YOUR GUIDE TO GETTING STARTED

Transcription

1 Navient 401(k) Savings Plan Invest in your retirement and yourself today, with help from Navient 401(k) Savings Plan and Fidelity. YOUR GUIDE TO GETTING STARTED

2 Invest some of what you earn today for what you plan to accomplish tomorrow. Dear Navient employee: Your company offers a generous matching contribution, outstanding convenience, and a variety of investment options. Take a look and see what a difference enrolling in the plan could make in achieving your goals. Benefit from: Matching contributions. Your company helps your contributions grow through a generous employer match of up to 4% annually it s like getting "free" money. That s why it makes good financial sense to take advantage of this great benefit today! Please note that employer contributions are subject to your plan provisions. Company Core Contribution. Your company also makes a 1% Core Contribution to every employee, whether you participate in the plan or not, to encourage you to save for retirement. Convenience. Your contributions are automatically deducted regularly from your paycheck. Tax savings now. Your pretax contributions are deducted from your pay before income taxes are taken out. This means that you can actually lower the amount of current income taxes you pay each period. It could mean more money in your take-home pay versus saving money in a taxable account. Portability. You can roll over eligible savings from a previous employer into this Plan. You can also take your plan vested account balance with you if you leave the company. Investment options. You have the flexibility to select from investment options that range from more conservative to more aggressive, making it easy for you to develop a well-diversified investment portfolio. Your Plan offers you the option of having experienced professionals manage your account for you. To learn more about what your plan offers, see Frequently asked questions about your plan later in this guide. Enroll in your plan and invest in yourself today.

3 Frequently asked questions about your plan. Here are answers to questions you may have about the key features, benefits, and rules of your plan. When can I enroll in the plan? You are eligible to join the Plan if you are a full or part-time employee with one month of continuous service. How do I enroll in the Plan? Log on to Fidelity NetBenefits at or call the Fidelity Retirement Line at to enroll in the Plan. How much can I contribute? Through automatic payroll deduction, you can contribute between 1% and 75% of your eligible pay on a pretax basis, up to the annual IRS dollar limits. In addition, you can automatically increase your retirement savings plan contributions each year through the Annual Increase Program. You can sign up by logging on to Fidelity NetBenefits at and click on "Payroll Deductions" or by calling the Fidelity Retirement Line at The Internal Revenue Code provides that the combined annual limit for total plan contributions is 100% of your W2 compensation or $52,000, whichever is less. You can request to change your contribution amount virtually any time by logging on to Fidelity NetBenefits at or by calling the Fidelity Retirement Line at What is the IRS contribution limit? The IRS contribution limit for 2014 is $17,500. When is my enrollment effective? Your enrollment becomes effective once you elect a deferral percentage, which initiates deduction of your contributions from your pay. These salary deductions will generally begin with your next pay period after we receive your enrollment information, or as soon as administratively possible. Does the Company contribute to my account? The Company will match up to 4% of pay, with a $1 for $1 match on the first 3% of pay that you contribute to the Plan and a $.50 match on the next 2% of pay that you contribute. To receive the matching contribution you must complete six months of service, based on your anniversary date. In addition, the Company will make an automatic 1% Core Contribution after one month of service so that every employee is encouraged to save for retirement. How do I designate my beneficiary? If you have not already selected your beneficiaries, or if you have experienced a lifechanging event such as a marriage, divorce, birth of a child, or a death in the family, it s time to consider your beneficiary designations. Fidelity s Online Beneficiaries Service, available through Fidelity NetBenefits, offers a straightforward, convenient process that takes just minutes. Simply log on to NetBenefits at and click on Beneficiaries in the About You section of Your Profile. If you do not have access to the Internet or prefer to complete your beneficiary information by paper form, please contact What are my investment options? To help you meet your investment goals, the Plan offers you a range of options. You can select a mix of investment options that best FAQs For more information visit or call

4 FAQs suits your goals, time horizon, and risk tolerance. The 29 investment options available through the Plan include conservative, moderately conservative, and aggressive funds. A complete description of the Plan s investment options and their performance, as well as planning tools to help you choose an appropriate mix, are available online at Fidelity NetBenefits. Fidelity Freedom K Funds. The Plan also offers the Fidelity Freedom K Funds that offer a blend of stocks, bonds and short-term investments within a single fund. Each Freedom K Fund s asset allocation is based on the number of years until the fund s target retirement date. The Freedom K Funds are designed for investors who want a simple approach to investing for retirement. Lifecycle funds are designed for investors expecting to retire around the year indicated in each fund s name. The investment risk of each lifecycle fund changes over time as each fund s asset allocation changes. The funds are subject to the volatility of the financial markets, including equity and fixed income investments in the U.S. and abroad and may be subject to risks associated with investing in high yield, small cap, commodity-linked and foreign securities. Principal invested is not guaranteed at any time, including at or after the fund s target date. Fidelity Portfolio Advisory Service at Work. The Plan also offers Fidelity Portfolio Advisory Service at Work, a managed account service that lets you delegate the day-to-day management of your workplace savings plan account to professional investment managers. Fidelity s experienced professionals evaluate the investment options available in your plan and identify a model portfolio of investments appropriate for an investor like you. The service then invests your account to align with this model portfolio and provides ongoing management of your account to address changes in the markets, your plan s investment lineup, and changes in your personal or financial situation. With a managed account, you can take advantage of Fidelity s resources and experience to help ensure that: Your investments are managed through the ups and downs of the market. You re keeping your accounts aligned with your goals through annual reviews and check-ins. Your account is actively managed to create an opportunity for long-term gains while managing the risk associated with investing. To see if Fidelity Portfolio Advisory Service at Work is right for you, log onto NetBenefits at where you can easily enroll in the Service and learn more. Fidelity Portfolio Advisory Service at Work is a service of Strategic Advisers, Inc., a registered investment adviser and a Fidelity Investments company. This service provides discretionary money management for a fee. Please note that performance of the model portfolios depends on the performance of the underlying investment options. These investments are subject to the volatility of the financial markets in the U.S. and abroad and may be subject to additional risks with investing in high yield, small-cap, and foreign securities. What "catch-up" contribution can I make? If you have reached age 50 or will reach 50 during the calendar year January 1 December 31 and are making the maximum plan or IRS pretax contribution, you may make an additional catch-up contribution each pay period. Going forward, catch-up contribution limits will be subject to cost of living adjustments (COLAs) in $500 increments. The Company will match your catch-up contributions. You make catch-up contributions through payroll deduction, the same way you make regular contributions. 2

5 When am I vested? You are immediately 100% vested in your own contributions to the Navient 401(k) Savings Plan. You are also immediately 100% vested in any Company match contributions and any earnings associated with them. The Core Contribution requires that you have one year of service from your date of hire before becoming 100% vested in those contributions and any earnings associated with them. Can I take a loan from my account? Although your plan account is intended for the future, you may borrow from your account for any reason. Generally, the Navient 401(k) Savings Plan allows you to borrow up to 50% of your vested account balance. The minimum loan amount is $1,000, and a loan must not exceed $50,000. You then pay the money back into your account, plus interest, through after-tax payroll deductions. Any outstanding loan balances over the previous 12 months may reduce the amount you have available to borrow. You may have two loans outstanding at a time. The cost to initiate a loan is $35, and there is an annual maintenance fee of $15. The initiation and maintenance fees will be deducted directly from your individual plan account. If you fail to repay your loan (based on the original terms of the loan), it will be considered in default and treated as a distribution, making it subject to income tax and possibly to a 10% early withdrawal penalty. Defaulted loans may also impact your eligibility to request additional loans. To learn more about or request a loan, log on to or call the Fidelity Retirement Line at Can I make withdrawals from my account? Withdrawals from the Plan are generally permitted when you terminate your employment, retire, reach age 59½, or become permanently disabled as defined by your Plan. The Plan offers two types of withdrawal options if you are an active employee: In-service withdrawals are withdrawals for any reason and can be made 2 times per year. There is a $50 fee per withdrawal. This type of withdrawal may be subject to participation requirements. Hardship withdrawals are based on need, as defined by your Plan and are subject to IRS regulation. The taxable portion of your withdrawal that is eligible for rollover into an individual retirement account (IRA) or another employer s retirement plan is subject to 20% mandatory federal income tax withholding, unless it is rolled directly over to an IRA or another employer plan. (You may owe more or less when you file your income taxes.) If you are under age 59½, the taxable portion of your withdrawal is also subject to a 10% early withdrawal penalty, unless you qualify for an exception to this rule. To learn more about and/or to request a withdrawal, log on to Fidelity NetBenefits at or call the Fidelity Retirement Line at The plan document and current tax laws and regulations will govern in case of a discrepancy. Be sure you understand the tax consequences and your plan s rules for distributions before you initiate a distribution. You may want to consult your tax adviser about your situation. When you leave the Company, you can withdraw contributions and any associated earnings or, if your vested account balance is greater than $5,000, you can leave contributions and any associated earnings in the Plan. After you leave the Company, if your vested account balance is equal to or less than $1,000, it will automatically be distributed to you. However, if your vested account balance is greater than $1,000 but not more than $5,000, you will be notified that your entire vested account balance will be transferred to an Individual Retirement Account (Rollover IRA), unless you request FAQs For more information visit or call

6 FAQs either a cash distribution or a rollover distribution of your choice. Can I move money from another retirement plan into my account in Navient 401(k) Savings Plan? You are permitted to roll over eligible pretax contributions from another 401(k) plan, 403(b) plan or a governmental 457(b) retirement plan account, distributions of pretax monies made to surviving spouses from any of these plan types, or eligible pretax contributions from conduit individual retirement accounts (IRAs). A conduit IRA is one that contains only money rolled over from an employer sponsored retirement plan that has not been mixed with regular IRA contributions. by calling the Fidelity Retirement Line at to speak with a representative or use the automated voice response system, virtually 24 hours, 7 days a week. Contact your Benefits department for details. How do I access my account? You can access your account online through Fidelity NetBenefits at or call the Fidelity Retirement Line at to speak with a representative or use the automated voice response system, virtually 24 hours, 7 days a week. Where can I find information about exchanges and other plan features? Once you enroll, you will receive a welcome communication that provides details about managing your account. You can also learn about loans, exchanges, and more, online through Fidelity NetBenefits at In particular, you can access loan modeling tools that illustrate the potential impact of a loan on the long-term growth of your account. You will also find a withdrawal modeling tool, which shows the amount of federal income taxes and early withdrawal penalties you might pay, along with the amount of earnings you could potentially lose by taking a withdrawal. You can also obtain more information about loans, withdrawals, and other plan features, 4

7 Investment Options Here is a list of investment options for Navient 401(k) Savings Plan. For upto-date performance information and other fund specifics, go to To discuss your objectives and options, contact a Fidelity Retirement Representative for a one-on-one discussion at Lifecycle Funds Placement of investment options within each risk spectrum is only in relation to the investment options within that specific spectrum. Placement does not reflect risk relative to the investment options shown in the other risk spectrums. Investment options to the left have potentially more inflation risk and less investment risk Fidelity Freedom K Income Fund Fidelity Freedom K 2000 Fund Fidelity Freedom K 2005 Fund Fidelity Freedom K 2010 Fund Lifecycle Funds Fidelity Freedom K 2015 Fund Fidelity Freedom K 2020 Fund Fidelity Freedom K 2025 Fund Fidelity Freedom K 2030 Fund Investment options to the right have potentially less inflation risk and more investment risk Fidelity Freedom K 2035 Fund Fidelity Freedom K 2040 Fund Fidelity Freedom K 2045 Fund Fidelity Freedom K 2050 Fund Fidelity Freedom K 2055 Fund Target date investments are generally designed for investors expecting to retire around the year indicated in each investment s name. The investments are managed to gradually become more conservative over time. The investment risks of each target date investment change over time as its asset allocation changes. They are subject to the volatility of the financial markets, including equity and fixed income investments in the U.S. and abroad and may be subject to risks associated with investing in high yield, small cap and foreign securities. Principal invested is not guaranteed at any time, including at or after their target dates. Investment Options For more information visit or call

8 The chart below lists the assigned fund Navient 401(k) Savings Plan believes will best fit your diversification needs should you not select an investment option. Your Birth Date* Fund Name Target Retirement Years Investment Options Before 1933 Fidelity Freedom K Income Fund Retired before 1998 January 1, December 31, 1937 Fidelity Freedom K 2000 Fund Target Years January 1, December 31, 1942 Fidelity Freedom K 2005 Fund Target Years January 1, December 31, 1947 Fidelity Freedom K 2010 Fund Target Years January 1, December 31, 1952 Fidelity Freedom K 2015 Fund Target Years January 1, December 31, 1957 Fidelity Freedom K 2020 Fund Target Years January 1, December 31, 1962 Fidelity Freedom K 2025 Fund Target Years January 1, December 31, 1967 Fidelity Freedom K 2030 Fund Target Years January 1, December 31, 1972 Fidelity Freedom K 2035 Fund Target Years January 1, December 31, 1977 Fidelity Freedom K 2040 Fund Target Years January 1, December 31, 1982 Fidelity Freedom K 2045 Fund Target Years January 1, December 31, 1987 Fidelity Freedom K 2050 Fund Target Years January 1, 1988 and later* Fidelity Freedom K 2055 Fund Target Years 2053 and beyond *Dates selected by Plan Sponsor 6

9 Core Investment Options Investment options to the left have potentially more inflation risk and less investment risk CONSERVATIVE SHORT-TERM INVESTMENT Money Market Fidelity Money Market Trust Retirement Government Money Market Portfolio Bond BOND Diversified PIMCO Total Return Fund Institutional Class Spartan U.S. Bond Index Fund - Institutional Class STOCKS AND BONDS Balanced/ Hybrid Fidelity Balanced Fund - Class K Large Value Invesco Comstock Fund Class A Mid Value Victory Established Value Fund Class A Domestic Equities Large Blend Spartan 500 Index Fund - Institutional Class Mid Blend Fidelity Low- Priced Stock Fund - Class K Small Blend Goldman Sachs Small Cap Value Fund Institutional Investment options to the right have potentially less inflation risk and more investment risk STOCKS Large Growth Fidelity Contrafund Fidelity OTC Portfolio - Class K Mid Growth Morgan Stanley Institutional Fund Trust Mid Cap Growth Portfolio Class A Small Growth Loomis Sayles Small Cap Growth Fund Institutional Class International/ Global Diversified AllianzGI NFJ International Value Fund Institutional Class AGGRESSIVE Company Stock Navient Stock Fund Investment Options For more information visit or call This spectrum, with the exception of the Domestic Equity category, is based on Fidelity s analysis of the characteristics of the general investment categories of the investment options and not on the actual security holdings, which can change frequently. Investment options in the Domestic Equity category are based on the options Morningstar categories as of 04/30/2014. Morningstar categories are based on a fund s style as measured by its underlying portfolio holdings over the past three years and may change at any time. These style calculations do not represent the investment options objectives and do not predict the investment options future styles. Investment options are listed in alphabetical order within each investment category. Risk associated with the investment options can vary significantly within each particular investment category, and the relative risk of categories may change under certain economic conditions. For a more complete discussion of risk associated with the mutual fund options, please read the prospectuses before making your investment decision. The spectrum does not represent actual or implied performance. 7

10 Fidelity BrokerageLink Fidelity BrokerageLink Fidelity BrokerageLink combines the convenience of your workplace retirement plan with the additional flexibility of a brokerage account. It gives you expanded investment choices and the opportunity to more actively manage your retirement contributions. A self-directed brokerage account is not for everyone. If you are an investor who is willing to take on the potential for more risk and you are prepared to assume the responsibility of more closely monitoring this portion of your portfolio, it could be appropriate for you. However, if you do not feel comfortable actively managing a portfolio of options beyond those offered through your plan s standard investment options, then a self-directed brokerage account may not be appropriate for you. Additional fees apply to a brokerage account; please refer to the fact sheet and commission schedule for a complete listing of brokerage fees. Remember, it is always your responsibility to ensure that the options you select are consistent with your particular situation, including your goals, time horizon, and risk tolerance. 8

11 Fidelity BrokerageLink For more information visit or call

12 Investment Options Investment Options Before investing in any mutual fund, consider the investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully. AllianzGI NFJ International Value Fund Institutional Class VRS Code: Fund Objective: The investment seeks long-term growth of capital and income. Fund Strategy: The fund normally invests at least 65% of its net assets in common stocks and other equity securities (such as preferred stocks, convertible securities and warrants) of non-u.s. companies with market capitalizations greater than $1 billion. It normally invests significantly in securities that the portfolio managers expect will generate income (for example, by paying dividends). The fund may invest up to 50% of its assets in emerging market securities. It may also achieve its exposure to non- U.S. equity securities through investing in American Depositary Receipts (ADRs). Fund Risk: Foreign securities are subject to interest-rate, currency-exchange-rate, economic, and political risks, all of which may be magnified in emerging markets. Value stocks can perform differently than other types of stocks and can continue to be undervalued by the market for long periods of time. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, economic or other developments. Additional risk information for this product may be found in the prospectus or other product materials, if available. Someone who is seeking to complement a portfolio of domestic investments with international investments, which can behave differently. Someone who is willing to accept the higher degree of risk associated with investing overseas. A mutual fund registered under Allianz Funds, and managed by Allianz Global Inv Fund Mgmt LLC. This description is only intended to provide a brief overview of the fund. Read the fund s prospectus for more detailed information about the fund. As of January 28, 2013, this fund changed its name from Allianz NFJ International Value Fund. Fidelity Freedom K 2000 Fund VRS Code: Fund Objective: Seeks high total return until its target retirement date. Thereafter, the fund s objective will be to seek high current income and, as a secondary objective, capital appreciation. Fund Strategy: Investing in a combination of underlying Fidelity domestic equity funds, international equity funds, bond funds, and short-term funds. Allocating assets among underlying Fidelity funds according to an asset allocation strategy that becomes increasingly conservative until it reaches approximately 17% in domestic equity funds, 7% in international equity funds, 46% in bond funds, and 30% in short-term funds (approximately 10 to 19 years after the year 2000). Ultimately, the fund will merge with Fidelity Freedom K Income Fund. Strategic Advisers may continue to seek high total return for several years beyond the fund s target retirement date in an effort to achieve the fund s overall investment objective. Fund Risk: The investment risk of each Fidelity Freedom K Fund changes over time as its asset allocation changes. The funds are subject to the volatility of the financial markets, including that of equity and fixed income investments in the U.S. and abroad, and maybe subject to risks associated with investing in high-yield, small-cap, commodity-linked, and foreign securities. Principal invested is not guaranteed at any time, including at or after the funds target dates. Someone who is seeking an investment option intended for people in or very near retirement and who is willing to accept the volatility of diversified investments in the market. Someone who is seeking a diversified mix of stocks, bonds, and short-term investments in one investment option or who does not feel comfortable making asset allocation choices over time. 10

13 A mutual fund registered under Fidelity Aberdeen Street Trust, and managed by Strategic Advisers, Inc. This description is only intended to provide a brief overview of the fund. Read the fund s prospectus for more detailed information about the fund. Fidelity Freedom K 2005 Fund VRS Code: Fund Objective: Seeks high total return until its target retirement date. Thereafter, the fund s objective will be to seek high current income and, as a secondary objective, capital appreciation. Fund Strategy: Investing in a combination of underlying Fidelity domestic equity funds, international equity funds, bond funds, and short-term funds. Allocating assets among underlying Fidelity funds according to an asset allocation strategy that becomes increasingly conservative until it reaches approximately 17% in domestic equity funds, 7% in international equity funds, 46% in bond funds, and 30% in short-term funds (approximately 10 to 19 years after the year 2005). Ultimately, the fund will merge with Fidelity Freedom K Income Fund. Strategic Advisers may continue to seek high total return for several years beyond the fund s target retirement date in an effort to achieve the fund s overall investment objective. Fund Risk: The investment risk of each Fidelity Freedom K Fund changes over time as its asset allocation changes. The funds are subject to the volatility of the financial markets, including that of equity and fixed income investments in the U.S. and abroad, and may be subject to risks associated with investing in high-yield, small-cap, commodity-linked, and foreign securities. Principal invested is not guaranteed at any time, including at or after the funds target dates. Someone who is seeking an investment option intended for people in or very near retirement and who is willing to accept the volatility of diversified investments in the market. Someone who is seeking a diversified mix of stocks, bonds, and short-term investments in one investment option or who does not feel comfortable making asset allocation choices over time. A mutual fund registered under Fidelity Aberdeen Street Trust, and managed by Strategic Advisers, Inc. This description is only intended to provide a brief overview of the fund. Read the fund s prospectus for more detailed information about the fund. Fidelity Freedom K 2010 Fund VRS Code: Fund Objective: Seeks high total return until its target retirement date. Thereafter, the fund s objective will be to seek high current income and, as a secondary objective, capital appreciation. Fund Strategy: Investing in a combination of underlying Fidelity domestic equity funds, international equity funds, bond funds, and short-term funds. Allocating assets among underlying Fidelity funds according to an asset allocation strategy that becomes increasingly conservative until it reaches approximately 17% in domestic equity funds, 7% in international equity funds, 46% in bond funds, and 30% in short-term funds (approximately 10 to 19 years after the year 2010). Ultimately, the fund will merge with Fidelity Freedom K Income Fund. Strategic Advisers may continue to seek high total return for several years beyond the fund s target retirement date in an effort to achieve the fund s overall investment objective. Fund Risk: The investment risk of each Fidelity Freedom K Fund changes over time as its asset allocation changes. The funds are subject to the volatility of the financial markets, including that of equity and fixed income investments in the U.S. and abroad, and may be subject to risks associated with investing in high-yield, small-cap, commodity-linked, and foreign securities. Principal invested is not guaranteed at any time, including at or after the funds target dates. Someone who is seeking an investment option intended for people in or very near retirement and who is willing to accept the volatility of diversified investments in the market. Someone who is seeking a diversified mix of stocks, bonds, and short-term investments in one investment option or who does not feel comfortable making asset allocation choices over time. Investment Options For more information visit or call A mutual fund registered under Fidelity Aberdeen Street Trust, and managed by Strategic Advisers, Inc. This description is only intended to provide a brief overview of the fund. Read the fund s prospectus for more detailed information about the fund. 11

14 Investment Options Fidelity Freedom K 2015 Fund VRS Code: Fund Objective: Seeks high total return until its target retirement date. Thereafter, the fund s objective will be to seek high current income and, as a secondary objective, capital appreciation. Fund Strategy: Investing in a combination of underlying Fidelity domestic equity funds, international equity funds, bond funds, and short-term funds. Allocating assets among underlying Fidelity funds according to an asset allocation strategy that becomes increasingly conservative until it reaches approximately 17% in domestic equity funds, 7% in international equity funds, 46% in bond funds, and 30% in short-term funds (approximately 10 to 19 years after the year 2015). Ultimately, the fund will merge with Fidelity Freedom K Income Fund. Strategic Advisers may continue to seek high total return for several years beyond the fund s target retirement date in an effort to achieve the fund s overall investment objective. Fund Risk: The investment risk of each Fidelity Freedom K Fund changes over time as its asset allocation changes. The funds are subject to the volatility of the financial markets, including that of equity and fixed income investments in the U.S. and abroad, and may be subject to risks associated with investing in high-yield, small-cap, commodity-linked, and foreign securities. Principal invested is not guaranteed at any time, including at or after the funds target dates. Someone who is seeking an investment option intended for people in or very near retirement and who is willing to accept the volatility of diversified investments in the market. Someone who is seeking a diversified mix of stocks, bonds, and short-term investments in one investment option or who does not feel comfortable making asset allocation choices over time. A mutual fund registered under Fidelity Aberdeen Street Trust, and managed by Strategic Advisers, Inc. This description is only intended to provide a brief overview of the fund. Read the fund s prospectus for more detailed information about the fund. Fidelity Freedom K 2020 Fund VRS Code: Fund Objective: Seeks high total return until its target retirement date. Thereafter, the fund s objective will be to seek high current income and, as a secondary objective, capital appreciation. Fund Strategy: Investing in a combination of underlying Fidelity domestic equity funds, international equity funds, bond funds, and short-term funds. Allocating assets among underlying Fidelity funds according to an asset allocation strategy that becomes increasingly conservative until it reaches approximately 17% in domestic equity funds, 7% in international equity funds, 46% in bond funds, and 30% in short-term funds (approximately 10 to 19 years after the year 2020). Ultimately, the fund will merge with Fidelity Freedom K Income Fund. Strategic Advisers may continue to seek high total return for several years beyond the fund s target retirement date in an effort to achieve the fund s overall investment objective. Fund Risk: The investment risk of each Fidelity Freedom K Fund changes over time as its asset allocation changes. The funds are subject to the volatility of the financial markets, including that of equity and fixed income investments in the U.S. and abroad, and may be subject to risks associated with investing in high-yield, small-cap, commodity-linked, and foreign securities. Principal invested is not guaranteed at any time, including at or after the funds target dates. Someone who is seeking an investment option that gradually becomes more conservative over time and who is willing to accept the volatility of the markets. Someone who is seeking a diversified mix of stocks, bonds, and short-term investments in one investment option or who does not feel comfortable making asset allocation choices over time. A mutual fund registered under Fidelity Aberdeen Street Trust, and managed by Strategic Advisers, Inc. This description is only intended to provide a brief overview of the fund. Read the fund s prospectus for more detailed information about the fund. 12

15 Fidelity Freedom K 2025 Fund VRS Code: Fund Objective: Seeks high total return until its target retirement date. Thereafter, the fund s objective will be to seek high current income and, as a secondary objective, capital appreciation. Fund Strategy: Investing in a combination of underlying Fidelity domestic equity funds, international equity funds, bond funds, and short-term funds. Allocating assets among underlying Fidelity funds according to an asset allocation strategy that becomes increasingly conservative until it reaches approximately 17% in domestic equity funds, 7% in international equity funds, 46% in bond funds, and 30% in short-term funds (approximately 10 to 19 years after the year 2025). Ultimately, the fund will merge with Fidelity Freedom K Income Fund. Strategic Advisers may continue to seek high total return for several years beyond the fund s target retirement date in an effort to achieve the fund s overall investment objective. Fund Risk: The investment risk of each Fidelity Freedom K Fund changes over time as its asset allocation changes. The funds are subject to the volatility of the financial markets, including that of equity and fixed income investments in the U.S. and abroad, and may be subject to risks associated with investing in high-yield, small-cap, commodity-linked, and foreign securities. Principal invested is not guaranteed at any time, including at or after the funds target dates. Someone who is seeking an investment option that gradually becomes more conservative over time and who is willing to accept the volatility of the markets. Someone who is seeking a diversified mix of stocks, bonds, and short-term investments in one investment option or who does not feel comfortable making asset allocation choices over time. A mutual fund registered under Fidelity Aberdeen Street Trust, and managed by Strategic Advisers, Inc. This description is only intended to provide a brief overview of the fund. Read the fund s prospectus for more detailed information about the fund. Fidelity Freedom K 2030 Fund VRS Code: Fund Objective: Seeks high total return until its target retirement date. Thereafter, the fund s objective will be to seek high current income and, as a secondary objective, capital appreciation. Fund Strategy: Investing in a combination of underlying Fidelity domestic equity funds, international equity funds, bond funds, and short-term funds. Allocating assets among underlying Fidelity funds according to an asset allocation strategy that becomes increasingly conservative until it reaches approximately 17% in domestic equity funds, 7% in international equity funds, 46% in bond funds, and 30% in short-term funds (approximately 10 to 19 years after the year 2030). Ultimately, the fund will merge with Fidelity Freedom K Income Fund. Strategic Advisers may continue to seek high total return for several years beyond the fund s target retirement date in an effort to achieve the fund s overall investment objective. Fund Risk: The investment risk of each Fidelity Freedom K Fund changes over time as its asset allocation changes. The funds are subject to the volatility of the financial markets, including that of equity and fixed income investments in the U.S. and abroad, and may be subject to risks associated with investing in high-yield, small-cap, commodity-linked, and foreign securities. Principal invested is not guaranteed at any time, including at or after the funds target dates. Someone who is seeking an investment option that gradually becomes more conservative over time and who is willing to accept the volatility of the markets. Someone who is seeking a diversified mix of stocks, bonds, and short-term investments in one investment option or who does not feel comfortable making asset allocation choices over time. Investment Options For more information visit or call A mutual fund registered under Fidelity Aberdeen Street Trust, and managed by Strategic Advisers, Inc. This description is only intended to provide a brief overview of the fund. Read the fund s prospectus for more detailed information about the fund. 13

16 Investment Options Fidelity Freedom K 2035 Fund VRS Code: Fund Objective: Seeks high total return until its target retirement date. Thereafter, the fund s objective will be to seek high current income and, as a secondary objective, capital appreciation. Fund Strategy: Investing in a combination of underlying Fidelity domestic equity funds, international equity funds, bond funds, and short-term funds. Allocating assets among underlying Fidelity funds according to an asset allocation strategy that becomes increasingly conservative until it reaches approximately 17% in domestic equity funds, 7% in international equity funds, 46% in bond funds, and 30% in short-term funds (approximately 10 to 19 years after the year 2035). Ultimately, the fund will merge with Fidelity Freedom K Income Fund. Strategic Advisers may continue to seek high total return for several years beyond the fund s target retirement date in an effort to achieve the fund s overall investment objective. Fund Risk: The investment risk of each Fidelity Freedom K Fund changes over time as its asset allocation changes. The funds are subject to the volatility of the financial markets, including that of equity and fixed income investments in the U.S. and abroad, and may be subject to risks associated with investing in high-yield, small-cap, commodity-linked, and foreign securities. Principal invested is not guaranteed at any time, including at or after the funds target dates. Someone who is seeking an investment option that gradually becomes more conservative over time and who is willing to accept the volatility of the markets. Someone who is seeking a diversified mix of stocks, bonds, and short-term investments in one investment option or who does not feel comfortable making asset allocation choices over time. A mutual fund registered under Fidelity Aberdeen Street Trust, and managed by Strategic Advisers, Inc. This description is only intended to provide a brief overview of the fund. Read the fund s prospectus for more detailed information about the fund. Fidelity Freedom K 2040 Fund VRS Code: Fund Objective: Seeks high total return until its target retirement date. Thereafter, the fund s objective will be to seek high current income and, as a secondary objective, capital appreciation. Fund Strategy: Investing in a combination of underlying Fidelity domestic equity funds, international equity funds, bond funds, and short-term funds. Allocating assets among underlying Fidelity funds according to an asset allocation strategy that becomes increasingly conservative until it reaches approximately 17% in domestic equity funds, 7% in international equity funds, 46% in bond funds, and 30% in short-term funds (approximately 10 to 19 years after the year 2040). Ultimately, the fund will merge with Fidelity Freedom K Income Fund. Strategic Advisers may continue to seek high total return for several years beyond the fund s target retirement date in an effort to achieve the fund s overall investment objective. Fund Risk: The investment risk of each Fidelity Freedom K Fund changes over time as its asset allocation changes. The funds are subject to the volatility of the financial markets, including that of equity and fixed income investments in the U.S. and abroad, and may be subject to risks associated with investing in high-yield, small-cap, commodity-linked, and foreign securities. Principal invested is not guaranteed at any time, including at or after the funds target dates. Someone who is seeking an investment option that gradually becomes more conservative over time and who is willing to accept the volatility of the markets. Someone who is seeking a diversified mix of stocks, bonds, and short-term investments in one investment option or who does not feel comfortable making asset allocation choices over time. A mutual fund registered under Fidelity Aberdeen Street Trust, and managed by Strategic Advisers, Inc. This description is only intended to provide a brief overview of the fund. Read the fund s prospectus for more detailed information about the fund. 14

17 Fidelity Freedom K 2045 Fund VRS Code: Fund Objective: Seeks high total return until its target retirement date. Thereafter, the fund s objective will be to seek high current income and, as a secondary objective, capital appreciation. Fund Strategy: Investing in a combination of underlying Fidelity domestic equity funds, international equity funds, bond funds, and short-term funds. Allocating assets among underlying Fidelity funds according to an asset allocation strategy that becomes increasingly conservative until it reaches approximately 17% in domestic equity funds, 7% in international equity funds, 46% in bond funds, and 30% in short-term funds (approximately 10 to 19 years after the year 2045). Ultimately, the fund will merge with Fidelity Freedom K Income Fund. Strategic Advisers may continue to seek high total return for several years beyond the fund s target retirement date in an effort to achieve the fund s overall investment objective. Fund Risk: The investment risk of each Fidelity Freedom K Fund changes over time as its asset allocation changes. The funds are subject to the volatility of the financial markets, including that of equity and fixed income investments in the U.S. and abroad, and may be subject to risks associated with investing in high-yield, small-cap, commodity-linked, and foreign securities. Principal invested is not guaranteed at any time, including at or after the funds target dates. Someone who is seeking an investment option that gradually becomes more conservative over time and who is willing to accept the volatility of the markets. Someone who is seeking a diversified mix of stocks, bonds, and short-term investments in one investment option or who does not feel comfortable making asset allocation choices over time. A mutual fund registered under Fidelity Aberdeen Street Trust, and managed by Strategic Advisers, Inc. This description is only intended to provide a brief overview of the fund. Read the fund s prospectus for more detailed information about the fund. Fidelity Freedom K 2050 Fund VRS Code: Fund Objective: Seeks high total return until its target retirement date. Thereafter, the fund s objective will be to seek high current income and, as a secondary objective, capital appreciation. Fund Strategy: Investing in a combination of underlying Fidelity domestic equity funds, international equity funds, bond funds, and short-term funds. Allocating assets among underlying Fidelity funds according to an asset allocation strategy that becomes increasingly conservative until it reaches approximately 17% in domestic equity funds, 7% in international equity funds, 46% in bond funds, and 30% in short-term funds (approximately 10 to 19 years after the year 2050). Ultimately, the fund will merge with Fidelity Freedom K Income Fund. Strategic Advisers may continue to seek high total return for several years beyond the fund s target retirement date in an effort to achieve the fund s overall investment objective. Fund Risk: The investment risk of each Fidelity Freedom K Fund changes over time as its asset allocation changes. The funds are subject to the volatility of the financial markets, including that of equity and fixed income investments in the U.S. and abroad, and may be subject to risks associated with investing in high-yield, small-cap, commodity-linked, and foreign securities. Principal invested is not guaranteed at any time, including at or after the funds target dates. Someone who is seeking an investment option that gradually becomes more conservative over time and who is willing to accept the volatility of the markets. Someone who is seeking a diversified mix of stocks, bonds, and short-term investments in one investment option or who does not feel comfortable making asset allocation choices over time. Investment Options For more information visit or call A mutual fund registered under Fidelity Aberdeen Street Trust, and managed by Strategic Advisers, Inc. This description is only intended to provide a brief overview of the fund. Read the fund s prospectus for more detailed information about the fund. 15

18 Investment Options Fidelity Freedom K 2055 Fund VRS Code: Fund Objective: Seeks high total return until its target retirement date. Thereafter the fund s objective will be to seek high current income and, as a secondary objective, capital appreciation. Fund Strategy: Investing in a combination of underlying Fidelity domestic equity funds, international equity funds, bond funds, and short-term funds. Allocating assets among underlying Fidelity funds according to an asset allocation strategy that becomes increasingly conservative until it reaches approximately 17% in domestic equity funds, 7% in international equity funds, 46% in bond funds, and 30% in short-term funds (approximately 10 to 19 years after the year 2055). Ultimately, the fund will merge with Fidelity Freedom K Income Fund. Strategic Advisers may continue to seek high total return for several years beyond the fund s target retirement date in an effort to achieve the fund s overall investment objective. Fund Risk: The investment risks of each Fidelity Freedom K Fund changes over time as its asset allocation changes. The funds are subject to the volatility of the financial markets, including that of equity and fixed income investments in the U.S. and abroad, and may be subject to risks associated with investing in high-yield, small-cap, commodity-linked and foreign securities. Principal invested is not guaranteed at any time, including at or after the funds target dates. Someone who is seeking an investment option that gradually becomes more conservative over time and who is willing to accept the volatility of the markets. Someone who is seeking a diversified mix of stocks, bonds, and short-term investments in one investment option or who does not feel comfortable making asset allocation choices over time. A mutual fund registered under Fidelity Aberdeen Street Trust, and managed by Strategic Advisers, Inc. This description is only intended to provide a brief overview of the fund. Read the fund s prospectus for more detailed information about the fund. Fidelity Freedom K Income Fund VRS Code: Fund Objective: Seeks high current income and, as a secondary objective, capital appreciation. Fund Strategy: Investing in a combination of underlying Fidelity domestic equity funds, international equity funds, bond funds, and short-term funds. Allocating assets among underlying Fidelity funds according to a stable target asset allocation of approximately 17% in domestic equity funds, 7% in international equity funds, 46% in bond funds, and 30% in short-term funds. Fund Risk: The fund is subject to the volatility of the financial markets, including that of equity and fixed income investments. Fixed income investments entail issuer default and credit risk, inflation risk, and interest rate risk (as interest rates rise, bond prices usually fall and vice versa). This effect is usually more pronounced for longer-term securities. Principal invested is not guaranteed at any time, including at or after retirement. Someone who is seeking an investment option intended for people in retirement and who is willing to accept the volatility of diversified investments in the market. Someone who is seeking a diversified mix of stocks, bonds, and short-term investments in one investment option and looking primarily for the potential for income and, secondarily, for share-price appreciation. A mutual fund registered under Fidelity Aberdeen Street Trust, and managed by Strategic Advisers, Inc. This description is only intended to provide a brief overview of the fund. Read the fund s prospectus for more detailed information about the fund. Fidelity Balanced Fund - Class K VRS Code: Fund Objective: Seeks income and capital growth consistent with reasonable risk. Fund Strategy: Investing approximately 60% of assets in stocks and other equity securities and the remainder in bonds and other debt securities, including lower-quality debt securities, when its outlook is neutral. Investing at least 25% of total assets in fixed-income senior securities (including debt securities and preferred stock.) Engaging in transactions that have a leveraging effect on the fund. 16

19 Fund Risk: Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. Fixed income investments entail interest rate risk (as interest rates rise bond prices usually fall), the risk of issuer default, issuer credit risk and inflation risk. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks. Lower-quality bonds can be more volatile and have greater risk of default than higher-quality bonds. Leverage can increase market exposure and magnify investment risk. Someone who is seeking to invest in a fund that invests in both stocks and bonds. Someone who is seeking the potential both for income and for long-term share-price appreciation and who is willing to accept the volatility of the bond and stock markets. A mutual fund registered under Fidelity Puritan Trust, and managed by Fidelity Management & Research Company. This description is only intended to provide a brief overview of the fund. Read the fund s prospectus for more detailed information about the fund. On May 9, 2008, an initial offering of the retirement (K) class took place. Returns and expenses prior to that date are those of the non-k, non-advisor class. Had K class expenses been reflected in the returns shown, total returns would have been higher. Fidelity Contrafund VRS Code: Fund Objective: Seeks capital appreciation. Fund Strategy: Investing in securities of companies whose value FMR believes is not fully recognized by the public. Investing in either growth stocks or value stocks or both. Normally investing primarily in common stocks. Fund Risk: The value of the fund s domestic and foreign investments will vary from day to day in response to many factors. Stock values fluctuate in response to the activities of individual companies, and general market and economic conditions. Investments in foreign securities involve greater risk than U.S. investments. You may have a gain or loss when you sell your shares. Someone who is seeking the potential for long-term share-price appreciation. Someone who is willing to accept the generally greater price volatility associated with growth-oriented stocks. A mutual fund registered under Fidelity Contrafund, and managed by Fidelity Management & Research Company. This description is only intended to provide a brief overview of the fund. Read the fund s prospectus for more detailed information about the fund. Fidelity Low-Priced Stock Fund - Class K VRS Code: Fund Objective: Seeks capital appreciation. Fund Strategy: Normally invests primarily in common stocks. Normally investing at least 80% of assets in low-priced stocks (those priced at or below $35 per share), which can lead to investments in small and medium-sized companies. Potentially investing in stocks not considered low-priced. Investing in domestic and foreign issuers. Investing in either growth or value stocks or both. Fund Risk: Stock values fluctuate in response to the activities of individual companies, and general market and economic conditions. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market, or economic developments and can perform differently from the U.S. market. You may have a gain or loss when you sell your shares. The securities of small, less well-known companies may be more volatile than those of larger companies. Investments in foreign securities involve risks in addition to those of U.S. investments, including increased political and economic risk, as well as exposure to currency fluctuations. Fund short term trading fees: This fund has a Short-term Redemption Fee of 1.50% for shares held less than 90 days. Someone who is seeking the potential for long-term share-price appreciation and, secondarily, dividend income. Someone who is seeking both growth- and value-style investments and who is willing to accept the generally greater volatility of investments in smaller companies. Investment Options For more information visit or call

20 Investment Options A mutual fund registered under Fidelity Puritan Trust, and managed by Fidelity Management & Research Company. This description is only intended to provide a brief overview of the fund. Read the fund s prospectus for more detailed information about the fund. On May 9, 2008, an initial offering of the retirement (K) class took place. Returns and expenses prior to that date are those of the non-k, non-advisor class. Had K class expenses been reflected in the returns shown, total returns would have been higher. Fidelity Money Market Trust Retirement Government Money Market Portfolio VRS Code: Fund Objective: Seeks as high a level of current income as is consistent with the security of principal and liquidity. Fund Strategy: Normally investing at least 80% of assets in U.S. Government securities and repurchase agreements for those securities. Potentially entering into reverse repurchase agreements. Fund Risk: Interest rate increases can cause the price of money market securities to decrease. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund. Someone who has a low tolerance for investment risk and who wishes to keep the value of his or her investment relatively stable. Someone who is seeking to complement his or her bond and stock fund holdings in order to reach a particular asset allocation. A mutual fund registered under Fidelity Money Market Trust, and managed by Fidelity Management & Research Company. This description is only intended to provide a brief overview of the fund. Read the fund s prospectus for more detailed information about the fund. Fidelity OTC Portfolio - Class K VRS Code: Fund Objective: Seeks capital appreciation. Fund Strategy: Normally investing at least 80% of assets in securities principally traded on NASDAQ or an over-the-counter market, which has more small and medium-sized companies than other markets. Investing more than 25% of total assets in the technology sector. Investing in either "growth" stocks or "value" stocks or both. Normally investing primarily in common stocks. Fund Risk: Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. The technology industries can be significantly affected by obsolescence of existing technology, short product cycles, falling prices and profits, and competition from new markets, and general economic conditions. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks. The securities of smaller, less well-known companies can be more volatile than those of larger companies. The fund may have additional volatility because it can invest a significant portion of assets in securities of a small number of individual issuers. Someone who is seeking the potential for long-term share-price appreciation. Someone who is willing to accept the generally greater price volatility associated with growth-oriented stocks. A mutual fund registered under Fidelity Securities Fund, and managed by Fidelity Management & Research Company. This description is only intended to provide a brief overview of the fund. Read the fund s prospectus for more detailed information about the fund. On May 9, 2008, an initial offering of the retirement (K) class took place. Returns and expenses prior to that date are those of the non-k, non-advisor class. Had K class expenses been reflected in the returns shown, total returns would have been higher. 18

21 Goldman Sachs Small Cap Value Fund Institutional VRS Code: Fund Objective: The investment seeks long-term capital appreciation. Fund Strategy: The fund normally invests at least 80% of its net assets plus any borrowings for investment purposes (measured at time of purchase) ("net assets") in a diversified portfolio of equity investments in small-cap issuers with public stock market capitalizations within the range of the market capitalization of companies constituting the Russell 2000 Value Index at the time of investment. Although it invests primarily in publicly traded U.S. securities, the fund may also invest in foreign securities, including securities of issuers in emerging countries and securities quoted in foreign currencies. Fund Risk: The securities of smaller, less well-known companies can be more volatile than those of larger companies. Value and growth stocks can perform differently from other types of stocks. Growth stocks can be more volatile. Value stocks can continue to be undervalued by the market for long periods of time. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, economic or other developments. These risks may be magnified in foreign markets. Additional risk information for this product may be found in the prospectus or other product materials, if available. Someone who is seeking the potential for long-term share-price appreciation and, secondarily, dividend income. Someone who is seeking both growth- and value-style investments and who is willing to accept the generally greater volatility of investments in smaller companies. A mutual fund registered under Goldman Sachs Trust, and managed by Goldman Sachs Asset Management, L.P. This description is only intended to provide a brief overview of the fund. Read the fund s prospectus for more detailed information about the fund. The Russell 2000 Value Index is an unmanaged market capitalization-weighted index of value-oriented stocks of U.S. domiciled companies that are included in the Russell 2000 Index. Value-oriented stocks tend to have lower price-to-book ratios and lower forecasted growth values. Invesco Comstock Fund Class A VRS Code: Fund Objective: The investment seeks total return through growth of capital and current income. Fund Strategy: The fund invests, under normal circumstances, at least 80% of its net assets (plus any borrowings for investment purposes) in common stocks, and in derivatives and other instruments that have economic characteristics similar to such securities. It may invest in securities of issuers of any market capitalization; however, a substantial number of the issuers in which the fund invests are large-capitalization issuers. The fund may invest up to 10% of its net assets in real estate investment trusts (REITs). Fund Risk: Value stocks can perform differently than other types of stocks and can continue to be undervalued by the market for long periods of time. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, economic or other developments. These risks may be magnified in foreign markets. Additional risk information for this product may be found in the prospectus or other product materials, if available. Someone who is seeking the potential for long-term share-price appreciation and, secondarily, dividend income. Someone who is comfortable with the volatility of large-cap stocks and value-style investments. Investment Options For more information visit or call A mutual fund registered under Aim Sector Funds, and managed by Invesco Advisers, Inc. This description is only intended to provide a brief overview of the fund. Read the fund s prospectus for more detailed information about the fund. As of September 24, 2012, this fund changed its name from Invesco Van Kampen Comstock Fund. 19

22 Investment Options Loomis Sayles Small Cap Growth Fund Institutional Class VRS Code: Fund Objective: The investment seeks long-term capital growth. Fund Strategy: The fund normally invests at least 80% of its net assets in the equity securities of "small-cap companies," including preferred stocks, warrants, securities convertible into common or preferred stocks and other equity-like interests in an entity. It may invest the rest of its assets in companies of any size, including large-capitalization companies. The fund may invest any portion of its assets in securities of Canadian issuers and up to 20% of its assets in other foreign securities, including emerging markets securities. It may also invest in Rule 144A securities. Fund Risk: The securities of smaller, less well-known companies can be more volatile than those of larger companies. Growth stocks can perform differently from the market as a whole and can be more volatile than other types of stocks. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, economic or other developments. These risks may be magnified in foreign markets. Additional risk information for this product may be found in the prospectus or other product materials, if available. Someone who is seeking the potential for long-term share-price appreciation. Someone who is willing to accept the generally greater price volatility associated both with growth-oriented stocks and with smaller companies. A mutual fund registered under Loomis Sayles Funds II, and managed by Loomis Sayles & Company L.P. This description is only intended to provide a brief overview of the fund. Read the fund s prospectus for more detailed information about the fund. Morgan Stanley Institutional Fund Trust Mid Cap Growth Portfolio Class A VRS Code: Fund Objective: The investment seeks long-term capital growth. Fund Strategy: The fund normally invests at least 80% of assets in common stocks of mid cap companies. It seeks to invest in high quality companies it believes have sustainable competitive advantages and the ability to redeploy capital at high rates of return. The fund may invest up to 25% of its net assets in securities of foreign issuers, including issuers located in emerging market or developing countries. It may invest in privately placed securities. In addition, the Portfolio may invest in convertible securities. It may utilize foreign currency forward exchange contracts. Fund Risk: Growth stocks can perform differently from the market as a whole and can be more volatile than other types of stocks. The securities of smaller, less well-known companies can be more volatile than those of larger companies. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, economic or other developments. These risks may be magnified in foreign markets. Additional risk information for this product may be found in the prospectus or other product materials, if available. Someone who is seeking the potential for long-term share-price appreciation. Someone who is willing to accept the generally greater price volatility associated both with growth-oriented stocks and with smaller companies. A mutual fund registered under Morgan Stanley Institutional Fund Trust, and managed by Morgan Stanley Investment Management Inc. This description is only intended to provide a brief overview of the fund. Read the fund s prospectus for more detailed information about the fund. As of September 10, 2013, this fund changed its Share Class from Class P. 20

23 Navient Stock Fund VRS Code: Fund Objective: Seeks to increase the value of your investments over the long term by investing in the common stock of your employer or its affiliate. Fund Strategy: Normally invests primarily in the stock of Navient Corporation. This fund also invests a small portion in shortterm investments to provide liquidity. Your ownership is measured in units of the fund instead of shares of stock. The fund pools your money with that of other employees to buy shares of stock in your employer or its affiliate and an amount of shortterm investments designed to allow you to buy or sell without the usual trade settlement period for individual stock transactions. The amount of short-term investments is based upon a target established by the plan sponsor, but the actual amount of short-term investments on any given business day will vary with the amount of cash awaiting investment and with participant activity in the fund (contributions, redemptions, exchanges, withdrawals, etc.). The value of your investment will vary depending on the performance of the company, the overall stock market, and the performance and amount of short-term investments held by the fund, less any expenses accrued against the fund. Fund Risk: If you invest a significant portion of your retirement savings in any one company or industry, your savings may not be properly diversified. Although diversification is not a guarantee against loss, it can be an effective strategy to help you manage investment risk. This is neither a mutual fund nor a diversified or managed investment option. Investing in a nondiversified single stock fund involves more risk than investing in a diversified fund. On days of unexpectedly heavy outflows, the fund may not have enough short-term investments for liquidity. If that happens, requests to sell units received by Fidelity before the market close on a business day may not be processed on that day. In that case, requested sales of units will be suspended and, as liquidity is restored, suspended transactions will be processed, generally on a first-in-first-out basis, at the closing price for the processing date. In unusual circumstances, the fund may be closed to purchases or sales. As with any stock, the value of your investment may go up or down depending on how the company s stock performs in the market. Unit price and return will vary. Additional risk information for this product may be found in the prospectus or other product materials, if available. Someone who wants to own part of the company they may work for and share in the gains or losses of its stock. Someone whose investment portfolio can withstand the higher risk of investment in a single stock. This investment option is a unitized company stock fund. This description is only intended to provide a brief overview of the fund. To help achieve long-term retirement security, you should give careful consideration to the benefits of a well-balanced and diversified investment portfolio. 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. This is because market or other economic conditions that cause one category of assets, or one particular security, to perform very well often cause another asset category, or other particular security to perform poorly. If you invest more than 20% of your retirement savings in any one company or industry, your savings may not be properly diversified. Although diversification is not a guarantee against loss, it is an effective strategy to help manage your investment risk. You have the right to direct Fidelity Management Trust Company ("The Trustee") concerning shareholder rights, such as the right to vote or tender, for all shares of Navient Stock Fund credited to your account. The Trustee will hold your decision with respect to the exercise of shareholder rights in confidence, except to the extent required by law. In addition, the Navient will not review information concerning any individual participant s purchase, holding or sale of Navient Stock Fund unless required to fulfill its fiduciary obligations, or by applicable law. The plan fiduciary responsible for monitoring compliance with the confidentiality procedures is: Navient, 300 Continental Drive, Newark, DE 19713, This investment option is not a mutual fund. Investment Options For more information visit or call PIMCO Total Return Fund Institutional Class VRS Code: Fund Objective: The investment seeks maximum total return, consistent with preservation of capital and prudent investment management. Fund Strategy: The fund normally invests at least 65% of its total assets in a diversified portfolio of Fixed Income Instruments of varying maturities, which may be represented by forwards or derivatives such as options, futures contracts, or swap agreements. It invests primarily in investment-grade debt securities, but may invest up to 10% of its total assets in high yield securities ("junk bonds") rated B or higher by Moody s, or equivalently rated by S&P or Fitch, or, if unrated, determined by PIMCO to be of comparable quality. 21

24 Investment Options Fund Risk: In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible. Additional risk information for this product may be found in the prospectus or other product materials, if available. Someone who is seeking potential returns primarily in the form of interest dividends rather than through an increase in share price. Someone who is seeking to diversify an equity portfolio with a more conservative investment option. A mutual fund registered under PIMCO Funds, and managed by Pacific Investment Management Co LLC. This description is only intended to provide a brief overview of the fund. Read the fund s prospectus for more detailed information about the fund. Spartan 500 Index Fund - Institutional Class VRS Code: Fund Objective: Seeks to provide investment results that correspond to the total return (i.e., the combination of capital changes and income) performance of common stocks publicly traded in the United States. Fund Strategy: Normally investing at least 80% of assets in common stocks included in the S&P 500 Index, which broadly represents the performance of common stocks publicly traded in the United States. Fund Risk: Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. Someone who is seeking the potential for long-term share-price appreciation and, secondarily, dividend income. Someone who is seeking both growth- and value-style investments and who is willing to accept the volatility associated with investing in the stock market. A mutual fund registered under Fidelity Concord Street Trust, and managed by Fidelity Management & Research Company. This description is only intended to provide a brief overview of the fund. Read the fund s prospectus for more detailed information about the fund. The S&P 500 Index is a registered service mark of The McGraw-Hill Companies, Inc., and has been licensed for use by Fidelity Distributors Corporation and its affiliates. It is an unmanaged index of the common stock prices of 500 widely held U. S. stocks that includes the reinvestment of dividends. Initial offering of the Institutional Share Class took place on May 4, Returns prior to that date are those of the Fidelity Advantage Class and reflect the Fidelity Advantage Class expense ratio. Had the Institutional Class expense ratio been reflected, total returns would have been higher. Fidelity is voluntarily reimbursing a portion of the fund s expenses. If Fidelity had not, the returns would have been lower. Spartan U.S. Bond Index Fund - Institutional Class VRS Code: Fund Objective: Seeks to provide investment results that correspond to the aggregate price and interest performance of the debt securities in the Barclays U.S. Aggregate Bond Index. Fund Strategy: Normally investing at least 80% of the fund s assets in bonds included in the Barclays U.S. Aggregate Bond Index. Using statistical sampling techniques based on duration, maturity, interest rate sensitivity, security structure, and credit quality to attempt to replicate the returns of the Index using a smaller number of securities. Engaging in transactions that have a leveraging effect on the fund, including investments in derivatives - such as swaps (interest rate, total return, and credit default) andfutures contracts - and forward-settling securities, to adjust the fund s risk exposure. Investing in Fidelity s central funds (specialized investment vehicles used by Fidelity funds to invest in particular security types or investment disciplines). 22

25 Fund Risk: In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks. The fund can invest in securities that may have a leveraging effect (such as derivatives and forward-settling securities) which may increase market exposure, magnify investment risks, and cause losses to be realized more quickly. Someone who is seeking potential returns primarily in the form of interest dividends rather than through an increase in share price. Someone who is seeking to diversify an equity portfolio with a more conservative investment option. A mutual fund registered under Fidelity Salem Street Trust, and managed by Fidelity Management & Research Company. This description is only intended to provide a brief overview of the fund. Read the fund s prospectus for more detailed information about the fund. The Barclays U.S. Aggregate Bond Index is an unmanaged market value-weighted index for U.S. dollar denominated investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities with maturities of at least one year. On May 10, 2011, an initial offering of the Institutional Share Class took place. Returns prior to that date are those of the Investor Class and reflect the Investors Class expense ratio. Had the Institutional Class expense ratio been reflected, total returns would have been higher. Victory Established Value Fund Class A VRS Code: Fund Objective: The investment seeks long-term capital growth by investing primarily in common stocks. Fund Strategy: The fund pursues its investment objective by investing, under normal circumstances, at least 80% of its net assets in equity securities of companies with market capitalizations, at the time of purchase, within the range of companies comprising the Russell MidCap Value Index. The fund may invest a portion of its assets in equity securities of foreign companies traded on U.S. exchanges, including American and Global Depositary Receipts (ADRs and GDRs). Fund Risk: Value stocks can perform differently than other types of stocks and can continue to be undervalued by the market for long periods of time. The securities of smaller, less well-known companies can be more volatile than those of larger companies. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, economic or other developments. These risks may be magnified in foreign markets. Additional risk information for this product may be found in the prospectus or other product materials, if available. Someone who is seeking the potential for long-term share-price appreciation and, secondarily, dividend income. Someone who is comfortable with value-style investments and the potentially greater volatility of investments in smaller companies. Investment Options For more information visit or call A mutual fund registered under Victory Portfolios, and managed by Victory Capital Management Inc. This description is only intended to provide a brief overview of the fund. Read the fund s prospectus for more detailed information about the fund. The Russell Midcap Value Index is an unmanaged market capitalization-weighted index of medium-capitalization valueoriented stocks of U.S. domiciled companies that are included in the Russell Midcap Index. Value-oriented stocks tend to have lower price-to-book ratios and lower forecasted growth values. 23

26

27 Navient Corporation 300 Continental Drive Newark, DE Plan Name: Navient 401(k) Savings Plan Plan #: Incoming Rollover Instructions If you have a balance in a former employer s retirement plan and/or an IRA or conduit (rollover) IRA, you may want to consider consolidating your assets in Navient 401(k) Savings Plan. Keeping your retirement savings in a single plan can help simplify performance tracking, provide greater convenience in making investment changes, and minimize paperwork. Rolling over money into Navient 401(k) Savings Plan is a threestep process. Please follow these instructions to ensure that this process is completed in a timely and accurate manner. Please Note: Failure to follow these instructions may result in a delay in the processing of your request and may jeopardize your ability to roll over your distribution. Step 1. Request your distribution Request a direct rollover distribution from your previous eligible retirement plan. See the Rollover Contribution Form for a list of the types of plans or accounts from which rollovers may be made to your employer's plan. There are two distribution check payable options: Option The check can be made payable to Fidelity Investments Institutional Operations Company, Inc. (or FIIOC), for the benefit of (YOUR NAME). The check must be from the distributing trustee or custodian. (Personal checks are not acceptable.) Note: This type of distribution avoids automatic income tax withholding. Also, it avoids the possible 10% early withdrawal penalty if you are under the age of 59 ½. Option If the distribution was originally made payable directly to you, you must send your rollover contribution to Fidelity via a certified check or money order only for the amount you are rolling over. (Personal checks are not acceptable.) Note: If your distribution is initially received as a check made payable to you, your rollover must be completed within 60 days of receipt of the distribution. Your previous administrator will be required to withhold income taxes. As a result, you will not be able to roll over 100% of your eligible distribution unless you have extra savings available to make up the amount withheld. You must also roll over that amount within 60 days of receipt of your distribution. If you do not make up the amount withheld, that amount will be considered a withdrawal from the previous program and the taxable portion will be subject to ordinary income taxes and possibly a 10% early withdrawal penalty. Fidelity does not accept wire transfers of funds. You must request a CHECK from your previous plan or IRA. The check should be mailed directly to you. Once you have received the check, please follow the directions in Step 2.

28 Step 2. Complete your rollover application Please complete the Incoming Rollover Contribution Form. Please be sure to complete all items, and sign the form where indicated. Please Note: This rollover contribution will be invested based on the investment elections you have on file for rollover contributions to the Plan. If you have not made investment elections for rollover contributions, this amount will be invested in the Plan-designated default investment option. If you wish to make investment elections for your rollover contribution, please do so via NetBenefits or by contacting Fidelity Investments prior to submitting this form. If you are not sure of the plan type that you are rolling out of, please contact your previous Plan Sponsor or IRA custodian for verification. An incorrect plan type could invalidate your rollover. Step 3. Mail the information Mail (1) the Incoming Rollover Contribution Application and (2) the check in the enclosed preaddressed envelope or mail to: FIRST CLASS MAIL WITH STAMP: Fidelity Investments Client Service Operations P.O. Box Cincinnati, OH Overnight Address: Fidelity Investments Client Service Operations (KC1F-L) 100 Crosby Parkway Covington, KY Please include all the information requested. Incomplete forms and the accompanying check will be returned to you and may jeopardize your ability to roll over your distribution. Once your contribution is accepted into Navient 401(k) Savings Plan, you can log on to Fidelity NetBenefits at to view your rollover contribution and investment election(s). Please allow at least seven business days for processing. If you have any questions about rollover contributions, call Please be sure you have beneficiary information for the Plan on file. To establish or change your beneficiary information for Navient 401(k) Savings Plan, please access You should make a copy of the check and the Incoming Contribution Application for your records.

29 Plan Name: Navient 401(k) Savings Plan Plan #: Incoming Rollover Contribution Application Section One: Participant Information (please print) The following section must be completed entirely to ensure that your account is properly set up. Social Security #: Hire Date: / / Birth Date: / / Participant Name (first, MI, last): Participant Address: City: Phone (day): State: ZIP: Phone (evening): Section Two: Rollover Contribution Information Acceptable rollover funds The Plan will accept taxable money* from the following types of employer-sponsored plans: 401(a) plans (e.g., 401(k)); 403(a) plans; governmental 457(b) plans; 403(b) plans (e.g., plans of tax-exempt organizations); distributions of taxable monies made to you as a spousal beneficiary from a current or former spouse from these types of plans, or an alternate payee pursuant to a qualified domestic relations order (QDRO). In addition, the Plan will accept: Conduit IRAs (rollover IRAs) and Non-Conduit IRAs. * Taxable money is defined as pretax contributions (employee and employer), earnings on pretax contributions, and taxable earnings on after-tax contributions from your previous employer s plan. Enclosed Contribution: $. Pretax dollars Please provide the following information concerning the origin of this rollover: Plan name: 401(k) Plan Governmental 457(b) Plan Conduit IRA (rollover IRA) 401(a) Plan Roth 401(a)/401(k) Plan Non-Conduit IRA 403(b) Plan Roth 403(b) Plan DC

30 Unacceptable rollover sources The Plan cannot accept money from the following sources: rollovers from beneficiary accounts (other than from a spouse), payments over a life expectancy or a period of 10 or more years, or mandatory age 70½ distributions. Also unacceptable are Roth IRAs, Coverdell Education Savings Accounts (CESAs), Simplified Employee Pension plans (SEP-IRAs) and "SIMPLE" IRA distributions). In-kind distributions of employer stock are not acceptable; therefore, stock must be sold and the proceeds (including any appreciation realized through the date of distribution) may be rolled over. After-tax contributions may not be rolled over into this Plan. Section Three: Investment Elections I direct Fidelity to invest my rollover contribution into my current investment mix applicable to rollover contributions. If I have not selected an investment mix on my own via NetBenefits or by telephone, I understand that this rollover contribution will be invested in the Plan's default investment option as directed by my employer. To make an investment election or to request a fund prospectus please log on to Section Three: Four: Participant Investment Certification Elections I authorize the investment election for this rollover and acknowledge that I have received information detailing my available investment options. I acknowledge that my rollover contribution will be invested according to the investment election on file at Fidelity. I also acknowledge that if I do not already have investment elections on file at Fidelity, my rollover contribution will be invested in my plan s default investment option. I certify that this rollover amount is composed ONLY of money from acceptable sources listed under Section Two, and I have completed the information regarding the source of this money to the best of my knowledge. Also, if the distribution check was made payable to me, I understand that this rollover must be received and deposited to my account within 60 days of receipt of the distribution. I understand that, once invested, these monies will be subject to the terms that govern the Navient 401(k) Savings Plan. X Signature of Employee Date Application must be signed, or form and check will be returned to you. Please complete this application and return it with your rollover check Fidelity Investments Institutional Operations Company, Inc. For more information about the Navient 401(k) Savings Plan, go to

31 Fidelity Portfolio Advisory Service at Work is a service of Strategic Advisers, Inc., a registered investment adviser and a Fidelity Investments company. This service provides discretionary money management for a fee. This document provides only a summary of the main features of Navient 401(k) Savings Plan and the Plan Document will govern in the event of discrepancies. The Plan is intended to be a participant-directed plan as described in Section 404(c) of ERISA, which means that fiduciaries of the Plan are ordinarily relieved of liability for any losses that are the direct and necessary result of investment instructions given by a participant or beneficiary FMR LLC

32 Navient Corporation 300 Continental Drive Newark, DE Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI NVCP