Mercy MyRetirement Program. Because your TOMORROW. is counting on you. Your Transition Guide for the move to Fidelity

Transcription

1 Mercy MyRetirement Program Because your TOMORROW is counting on you Your Transition Guide for the move to Fidelity 1

2 Mercy MyRetirement Program Welcome to Fidelity! Fidelity Investments will become the service provider for Mercy s MyRetirement Program in January This guide is intended to provide you with the details surrounding the transition from your current service provider, MetLife, to Fidelity. Inside you ll find information about the transition, including a timeline of events, an outline of how your investment options will be transferred to Fidelity, how this change may affect you, and action steps you can take. We encourage you to use this guide as a resource to help you make the best decisions for your future. Carefully review the key transition dates. Be aware of which services may be temporarily unavailable. Understand how your current investment lineup will change. Prepare to take advantage of the new services and investment options offered after the transition to Fidelity is complete. Table of Contents Page Highlights 3 Activity Calendar 4 Investment Options 6 BrokerageLink 9 If You Have a Loan 9 Fees and Expenses 10 Next Steps 11 Mercy chose an industry leader as your new service provider Founded in 1946, Fidelity is a leading provider of investment management, retirement planning, portfolio guidance, brokerage, benefits outsourcing, and many other financial products and services to more than 20 million individuals and institutions. Fidelity Facts, FMR LLC, 2014 Important notice regarding your rights under the Mercy Health MyRetirement Program 401(k) and 403(b) Plans ( the Plan(s) ). This notice is to inform you that these and other Mercy Plan account(s) will be moving to Fidelity Investments. 2

3 Highlights Together with Fidelity, Mercy will offer a new level of service and commitment to help you prepare for retirement. Here s what s new: A revised investment lineup, including low cost options. A new array of account and planning services and tools available online and by phone. Access to Fidelity s comprehensive educational Web site dedicated to retirement planning. At Fidelity NetBenefits, you ll find historical investment performance, articles on financial markets, and interactive tools and calculators to help you better determine your retirement savings goals. Full View, which is an online service available through the Fidelity NetBenefits Web site that allows you to view and manage your finances, including retirement, bank, brokerage, and credit card accounts, in one place. Rebalance Notification, which alerts you by any time your account s investment mix strays from your original strategy. You decide whether to rebalance, and you can take action immediately by clicking on a link delivered with the message. Fidelity BrokerageLink, an integrated brokerage service that combines the convenience of your MyRetirement 401(k) and/ or 403(b) account with the additional flexibility of a brokerage account. It gives you expanded investment choices and the opportunity to more actively manage your retirement contributions. Here s what s not changing: o o o Now: it will continue to be the web address to get you to your account information at MetLife. January and ongoing: it will direct you to NetBenefits, your account information at Fidelity. Your first time there, click Register Now to set a new username and password. Active co-workers will still have single signon via the MyRetirement page on Baggot. Your paycheck contribution elections will transfer to Fidelity. You don t need to re-enroll in any of the Plan(s). Both pretax and Roth contributions will continue to be available in the 401(k) and 403(b) Plans. ProManage PROgram, the service that manages the allocation of your account assets, will still be available. o o If you re currently enrolled in their service, ProManage will continue to allocate your account using the new fund lineup as outlined beginning on page 6 of this Guide. If you re not currently enrolled, you ll remain opted out. There is no action required. The annual Match and Service Contributions that Mercy makes to your account remain unchanged. Contributions for 2014 will be made in February of The transfer will not have any effect on your current vested status in the MyRetirement 401(k) Plan and there will be no changes to the vesting schedule of 3 years (credited with 1,000 hours). Beginning the week of January 19, 2015, you can go online at or call to check out these new tools and services or to obtain additional information. Please refer to the Important Plan and Investment-Related Information when managing or monitoring your account. 3

4 Mercy MyRetirement Program Activity Calendar To ensure that all information is transferred accurately from your current Plan account(s) at MetLife to your new Plan account(s) at Fidelity, there will be a period of time when you ll be unable to change your paycheck contribution percentage, change your investment allocations, request a loan, or initiate a withdrawal or distribution. This time during which you will be unable to exercise your rights otherwise available is called a blackout period. It begins at 3:00 p.m. Central time on December 23, 2014 and is expected to end the week of January 19, During this time, you can check on the status of the blackout period by calling the Fidelity Retirement Benefits Line toll free at or going to Once the blackout is lifted, meaning the account(s) are transferred and audited, will direct you to your account information at Fidelity, instead of MetLife. During the blackout period, you ll be unable to direct or diversify the assets held in your Plan account(s). For this reason, it s very important that you review and consider the appropriateness of your current investments in light of your inability to direct or diversify those investments during the blackout period. For your longterm retirement security, you should consider the importance of a well-balanced and diversified investment portfolio, taking into account all your assets, income, and investments. Whether or not you re planning to retire in the near future, we encourage you to carefully consider how this blackout period may affect your retirement planning and your overall financial plan. Transition Activity Calendar Review the calendar of events to understand how account activities may be affected during the transition period. If you d like to make any transactions in your account BEFORE the start of the blackout period, log into or contact MetLife toll free at and dial zero for a representative who can assist you. KEY DATE ACTIVITY WHAT IT MEANS TO YOU November/ December 2014 December 23, 2014 by 3:00 p.m. CT Blackout Period Begins Fidelity representatives will be on site for transition workshops to present the new services and tools and to answer your questions. Last day at MetLife to Request and return paperwork required to process a loan, withdrawal or distribution. Change your paycheck contribution Percentages Change how your account and/or future contributions are invested. Request an exchange (transfer) between investment options. Check your account balance(s). Please allow enough time to request, receive, complete, and return any paperwork to MetLife before this deadline. Attend a meeting to learn more. The schedule is available on the Mercy Transition Website at After this date, you cannot make any of the requests or changes listed to the left until the transition ends and your account is available at Fidelity. Requests not approved and fully executed by this date will need to be resubmitted to Fidelity when the blackout period ends which is expected to be the week of January 19, Your Plan assets will remain invested in your current investment options and your paycheck contribution percent will remain the same, but you will be unable to request changes. Loan repayments and contributions by payroll will continue to be made during the blackout period. 4

5 KEY DATE ACTIVITY WHAT IT MEANS TO YOU December 31, 2104 January 2, 2015 Week of January 19, 2015 Blackout Period Ends End of January 2015 Account balances will be valued after the close of the market, usually 3:00 p.m. Central time. Your Plan assets are scheduled to be transferred to Fidelity. Please refer to the next few pages which include a mapping schedule and investment information. The blackout period is expected to end, and the Fidelity Retirement Benefits Center and NetBenefits Web site will open for all Plan services Final account statement from MetLife. Your Plan assets are still invested in your current investment options, but you can t request changes. Your Plan assets are scheduled to be transferred and invested in the new investment options on and after this date. From this date until the week of January 19th, Fidelity, MetLife and Mercy will be thoroughly auditing the data to make sure all account balances are accurately transferred. You can now set up your NetBenefits online account to Access your account. Review your account balance(s) and elections Reallocate your account and future contributions among the new investment options. Change your paycheck contribution percentage. Request loans, withdrawals, and distributions. Enroll in the Plan(s). Roll over eligible balances from other employer-sponsored Plan(s). Request mutual fund prospectuses and Plan literature. Choose/verify your beneficiaries. When possible, beneficiary information currently on file will transfer to Fidelity. Visit Net Benefits via to view an online statement of your account and set your delivery preferences. All participants will be automatically set to electronic delivery you ll have to select paper to have your statements mailed to your home. See Next Steps at the end of this guide for information about registering your account. Your final account statement will be provided to you by MetLife in January April 2015 First quarterly statement from Fidelity. Compare this statement with your final account statement from MetLife. Contact Fidelity immediately with any questions. You may also obtain an account statement through Fidelity upon request via phone or web. 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. Loan repayments and contributions received during the blackout period will be invested in JPMorgan US Government Money Market Capital until the blackout period ends. At that time, loan repayments, contributions and any associated earnings will be posted to your account according to your investment elections on file with Fidelity. The effective date of Plan changes and the end of the blackout period depend on the accurate, timely transfer of data. If this does not occur, the delivery of services and investment options described here could be delayed. Important Information About Account Statements Account statements for the Plan(s) will be available online through NetBenefits at A quarterly paper statement will not be automatically mailed to your home, but you will receive alerts when they are available. You may request a paper statement of your account at any time. Note that you can change your mail preferences and request that quarterly statements be mailed to your home address. You can do this by calling Fidelity toll free at or logging on to NetBenefits at Simply click Mail Preferences in the Preferences section of Your Profile. 5

6 Mercy MyRetirement Program 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. The New Lineup The new investment options available in MyRetirement Program give you a choice of mutual funds that cover major asset classes. STOCK INVESTMENT OPTIONS American Beacon Large Cap Value Institutional 2 Dodge & Cox International Stock Oppenheimer Developing Markets Y 1 Oppenheimer International Growth I Principal Large Cap Growth I Institutional Target Small Capitalization Value T Vanguard Explorer Adm Vanguard Extended Market Index I Vanguard Institutional Index I 1 Vanguard Total International Stock Index I BALANCED/HYBRID INVESTMENT OPTION Principal Diversified Real Asset Institutional 3 BOND INVESTMENT OPTIONS JPMorgan Core Bond R6 Vanguard Inflation Protected Securities Inv 2 Vanguard Intermediate Term Bond Index I 3 SHORT-TERM INVESTMENT OPTION JPMorgan US Government Money Market Capital TICKER SYMBOL AADEX DODFX ODVYX OIGIX PLGIX TASVX VEXRX VIEIX VINIX VTSNX TICKER SYMBOL PDRDX TICKER SYMBOL JCBUX VIPIX VBIMX TICKER SYMBOL OGVXX 1 No change offered in current lineup 2 Share class change upon transfer, shares will be invested in the institutional class instead of the Investor class. 3 New funds offered by the Plan. No current options will map to these funds. 6

7 Mapping Current to New Investment Options Please review the information below to see how your investment options will transfer/change when your account(s) transitions to Fidelity. For descriptions of each option, refer to the enclosed Investment Options Guide. There are two parts of the mapping: 1. Current allocation of your account balance(s) 2. Investment allocation for your future contributions (which may or may not be the same as your allocation) Some discontinued current funds will transfer directly to a new fund. Some will be split between a selection of the new funds. The mapping and splits were authorized by Mercy s Retirement Administrative Committee working closely with an independent investment consultant. For example: If you have $1,000 in the American Funds Capital World Growth & Income - Class A fund it will transfer to Fidelity as follows: $600 Dodge & Cox International Stock (60% of $1,000) $400 American Beacon Large Cap Value Institutional (40% of $1,000) A future contribution election of 20% to the American Funds Capital World Growth & Income- Class A would transfer as an election of: 12% of future contributions to Dodge & Cox International Stock (60% of 20%) 8% of future contributions to American Beacon Large Cap Value Institutional (40% of 20%) If you prefer to invest your future contributions or current balances differently prior to the transition to Fidelity, please login to or contact MetLife toll free at and dial zero for a representative who can assist you. Your request to make changes among the current funds prior to the blackout must be made by 3 p.m. Central time on December, 23, You will be able to change the allocation of your account among the new funds when the transition to Fidelity is complete which is expected to be the week of January 19, If you re enrolled in the ProManage PROgram, your account(s) will also transfer according to the tables below. ProManage s annual reallocations starting in 2015 will include the new lineup. If you have a future contribution election or a balance in an investment option listed on the left side of the table below as of December 23, 2014, it will be transferred to the new/existing option(s) on the right on January 2, INVESTMENT OPTIONS THAT ARE CHANGING Existing investment option with MetLife as of December 23, 2014 at the close of the market (will be valued as of December 31, 2014) New investment option(s) with Fidelity as of the close of the market January 2, 2015 American Funds AMCAP A u Principal LargeCap Growth I Institutional American Funds Capital World Growth & Income - Class A u 60% Dodge & Cox International Stock 40% American Beacon Large Cap Value Institutional American Funds Europacific Growth - Class A u Oppenheimer International Growth I American Funds Growth Fund of America - Class A u Principal LargeCap Growth I Institutional Baron Small Cap Retail u Vanguard Explorer Adm Columbia Balanced A u 60% Vanguard Institutional Index I 40% JPMorgan Core Bond R6 7

8 Mercy MyRetirement Program INVESTMENT OPTIONS THAT ARE CHANGING Existing investment option with MetLife as of December 23, 2014 at the close of the market (will be valued as of December 31, 2014) New investment option(s) with Fidelity as of the close of the market January 2, 2015 Fidelity Freedom 2000 Fund u 17% Vanguard Institutional Index I 7% Vanguard Total Intl Stock Index I 46% JPMorgan Core Bond R6 30% JPMorgan US Government Money Market Capital Fidelity Freedom 2010 Fund u 33% Vanguard Institutional Index I 15% Vanguard Total Intl Stock Index I 37% JPMorgan Core Bond R6 15% JPMorgan US Government Money Market Capital Fidelity Freedom 2020 Fund u 43% Vanguard Institutional Index I 19% Vanguard Total Intl Stock Index I 31% JPMorgan Core Bond R6 7% JPMorgan US Government Money Market Capital Fidelity Freedom 2030 Fund u 59% Vanguard Institutional Index I 25% Vanguard Total Intl Stock Index I 16% JPMorgan Core Bond R6 Fidelity Freedom 2040 Fund u 63% Vanguard Institutional Index I 27% Vanguard Total Intl Stock Index I 10% JPMorgan Core Bond R6 Fidelity Freedom Income Fund u 17% Vanguard Institutional Index I 7% Vanguard Total Intl Stock Index I 46% JPMorgan Core Bond R6 30% JPMorgan US Government Money Market Capital Franklin US Government Securities A u JPMorgan Core Bond R6 Invesco International Growth A u Oppenheimer International Growth I Janus Flexible Bond S u JPMorgan Core Bond R6 Janus Forty A u Principal LargeCap Growth I Institutional JPMorgan Mid Cap Value A u Vanguard Extended Market Idx I Lord Abbett Small Cap Value A u Target Small Capitalization Value T MetLife Growth Plus Account u JPMorgan US Government Money Market Capital MFS Value A u American Beacon Large Cap Value Institutional Oakmark Equity & Income I u 70% Vanguard Institutional Index I 30% JPMorgan Core Bond R6 Wells Fargo Advantage Common Stock A u Vanguard Extended Market Index I Wells Fargo Advantage Government Sec I u JPMorgan Core Bond R6 INVESTMENT OPTIONS TRANSFERRING TO A DIFFERENT FUND CLASS The following investment options will remain but will transfer to an alternate fund class. The investment strategy of the fund will remain the same. American Beacon Large Cap Value Investor Class u American Beacon Large Cap Value Institutional Vanguard Inflation-Protected Securities Investor Class u Vanguard Inflation-Protected Securities I Institutional INVESTMENT OPTIONS THAT ARE NOT CHANGING The following investment options will remain as is. Any assets you have invested in these funds as of December 23, 2014 at the close of the market will transfer to Fidelity in the same fund. Any Future contribution elections will continue to be invested in these funds unless you direct otherwise. Oppenheimer Developing Markets Y Vanguard Institutional Index I 8

9 Fidelity BrokerageLink for 401(k) and 403(b) Participants Fidelity BrokerageLink is a self-directed brokerage account option that will be offered within the 401(k) and 403(b) Plans. Fidelity BrokerageLink allows you to choose from investments beyond those options offered. This feature is intended for those who are comfortable actively managing a portfolio of expanded investment choices. There is no annual fee for this service but you may incur transaction fees based on your account trading activity within BrokerageLink. To use this feature, you must first open a separate brokerage account within the Plan(s). To open an account, or if you have any questions about Fidelity BrokerageLink, please log on to or call Once you have opened an account, you may access, monitor, or change investments in your BrokerageLink account by contacting Fidelity. The following plan-imposed restriction(s) applies/apply to BrokerageLink: You may only allocate 95% of your total account balance to BrokerageLink. The transfers into BrokerageLink require a $500 minimum. When you access your BrokerageLink account, there is additional information regarding available investment choices, which you should read before making any investment decisions. If purchasing a mutual fund through BrokerageLink, mutual fund minimums generally still apply. Prior to initiating a trade in your BrokerageLink account, you should review any fees associated with your transaction. The Plan s fiduciaries don t monitor the investments available in Fidelity BrokerageLink. This feature is intended for those who are comfortable actively managing a portfolio of expanded investment choices. If You Have a Loan Your loan will automatically transfer to Fidelity with the rest of your account information. If you re currently working for Mercy: You ll continue to repay your current loan through payroll deductions until it is paid in full. Any new loans initiated after January 1, 2015 must be repaid via an Automated Clearing House (ACH) payment from your bank account. The frequency of payments will still be based on your payroll schedule. If you re no longer working for Mercy: All current loans will be re-amortized to a monthly payment, if not already. The term of the loan will not change. If you re already making monthly payments, your repayment amount shouldn t change unless any payments to date have been missed. Beginning in 2015 all payments must be made via an Automated Clearing House (ACH) payment from your bank account. When the transfer to Fidelity is complete you ll receive a letter showing your monthly payment amount and a form to establish the ACH payment from your bank account. Payments will no longer be accepted by check. You can establish an ACH payment from your checking account (or any other account of your choice) which will make the payment automatically each month so you don t have to mail a check. A self-directed brokerage account may entail greater risk and isn t appropriate for everyone. Additional fees apply to a Fidelity BrokerageLink account. Please refer to the fact sheet and commission schedule for a complete listing of brokerage fees. This information will be available on NetBenefits at after the transition, or you may request a copy by calling Fidelity toll free at

10 Mercy MyRetirement Program Fees and Expenses There are two basic types of fees for administration of MyRetirement Program: Plan administrative fees and expenses Individual fees and expenses Plan Administrative Fees and Expenses Plan administrative fees may include legal, accounting, trustee, recordkeeping, and other administrative fees and expenses associated with maintaining the Plan. The fee(s) you can expect to see starting first quarter in 2015 are shown below. TYPE OF PLAN ADMINISTRATIVE FEE Recordkeeping and Service Fee per 401(k) account Recordkeeping and Service Fee per 403(b) account Recordkeeping and Service Fee per non-401(k) and/or non-403(b) account AMOUNT $14 per quarter $9 per quarter $22.50 per quarter Individual Fees and Expenses Individual fees and expenses include those associated with a service or transaction that an individual may select. In some instances, they may be deducted from the accounts of those individuals who use the service or engage in the transaction. If you have an account in the Plan, and you select or execute one or more of the following services or transactions, the following fees may be deducted from your account. As you review this information, please keep in mind that fees are subject to change and that certain individual fees may not be deducted in certain circumstances. All fees are identified when requesting the service or transaction. TYPE OF INDIVIDUAL FEE AMOUNT Loan Setup Fee $50 Loan Maintenance Fee Self-Directed Brokerage Account Fee (SDB Account Fee) Overnight Mailing Fee $6.25 per quarter Any fees are per transaction within the account. Any fees associated with the transaction will be communicated prior to execution of the trade. $25 per transaction Individual fees deducted from your account will be reflected on your Plan s account statement. 10

11 Next Steps WHAT YOU CAN DO NOW Attend a transition workshop. View the on-demand transition recording. Fidelity will be presenting transition workshops. The town hall meeting schedule can be found at under the Next Steps tab. The information that will be presented at the workshops will also be available to view on demand through the Mercy Transition Web site at When the transition is complete, visit Fidelity NetBenefits at Fidelity s easy-to-use online account site is designed so you can quickly and easily set up, monitor, and manage your retirement savings account. WHAT YOU CAN DO ON THE WEB AFTER THE TRANSITION IS COMPLETE IN JANUARY 2015 Set up your username and password. Register your address and set your communication delivery preferences. Establish your beneficiaries online. Access your Plan virtually any time. Take advantage of online account access, tools, and calculators. Click Register at the top of the Web page and simply follow the step-by step instructions. If you are a current Fidelity customer and already have a username and a password, you can use them to access your Plan account on the NetBenefits Web site, You can do both at the Your Profile tab to ensure you ll receive important transition updates the way you prefer. When possible, beneficiary elections will be transferred to Fidelity. Click Beneficiaries in the About You section of Your Profile to determine if your elections were able to be transferred, and if not, to make your beneficiary designations. On the NetBenefits Web site, you can enroll, adjust your contribution amount, and change your investment options. You can even request a loan or withdrawal online. Get details on all your investments, including account statements, current prices, and historical performance. Fidelity also provides many tools and calculators to help you create a successful savings and retirement strategy. We at Fidelity are excited to become a part of the MyRetirement Program team. If you have any questions or need assistance, starting in January you can contact the Fidelity Retirement Service Center Monday through Friday at Service Representatives are available from 7:30 a.m. to 11:00 p.m. Central time - excluding New York Stock Exchange holidays. The automated phone system and (NetBenefits Web site) will be available virtually 24 hours a day, 7 days a week. We look forward to assisting with your Retirement Planning needs beginning in January 2015! 11

12 Steps to a Healthier Financial Future MyRetirement Program is an easy way to save for your future goals. Follow these three easy steps to get started with Mercy and Fidelity. 1. Use this guide as a resource. 2. Review the key transition dates. 3. Take advantage of new services. Fidelity can help you every step of the way Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money. This document provides only a summary of the main features of the Mercy MyRetirement Program Plans. Individual Plan documents will govern in the event of any discrepancies. Fidelity Brokerage Services LLC, Member NYSE, SIPC 900 Salem Street, Smithfield, RI FMR LLC. All rights reserved