Your Guide to Investment Changes to the Halliburton Retirement and Savings Plan

Transcription

1 Your Guide to Investment Changes to the Halliburton Retirement and Savings Plan

2 Building Smart Investments New Investment Options Coming in June The Halliburton Retirement and Savings Plan (the Plan ) is a key component of your retirement savings. On June 18, 2013, Halliburton will add a set of Target Date Portfolios to enhance our investment option lineup and provide you with two great ways to invest in the future. The new Retirement Portfolios and the Income Retirement Portfolio will be the Target Date Portfolios offered to Halliburton participants, including retirees. The Target Date Portfolios, as described on page 4, have been custom designed to provide a single retirement portfolio. They are designed for people who prefer to invest in one investment option that is professionally managed and adjusts its asset mix automatically over time. The new Target Date Portfolios will replace the Moderate Premixed Portfolio, Aggressive Premixed Portfolio, Conservative Premixed Portfolio and Balanced Fund. Any existing account balances and future investments in these investment options being eliminated will be automatically moved into one of the Target Date Portfolios, unless you make new investment selections before the deadline on June 13, See page 3. If you prefer to build your own retirement portfolio, Halliburton will continue to offer single-focus funds, which will now be referred to as Strategies. To enhance the Single Focus Strategy lineup, an Inflation Sensitive Strategy will be added, and the current Large Cap Value Equity Fund and Large Cap Growth Equity Fund will be combined into one investment option, the Large Cap Equity Strategy. Two Great Ways to Invest in Your Future Are you a one-stop shopper who prefers a portfolio with the asset allocation already built FOR you? One of the new Target Date Portfolios might be right for you. Do you prefer to choose your own investments and manage a portfolio of your own that s built BY you? Halliburton continues to offer Single Focus Strategies across major asset categories plus the new Inflation Sensitive Strategy offers you a new way to manage inflation risk. What You Need to Do This document provides important information related to these investment changes. Please review it and determine whether you need to make any decisions regarding the investment of your account balance under the Plan, prior to the deadline on June 13, The frequently asked questions (FAQs), which begin on page 4, describe: What s changing on June 18, 2013, The new investment options, Which investment options will be eliminated and how your existing account balances and future investments invested in those options will be mapped during the four day black-out period, Where you can obtain investment information, and Important dates regarding the Plan changes. In this document, a chart with the new investment option lineup is included on page 4. In addition, the Fact Sheets for each investment option are included in this packet. Beginning on page 12 is the Investment Option Overview chart. To Access Your Plan Account and For More Information Through Fidelity, you can enroll in the Plan, check your account balances, change deferral elections, change the investment of existing account balances and future contributions, and get answers to questions about the investment changes. Log on to if you are an active employee (if you are a former employee, go to or call the Halliburton Benefits Center automated telephone system at (866)

3 What are the important dates I need to know? Time Period IMPORTANT Now until June 13, 2013 at 4:00 p.m. E.T. IMPORTANT Black-out Period from June 14 - June 17, 2013 What Will Happen Access your account and make any changes as usual. No action is required, but if you have existing account balances and future investments in the Conservative Premixed Portfolio, Moderate Premixed Portfolio, Balanced Fund, Aggressive Premixed Portfolio, Large Cap Growth Equity Fund and/or Large Cap Value Equity Fund, and you do not make investment changes by this day and time, your existing account balances and future investments in these investment options will automatically map during the four day black-out period. There will be a brief black-out period from June 14 - June 17, Fidelity will be using this temporary period in preparation for getting the new options in place and moving balances from the current investments into the new investments. This means the last time you will be able to make changes before the four day black-out period will be Thursday, June 13 at 4:00 p.m. E.T. You will remain fully invested during the black-out period. During the black-out period you cannot: Change any investments you have in the Conservative Premixed Portfolio, Moderate Premixed Portfolio, Balanced Fund, Aggressive Premixed Portfolio, Large Cap Growth Equity Fund or Large Cap Value Equity Fund. Request a loan, roll-in, withdrawal or a distribution from the Halliburton Retirement and Savings Plan if you have existing account balances and future investments in any of the investment options listed above. During the black-out period you can: View your account. Change any investments you have in the Stable Value Premixed Portfolio, Bond Index Fund, Intermediate Bond Fund, S&P 500 Index Fund, Non U.S. Equity Index Fund, Non U.S. Equity Fund, Mid Cap Equity Index Fund or Small Cap Equity Fund. Request loans, roll-ins, withdrawals or a distribution if you do not have existing account balances and future investments in the investment options that will be eliminated. IMPORTANT June 18, 2013 at 9:30 a.m E.T. New investment options become available for investment. As you do now, you may change the way your money is invested, view your account, make contributions and other changes, and request loans and distributions as normal, subject to Plan rules. To help you, compare the investment options under the Plan in the Investment Option Overview chart on pages Any investment changes made after 4:00 p.m. E.T. will be effective generally on the next business day that markets are open. For example, any investment election change made at 5:00 p.m. E.T. on Tuesday, June 18, 2013 will be effective on Wednesday, June 19, You can make changes to your investment elections at any time, subject to the Plan s frequent trading restrictions. 3

4 What is the New Investment Option Lineup? Current Investment Options Risk-Based Portfolios Conservative Premixed Portfolio Moderate Premixed Portfolio Balanced Fund Aggressive Premixed Portfolio Stable Value Stable Value Premixed Portfolio Bonds Bond Index Fund Intermediate Bond Fund Stocks REPLACED WITH Large Cap Growth Equity Fund Large Cap Value Equity Fund REPLACED WITH S&P 500 Index Fund Non U.S. Equity Index Fund Non U.S. Equity Fund Mid Cap Equity Index Fund Small Cap Equity Fund Investment Options as of June 18, 2013 New: Target Date Portfolios Single Focus Strategies Income Retirement Portfolio 2005 Retirement Portfolio 2010 Retirement Portfolio 2015 Retirement Portfolio 2020 Retirement Portfolio 2025 Retirement Portfolio 2030 Retirement Portfolio 2035 Retirement Portfolio 2040 Retirement Portfolio 2045 Retirement Portfolio 2050 Retirement Portfolio 2055 Retirement Portfolio Stable Value Stable Value Strategy Bonds Bond Index Strategy Intermediate Bond Strategy Bonds/Real Assets New: Inflation Sensitive Strategy Stocks New: Large Cap Equity Strategy S&P 500 Index Strategy Non U.S. Equity Index Strategy Non U.S. Equity Strategy Mid Cap Equity Index Strategy Small Cap Equity Strategy Frequently Asked Questions (FAQs) Why are changes being made to the Plan? The Target Date Portfolios are designed to help you make investment decisions, offer you a new, more streamlined way to invest your money and improve your asset allocation. If you want to choose your own investments, you can build your own retirement portfolio by choosing to invest your account balance among the 10 Single Focus Strategies offered. What are my investment options? Halliburton recognizes that different participants have different investment styles and priorities: Built FOR you: If you like the idea of simplifying your investment selection, or you do not want to spend a lot of time analyzing your objectives and risk tolerance in order to build your own portfolio, one of the Target Date Portfolios might appeal to you. Built BY you: If you prefer to choose your own investments, you may choose among the Single Focus Strategies to build your retirement portfolio. What is a Target Date Portfolio? Target date investment options are designed to simplify your investment decisions by providing an investment option with an asset allocation appropriate for your age. The year in the Target Date Portfolio name refers to the approximate year (the target date) when a participant would retire and leave the workforce. You choose the Target Date Portfolio with the date closest to your own target retirement date (generally age 65). Each Target Date Portfolio starts out with a larger allocation to aggressive (growth) investments such as stocks when the target retirement date is far away and you have the ability to tolerate short-term ups and downs, in order to gain more earnings on your investment over time. Real assets (such as commodities, natural resources and real estate) are used to combat inflation. The Target Date Portfolios asset allocation gradually change over time to more conservative (income) investments, such as bonds and stable value, which provide more stability in your investments as the target retirement year approaches and your investment horizon shortens. 4

5 The asset allocation is automatically adjusted by the professional investment manager over the time horizon of the Target Date Portfolios to become more conservative as the target retirement year approaches (glide path). Each Target Date Portfolio reflects a target retirement date that was designed for participants with birth dates in the identified range, as described in the chart on page 6. Enclosed with this notice are Fact Sheets that describe the goals, objectives, risks and expenses for each of the Target Date Portfolios. What is the investment objective of the Target Date Portfolios? Target Date Portfolios are designed to provide a comprehensive and diversified investment portfolio that targets an appropriate balance between capital growth, investment income and inflation sensitivity. What is the investment strategy of the Target Date Portfolios? To meet their objective, the underlying assets in the Target Date Portfolios will generally consist of a mixture of global stocks, high yield bonds, real assets, inflation bonds, core bonds and stable value assets. When the target retirement date is far in the future, the Target Date Portfolio emphasizes higher return and risk growth assets to maximize potential returns and asset accumulation during these saving years. As the target retirement date approaches, the Target Date Portfolio shifts its investment strategy over time to focus more on income assets so as to reduce risk and provide capital preservation. Generally the same investment managers used within the Single Focus Strategies are also used within the Target Date Portfolios. This arrangement usually results in lower expense ratios (fees) for all of the investment options. How were the Target Date Portfolios custom designed for Halliburton Plan participants? The Target Date Portfolios, which are professionally managed by Mercer Investment Consulting, LLC, were custom designed for Halliburton Plan participants based on our demographics, savings and retirement behavior. Mercer developed the Target Date Portfolio allocations after analyzing the contribution and withdrawal patterns of Halliburton s employees at different ages and salary levels, including Halliburton s company contribution and employer contribution matching programs. With this information, Mercer analyzed the likely range of retirement outcomes for Halliburton s employees over the next 5 to 80 years using different asset allocations. Some of the key assumptions in the analysis were: 1) retirement age 65 years, 2) one employer retirement plan, 3) employee 401(k) contribution rates based on average participating employee 401(k) contribution rate in each retirement date range, 4) employer 401(k) match based on average participating employee 401(k) contribution rate in each retirement date range up to a maximum of 5%, Target Date Portfolios Asset Allocation 100% Stable Value 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% RETIREMENT DATE n n Growth assets n n Inflation sensitive assets n n Income assets INCOME Core Bonds Inflation Sensitive Bonds Real Assets High Yield Bonds Global Stocks 5

6 5) employer basic contribution of 4%, and 6) pay level and account balance based on average participating employee pay level and average participant account balance in each retirement date range. Do I have to select the Target Date Portfolio that is closest to my 65th birthday? The chart below shows the default Target Date Portfolio selection, based on your age. If you plan to retire much earlier or later than age 65, you may want to choose a Target Date Portfolio with a different target date starting June 18, If you were born between Your Target Date Portfolio will be 1937 or earlier Income Retirement Portfolio Retirement Portfolio Retirement Portfolio Retirement Portfolio Retirement Portfolio Retirement Portfolio Retirement Portfolio Retirement Portfolio Retirement Portfolio Retirement Portfolio Retirement Portfolio 1988 or later 2055 Retirement Portfolio Is a Target Date Portfolio appropriate for me as a retiree? The Target Date Portfolios were designed to help you manage your retirement assets through retirement. This means the Target Date Portfolios reach their most conservative asset allocation ten years after the target retirement date. If you are already retired, consider choosing the Income Retirement Portfolio, 2005 Retirement Portfolio or the 2010 Retirement Portfolio. These Target Date Portfolios are designed to provide retirees with a balance of income and capital appreciation appropriate for their age. How many Target Date Portfolios should I invest in? Target Date Portfolios provide diversification and are designed to keep your assets invested appropriately for someone at your stage of life, up to and through your retirement years. If your retirement date falls between two Target Date Portfolios, you could choose to split your existing account balances and future investments between them. For instance, if you plan to retire in 2032, you could put some of your existing account balances and future investments in the 2030 Retirement Portfolio and the rest in the 2035 Retirement Portfolio. Experts strongly advise against investing in more than two Target Date Portfolios. If I invest in a Target Date Portfolio, do I need to continue to think about my Halliburton Retirement and Savings Plan investments? Even though Target Date Portfolios can simplify your investing, they still require monitoring to ensure the Target Date Portfolio is in line with your objectives. Also, an investment in a Target Date Portfolio is not guaranteed at any time, including on or after the target retirement date. What if I want to build my own retirement portfolio? Halliburton will offer 10 Single Focus Strategies to allow participants who are comfortable with designing their own retirement portfolio the opportunity to build their own asset allocation. The investment options now include a new Single Focus Strategy the Inflation Sensitive Strategy. Refer to the chart on page 4 that lists the new investment options. Also enclosed in this packet are the Fact Sheets that describe the goals, objectives, risks and expenses for each of the Single Focus Strategies. Is the Stable Value Premixed Portfolio going away? No, it s not. For consistency purposes, this investment option is just being renamed to the Stable Value Strategy. The investment option will continue to hold the same assets as the Stable Value Premixed Portfolio only the name will change. What is happening to the Large Cap Value Equity Fund and the Large Cap Growth Equity Fund? The current Large Cap Value Equity Fund and Large Cap Growth Equity Fund will be combined into one investment option, the Large Cap Equity Strategy during the blackout period. Your existing account balances and future contributions will move during that time. This change is being made to provide streamlined exposure to investment managers who utilize value and growth investment styles. The new strategy will combine the best of the growth and value managers, and provide balanced exposure to both styles which can shift with market opportunities. 6

7 I am currently invested in the Large Cap Value Equity Fund and/or the Large Cap Growth Equity Fund. What happens if I do not take action? If you have existing account balances or future investments in either the Large Cap Value Equity Fund or the Large Cap Growth Equity Fund and you do not take action by June 13, your existing balance and any future investments in the Large Cap Value Equity Fund or the Large Cap Growth Equity Fund will be mapped into the new Large Cap Equity Strategy during the black-out period. What type of investment option is the new Inflation Sensitive Strategy? The Inflation Sensitive Strategy is designed to offer participants an investment option that mitigates the effects of inflation. Inflation can lower the real buying power of your money, making it important for long-term investors to factor it into their planning. The Inflation Sensitive Strategy aims to help participants protect their purchasing power against the effects of inflation by seeking real (inflation-adjusted) returns from Treasury Inflation-Protected Securities (TIPS), precious metals, commodity and real estate investments, as well as other inflation-protected securities. This can improve portfolio diversification because other financial assets, such as stocks or bonds, may underperform in periods of higher inflation. The Target Date Portfolios will also invest in some inflation sensitive products. Why eliminate the risk-based portfolios: the Moderate Premixed Portfolio, Aggressive Premixed Portfolio, Conservative Premixed Portfolio and the Balanced Fund? Both the risk-based portfolios and the Target Date Portfolios offer a diversified mix of stocks, bonds and stable value investments. The big difference is that the asset allocation (glide path) for the Target Date Portfolios automatically adjusts to become more conservative as the target retirement date approaches. By contrast, the asset allocation of the riskbased portfolios does not automatically adjust over time: the Moderate Premixed Portfolio always stays moderate, the Aggressive Premixed Portfolio always stays aggressive, and so on. Participants invested in these risk-based portfolios needed to change their investment selections as they grew older based on their specific time horizon, goals and objectives. This active rebalancing will no longer be necessary with the Target Date Portfolios. What is the black-out period? There will be a brief black-out period from June 14 - June 17, Fidelity will be using this fourday period in preparation for getting the new investment options in place and moving balances from the current investments into the new investments. During the blackout period, if you are invested in one of the investment options that will be no longer available, you will not be able to change your investments, request a loan, roll-in, withdrawal or a distribution. This means the last time you will be able to conduct these transactions prior to the black-out period will be Thursday, June 13 at 4:00 p.m. E.T. You may still view your account and you will remain fully invested during this time. See the table on page 3 for information about trading restrictions during the blackout period. I do NOT have any existing account balances and future investments designated to be invested in the Conservative Premixed Portfolio, Moderate Premixed Portfolio, Balanced Fund, Aggressive Premixed Portfolio, Large Cap Growth Fund or Large Cap Equity Fund. Do I have to take any action now? For participants with no investments in these investment options, no action is required. If you do nothing, your account, including future contributions, will continue to be invested without change among the individual investment options that you have already designated. But even though you do not have to take action, take this opportunity to review your investments, including the 7

8 new Target Date Portfolios. And all participants have the option of rebalancing their accounts, exchanging between investments or changing their future contributions at any time (subject to frequent trading restrictions). How will my existing account balances and future investments move from the current riskbased portfolios if I don t do anything? If you take no action by June 13 at 4:00 p.m. E.T., any existing account balances and future investments you have invested in the current risk-based portfolios the Conservative Premixed Portfolio, Moderate Premixed Portfolio, Balanced Fund, and/or Aggressive Premixed Portfolio will be moved to one of the new Target Date Portfolios during the black-out period. Your existing account balances and future investments will be mapped to the Target Date Portfolio closest to the year you will reach age 65. For example, if you will reach age 65 in 2029, any existing account balances and future investments you have invested in the Conservative Premixed Portfolio, Moderate Premixed Portfolio, Balanced Fund and/ or Aggressive Premixed Portfolio will move to the 2030 Retirement Portfolio, unless you choose to move your future contributions into other investment options. Can I choose which Target Date Portfolio my existing account balances and future investments gets mapped into? No, your existing account balances and future investments will be mapped based on your date of birth as outlined on the chart on page 6. You can move to another Target Date Portfolio after the black-out period ends. Prior to the black-out period, can I transfer my existing account balances and future contributions out of the risk-based portfolios into a Target Date Portfolio? No, the Target Date Portfolios will not be available for investment until June 18, What if I do not want my existing account balances and future contributions to map over from a risk-based portfolio into a Target Date Portfolio? You may change how your existing account balance and future contributions are invested, either before or after the mapping. Log on to if you are an active employee (if you are a former employee, go to or call the Halliburton Benefits Center automated telephone system at (866) to make your elections. When making your investment election changes, keep these important dates in mind: June 13, 2013, before 4:00 p.m. E.T.: Deadline for moving existing account balances and future investments out of the Conservative Premixed Portfolio, Moderate Premixed Portfolio, Balanced Fund and/or Aggressive Premixed Portfolio or changing your investment election for future contributions if you do not want your existing account balances and future investments to be automatically mapped into the applicable Target Date Portfolio. June 14 - June 17, 2013: Fidelity will be using this temporary black-out period in preparation for getting the new investment options in place and moving balances from the current investments into the new investments. You will not be able to move your existing account balances and future investments into or out of the investment options that are being eliminated during the black-out period. See page 3 for details. You may still view your account and you will remain fully invested during this time. June 18, 2013: You can move your existing account balances and future investments into any option in the new investment lineup on or after this time. Any investment changes made after 4:00 p.m. E.T. will be effective generally on the next business day that markets are open. For example, any investment election change made at 5:00 p.m. E.T. on Tuesday, June 18, 2013 will be effective on Wednesday, June 19, You can make changes to your investment elections at any time, subject to the Plan s frequent trading restrictions. Note: Whatever investment selections you make within the Plan, you should periodically review your retirement portfolio to ensure that it is aligned with your current investment objectives. What is the Plan s default investment alternative? The Target Date Portfolios will be the new qualified default investment alternative (QDIA) under the Plan within the meaning of the applicable U.S. Department of Labor regulations. Prior to June 14, 2013, the Moderate Premixed Portfolio was the QDIA. Remember, you have the right to direct the investments of the assets in your account. If you do not make an investment selection, then your employee and employer contributions will be automatically invested in the Target Date Portfolio that most closely aligns with your birth date and expected retirement date at age 65 according to the chart on page 6. For example, if you are auto-enrolled, or you enroll but do not make investment selections with 8

9 Fidelity, then your existing account balance and future contributions will be invested in the Target Date Portfolio that is appropriate based on your birth date and expected retirement date at age 65, as shown on the chart on page 6. If your investments are defaulted into the QDIA, you may make changes to your investment elections at any time, subject to the Plan s excessive trading policy. There are no restrictions, expenses or fees related to transfers out of the QDIA into another investment alternative available under the Plan. The investment objectives, strategies and risks for the Target Date Portfolios are described herein and are provided on the attached Fact Sheets. The auto-enrollment and QDIA annual notice is also enclosed. When are investment elections effective? Any investment changes made after 4:00 p.m. E.T. will be effective generally on the next business day that markets are open. For example, any investment election change made at 5:00 p.m. E.T. on Tuesday, June 18, 2013 will be effective on Wednesday, June 19, You can make changes to your investment elections at any time, subject to the Plan s frequent trading restrictions. I currently rebalance my portfolio with Fidelity. What should I do now? If you are currently using the Automatic Rebalance and/ or Rebalance Notification feature, you may need to adjust your rebalance election given the changes to the investment options on June 18, If you have selected an investment option that will no longer be offered, the Automatic Rebalance and/or Rebalance Notification feature will not occur as scheduled. You will need to reactivate either one or both features so the system will rebalance your account to the target allocation you set and/or will notify you when your account s asset allocation strays from your target percentages. How much investment risk is involved? All investing is subject to risk and investments in the Single Focus Strategies and Target Date Portfolios are subject to the risks of their underlying investments. Higher Lower RETURN Stable Value Stable Value RISK AND RETURN TEND TO BE LINKED Bond Index Intermediate Bond Bonds Inflation Sensitive Real Assets S&P 500 Index Large Cap Non US Equity Index Non US Equity Stocks Mid Cap Equity Index Small Cap Lower (More Conservative ) RISK Higher (More Aggressive ) Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. The securities of smaller, less wellknown companies can be more volatile than those of large companies. Foreign securities and currencies, especially those in emerging markets, involve greater risk and may offer greater potential returns than U.S. investments. This risk includes political and economic uncertainties of foreign countries. In general, the bond market is volatile, and bond securities carry interest rate risk. As interest rates rise, bond prices usually fall and vice versa. This effect is usually more pronounced for longer-term securities. Bonds also carry inflation risk, liquidity risk, call risk, and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond investment options do not have a maturity date, so avoiding losses caused by price volatility by holding the investment option until maturity is not possible. The principal value of inflation-linked bonds adjusts with inflation but declines in value when real interest rates rise and vice versa. Commodities contain heightened risk including market, political, regulatory and natural commodities. Real estate investment trusts (REITs) are subject to general stock market risk, real estate market declines and adverse changes to REIT tax laws. 9

10 Stable value is generally invested in high quality, diversified bond portfolios that are protected against interest rate volatility by contracts issued by banks and insurance companies. These contracts are backed solely by the financial resources of the bank and insurance companies and by the portfolios of securities. Stable value is not insured or guaranteed by the manager(s), the plan sponsor, the trustee, the FDIC or any other government agency. The contracts are designed to allow participants to transact at contract value (principal plus accrued interest less expenses). Withdrawals prompted by certain events (e.g., layoffs, early retirement windows, spin-offs, sale of a division, facility closings, plan terminations, partial plan terminations, changes in laws or regulations) may be paid at the market value of the bond portfolios. Principal invested is not guaranteed at any time, including at or after their target retirement dates. Things to Consider Neither Halliburton nor any person or other entity associated with the Plan can provide investment advice. Each individual should carefully consider his or her investment objectives, risks, charges, expenses and other important information associated with any employer retirement plan before investing. No single approach is right for everyone because, among other factors, individuals have different financial goals, different time horizons for meeting their goals and different tolerances for risk. You have the right to direct the investment of your assets. It is important for you to review the descriptions of the investment options offered within the Plan, and all other available materials, such as the Fact Sheets and other resources to help you make well-informed choices. You can access this information as well as tools for helping you determine the right asset allocation based on your needs by logging on to if you are an active employee (if you are a former employee, go to You may want to consult your tax adviser and other financial professionals before making investment decisions. In deciding to invest your retirement savings, you should take into account all of your assets, including any retirement savings outside the Plan. To help achieve long-term retirement security, you should give careful consideration to the benefits of a well-balanced and diversified portfolio The Target Date Portfolios are automatically diversified. Spreading your assets among different types of investments can help you achieve a favorable rate of return, while minimizing your overall risk of losing money. Although diversification is not a guarantee against loss, it is an effective tool to help you manage investment risk. It is also important to periodically review your retirement portfolio, your investment objectives and the investment options under the Plan to help ensure that your retirement savings will meet your retirement goals. Visit the Department of Labor website for information on individual investing and diversification. To Access Your Account and For More Information Through Fidelity, you can enroll, check account balances, change deferral elections, or change the investment of existing account balances or future contributions, along with getting answers to any questions about these changes. Log on to if you are an active employee (if you are a former employee, go to or call the Halliburton Benefits Center automated telephone system at (866) Other Important Information You are receiving this notice because you are currently either a participant in, currently eligible for, or soon expected to meet the eligibility requirements to participate in the Plan. Under the Plan, any contributions for which you do not provide investment direction will be invested in a Target Date Portfolio, which is the designated default investment alternative under the Plan. The Halliburton Retirement and Savings Plan is intended to be a participant-directed plan as described in Section 404(c) of the Employee Retirement Income Security Act of 1974 as amended (ERISA). Therefore, the fiduciaries of the Plan are generally relieved of liability for any losses that are the direct 10

11 and necessary result of investment instructions given by a participant or a beneficiary of the Plan. All investment comes with some risk and the value of your investment will go up and down based on the performance of the investments. Remember, it is always your responsibility to ensure that the options you select are consistent with your particular situation, including, among other things, your goals, time horizon, and risk tolerance. The Halliburton Company Investment Committee (the Committee ) has the right to engage or terminate an investment manager as an investment advisor to the Plan at any time. Your contributions invested in the available investment options are not deposits with or liabilities of any of the investment managers and are subject to investment risk, including loss of income and principal invested and possible delays in payment of redemption proceeds. Neither the investment managers nor the Plan guarantee the performance of any investment option, the principal or any particular rate of return. Please consider and carefully read each investment option s objectives, risks, charges and expenses on the fund sheets before investing. Your contributions invested in the Target Date Portfolios are not guaranteed by the Plan sponsor(s) or any of its affiliates, the Committee(s), any consultants or investment managers. The Plan assets invested in the Target Date Portfolios and the other available investment options are not insured by the Federal Deposit Insurance Corporation (FDIC) or any other governmental agency. Investing in the Target Date Portfolios will not guarantee that you will be able to retire on or after the Target Date Portfolios target retirement date or that you will have adequate income during retirement. The Target Date Portfolios will contain a significant allocation to stocks and other growth-oriented securities. Because growth-oriented securities have historically been more volatile than bond securities, there is potential risk of a significant loss of income and principal. The investment risk of each Target Date Portfolio changes over time as its asset allocation changes, becoming more conservative as the target date approaches. The Target Date Portfolios are subject to, among other things, the volatility of the financial markets, including that of stock and bond investments in the U.S. and abroad, and may be subject to risks associated with investing in high-yield bonds, smallcap stocks, commodities and real estate. Principal invested is not guaranteed at any time, including at or after their target retirement dates. Diversification does not ensure a profit or guarantee against loss. All performance information is either historical or a historical estimate and past performance does not guarantee future results. Future performance may be lower or higher than the performance data quoted. Separate investment decisions and the resulting purchase and sale activities of the investment options investment manager(s) might adversely affect the investment options performance. The Halliburton Company Employee Benefit Master Trust (Master Trust) is structured using institutionally managed separate accounts or common and collective trusts. The Master Trust owns the underlying assets in the separate account. The issuer (bank or trust company) owns the underlying assets of common or collective trust funds. The investment options will invest, either through accounts managed by external investment managers or through externally managed investment portfolios, in instruments that are defined as commodities under the U.S. Commodity Exchange Act (CEA), which is administered by the Commodity Futures Trading Commission (CFTC). Those investments may include certain kinds of financial instruments as well as classic commodities and may be made for the purposes of seeking investment gains, replicating the return of an index or for hedging. As a result of the investment in those instruments, the Committee(s) of the Plan and the Plan sponsor could be deemed commodity pool operators. Therefore, as permitted by a CFTC rule, the Committee(s) of the Plan and the Plan sponsor have claimed an exemption from the definition of commodity pool operator under the CEA, and you should be aware that they are not subject to registration or regulation as pool operators under the CEA. Unless otherwise noted, participant transaction requests confirmed after the close of market, normally 4:00 p.m. E.T., or on weekends or holidays, will receive the prices on the next available trading day. Every effort has been made to communicate the benefit information in this Notice clearly and in easily understandable terms. If there is any discrepancy between the information in this Notice and the legal Plan and trust documents, the terms of the legal Plan and trust documents govern. Halliburton intends to continue the Plan indefinitely, but reserves the right to modify, amend or terminate the Plan in full or in part at any time and for any reason. For additional information, you should also review the Plan Summary Plan Description and current Summaries of Material Modifications. 11

12 Investment Option Overview The table below includes important information to help you compare the investment options under your retirement plan. It shows how the investment options have performed over time and allows you to compare them with an appropriate benchmark for the same time periods. Keep in mind that you cannot invest in the benchmark indices, which are set forth in italics on the chart underneath the name of each investment option. Investment Option Name / Benchmark Name TARGET DATE PORTFOLIO ( A ) Inception Date Annualized Net of Fees Returns as of March 31, 2013 Management Style 1-Year 3-Years 5-Years Income Retirement Portfolio 6/14/13 Active n/a n/a n/a n/a 14.2% MSCI All County World Index/20.4% Barclays Capital US Aggregate Index/37.9% Hueler Stable Value Pooled Fund Comparative Universe/16.3% Barclays Capital US Treasury Inflation Protected Securities (TIPS) Index/3.8% Dow Jones US Select REIT Index/3.8% Dow Jones- UBS Roll Select Commodity Index/1.9% S&P Global LargeMidCap Commodity and Resources Index)/1.6% Bank of America Merrill Lynch High Yield Bond Index 10-Years / Life ( b ) 4.7% 6.0% 4.4% n/a 2005 Retirement Portfolio 6/14/13 Active n/a n/a n/a n/a 27.3% MSCI All County World Index/25.0% Barclays Capital US Aggregate Index/24.1% Hueler Stable Value Pooled Fund Comparative Universe/10.3% Barclays Capital US Treasury Inflation Protected Securities (TIPS) Index/4.1% Dow Jones US Select REIT Index/4.1% Dow Jones- UBS Roll Select Commodity Index/2.1% S&P Global LargeMidCap Commodity and Resources Index)/3.0% Bank of America Merrill Lynch High Yield Bond Index 6.0% 6.8% 4.5% n/a 2010 Retirement Portfolio 6/14/13 Active n/a n/a n/a n/a 38.3% MSCI All County World Index/28.8% Barclays Capital US Aggregate Index/12.7% Hueler Stable Value Pooled Fund Comparative Universe/5.5% Barclays Capital US Treasury Inflation Protected Securities (TIPS) Index/4.2% Dow Jones US Select REIT Index/4.2% Dow Jones- UBS Roll Select Commodity Index/2.1% S&P Global LargeMidCap Commodity and Resources Index)/4.2% Bank of America Merrill Lynch High Yield Bond Index 7.0% 7.4% 4.6% n/a 2015 Retirement Portfolio 6/14/13 Active n/a n/a n/a n/a 48.6% MSCI All County World Index/32.5% Barclays Capital US Aggregate Index/1.6% Hueler Stable Value Pooled Fund Comparative Universe/0.8% Barclays Capital US Treasury Inflation Protected Securities (TIPS) Index/4.4% Dow Jones US Select REIT Index/4.4% Dow Jones- UBS Select Roll Commodity Index/2.2% S&P Global LargeMidCap Commodity and Resources Index)/5.5% Bank of America Merrill Lynch High Yield Bond Index 8.0% 7.9% 4.5% n/a 2020 Retirement Portfolio 6/14/13 Active n/a n/a n/a n/a 59.0% MSCI All County World Index/21.3% Barclays Capital US Aggregate Index/5.3% Dow Jones US Select REIT Index/5.3% Dow Jones-UBS Roll Select Commodity Index/2.6% S&P Global LargeMidCap Commodity and Resources Index)/6.5% Bank of America Merrill Lynch High Yield Bond Index 8.8% 8.3% 4.1% n/a 2025 Retirement Portfolio 6/14/13 Active n/a n/a n/a n/a 65.2% MSCI All County World Index/12.9% Barclays Capital US Aggregate Index/5.8% Dow Jones US Select REIT Index/5.8% Dow Jones-UBS Roll Select Commodity Index/3.0% S&P Global LargeMidCap Commodity and Resources Index)/7.3% Bank of America Merrill Lynch High Yield Bond Index 9.3% 8.5% 3.9% n/a 2030 Retirement Portfolio 6/14/13 Active n/a n/a n/a n/a 70.4% MSCI All County World Index/6.2% Barclays Capital US Aggregate Index/6.2% Dow Jones US Select REIT Index/6.2% Dow Jones-UBS Roll Select Commodity Index/3.2% S&P Global LargeMidCap Commodity and Resources Index)/7.8% Bank of America Merrill Lynch High Yield Bond Index 9.7% 8.6% 3.6% n/a 2035 Retirement Portfolio 6/14/13 Active n/a n/a n/a n/a 70.4% MSCI All County World Index/6.2% Barclays Capital US Aggregate Index/6.2% Dow Jones US Select REIT Index/6.2% Dow Jones-UBS Roll Select Commodity Index/3.2% S&P Global LargeMidCap Commodity and Resources Index)/7.8% Bank of America Merrill Lynch High Yield Bond Index 9.8% 8.7% 3.5% n/a 2040 Retirement Portfolio 6/14/13 Active n/a n/a n/a n/a 70.4% MSCI All County World Index/6.2% Barclays Capital US Aggregate Index/6.2% Dow Jones US Select REIT Index/6.2% Dow Jones-UBS Roll Select Commodity Index/3.2% S&P Global LargeMidCap Commodity and Resources Index)/7.8% Bank of America Merrill Lynch High Yield Bond Index 9.8% 8.7% 3.5% n/a 2045 Retirement Portfolio 6/14/13 Active n/a n/a n/a n/a 70.4% MSCI All County World Index/6.2% Barclays Capital US Aggregate Index/6.2% Dow Jones US Select REIT Index/6.2% Dow Jones-UBS Roll Select Commodity Index/3.2% S&P Global LargeMidCap Commodity and Resources Index)/7.8% Bank of America Merrill Lynch High Yield Bond Index 9.8% 8.7% 3.5% n/a 2050 Retirement Portfolio 6/14/13 Active n/a n/a n/a n/a 70.4% MSCI All County World Index/6.2% Barclays Capital US Aggregate Index/6.2% Dow Jones US Select REIT Index/6.2% Dow Jones-UBS Roll Select Commodity Index/3.2% S&P Global LargeMidCap Commodity and Resources Index)/7.8% Bank of America Merrill Lynch High Yield Bond Index 9.8% 8.7% 3.5% n/a 2055 Retirement Portfolio 6/14/13 Active n/a n/a n/a n/a 70.4% MSCI All County World Index/6.2% Barclays Capital US Aggregate Index/6.2% Dow Jones US Select REIT Index/6.2% Dow Jones-UBS Roll Select Commodity Index/3.2% S&P Global LargeMidCap Commodity and Resources Index)/7.8% Bank of America Merrill Lynch High Yield Bond Index 9.8% 8.7% 3.5% n/a ( a ) The Target Date Portfolios will be the new qualified default investment alternative (QDIA) under the Plan within the meaning of the applicable U.S. Department of Labor regulations. Prior to June 14, 2013, the Moderate Premixed Portfolio was the QDIA. ( b ) Where the investment option has been in existence for less than 10-years, performance provided is for the Life of the investment option, which is since the inception date. ( c ) Most investment options use institutionally managed separate accounts; this means the accounts are managed only for participants in the Halliburton Plans. Individual securities are bought and sold by professional investment managers selected by the Investment Committee. Collective Trusts are investment vehicles operated by banks or trust companies. Neither collective trust funds nor separate accounts are mutual funds. Unlike mutual funds, separate accounts and collective trust funds are not subject to and are not registered under the Securities Act of 1933 or the Investment Company Act of ( d ) Expenses for the Target Date Portfolios, Large Cap Equity Strategy and Inflation Sensitive Strategy are estimates. Expenses for the Intermediate Bond Strategy and Non-US Index Equity Strategy represents actual expenses since July 31, 2012, the inception date. Trading Restrictions focuses on what is known as a round-trip transaction. A round-trip is an exchange into and out of the same investment option, in excess of $1,000, within 30 days. Under the Policy, participants are limited to one round-trip transaction in any investment option within any rolling 90-day period, subject to an overall limit of four round-trip transactions across all investment options over a rolling 12-month period. The Policy governing the Stable Value Strategy works differently. If money is transferred or reallocated into the Stable Value Strategy, the number of units acquired in the transaction cannot be transferred out of the Stable Value Strategy for 30 calendar days. However, any units already in the Stable Value Strategy prior to the transaction are not subject to the 30-day waiting period. 12

13 To direct or change your Plan investment options or for current information, including month-end performance and a free paper copy of available information, please visit (if you are a current employee) or (if you are a former employee). You may also call the Halliburton Benefits Center at (866) (international toll free, use your country s AT&T access code, then (866) ) or for toll call (857) , select option 2. The mailing address is: Fidelity Investments, P.O. Box #770003, Cincinnati, OH Annual Net of Fees Return Annual Turnover Ratio as of March 31, 2013 Investment Structure ( c ) Market Risk Inflation Risk Potential Return Expense One Year Ending March 31, 2013 ( d ) % of Assets Per $1,000 Invested n/a n/a n/a n/a n/a n/a Separate Account Low Moderate Low 0.43% $ % 13.4% 8.2% 3.8% 6.3% n/a n/a n/a n/a n/a n/a Separate Account Low Moderate Moderate 0.45% $ % 18.2% 9.9% 2.2% 8.3% n/a n/a n/a n/a n/a n/a Separate Account Moderate Moderate Moderate 0.46% $ % 22.1% 11.2% 0.8% 9.9% n/a n/a n/a n/a n/a n/a Separate Account Moderate Moderate Moderate 0.47% $ % 26.0% 12.5% -0.5% 11.5% n/a n/a n/a n/a n/a n/a Separate Account Moderate Low Moderate 0.49% $ % 30.4% 13.6% -2.3% 13.0% n/a n/a n/a n/a n/a n/a Separate Account High Low High 0.50% $ % 33.1% 14.3% -3.4% 13.9% n/a n/a n/a n/a n/a n/a Separate Account High Low High 0.51% $ % 35.2% 14.7% -4.4% 14.6% n/a n/a n/a n/a n/a n/a Separate Account High Low High 0.52% $ % 35.8% 14.8% -4.6% 14.8% n/a n/a n/a n/a n/a n/a Separate Account High Low High 0.52% $ % 35.8% 14.8% -4.6% 14.8% n/a n/a n/a n/a n/a n/a Separate Account High Low High 0.52% $ % 35.8% 14.8% -4.6% 14.8% n/a n/a n/a n/a n/a n/a Separate Account High Low High 0.52% $ % 35.8% 14.8% -4.6% 14.8% n/a n/a n/a n/a n/a n/a Separate Account High Low High 0.52% $ % 35.8% 14.8% -4.6% 14.8% Fees and Expenses include all charges to the investment options except for individual service that a participant may select such as overnight mailing fees of $25 per transaction. The investment option does not charge fees to contribute, transfer or withdraw from the option. Investment option performance is compared with a benchmark index. Indices are unmanaged portfolios of specified securities and the indices do not reflect any initial or ongoing expenses. The investment options portfolio may differ significantly from the securities in the indices. Investment performance is determined after fees are charged to the options and assumes reinvestment of dividends and capital gains. Transaction costs incurred for buying and selling securities becomes part of the cost basis of the securities and are not included in the expense ratio. These costs, along with management fees, plan administration fees and other fees are paid out of the investment options assets, reducing the rate of return realized by participants. Cumulative effect of fees and expenses can substantially reduce the growth of a participants retirement account. Participants are encouraged to visit the Employee Benefits Security Administration website at: for information and examples demonstrating the long-term effect of fees and expenses. Fees and expenses are only one of several factors that participants and beneficiaries should consider when making investment decisions. Plan Administrator: Halliburton Company Benefits Committee City West Blvd., Bldg 2.601A Houston, TX , telephone number (281)