropriate replacements, which are similar to the original funds in their investment objectives and composition. You will see that in some cases, an existing fund will remain in the new fund lineup. See the investment mapping chart on page 5 for more detail. 2 E2-U

3 Investment mapping and the quiet period IMPORTANT NOTE: Beginning on Friday, December 26, 2014, at 4:00 p.m. ET, and concluding the week of January 19, 2015, you will have limited access to your retirement savings plan accounts. This is necessary in order to complete the mapping process of investments from your current lineup to the new lineup. This is commonly referred to as the quiet period. Your account will remain fully invested during the quiet period (less one market day for the transfer of assets). During the quiet period you will not be able to: Initiate any transactions that would trigger the liquidation or purchase of assets within your account (loans, hardship withdrawals, in-service withdrawals or distributions). Change future contribution elections. For this reason, you should take time now to carefully review the appropriateness, balance, and diversification of your investments before the quiet period begins since you won t be able to make changes to your account during the quiet period. Due to timing of the quiet period and when final 2014 payroll files will be received, there may be certain payrolls within the last few days of the year that will be required to be deposited to Transamerica. There is no implication to you if this does occur. Your contributions will be deposited according to the investment mapping chart on page 5 if this does apply to one of your contributions. The timing of these contributions will be as soon as possible following receipt of the data. Your investments during the quiet period Your accounts will remain fully invested during the quiet period, less one day to accommodate the transfer of assets from Lincoln to Transamerica. There are some investments identified in the fund mapping chart on page 5 which will be transferred in kind, meaning they will not incur the one day out of the market transition and will remain invested each day throughout the quiet period. YOUR TRANSITION TIMELINE FRIDAY, DECEMBER 26, 2014, AT 4:00 P.M. ET: QUIET PERIOD BEGINS. Account access will be limited with Lincoln. FRIDAY, JANUARY 2, 2015 Plan assets are transferred to Transamerica. WEEK OF JANUARY 19, 2015 QUIET PERIOD ENDS. Account access begins at Transamerica. Visit to access your new account. Your contribution percentages and future investment allocations will also be mapped You are not required to re-enroll as a result of this process. The conversion to Transamerica was designed to ensure continuity and provide a seamless transition regarding your contribution percentages (the percentage of your pay that you contribute to the retirement plan) and future investment allocations. If you do nothing, your contribution percentages will carry over to the CHE Trinity Health Retirement Savings Plan at Transamerica after January 1, E2-U 3

4 Your future investment allocations will also be carried forward and mapped to the same investment or its equivalent in the new lineup as of January 1, See the investment mapping chart on page 5 for more details. If you are satisfied and accept the mapping of your current investments and future allocations, no action is required on your part. If you do not want your current balance or future contributions to be directed to the investments listed within the mapping chart, you must reallocate your investments and/or change your investment elections for future contributions by contacting Lincoln before 4:00 p.m. ET on December 26, 2014 at If you are considering any changes to your investment allocations or amount after the quiet period, please visit or contact Transamerica at You may also contact your local Transamerica retirement planning consultant for assistance. IMPORTANT NOTE: In the current CHE Retirement Savings Plan administered by Lincoln, your investment elections apply across all money sources that is, your employee contributions, employer match and core contribution, are all invested in one set of investment allocations. Effective January 1, 2015, you are required to have separate investment elections for each source for which you maintain a balance. As a part of this transition process, your investment allocations from Lincoln will be mapped to each money source for which you maintain a balance. For any money source that you do not maintain a balance prior to the start of the quiet period on December 26, 2014, an investment allocation for that money source will need to be completed separately after the end of the quiet period. If you do not elect an investment allocation, your contributions will be defaulted to the plan's designated default investment option. This structure allows you to create a unique investment strategy for each of your separate money sources including employee contributions, employer matching and core contributions. To elect a separate investment allocation money source after the end of the quiet period (week of January 19, 2015), you may sign in to your account at Once signed in to your account, proceed to the Manage tab, then click Future Allocations and select your desired source type to make your election. If you have any questions regarding separate source allocations, please contact Transamerica at You may also contact your local Transamerica retirement planning consultant for assistance. Target Date Solution Vanguard Target Retirement Funds Vanguard Target Retirement Funds* give you a straightforward approach to a sophisticated problem: how to invest successfully for retirement. Each fund is designed to help manage risk while trying to grow your retirement savings. The fund is structured to be allocated based on a future date, such as your normal retirement date. Each of the Target Retirement Funds invests in Vanguard's broadest index funds, giving you access to thousands of U.S. and international stocks and bonds, including exposure to the major market sectors and segments. The funds' managers gradually shift each fund's asset allocation to fewer stocks and more bonds making the fund more conservative the closer you get to retirement. The managers then maintain the current target mix, freeing you from the hassle of ongoing rebalancing. Please contact your local Transamerica retirement planning consultant for questions regarding this option. The DC-ISG has designated the Vanguard Target Retirement Funds (see page 2) as the Qualified Default Investment Alternative (QDIA) for the CHE Trinity Health Retirement Savings Plans. If you do not have an investment election on file and contributions are deposited to your account, the contributions will automatically default to the Vanguard Target Date Fund that most closely aligns with an assumed age 65 retirement date, until you change your investment allocation to new investments, if desired. * Target date options generally invest in a mix of stocks, bonds, cash equivalents, and potentially other asset classes, either directly or via underlying investments, and may be subject to all of the risks of these asset classes. The allocations become more conservative over time: The percentage of assets allocated to stocks will decrease while the percentage allocated to bonds will increase as the target date approaches. The higher the allocation is to stocks, the greater the risk. The principal value of the investment option is never guaranteed, including at and after the target date. 4 E2-U

5 Investment mapping chart This chart represents the mapping from your existing investments into similar investments within the new lineup. Asset Class Cash Equivalent/ Money Market Stable Value Intermediate- Term Bonds Intermediate- Term Bonds Large-Cap Value Stocks Large-Cap Blend Stocks Large-Cap Blend Stocks Large-Cap Blend Stocks Large-Cap Growth Stocks Large-Cap Growth Stocks Mid-Cap Blend Stocks Small-Cap Value Stocks Small-Cap Growth Stocks Small-Cap Blend Stocks Small-Cap Blend Stocks World/Foreign Stocks World/Foreign Stocks Target Date Self-directed brokerage account Existing Investment Option Vanguard Prime Money Market Fund Institutional Shares Lincoln Stable Value Separate Account Ticker Transfer Shares In-Kind Mapping Funds and Future Investment Allocations VMRXX Yes No change Yes No change PIMCO Total Return Instl PTTRX No Mapping to Vanguard Interm-Term Bond Index Adm VBILX No Mapping to Diamond Hill Large Cap Y DHLYX No Mapping to Vanguard Value Index Adm VVIAX No Mapping to Calvert Equity I CEYIX No Mapping to Vanguard Institutional Index I VINIX No Mapping to Wells Fargo Advantage Prem Lg Co Gro I EKJFX No Mapping to Vanguard Growth Index I VIGIX No Mapping to Vanguard Mid Cap Index Instl Plus American Beacon Small Cp Val Inst New Investment Option Vanguard Prime Money Market Fund Institutional Shares Lincoln Stable Value Separate Account Metropolitan West Total Return Bond M Vanguard Total Bond Market Ind Instl Pls Diamond Hill Large Cap A Vanguard Institutional Index Instl Pl Ave Maria Rising Dividend Vanguard Institutional Index Instl Pl Wells Fargo Advantage Prem Lg Co Gr A Vanguard Institutional Index Instl Pl Ticker VMRXX MWTRX VBMPX DHLAX VIIIX AVEDX VIIIX EKJAX VIIIX VMCIX No Mapping to Vanguard Mid Cap Index VMCPX AVFIX No Mapping to Eagle Small Cap Growth R6 HSRUX No Mapping to Conestoga Small Cap Investors CCASX No Mapping to Vanguard Small Cap Index I VSCIX Yes No change American Funds EuroPacific Gr R6 Vanguard Total Intl Stock Index Admiral Vanguard Target Retirement Funds TD Ameritrade self-directed brokerage account RERGX Yes No change VTIAX No Mapping to Yes No change N/A Mapping to Columbia Small Cap Value Fund II Z Franklin Small Cap Growth Adv Vanguard Small Cap Index I Vanguard Small Cap Index I American Funds EuroPacific Gr R6 Vanguard Total Intl Stock Index I Vanguard Target Retirement Funds Charles Schwab Personal Choice Retirement Account (PCRA) NSVAX FSSAX VSCIX VSCIX RERGX VTSNX N/A E2-U 5

6 Investment lineup This chart represents the new investment lineup effective January 1, Please see pages 28 and 29 for important risk disclosure information regarding the investment options below. Asset Class New Investment New Ticker Cash Equivalent/ Money Market Vanguard Prime Money Market Fund Institutional Shares Expense Ratio (Net)** Revenue Sharing (Plan service credit)*** Net Expense (Expense after credit) VMRXX.10%.0%.10% Stable Value Lincoln Stable Value Separate Account N/A N/A.14%* N/A Intermediate-Term Bonds Intermediate-Term Bonds World/Foreign Bonds Large-Cap Value Stocks Large-Cap Blend Stocks Large-Cap Blend Stocks Large-Cap Growth Stocks Mid-Cap Blend Stocks Small-Cap Value Stocks Small-Cap Growth Stocks Small-Cap Blend Stocks World/Foreign Stocks World/Foreign Stocks Metropolitan West Total Return Bond M MWTRX.68%.35%.33% Vanguard Total Bond Market Fund Idx InstlPls VBMPX.05%.0%.05% Templeton Global Bond Adv TGBAX.63%.25%.38% Diamond Hill Large Cap A DHLAX 1.05%.50%.55% Vanguard Institutional Index Fund Instl Pl VIIIX.02%.0%.02% Ave Maria Rising Dividend AVEDX.98%.40%.58% Wells Fargo Advantage Prem Lg Co Gr A EKJAX 1.13%.55%.58% Vanguard Mid Cap Index VMCPX.06%.0%.06% Columbia Small Cap Value Fund II Z NSVAX 1.08%.40%.68% Franklin Small Cap Growth Adv FSSAX 1.05%.25%.80% Vanguard Small Cap Index I VSCIX.08%.0%.08% American Funds EuroPacific Gr R6 RERGX.49%.0%.49% Vanguard Total Intl Stock Index I VTSNX.12%.0%.12% Target Date Vanguard Target Retirement Income Inv VTINX.16%.0%.16% Target Date Vanguard Target Retirement 2010 Inv VTENX.16%.0%.16% Target Date Vanguard Target Retirement 2015 Inv VTXVX.16%.0%.16% Target Date Vanguard Target Retirement 2020 Inv VTWNX.16%.0%.16% Target Date Vanguard Target Retirement 2025 Inv VTTVX.17%.0%.17% 6 E2-U

7 Asset Class New Investment New Ticker Expense Ratio (Net)** Revenue Sharing (Plan service credit)*** Net Expense (Expense after credit) Target Date Vanguard Target Retirement 2030 Inv VTHRX.17%.0%.17% Target Date Vanguard Target Retirement 2035 Inv VTTHX.18%.0%.18% Target Date Vanguard Target Retirement 2040 Inv VFORX.18%.0%.18% Target Date Vanguard Target Retirement 2045 Inv VTIVX.18%.0%.18% Target Date Vanguard Target Retirement 2050 Inv VFIFX.18%.0%.18% Target Date Vanguard Target Retirement 2055 Inv VFFVX.18%.0%.18% Target Date Vanguard Target Retirement 2060 Inv VTTSX.18%.0%.18% Self-Directed Brokerage Account Charles Schwab Personal Choice Retirement Account (PCRA) N/A N/A N/A N/A Target date options generally invest in a mix of stocks, bonds, cash equivalents, and potentially other asset classes, either directly or via underlying investments, and may be subject to all of the risks of these asset classes. The allocations become more conservative over time: The percentage of assets allocated to stocks will decrease while the percentage allocated to bonds will increase as the target date approaches. The higher the allocation is to stocks, the greater the risk. The principal value of the investment option is never guaranteed, including at and after the target date. *.14% for 2015,.18% for 2016 and See FAQs for more information. ** The net expense ratio reflects the expense ratio of the investment option after any applicable expense waivers or reimbursements. *** Within the expense ratio, individual fund families may pay plan recordkeepers like Transamerica for their administrative services. These payments are then credited directly back to plan participants as a plan service credit. The expense after credits is a hypothetical calculation where plan service credits are deducted from the net expense ratio. The expense after credits provides a reasonable estimate of the investment option fees you will pay, but does not reflect other fees that will be deducted from your account, such as the $41 annual fee (see page 10 for more details). For more information on any registered fund, please call for a free summary prospectus (if available) and/or prospectus. You should consider the objectives, risks, charges, and expenses of an investment carefully before investing. The summary prospectus and prospectus contain this and other information. Read them carefully before you invest. E2-U 7

8 Investment lineup and revenue sharing As shown in the investment lineup chart, there may be what is referred to as revenue sharing paid by the fund family within certain funds. Effective January 1, 2015, your account will be credited any revenue generated by the funds (per the new investment fund chart) for which you are invested. This revenue generated by the funds is tracked and accrued daily and then credited monthly. The chart shows the current amounts paid, but these amounts are subject to change. You can view this activity by signing in to your account at after the first months' crediting has been posted on the last business day of January You may also contact your local Transamerica retirement planning consultant or call with any questions you may have. Addressing potential redemption fees as a result of the fund mapping There are no administrative fees charged to colleagues for the mapping process. However, some fund families will charge a redemption fee under circumstances where money is transferred to a certain fund and then subsequently sold within a timeframe determined by the fund family. The redemption fee only applies to the money transferred within this window prior to the liquidation and not necessarily all holdings in the fund. As of the date of this letter, the only fund within the current fund lineup that may charge a redemption fee is the Calvert Equity I Fund (seven-day redemption, 2% fee). You may check your prospectus, or call Lincoln prior to the quiet period (December 26, 2014, 4:00 p.m. ET) at for questions on whether this redemption fee will apply to you. Your Self-Directed Brokerage Account (SDBA) TD Ameritrade If you currently have a TD Ameritrade account established, those investments will be transferred as part of the mapping process. Currently, Transamerica has an alliance with Charles Schwab & Co. Inc. to provide a range of selfdirected investment options including access to thousands of registered mutual funds. Your specific investments within your TD Ameritrade account will be transferred in kind to the Schwab Personal Choice Retirement Account (PCRA) within the CHE Trinity Health Retirement Savings Plans. The transfer of these shares in-kind means there is no liquidation required and your investments within the TD Ameritrade account will remain invested throughout the entire quiet period and transition to your PCRA account. 8 E2-U

9 In order to have access to executing transfers within your PCRA account, there are a few forms that must be completed in order to establish your account. Once the transition to Transamerica is complete, you can manage your PCRA by calling PCRA (7272) or by visiting You will be prompted to complete these forms online when you sign in to your PCRA for the first time. When you sign in to your PCRA for the first time, you will need to enter your participant account number, which will be sent to you under separate cover by Schwab, as well as the following information: Plan ID: * * Please contact your local Transamerica retirement planning consultant or call to obtain the Plan ID specific to your location. Plan Password: SCHWAB If you have any questions regarding this process, you may contact your local Transamerica retirement planning consultant or you may call About the Schwab Personal Choice Retirement Account (PCRA) The Personal Choice Retirement Account (PCRA) is designed for participants who: Are experienced investors. Want more control of their retirement investments. Want a wider choice of investment options There is an annual fee of $50 for the PCRA, which will be withdrawn from your account each year. Employee contribution, match, core, and rollover account balances are permitted to be transferred from Transamerica to the Schwab PCRA account. Investments in the PCRA are restricted to mutual funds. If you are interested in establishing a new PCRA after the quiet period ends, you may contact your local Transamerica retirement planning consultant or you may call with questions. E2-U 9

10 After the transition Access to your account The quiet period and transition will be completed during the week of January 19, At that time you can start managing your account at You can also execute transactions and inquire about your account activity after the end of the quiet period the week of January 19th, 2015 by calling You can always contact your Transamerica retirement planning consultant with questions as well. Access to your frozen Defined Benefit account (if applicable) For 2015, you will have access to obtain the amount of your legacy Defined Benefit (Pension) Plan through the Retirement Program website with Transamerica after the completion of the quiet period during the week of January 19, 2015 (please refer to tools and resources section on pages for more detailed information). You may also access your pension estimator tool through Lincoln up through close of business on December 31, 2014 at New fee structure A new fee structure will be in effect beginning January 1, Colleagues will be assessed a $10.25 per quarter ($41 annually) fee to their plan account in order to cover all aspects of servicing and administrative expenses. This quarterly fee will be assessed for each separate plan in which you maintain a balance. You will first see this quarterly charge reflected on your March 31, 2015 statement. Currently, your accounts are being assessed a quarterly fee of $14.50 ($58 annually). As a reminder, the revenue generated by certain investments within the lineup will be credited to you monthly (see Investment lineup chart on pages 6 and 7 for details). Colleague meetings Throughout November and December, Transamerica retirement planning consultants will be conducting colleague meetings to give you the opportunity to learn more and ask questions. For those colleagues unable to attend an education session, webinar meetings will also be conducted and recorded so that you can play them back at a time that s convenient for you. Meeting times and locations will be communicated to you through your location. Please visit for contact information regarding questions you may have. 10 E2-U

11 Sources of your total retirement income YOUR RETIREMENT PROGRAM PROVIDED BY CHE TRINITY HEALTH LEGACY DEFINED BENEFIT (PENSION) PLAN CHE 403(b)/401(k) RETIREMENT SAVINGS PLAN CHE TRINITY HEALTH 403(b)/401(k) RETIREMENT SAVINGS PLAN Pension plan benefit earned under prior formulas (if any) Any transition benefits for which you are eligible & Benefits earned through December 31, 2014 Employer core contribution (you do not need to make contributions to receive this benefit) & Benefits earned beginning January 1, 2015 Employer core contribution* (you do not need to make contributions to receive this benefit) Employer matching contribution (if you made contributions) Employer service-based matching contribution* (If you make contributions) Transition benefits (if eligible) Plus INCOME SOURCES PROVIDED BY COLLEAGUES CHE TRINITY HEALTH 403(b)/401(k) RETIREMENT SAVINGS PLAN Colleague contributions OTHER PERSONAL/SPOUSE SAVINGS e.g., CDs, mutual funds, bank accounts, real estate, other employer plans Plus SOCIAL SECURITY Funded by contributions from CHE Trinity Health and colleagues * If eligible; see page 13 for more information. E2-U 11

12 As a refresher: How the design works effective January 1, 2015 The CHE Trinity Health Retirement Savings Plan plays an important role in your overall retirement planning. Investment professionals recommend that employer and colleague savings target 9% to 15% of your pay annually (depending on your income) to prepare for your retirement. If you contribute 6% of your pay, the retirement design provides you annual savings that vary between 10.5% and 13.5% of your pay (based on your years of service) when both colleague and CHE Trinity Health contributions are added together. Please contact your local Transamerica retirement planning consultant for help with your own personal retirement planning needs. Beginning January 1, 2015, if eligible, your annual contribution will be made up of three components: Employer Core Contributions + Employer Service-Based Matching Contributions (if you make contributions) + Colleague Contributions 12 E2-U

13 Here s how it works: 1 Employer Core Contribution If eligible, you will receive the greater of 3% of your Retirement Program Pay* or the minimum core contribution deposited to your Transamerica account. The minimum core contribution is $1,200 for fulltime colleagues (pro-rated for part-time). You do not need to contribute to receive this benefit. Beginning January 1, 2015, your core contributions will be deposited to your CHE Trinity Health 403(b)/401(k) Retirement Savings Plan account with Transamerica**. If you do not have a Retirement Savings Plan account, one will be created for you and your contributions will be deposited in the plan's designated QDIA, which is the Vanguard Target Date Fund most appropriate for your retirement year based on retirement at age 65. Retirement Program Pay Annual Core Contribution Percent Including the Minimum Core Contribution Pay of $20,000 ($9.60 / hr) Pay of $25,000 ($12.00 / hr) Pay of $30,000 ($14.40 / hr) Pay of $35,000 ($16.80 / hr) Pay of $40,000+ ($ / hr) 6.00% 4.80% 4.00% 3.43% 3.00% 2 0* Retirement Program Pay generally means your W-2 wages for a year, plus your 403(b) and/or 401(k) plan contributions and any contributions you make to your flexible spending benefit, minus reimbursements or other special payments that year. Retirement Program Pay is limited by the federal government. The limit is $265,000 for 2015 and is indexed annually. **Match and core benefits earned through December 31, 2014, will be calculated and deposited to your account at Transamerica during the first quarter of You will see these amounts reflected on your March 31, 2015 statement from Transamerica, or when signing in to your account via the website. + Employer Service-Based Matching Contribution For contributions you make to your CHE Trinity Health 403(b)/401(k) Retirement Savings Plan up to 6% of your Retirement Program Pay, you will receive an employer service-based matching contribution, if eligible. Your employer service-based matching contribution ranges from 25% to 75% of your contributions (up to a maximum of 6% of your Retirement Program Pay), based on your years of benefit service. This is shown below: Years of Benefit Service as of January 1 Each Calendar Year Employer Matching Contribution Percentage (of Retirement Program Pay) CHE Trinity Health Contribution Percentage if Colleague Contributes 6% 0 but less than 10 25% on 6% 1.5% 10 but less than 20 50% on 6% 3.0% 20 or more years 75% on 6% 4.5% You must contribute at least 6% of your Retirement Program Pay to your Retirement Savings Plan Account to receive the maximum employer service-based matching contributions. Make sure that you contribute at least 6% in order to maximize the employer matching contribution! E2-U 13

14 3 Your years of benefit service equal: The benefit service you have earned under your prior retirement plans as of December 31, 2014, PLUS One year for each calendar year that you earn at least 1,000 hours beginning with Eligibility for Core Contributions and the Service-Based Match Employer core and matching contributions are made for eligible colleagues. You will need to meet the following criteria* in order to be eligible for employer contributions to the CHE Trinity Health 403(b)/401(k) Retirement Savings Plan: Employer Core Contribution You will begin receiving the employer core contribution once you have worked 1,000 hours in that calendar year. Your first deposit will be based on Retirement Program Pay (defined on page 13) for the calendar year up until that date. Subsequent deposits will be made shortly following each pay period. Service-Based Matching Contribution (if you make a contribution) If you are scheduled (or budgeted ) to work at least 1,560 hours per year as of the first pay period** of each calendar year, you will begin to receive the service-based matching contribution to your Transamerica account shortly after your first paycheck of the calendar year. If you are scheduled for less than 1,560 hours per year, you will begin receiving the service-based matching contribution as soon as you earn 1,000 hours in that calendar year. If you become eligible after earning 1,000 hours, your first deposit will be based on pay earned year-to-date. Subsequent deposits will be made shortly following each pay period. Timing of match and core contribution Your pretax contributions will be deposited shortly after payroll is run. In addition, your core and match will be calculated and deposited shortly following your employee contribution deposit. 0* Participants contributing in the Sisters of Providence 403(b) PROSPER plan on September 15, 2012, will receive both the core contribution and service-based matching contribution beginning shortly following the first pay period in January 2015 and are not subject to the hours requirements above. ** If you are hired during the calendar year, your scheduled (or budgeted) hours as of the first pay period after your hire date will be used to determine the timing of your service-based match deposits for that calendar year. + Colleague Contribution You can contribute to the CHE Trinity Health 403(b)/401(k) Retirement Savings Plan through pretax contributions up to the annual IRS limit. The limit is $18,000 (or $24,000 if at least age 50) in 2015 and is indexed annually. Be sure to contribute at least 6% of your Retirement Program Pay to earn the maximum employer match. If you contribute any less, you will miss out on a portion of the matching contribution. 14 E2-U

15 Automatic Enrollment Will Continue for Colleagues Hired On or After January 1, 2015 Colleagues who are hired or rehired on or after January 1, 2015 will be automatically enrolled in the plan at a contribution rate of 2%. Unless auto-enrolled colleagues actively choose other investment funds, their investment allocation will be directed to the plan's selected default option (QDIA) for both colleague and employer contributions. The QDIA for the CHE Trinity Health Retirement Savings Plans is the Vanguard Target Date Fund most appropriate for their retirement year, based on retirement at age 65. If you transfer to a new CHE Trinity Health location and have at least 30 calendar days between payroll dates, you may be subject to the auto-enroll process upon your rehire date. For those new-hire or rehire colleagues who fall within the auto-enroll parameters, you will receive a notice in the mail detailing the auto-enroll process. The notice will also contain instructions on how and when you would be required to opt-out of the auto-enroll process should you make that determination. There is also a 90- day permissible withdrawal provision which will also be explained in the notice mailed to your home. IMPORTANT NOTE: For those that receive an autoenroll notice where your 30-day opt-out period would end during the quiet period (between December 26, 2014 and the week of January 19, 2015), your opt-out period will be extended through January 30, If you have any questions related to auto-enroll or the opt-out process, please feel free to contact your local Transamerica retirement planning consultant or call Account Auto-Cash Out/ IRA Provisions If you leave the organization and have an account balance between $1,000 and $5,000, a Transamerica rollover IRA will be automatically set up for you for your account balance. If you leave with an account balance under $1,000, your balance will automatically be cashed out to you, and taxes will apply (penalty taxes may also apply) unless you notify Transamerica that you want to roll over your balance to another qualified plan or IRA. Matching contributions are subject to plan vesting requirements. Descriptions of plan features and benefits are subject to the plan document, which will govern in case of any inconsistencies. Loan Provision Change Effective January 1, 2015 Effective January 1, 2015, you are only allowed to initiate one new loan outstanding for each eligible plan for which you maintain a balance. The minimum loan amount which can be taken from each plan will remain at $1,000. The loan amount cannot exceed 50% of your vested balance or a maximum amount of $50,000 (less highest outstanding loan amount the past 12 months). Once the quiet period has ended during the week of January 19, 2015, you will have access to inquire or apply for a loan if you wish to initiate one. Contact your local Transamerica retirement planning consultant or call with questions. NOTE: Participants with two outstanding plan loans will be allowed to continue to repay as originally scheduled. All loans would be required to be paid off prior to initiating a new loan. If you leave the organization and have an account balance over $5,000, you can choose to leave your balance in the plan, where you will still have access to the investment funds and account tools that an active colleague has; or, you can choose to roll your account balance out of the plan. If you roll out your balance to another qualified retirement plan or rollover IRA, no taxes are levied on your account balance. If, however, you choose to take a cash distribution, regular taxes will apply (penalty taxes may also apply). E2-U 15

16 Tools and resources available to help you prepare for retirement You may continue to utilize the Lincoln website at for your retirement planning needs up through the beginning of the quiet period on December 26, 2014 at 4:00 p.m. ET. During this time, you may also utilize the Transamerica transition web portal ( to assist you with questions related to the transition to Transamerica and the CHE Trinity Health Retirement Savings Plan effective January 1, After January 1, 2015, you can access your CHE Trinity Health Retirement Program web portal at The Home page gives you direct access to sign in to your personal account, and offers important features such as planning tools and calculators. The Resource Center gives you immediate access to important plan documents and communications. The Contact page lets you get in touch with your local Transamerica retirement planning consultant, either for a phone consultation or a personal one-on-one appointment. Transamerica Onsite Retirement Planning Consultants You will have access to a local Transamerica retirement planning consultant that will be assigned to your location. Their goal is to help you develop a retirement savings strategy to assist you in achieving your goals. They can help you: Learn more about saving and investing in your plan. Determine how much you should be contributing to your retirement savings account. Review and understand the investment options and solutions offered in the Retirement Savings Plans. Use the tools and resources available to you through Transamerica. Please visit after January 1, 2015 for a complete listing of Transamerica retirement planning consultants and an online tool to assist with setting up an appointment with your local representative. You may also call for questions. Pension Estimator Your pension estimator is an important source of information regarding your Legacy Defined Benefit (Pension) Plan benefit. Prior to the close of business on December 31, 2014, you may continue to access your pension estimator tool by accessing your account at or by calling Once the quiet period is completed the week of January 19, 2015, you can access your pension estimator tool by signing in to your account at or by speaking with a representative by calling Between December 31, 2014, and the end of the quiet period, you will not have access to your pension estimator tool online. A new pension estimator tool is being developed and is anticipated to be available in the spring of You will be provided information regarding this calculator prior to the rollout. Please contact your local Transamerica retirement planning consultant with questions you may have regarding the pension estimator tool. OnTrack Online Retirement Planning Tool Transamerica has an online tool that uses weather icons sunny, partly sunny, cloudy, or rainy to estimate if you re saving enough to meet your retirement goals. OnTrack is designed to help you develop and analyze your saving and investing strategy. You can explore the impact of different contribution rates, and model alternative investing strategies using the funds available in the Plan. OnTrack allows you to integrate all of your household income and retirement assets including your defined benefit plan information, if any, as well as assets outside your CHE Trinity Health Retirement Program into one cohesive retirement planning strategy. 16 E2-U

17 Effective after the completion of the quiet period the week of January 19, 2015, you can access OnTrack by signing in to your account on the Retirement Program website at You may view and verify your personal information and add any other information, such as additional income and expenses, for a more thorough strategy. We encourage you to visit OnTrack as often as you wish to update your savings and investing strategy as your personal and/or financial situation changes. Please see the OnTrack disclosure information at the end of this newsletter on pages 30 and 31. Save More Automatically with Auto-Increase A service designed to make it easy to automatically increase your contribution rate by 1% each year on a date selected by you, up to the plan limit of 75%. The auto-increase service can easily be activated online if you choose to do so. In order to choose the auto-increase service, you may sign in to your account after the quiet period is over (week of January 19, 2015) at select the Manage tab and click on the Contributions option. You may also call or contact your local Transamerica retirement planning consultant for assistance. You should evaluate your ability to continue the auto-increase service in the event of a prolonged market decline, unexpected expenses, or an unforeseeable emergency. Getting Ready to Retire Retirement Transition Service The Retirement Transition Service helps participants who are beginning to think seriously about planning for retirement. Participants can take advantage of this no-cost service for personalized consultations where they will receive: Critical retirement transition support as they prepare to exit the workplace, including a holistic household planning approach that addresses five key areas Lifestyle, Investments, Health Care, Protection, and Income. Help to determine when they can afford to retire, and model strategies for building a successful and sustainable income plan. Information to help analyze Social Security to optimize this important benefit by looking at all claiming strategies and age combinations. A broad choice of financial solutions that can be tailored to each participant s unique needs, which includes reassessing investment objectives and asset allocation. Please contact your local retirement planning consultant for more information on setting up your own personalized consultation. E2-U 17

18 Get retirement ready Once the transition is over during the week of January 19, 2015, sign in at to see if you re on course toward reaching your retirement savings goals. And if you re not? Transamerica has the tools, services, and onsite retirement planning consultants to help you get there. As always, we remain committed to providing contemporary benefits that support the needs of our colleagues and their families. We appreciate your commitment and all you do to carry on the work and fulfill the mission of our great ministry. Thank you for making CHE Trinity Health a special place to serve. Lincoln Where to go for more information No action is required at Lincoln, but you can contact them at to check your account balance and make any changes before the quiet period begins on December 26, 2014 at 4:00 p.m. ET. You can still access your pension estimator tool or sign in to your account at for balance and inquiry information between the beginning of the quiet period and December 31, Transamerica Visit us online at during the transition to find out how the move works. Keep in mind that we won t have specific information about your account until the quiet period is over during the week of January 19, E2-U

19 Frequently Asked Questions Can my defined contribution account legally be moved from Lincoln Financial to Transamerica without my consent? Yes. Plan transfers of this type are not only legal, but also common practice among employer-sponsored retirement savings plans. There are many regulations imposed on employers that sponsor retirement savings plans. CHE Trinity Health complies with these laws that are specifically designed to protect colleagues. The terms of all CHE Trinity Health Retirement Savings Plans are governed by a plan document, which is subject to IRS regulations. The plan document specifically provides that the sponsoring employer determines which investment options are made available to colleagues under the plan. Lincoln, as our long-time trusted partner, has provided excellent recordkeeping support over the years. They are working with CHE Trinity Health and Transamerica to ensure a smooth transition. Lincoln will partner with CHE Trinity Health moving forward as we will continue to offer the Lincoln Stable Value Separate Account within the investment lineup after the transition to Transamerica. Why does the quiet period have to be as long as it is? This transfer process includes the conversion of your account balances and records from Lincoln to Transamerica. We have carefully designed the transfer process to minimize the impact on your retirement plan strategy. When the transfer process is initiated, there will be a period of time (quiet period), during which you will not have access to your current account for transfers, loans, withdrawals, or other transactions. The quiet period is necessary to allow time for Lincoln to prepare its records for the transition to Transamerica and then for Transamerica to reconcile these records to establish your accounts. Some aspects of the transfer have variables attached to them which require additional time to be built in to the process to ensure completion before the quiet period is lifted. One of those aspects is fund re-registration or transferring funds in-kind. Transamerica will work diligently to complete this process as timely as possible; however, they need to build in enough time to ensure its completion. Please be assured that your monies will remain invested during this entire process, less the one market day for the funds not being transferred in-kind. This timing only impacts the lifting of the quiet period. There is a possibility the process will be completed before the projected end of the designated quiet period (week of January 19, 2015). If you have specific questions regarding the quiet period and when it will be lifted, please call or contact your local Transamerica retirement planning consultant. Where are my employer core and employer service-based matching contributions deposited? Beginning January 1, 2015, contributions will be deposited to the CHE Trinity Health 403(b)/401(k) Retirement Savings Plan account with Transamerica. If you do not have a Retirement Savings Plan account, one will be created for you and your contributions will be deposited in the plan's qualified investment default fund (Vanguard Target Date Fund most appropriate assuming age 65 retirement). Any 2014 core contributions, matching contribution or transition benefits not yet deposited as of December 31, 2014, will be determined in early 2015 and deposited into your account with Transamerica. You will see these amounts reflected on your March 31, 2015 statement from Transamerica. E2-U 19

20 When will my contributions be deposited to my account? Colleague contributions are deposited shortly after each pay period. Once you are eligible, employer core and employer service-based matching contributions will be deposited shortly after your employee contributions each pay period. Will I see the match and core contribution calculations on my pay advice? No. In order to consolidate and create efficiencies administratively and from a compliance standpoint, the calculations will need to be performed in a centralized location and thus not able to be viewed on your pay advice. You will, however, be able to view all account activity (including match and core deposits) within your account with Transamerica by signing in at after the quiet period ends during the week of January 19, Will all of my 2014 December employee contributions be deposited to Lincoln? Due to timing of the quiet period and when final 2014 payroll files will be received, there may be certain payrolls within the last few days of the year that will be required to be deposited to Transamerica. There is no impact to you if this does occur. Your contributions will be deposited via the fund mapping chart if this does apply to one of your contributions. The timing of these contributions will be as soon as possible following receipt of the data. What will happen with my outstanding loan(s)? If you currently have outstanding loan(s) and are making your payments via payroll deduction, your loan payments will continue to be automatically deducted after the transition to Transamerica. If you are currently making payments via check to Lincoln, you will receive a coupon payment booklet after the transition is completed to Transamerica. The new coupon booklet will include instructions on how to issue the check and where to mail your payments. If you have established ACH withdrawals for your loan repayments, you will also receive a loan coupon booklet with instructions for making loan payments after the transition to Transamerica. If you receive a coupon booklet, it will also include instructions on how to utilize the online bill pay option to submit your payments. Please contact your local Transamerica retirement planning consultant or call with questions. Will there be any changes to the loan provisions within the CHE Trinity Health Retirement Savings Plans? Yes. Effective January 1, 2015, the minimum loan amount which can be taken will be $1,000. Note that you are only allowed to have one loan outstanding for each eligible plan. The loan amount cannot exceed 50% of your vested balance or a maximum amount of $50,000 (less highest outstanding loan amount the past 12 months). What will happen if I have two loans within one of my plans transitioning over to Transamerica? Effective January 1, 2015, only one outstanding loan will be allowed; however, those with two plan loans will be allowed to continue to repay as originally scheduled. All loans would be required to be paid off prior to participants initiating a new loan. 20 E2-U

21 Do I need to designate a new beneficiary if I already have one on file with Lincoln? Transamerica will map over all beneficiary information received from Lincoln during the transition. We would encourage you to sign in to your accounts after the transition is completed and review your beneficiary to ensure the proper beneficiary is listed. If you wish to change your beneficiary, or you do not currently have one on file with Lincoln, you may do so after the transition period is over by signing in to your account at Once signed in to your Retirement Savings Plan, select the Home tab and then choose the Beneficiaries option. There is also an option to complete a beneficiary form that will cover all CHE Trinity Health Plans administered by Transamerica. You may also contact your local Transamerica retirement planning consultant or call for assistance. Can you provide more detail about the Lincoln Stable Value Option that will be available in the fund lineup effective January 2015? The Lincoln Stable Value Separate Account is designed to provide plan participants with a guaranteed return of principal, along with attractive crediting rates and liquidity. With more than a century of investment expertise and sound risk management, Lincoln offers a disciplined and conservative investment approach to stable value asset management. For 2015 and 2016, the guaranteed minimum crediting rate for the fund will be 3.00%, net of fees. For 2017, the minimum crediting rate will be 2.50%. You will also be credited with any revenue generated by the investment option as follows: 2015 (.14%); 2016 (.18%); and 2017 (.18%). Stable Value Transfer Restrictions The Lincoln Stable Value Separate Account is subject to some transfer restrictions in order to prevent interest rate arbitrage during periods of sharply rising rates. The following restrictions apply: Transfers from the Lincoln Stable Value Separate Account to the Vanguard Prime Money Market Fund, Templeton Global Bond Fund and/or Self-Directed Brokerage Window are not permitted. If a transfer is made from the Lincoln Stable Value Separate Account to any other investment option, subsequent transfers from any other investment option to the Vanguard Prime Money Market Fund, Templeton Global Bond Fund and/or Self-Directed Brokerage Window will not be permitted for a period of 90 days. If a transfer is made from any investment option to the Vanguard Prime Money Market Fund, Templeton Global Bond Fund and/or Self-Directed Brokerage Window, subsequent transfers out of the Lincoln Stable Value Separate Account will not be permitted for a period of 90 days. E2-U 21

22 Will my individual contracts currently at Lincoln or other outside vendors also be included in the transfer to Transamerica? No. Any individual contracts currently held at Lincoln or any other outside vendor are not available for this transfer and will remain where they are today. Please refer to your participant statement for information on these accounts. You may also contact your local Transamerica retirement planning consultant to assist with following up on questions you may have. If I have balances in other CHE plans at Lincoln, will those also transfer to Transamerica? Yes. Other plans sponsored by Catholic Health East and maintained by Lincoln in addition to the 403(b) plan and the 401(k) plan will also be transitioning in the same manner to Transamerica. If you have balances in these other plans outside of the 403(b) plan and 401(k) plan, please contact your local retirement planning consultant for details about these plans. Will Auto-Enrollment still be in effect under the new plan design? Yes. Colleagues who are hired or rehired on or after January 1, 2015 will be automatically enrolled in the plan at a contribution rate of 2%. Unless auto-enrolled colleagues actively choose other investment funds, their investment allocation will be directed to the plan's selected default option for both colleague and employer contributions. The qualified default investment option for the CHE Trinity Health Retirement Savings Plans is the Vanguard Target Date Fund most appropriate for their retirement year, based on retirement at age 65. If you transfer to a new CHE Trinity Health location and have at least 30 calendar days between payroll dates, you may be subject to the auto-enroll process upon your rehire date. For those new-hire or rehire colleagues who fall within the auto-enroll parameters, you will receive a notice in the mail detailing the auto-enroll process. The notice will also contain instructions on how and when you would be required to opt-out of the auto-enroll process should you make that determination. There is also a 90-day permissible withdrawal provision which will also be explained in the notice mailed to your home. IMPORTANT NOTE: For those who receive an auto-enroll notice where your 30-day optout period would end during the quiet period (between December 26, 2014 and the week of January 12, 2015), your opt-out period will be extended through January 30, If you have any questions related to auto-enroll or the opt-out process, please feel free to contact your local Transamerica retirement planning consultant or call Do the CHE Trinity Health Retirement Savings Plans offer a Roth option? No. Currently there is not a Roth savings option within the CHE Trinity Health Retirement Savings Plans. CHE Trinity will continue to evaluate whether or not this option will be offered in the future. 22 E2-U

23 Will I be allowed to take a distribution from my 403(b)/401(k) account while still employed? The in-service withdrawal option only applies if you are age 59 ½ or older. Effective January 1, 2015, the total vested balance (including colleague contributions, vested match and core money sources) will be available for this type of withdrawal. Please sign in to your account after the end of the quiet period at call Transamerica at , or contact your local Transamerica retirement planning consultant with questions. When is my last opportunity to request a distribution or loan from Lincoln prior to the funds being transferred? The last day that Lincoln will send distribution and loan paperwork to participants through the internet or voice response system is December 12, The last day Lincoln will accept distribution and loan paperwork to be processed is December 23, Distribution requests made after these dates for the mapped funds must be directed to Transamerica and will not be processed until after the quiet period is completed. The quiet period is the timeframe during which you will not have access to your current account for transfers, loans, withdrawals, or other transactions. The quiet period is expected to be completed the week of January 19, Will I receive account statements? Yes. You will receive statements from both Transamerica and Lincoln to confirm that the transition is complete. Your December 31, 2014 account statement from Lincoln will confirm the balance transfer out of your account to Transamerica. Transamerica will then send you an account activity statement each quarter beginning with your March 31, 2015 statement, which will reflect your account balance transfer to Transamerica. You can go green (go paperless) by signing up for e-documents: automatic alerts when your statements and other account-related materials are available online. What is happening to my current retirement benefits? You will continue to earn retirement benefits as you do today through December 31, You will not lose any vested benefits you earn through that date. If you are not vested on December 31, 2014, you will continue to earn vesting service for each calendar year that you earn at least 1,000 hours. Once you have three years of vesting service under the CHE 403(b)/401(k) Retirement Savings Plan or reached age 65 while actively employed at any CHE Trinity Health entity, your earned benefits are vested (they are yours to keep). In addition, we will honor the transition benefits outlined in the newsletter you received in October. On January 1, 2015, you will start to earn employer contributions under the CHE Trinity Health Retirement Program design. Under the Retirement Program design effective January 1, 2015, how much do I need to contribute to the CHE Trinity Health 403(b)/401(k) Retirement Savings Plan account to get the maximum employer contribution? If you are eligible, you will automatically receive either 3% of your Retirement Program Pay or $1,200 (pro-rated for part-time employment) annually whichever is greater regardless of how much you contribute. E2-U 23

24 To receive the maximum employer service-based matching contribution (ranging from 25% to 75% of your contributions up to 6% of Retirement Program Pay, depending on your years of benefit service), contribute at least 6% of your Retirement Program Pay each year. To assist colleagues in saving for retirement, new hires will be automatically enrolled at 2% of Retirement Program Pay. Colleagues can change their contribution or opt out at any time. Will the Retirement Program design effective January 1, 2015, provide adequate retirement income? When both colleague and employer contributions are added together, the CHE Trinity Health 403(b)/401(k) Retirement Savings Plan provides a benefit that equals between 10.5% and 13.5% of your pay (if you save 6% of your Retirement Program Pay). Investment professionals recommend that employer and colleague savings target between 9% and 15% annually. The Retirement Program works with Social Security and your personal savings to assist you in meeting your retirement income needs. What happens to my CHE 403(b)/401(k) Retirement Savings Plan with Lincoln? If you currently have a CHE 403(b)/401(k) Retirement Savings Plan account, this account will be transferred to the CHE Trinity Health 403(b)/401(k) Retirement Savings Plan with Transamerica. Once I become eligible for the employer core contribution, how is it determined? Once eligible, the employer core contribution will be determined based on all year-todate Retirement Program Pay. If you become eligible after earning 1,000 hours, your first deposit will be based on Retirement Program Pay earned year-to-date. Where are my employer core and employer service-based matching contributions deposited? Beginning January 1, 2015, contributions will be deposited to your CHE Trinity Health 403(b)/401(k) Retirement Savings Plan account with Transamerica. If you do not have a Retirement Savings Plan account, one will be created for you and your contributions will be deposited in the plan's designated default fund. Any 2014 core contributions, matching contribution or transition benefits not yet deposited as of December 31, 2014, will be determined in early 2015 and deposited into your account with Transamerica. What happens to my current benefit service? For purposes of determining the employer service-based matching contribution, your benefit service earned through December 31, 2014, under the prior plans will be added to the service earned beginning on January 1, Beginning on January 1, 2015, you will earn one year of service for each calendar year you earn 1,000 hours. You will receive a letter in December giving you your estimated benefit service and vesting service through December 31, E2-U

25 What is fund revenue sharing? As shown in the investment lineup chart, there may be what is referred to as revenue sharing paid by the fund family within certain funds. Effective January 1, 2015, you will be credited any revenue generated by the funds (per the new investment option chart) for which you are invested. This revenue generated by the funds is tracked and accrued daily and then credited monthly. The chart shows the current amounts paid, but these amounts are subject to change. You can view this activity by signing in to your account at after the first month's crediting has been posted on the last business day of January, You may also contact your local Transamerica retirement planning consultant or call with any questions you may have. What happens to my account if I leave the organization? If you leave the organization and have an account balance over $5,000, you can choose to leave your balance in the plan, where you ll still have access to the investment funds and account tools that an active colleague has; or, you can choose to roll your account balance out of the plan. If you roll out your balance to another qualified retirement plan or rollover IRA, no taxes are levied on your account balance. If however you choose to take a cash distribution, regular taxes will apply (penalty taxes may also apply). If you leave the organization and have an account balance between $1,000 and $5,000, a Transamerica rollover IRA will automatically be set up for you for your account balance. If you leave with an account balance under $1,000, your balance will automatically be cashed out to you, and taxes will apply (penalty taxes may also apply) unless you notify Transamerica that you want to roll over your balance to another qualified plan or IRA. Who can I call for more information on my retirement benefits? For questions about your current CHE 403(b)/401(k) Retirement Savings Plan benefits and legacy pension benefits through 2014, you can continue to contact Lincoln Financial at through late December. For questions about your CHE Trinity Health 403(b)/401(k) Retirement Savings Plan effective January 1, 2015, or this newsletter, you can contact Transamerica at or visit: Your onsite Transamerica representative at your RHM The role of the retirement planning consultant is to assist you with your savings and investment plan. There are no fees or commissions for meeting with your retirement planning consultant, who is a registered representative with Transamerica Investors Securities Corporation (TISC), 440 Mamaroneck Avenue, Harrison, NY CHE Trinity Health has selected Transamerica Retirement Solutions as your retirement plan provider, but there are no other affiliations between CHE Trinity Health and Transamerica or its affiliate, TISC. E2-U 25

26 Glossary of Important Terms Benefit Service: Prior to January 1, 2015, you earned benefit service based on your elapsed time since your date of hire (adjusted for service breaks greater than one year). For years beginning January 1, 2015, you will earn one year of benefit service for each calendar year you earn 1,000 hours and benefit service will be determined as of January 1 each year. Budgeted Hours or Scheduled Hours: The number of hours you are scheduled for in a calendar year based on the first pay period of the year. If you are hired during the year, your budgeted hours for your first year of service will be determined as of the first pay period after your hire date. After your first year of service, your budgeted hours are based on the first pay period each calendar year. Church Plan: The CHE Employee Pension Plan is a church plan. Plans sponsored by churches or by organizations associated with a church are exempt from certain federal law requirements that apply to other private pension plans. This includes having to file informational returns with the federal government and paying premiums to the Pension Benefit Guaranty Corporation to buy limited insurance coverage for the plan. The CHE Employee Pension Plan is funded through dedicated trusts that cannot be used for any other purpose, and the plan would be considered well-funded under the federal standards. Defined Benefit Plan: A defined benefit plan is a type of pension plan. Your legacy pension plan benefits, if any, provided benefits under a defined benefit plan. A defined benefit plan provides participants with a retirement benefit that is calculated using a pre-set formula. That formula typically includes some combination of years of service and income earned over a specific period of time. The employer is responsible for funding the plan and managing any investments used to pay for the benefits earned under the plan formula. Cash balance, pension equity, and final average pay benefits are all types of benefits provided under a defined benefit plan. Defined Contribution Plan: A defined contribution plan is a type of retirement plan in which the employer and colleague are able to make contributions. The participant has the opportunity to direct the investments in the plan. Colleagues are always immediately vested in their own contributions. The benefit amount is dependent on the market value of the account. Your current CHE 403(b)/401(k) Retirement Savings Plan and the CHE Trinity Health 403(b)/401(k) Retirement Savings Plan are defined contribution plans. Eligibility for the Retirement Savings Plan: You will need to meet the following criteria in order to be eligible* for the employer contributions to the Retirement Savings Plan: Employer Core Contribution* You will begin receiving the employer core contribution once you have earned 1,000 hours for the calendar year. Your first deposit will cover the Retirement Program pay earned year-to-date for the calendar year. Subsequent deposits will be made shortly following each pay period. Service-Based Matching Contribution* If you are scheduled (or budgeted ) to work at least 1,560 hours per year as of the first pay period** of the calendar year, you will begin to receive the service-based matching contribution following your first paycheck. If you are scheduled for less than 1,560 hours per year, you will begin receiving the service-based matching contribution as soon as you earn 1,000 hours. Subsequent deposits will be made shortly following each pay period. * Participants contributing in the Sisters of Providence 403(b) PROSPER plan on September 15, 2012, will receive both the core contribution and service-based matching contribution beginning shortly following the first pay period in January 2015 and are not subject to the hours requirements above. ** If you are hired during the calendar year, your scheduled (or budgeted) hours as of the first pay period after your hire date will be used to determine the timing of your service-based match deposits for that calendar year. 26 E2-U

27 Employer Core Contribution: If you are eligible* (see page 13), you will receive 3% of your Retirement Program Pay. If you work full-time (earn at least 1,800 hours) and the 3% is less than $1,200, you will receive $1,200. See Minimum Core Contribution on page 13 for more information. Employer Service-Based Matching Contribution: If you wish to maximize the service-based matching contribution, you must contribute at least 6% each year. If eligible (see page 13 and 14), your employer servicebased matching contribution ranges from 25% to 75% of your contributions up to 6% of Retirement Program Pay based on your years of benefit service. This is shown in the table below. CHE Trinity Health Years of Benefit Service as of January 1 Each Calendar Year Employer Matching Contribution Percentage (of Retirement Program pay) CHE Trinity Health Contribution Percentage If Colleague Contributes at Least 6% 0 but less than 10 25% on 6% 1.5% 10 but less than 20 50% on 6% 3.0% 20 or more years 75% on 6% 4.5% Hours of Service: Beginning in 2015, this is each hour you work and are paid, or entitled to be paid, by a Regional Health Ministry (RHM) of CHE Trinity Health. Hours of service include other hours you are paid for such as vacations, holidays, sick leave, jury duty, and approved leaves of absence. You do not earn hours of service for time during which you receive workers compensation, unemployment compensation, severance and medical reimbursements. On-call hours will be credited based on your on-call pay divided by your regular pay rate. Lump Sum: A lump sum is a one-time payment of your benefit. In order to keep this amount tax-deferred, you must roll it over into another employer s qualified retirement plan, an Individual Retirement Account (IRA) or another qualified plan. Minimum Core Contribution: The minimum core contribution applies if it is greater than 3% of your Retirement Program pay. It is pro-rated for part-time colleagues as outlined in the table below. Annual Hours Earned 0 to 499 hours $0* Annual Minimum Core Contribution Amount 500 to 999 hours $300* 1,000 to 1,399 hours $600 1,400 to 1,799 hours $900 1,800 or more hours $1200 Retirement Program Pay: Retirement Program pay generally means your W-2 wages for a year, plus your 403(b) and/or 401(k) plan contributions and any contributions you make to your flexible spending benefit, minus reimbursements or other special payments that year. Retirement Program pay is limited by the federal government. The limit is $265,000 for 2015 and is indexed annually. Vesting: Vesting means you have earned a right to plan benefits. You are always fully vested in your contributions to the 403(b)/401(k) Retirement Savings Plan. You will be vested in the current CHE 403(b)/401(k) Retirement Savings Plan and the CHE Trinity Health 403(b)/401(k) Retirement Savings Plan employer core and service-based matching contribution after you have completed three years of vesting service (1,000 or more hours worked in a calendar year) or reached age 65 while actively employed at any CHE Trinity Health entity.* Your vesting service as of December 31, 2014, will be recognized, and you will continue to earn years of vesting service toward all retirement benefits after January 1, 2015, for each calendar year you earn at least 1,000 hours. Market Value: The value of your account based on your investments. * Participants in the Sisters of Providence 403(b) PROSPER plan on September 15, 2012, are 100 percent vested. E2-U 27

28 Important Disclosures Cash Equivalent/Money Market: An investment in a cash equivalent or money market investment choice is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the investment seeks to preserve the value of your principal, it is possible to lose money by investing in this investment. Depending on the investment, not all money market investment choices will seek to maintain a $1.00 net asset value per share. Stable Value: Stable value investment choices seek capital preservation, but they do carry potential risks. Stable value investment choices may be comprised of or may invest in annuity or investment contracts issued by life insurance companies, banks, and other financial institutions. Stable value investment choices are subject to the risk that the insurance company or other financial institution will fail to meet its commitments, and are also subject to general bond market risks, including interest rate risk and credit risk. Intermediate-Term Bonds: The value of bonds changes in response to changes in economic conditions, interest rates, and the creditworthiness of individual issuers. Bonds can lose value as interest rates rise, and an investor can lose principal. Long-Term Bonds: The value of bonds changes in response to changes in economic conditions, interest rates, and the creditworthiness of individual issuers. Bonds can lose value as interest rates rise, and an investor can lose principal. Long-term bonds generally have higher interestrate risk due to their duration. High-Yield Bonds: High-yield bonds involve additional risks because of the lower credit quality of the securities. The investor should be aware of the possible higher level of volatility and increased risk of default. World/Foreign Bonds: The risks of world/foreign bonds include, but are not limited to, currency risk, political risk, and risk associated with varying accounting standards. Investing in emerging or developing markets may accentuate these risks. Also, the value of bonds changes in response to changes in economic conditions, interest rates, and the creditworthiness of individual issuers. Bonds can lose value as interest rates rise, and an investor can lose principal. Large-Cap Value Stocks: Stocks have historically offered the potential for greater long-term returns, but also entail greater short-term risks than other investments. Value stocks may be subject to special risks that have caused the stocks to be out of favor and undervalued in the opinion of the portfolio managers who invest in them. Large-Cap Blend Stocks: Stocks have historically offered the potential for greater long-term returns, but also entail greater short-term risks than other investments. Blend strategies are subject to both growth and value risks. Large-Cap Growth Stocks: Stocks have historically offered the potential for greater long-term returns, but also entail greater short-term risks than other investments. Most growth investments offer higher potential capital appreciation but usually at aboveaverage risk. Growth stocks can perform differently than other types of stocks and the market as a whole and can be more volatile than other types of stocks. Mid-Cap Value Stocks: Stocks have historically offered the potential for greater long-term returns, but also entail greater short-term risks than other investment choices. Mid-cap stocks may be more vulnerable to market downturns, and their prices could be more volatile than those of larger companies. Value stocks may be subject to special risks that have caused the stocks to be out of favor and undervalued in the opinion of the portfolio managers who invest in them. 28 E2-U

29 Mid-Cap Blend Stocks: Stocks have historically offered the potential for greater long-term returns, but also entail greater short-term risks than other investment choices. Midcap shares may be more vulnerable to market downturns, and their prices could be more volatile, than those of larger companies. Blend strategies are subject to both growth and value risks. Small-Cap Value Stocks: Stocks of small companies involve additional risks, including a higher risk of failure, and are not as well established as large, blue-chip companies. Historically, small-company stocks have experienced greater price volatility than the overall market. Value stocks may be subject to special risks that have caused the stocks to be out of favor and undervalued in the opinion of the portfolio managers who invest in them. Small-Cap Growth Stocks: Small-company stocks involve additional risks, including a higher risk of failure, and are not as well established as large, blue-chip companies. Historically, small-company stocks have experienced greater price volatility than the overall market average. Growth stocks can perform differently than other types of stocks and the market as a whole and can be more volatile than other types of stocks. Emerging Market Stocks: Emerging market stocks involve special additional risks, including but not limited to, currency risk, political risk, and risk associated with varying accounting standards. Historically, emerging market stocks have experienced a greater degree of price volatility than stocks from developed markets. Target Date: Target date options generally invest in a mix of stocks, bonds, cash equivalents, and potentially other asset classes, either directly or via underlying investments, and may be subject to all of the risks of these asset classes. Allocations become more conservative over time: The percentage of assets allocated to stocks will decrease while the percentage allocated to bonds will increase as the target date approaches. The higher the allocation is to stocks, the greater the risk. The principal value of the investment option is never guaranteed, including at and after the target date. Small-Cap Blend Stocks: Stocks of small companies involve additional risks, including a higher risk of failure, and are not as well established as large, blue-chip companies. Historically, small-company stocks have experienced greater price volatility than the overall market. Blend strategies are subject to both growth and value risks. World/Foreign Stocks: The risks of world/foreign stocks include, but are not limited to, currency risk, political risk, and risk associated with varying accounting standards. Investing in emerging, or developing, markets may accentuate these risks. E2-U 29

30 OnTrack Important Information About Probability Illustrations, Limitations, and Key Assumptions The probability illustrations the OnTrack tool generates are based on Monte Carlo simulations of 500 possible investment scenarios for a given time period and assume a range of possible returns. The illustrations are generated according to models developed by Ibbotson Associates, a leading independent provider of asset allocation, analytical, and wealth forecasting software. The Your Retirement Outlook SM graphic reflects the difference between the model s estimated annual income (which corresponds to a 70% probability of achieving your income goal in the investment scenarios simulated) and your annual income goal. When forecasting the probability of achieving your income goal, the model employs different returns for different asset classes, based on Ibbotson s capital market assumptions developed using historical and forward-looking data. Current assets are assigned to asset classes based on Morningstar categories, and fees and charges inherent in investing are incorporated with an average fee assumption for each asset class. The historical and forward-looking benchmarks used for modeling the various asset classes are below. Return assumptions are updated annually; these updates may have a material impact on your projections. Return assumptions are estimates not guarantees. The returns you experience may be materially different than projections. You cannot invest directly in an index. Asset Class Forward-Looking Benchmark Historical Benchmark Lower Risk/ Volatility Cash Short-Term Bonds Citigroup 3-Month Treasury Bill Barclays U.S. Treasury 1-3 Yr Term Index Ibbotson SBBI T-Bill Index Ibbotson 2 Yr Treasury Index TIPS Barclays Capital U.S. Treasury: U.S. TIPS Ibbotson TIPS Index Aggregate Bonds Long-Term Bonds High-Yield Bonds International Bonds Barclays Capital U.S. Aggregate Index Barclays Capital U.S. Long Credit A Index Barclays Capital U.S. Corporate High Yield Index Citigroup WGBI Barclays Capital U.S. Aggregate Index Ibbotson 25 Year Treasury Index Ibbotson High Yield Index Ibbotson Global Bond Composite Large-Cap Stocks Russell 1000 Index CRSP Declines Index Mid-Cap Stocks Russell Midcap Index CRSP Declines Index Small/Mid-Cap Stocks Russell 2500 Index CRSP Declines Index Small-Cap Stocks Russell 2000 Index CRSP Declines Index REITs FTSE NAREIT Equity REITs FTSE NAREIT Equity REITs International Stocks MSCI EAFE Index MSCI EAFE Index Higher Risk/ Volatility Emerging Markets Commodities MSCI Emerging Markets Index DJ-UBSCISM Ibbotson Emerging Market Composite S&P GSCI Commodity Sector Indices 30 E2-U

31 Unless you choose otherwise or your employer supplies different information, the probability illustrations assume retirement at the age at which you qualify for full Social Security benefits and an annual retirement income goal of 80% of your projected final working salary. Social Security estimates are based on the Social Security Administration methodology and your current salary. The probability illustrations also assume a consistent contribution percentage (unless you ve chosen to periodically increase it) and asset allocation (no future changes or rebalancing), annual inflation of approximately 2%, and annual salary increases based on a calculation that incorporates multiple factors including a salary growth curve and inflation. Mortality assumptions are based on the Society of Actuaries tables. The models are subject to a number of limitations. Returns associated with market extremes may occur more frequently than assumed in the models. Some asset classes have relatively limited histories; for these classes the models use historical data for shorter time periods. The model does not consider other asset classes such as hedge funds or private equity, which may have characteristics similar or superior to those used in the model. There is no guarantee that your income goal will be achieved or that the aggregate accumulated amount will ensure a specified annual retirement income. Results derived from the OnTrack tool may vary with each use and over time. IMPORTANT: The projections or other information generated by the OnTrack tool regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Moreover, even though the tool s estimates are statistically sound based upon the simulations it runs, the tool cannot foresee or account for every possible scenario that may negatively impact your financial situation. Thus you should monitor your account regularly and base your investment decisions on your time horizon, risk tolerance, and personal financial situation, as well as on the information in the prospectuses for investments you consider. TISC distributes securities products. Any mutual fund offered under the plan is distributed by that particular fund s associated fund family and its affiliated broker-dealer or other broker-dealers with effective selling agreements such as TISC. Group annuity contracts, if offered under the plan, are made available through the applicable insurance company. Any guarantee of principal and/or interest under a group annuity contract is subject to the claims-paying ability of the applicable insurer. CHE Trinity Health has selected Transamerica Retirement Solutions as your retirement plan provider, but there are no other affiliations between CHE Trinity Health and Transamerica or TISC. The Trinity Health Pension Plan is a church plan. Plans sponsored by churches or by organizations associated with a church are exempt from certain federal law requirements that apply to other private pension plans. This includes having to file informational returns with the federal government and paying premiums to the Pension Benefit Guaranty Corporation to buy limited insurance coverage for the plan. The Trinity Health Pension Plan is funded through dedicated trusts that cannot be used for any other purpose, and the plan would be considered well-funded under the federal standards. The information provided in this newsletter is designed to assist you with understanding your plan benefits under the CHE Trinity Health Retirement Program. It is only an overview. It is not intended to be a comprehensive description of your benefit plan design(s). Complete descriptions of these benefits will be found in the legal plan documents and contracts. If there is a conflict between the material in this document and the legal documents, the legal documents will govern. CHE Trinity Health reserves the right to modify, amend or terminate, in any manner and at any time, the plans or any part of the benefits described in this document, including the 403(b)/401(k) Plan employer matching contribution. E2-U 31

32 Copyright 2014 CHE Trinity Health Livonia, Michigan / PT_NL_CHE_E2-U (11/14) 2014 Transamerica Retirement Solutions Corporation