This guide provides you with important information about the Gonzaga University 403(b) Retirement Plan
Use this guide to help you enroll in your Gonzaga University 403(b) Retirement Plan. Table of Contents The Gonzaga University 403(b) Retirement Plan 3 Plan Features 5 6 Investment Education 7 8 How to Enroll 9 12 Provider Fact Sheets 13 About Fidelity Investments 14 15 About TIAA-CREF 16 19 Investment Descriptions: Fidelity 20 36 Investment Descriptions: TIAA-CREF 37 50 2 This guide provides you with an overview of your Retirement Plan options. Inside, you ll learn more about the following: Employee contribution types offered within the Gonzaga University 403(b) Retirement Plan Evaluating the investment providers Choosing a provider for your contributions Evaluating the investment lineup
The Gonzaga University 403(b) Retirement Plan Gonzaga University is proud to bring you a program to help you prepare for the retirement of your dreams. The University offers Fidelity Investments and TIAA- CREF as investment providers in the Gonzaga University 403(b) Retirement Plan. Both investment providers offer resources and tools to help participants plan their investment strategy. Why save? Are you on track to living the life you want after you stop working? Many experts estimate that you ll need 85% of your annual preretirement income to meet expenses each year in retirement. Facing rising health care costs, inflation, and a retirement that may last 30 years or more, you may need to save more to enjoy the retirement lifestyle you desire. Choose your path to success. The good news is that there s help along the way. Gonzaga University is proud to provide you a retirement plan to help you work toward the retirement of your goals. The Retirement Plan offers you a choice of investment providers, so you can pay yourself first and take control of your own financial future. The University s Retirement Plan is designed to help you invest more money today to help you have the income you need during your retirement years. Consider making contributions, and see how investing even a small amount can add up over time. 3
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Plan Features The table below provides an overview of the features of the Gonzaga University 403(b) Retirement Plan. Gonzaga University 403(b) Retirement Plan Eligibility Contribution Limits* Employee Contribution Types Employer Contribution Types Vesting Loans Exchanges/Transfers Rollovers Withdrawals/Distributions An eligible employee is automatically enrolled in the Retirement Plan with a 3% pretax contribution 30 days from hire date, unless the employee opts out. This is a non-mandatory employee contribution. After completing one year of service, an eligible employee is automatically enrolled with a 5% mandatory employee pretax non-elective contribution. An employee may NOT opt out of this contribution. After completing one year of service, an eligible employee is automatically provided an employer contribution of 8.5% of employee compensation. Employees may contribute up to 100% of compensation, subject to the IRS limit of $17,500 in 2013. Employees over age 50 can contribute an additional $5,500 in 2013. Employee non-mandatory pretax salary reduction contributions. Roth 403(b) contributions. 5% mandatory employee pretax non-elective contribution. Employer contribution of 8.5% of employee compensation. Vesting means ownership. You are 100% vested in all contributions to the Retirement Plan as soon as they are made. Apply for a loan directly through Fidelity Investments or TIAA-CREF. You may have two loans outstanding at a time. Gonzaga University 403(b) Plan money may be transferred in plan between Fidelity Investments and TIAA-CREF. Contact your investment provider for details, including any applicable fees. You may roll over money from a previous employer s retirement plan to the 403(b) Plan. Distributions are generally allowed when you terminate employment, reach age 59½, retire, if you have severe financial hardship as defined by your Retirement Plan, or upon your death. Pretax contributions and associated earnings are subject to income taxes when withdrawn. * Annual additions to the Retirement Plan (your contributions and employer contributions combined) may not exceed 100% of your pay or $51,000 for 2013, whichever is less. 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 directly rolled 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. 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 advisor about your situation. 5
Gonzaga University 403(b) Retirement Plan (continued) Investment Options Enrollment Account Access Investment Education See the available investment options later in this guide. Follow the directions on page 9 of this guide. Contact Fidelity Investments at 1-800-343-0860 or log on to Fidelity NetBenefits at www.netbenefits.com/gu. Contact TIAA-CREF at 1-800-842-2776 or log on at www.tiaa-cref.org/gonzaga. Fidelity Investments and TIAA-CREF make on-campus visits to meet with you in person. TIAA-CREF also has a local Spokane office. To schedule an appointment with Fidelity, call 1-800-642-7131 or visit www.fidelity.com/atwork/reservations. To schedule an appointment with TIAA-CREF, call our local office at 1-800-732-8353 or visit http://www.tiaa-cref.org/schedulenow. 6
Investment Education To help you meet your investment goals, the Retirement Plan offers you a range of options. You can select a mix of investment options that best suits your goals, time horizon, and risk tolerance. The investment options available through the Retirement Plan include conservative, moderately conservative, and aggressive funds. A complete description of the Retirement Plan s investment options and their performance, as well as planning tools to help you choose an appropriate mix, are available from each investment provider. Core investment options This typically includes a limited menu of mutual funds that invest primarily in the three major asset classes (stocks, bonds, and short-term investments). You may want to consider these options if you are comfortable diversifying your investments on your own or with the assistance of an outside investment advisor and/or asset allocation tools. Lifecycle Funds In addition to the core investment options, both providers offer you the option to select a lifecycle fund that offers a blend of stocks, bonds, and short-term investments within a single fund. Each lifecycle fund s asset allocation is based on the number of years until the fund s target retirement date. The lifecycle 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 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 date. 7
Annuity Options Fidelity offers a fixed annuity product. TIAA-CREF offers fixed and/or variable annuity products. An annuity is a contract with an insurance company. Fixed annuities are designed to provide a fixed rate of return, while variable annuities invest in equities, and the value of the account is determined by the performance of the investments. At the time you begin taking distributions, most annuities offer you the option of receiving a regular series of income payments over your lifetime or for another specified period of time, subject to the claims-paying ability of the issuer. Please note that payments from variable annuities will rise or fall based on the investment performance. Need help choosing an investment mix? Each provider has representatives who can meet with you to help you choose investments for your retirement portfolio. The Fidelity and TIAA-CREF Web sites offer online planning tools to help you manage your portfolio on your own. To learn more, contact your investment provider directly. Fidelity Investments 1-800-343-0860 Monday through Friday 5 a.m. to 9 p.m. Pacific time www.netbenefits.com/gu TIAA-CREF 1-800-842-2776 Monday through Friday 5 a.m. to 7 p.m. and Saturday 6 a.m. to 3 p.m. Pacific time www.tiaa-cref.org/gonzaga 8
How to Enroll Employees have a choice of enrolling with Fidelity or TIAA-CREF. Because Fidelity provides the recordkeeping service for the Gonzaga University 403(b) Plan, your deferral election and whether you choose Fidelity or TIAA-CREF must be completed through Fidelity NetBenefits by visiting www.netbenefits.com/gu. Both Fidelity and TIAA-CREF can help if you have any questions. You ll find information about how to contact them below. Employee Contributions If no enrollment is completed within 30 days from hire date, an eligible employee is automatically enrolled in the Retirement Plan with a 3% pretax contribution rate, unless the employee opts out. This is a non-mandatory employee contribution. To enroll or to opt out of the automatic enrollment, log on to Fidelity NetBenefits at www.netbenefits.com/gu and change your pretax employee contribution to 0%, or call Fidelity at 1-800-343-0860 to opt out. To increase or decrease your employee contribution rate and select or change Fidelity or TIAA-CREF as your investment provider, log on to Fidelity NetBenefits at www.netbenefits.com/gu. You may also contact Fidelity at 1-800-343-0860 to make these changes or call TIAA-CREF at 1-800-842-2776 for help. Once you ve indicated your contribution rate and investment provider, you select your investment mix for the employee contributions directly with Fidelity or TIAA-CREF. Keep in mind that your employee contribution rate is tracked in Fidelity NetBenefits regardless of whether you are directing contributions to TIAA-CREF. Employee Mandatory Contributions and Employer Contributions After completing one year of service and working 1,000 hours, an eligible employee is automatically enrolled with a 5% mandatory employee pretax non-elective contribution rate and is eligible for the employer contribution of 8.5% of employee compensation. The mandatory contribution is in addition to any employee non-mandatory contributions you contribute. You may select Fidelity or TIAA-CREF as your investment provider by logging on to Fidelity NetBenefits at www.netbenefits.com/gu. You may also contact Fidelity at 1-800-343-0860 or TIAA-CREF at 1-800-842-2776 for help. Once you ve indicated your investment provider, you select your investment mix for the employee mandatory and employer contributions directly with Fidelity or TIAA-CREF. 9
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Designate Your Beneficiaries To set up your beneficiaries for your Fidelity account, you may use Fidelity s Online Beneficiaries Service by logging on to Fidelity NetBenefits at www.netbenefits.com/gu. Simply click Beneficiaries in the About You section of Your Profile. Or you may call Fidelity at 1-800-343-0860 to request a beneficiary form. To set up your beneficiaries online for your TIAA-CREF account, please log on to your account at www.tiaa-cref.org/gonzaga. Click My Profile at the top of the page. Next, click Beneficiaries, and then click Modify. You may also contact TIAA-CREF at 1-800- 842-2776 to request a beneficiary form. Managing Your Investments Once you re enrolled, you will manage your investment mix directly through Fidelity or TIAA-CREF. You ll have online access to your account information and a toll-free number where you can speak with a representative. Fidelity Investments 1-800-343-0860 Monday through Friday 5 a.m. to 9 p.m. Pacific time www.netbenefits.com/gu TIAA-CREF 1-800-842-2776 Monday through Friday 5 a.m. to 7 p.m. and Saturday 6 a.m. to 3 p.m. Pacific time www.tiaa-cref.org/gonzaga Lifecycle Default Funds Gonzaga University has determined that any contributions that you have not directed to a specific investment provider or to a specific investment option for your Retirement Plan account at Fidelity will be invested in a lifecycle fund with a target retirement date closest to the year you might retire, based on your current age and assuming a retirement age of 65. Please refer to the chart on the next page. If no date of birth or an invalid date of birth is on file at Fidelity, or if you are over age 65, your contributions will be invested in the Fidelity Freedom K Income Fund. 11
The chart below lists the assigned fund Gonzaga University believes will best fit your diversification needs should you not select an investment option for your account at Fidelity. Date of Birth Fidelity Freedom K Fund Retirement Date Range Before 1933 Fidelity Freedom K Income Fund Retired before 1998 1/1/1933 12/31/1937 Fidelity Freedom K 2000 Fund 1998 2002 1/1/1938 12/31/1942 Fidelity Freedom K 2005 Fund 2003 2007 1/1/1943 12/31/1947 Fidelity Freedom K 2010 Fund 2008 2012 1/1/1948 12/31/1952 Fidelity Freedom K 2015 Fund 2013 2017 1/1/1953 12/31/1957 Fidelity Freedom K 2020 Fund 2018 2022 1/1/1958 12/31/1962 Fidelity Freedom K 2025 Fund 2023 2027 1/1/1963 12/31/1967 Fidelity Freedom K 2030 Fund 2028 2032 1/1/1968 12/31/1972 Fidelity Freedom K 2035 Fund 2033 2037 1/1/1973 12/31/1977 Fidelity Freedom K 2040 Fund 2038 2042 1/1/1978 12/31/1982 Fidelity Freedom K 2045 Fund 2043 2047 1/1/1983 12/31/1987 Fidelity Freedom K 2050 Fund 2048 2052 1/1/1988 or later Fidelity Freedom K 2055 Fund 2053 and beyond Date of birth ranges were selected by your Plan Sponsor. If you have not made an investment selection for your contributions directed to TIAA CREF, your contributions will be invested in a lifecycle fund with a target retirement date closest to the year you might retire, based on your current age and assuming a retirement age of 65. Date of Birth TIAA-CREF Lifecycle Fund Retirement Date Range Before 1944 TIAA-CREF Retirement Income Retired before 2008 1/1/1944 12/31/1948 TIAA-CREF Lifecycle 2010 Fund 2008 2012 1/1/1949 12/31/1953 TIAA-CREF Lifecycle 2015 Fund 2013 2017 1/1/1954 12/31/1958 TIAA-CREF Lifecycle 2020 Fund 2018 2022 1/1/1959 12/31/1963 TIAA-CREF Lifecycle 2025 Fund 2023 2027 1/1/1964 12/31/1968 TIAA-CREF Lifecycle 2030 Fund 2028 2032 1/1/1969 12/31/1973 TIAA-CREF Lifecycle 2035 Fund 2033 2037 1/1/1974 12/31/1978 TIAA-CREF Lifecycle 2040 Fund 2038 2042 1/1/1979 12/31/1983 TIAA-CREF Lifecycle 2045 Fund 2043 2047 1/1/1984 12/31/1988 TIAA-CREF Lifecycle 2050 Fund 2048 2052 1/1/1989 Present TIAA-CREF Lifecycle 2055 Fund 2053 and beyond 12
Provider Fact Sheets The pages that follow give additional information about Fidelity and TIAA-CREF, and their products and services available for the Gonzaga University 403(b) Retirement Plan. You ll manage your account directly through Fidelity or TIAA-CREF once you are enrolled. If you have any questions about the enrollment process or the available investment options, you can contact Fidelity or TIAA-CREF for help. You ll find information about the investment providers on the pages listed below: Fidelity Investments Pages 14 15 TIAA-CREF Pages 16 17 Each provider is solely responsible for the content on its applicable pages and does not assume any responsibility or liability for the content supplied by the other provider. 13
About Fidelity Investments If you re like most people, you want your hard-earned retirement savings to be in good hands. Consider America s workplace retirement savings plan leader,* Fidelity Investments, and take advantage of our experience to help you build a more rewarding future. Chances are you already know Fidelity by reputation. Founded in 1946 and, today, America s largest privately held investment company, Fidelity has always been committed to providing exceptional money management, outstanding customer service, and state-of-the-art technology. Fidelity is committed to providing a range of investment options, educational resources, and superior customer service to all our participants to help them plan for retirement. Service excellence you can count on Fidelity has always been committed to accuracy, top technologies, and the highest ethical standards. A relationship with us means that you can count on accurate statements and information, as well as timely assistance with your questions. Experience to meet your needs Fidelity serves more than 20 million participants,* and we bring the experience to help you manage your priorities at every stage of your life. Because we service plans for thousands of tax-exempt organizations, we understand that you may have more complex savings needs above and beyond your retirement plan. Guidance how and when you need it To help you make knowledgeable and confident decisions about your money, Fidelity offers a broad range of guidance, including the following: Portfolio reviews at your workplace Help with bringing multiple accounts together in one place Assistance with consolidating your retirement accounts Making the most of the tools and resources available from Fidelity Investments 14 Contact Fidelity Investments You can reach a Fidelity customer service representative at 1-800-343-0860, or you may schedule an appointment online at www.fidelity.com/atwork/reservations. * Source: Fidelity Facts, FMR LLC, 2012. Guidance provided by Fidelity is educational in nature, is not individualized, and is not intended to serve as the primary or sole basis for your investment or tax-planning decisions. Portfolio Review is an educational tool.
Your Fidelity Investment Options Before investing in any investment option, consider the investment objectives, risks, charges, and expenses. Contact Fidelity for a mutual fund prospectus or, if available, a summary prospectus. For information on fixed annuities, contact Fidelity to request a fact sheet. Read them carefully. By investing your Retirement Plan contributions with Fidelity, you have access to a wide variety of investment options. Investment Option Fidelity Freedom K 2000 Fund Fidelity Freedom K 2005 Fund Fidelity Freedom K 2010 Fund Fidelity Freedom K 2015 Fund Fidelity Freedom K 2020 Fund Fidelity Freedom K 2025 Fund Fidelity Freedom K 2030 Fund 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 Fidelity Freedom K Income Fund Fidelity Money Market Trust Retirement Money Market Portfolio ING STABILIZER American Century Investments Government Bond Fund Institutional Class Spartan U.S. Bond Index Fund Fidelity Advantage Class PIMCO Real Return Asset Fund Institutional Class Fidelity Balanced Fund Class K Fidelity Puritan Fund Class K Ticker FFKBX FFKVX FFKCX FKVFX FFKDX FKTWX FFKEX FKTHX FFKFX FFKGX FFKHX FDENX FFKAX FRTXX N/A ABTIX FSITX PRAIX FBAKX FPUKX T. Rowe Price Equity Income Fund PRFDX Spartan 500 Index Fund Fidelity Advantage Class Fidelity Contrafund Class K Fidelity Growth Company Fund Class K Neuberger Berman Socially Responsive Fund Institutional Class Artisan Mid Cap Value Fund Investor Shares Spartan Extended Market Index Fund Fidelity Advantage Class Baron Asset Fund Institutional Class AllianzGI NFJ Small-Cap Value Fund Administrative Class Royce Value Plus Fund Institutional Class American Funds EuroPacific Growth Fund Class R-4 DWS Global Small Cap Growth Fund Class S Spartan International Index Fund Fidelity Advantage Class Fidelity Real Estate Investment Portfolio FUSVX FCNKX FGCKX NBSLX ARTQX FSEVX BARIX PVADX RVPIX REREX SGSCX FSIVX FRESX For a complete description of the investment options in the Retirement Plan, refer to the Investment Descriptions section of this guide. Or visit www.netbenefits.com/gu or call Fidelity at 1-800-343-0860. 15
About TIAA-CREF With $523 billion in combined assets under management, 1 TIAA-CREF is a fullservice financial services organization that for more than 90 years has dedicated itself to serving those in the academic, medical, cultural, and research fields. We do this through a full array of financial products and services that help our participants plan for and live well in retirement, while investing for life s other goals along the way. TIAA-CREF Offers the Following Advantages: Low costs: Based on Morningstar data, the expense ratio on all mutual fund products and variable annuity accounts managed by TIAA-CREF is generally less than half the mutual fund industry average. (64% are less than half their respective Morningstar Universe average and 57% are less than half their respective Morningstar Universe median.) 2 Personalized advice: Unlike guidance, our advice services are individualized and provide specific savings rate and fund level advice that is tailored to your specific situation and goals. A TIAA-CREF Financial Consultant will help you determine which investments are right for your retirement portfolio and whether you are contributing enough to achieve your goals. Our advice services are available at no additional cost to you. Investment experience: We have more than 90 years of experience investing for our participants retirement and other financial goals. - TIAA-CREF was named the 2013 Best Overall Large Fund Company by Lipper and was recognized for most consistent risk-adjusted threeyear performance versus industry peers. 3 Financial strength: TIAA is one of only three insurance groups in the United States to hold the highest ratings currently awarded from all four leading independent insurance industry ratings agencies. 4 16
Get Personalized Help from TIAA-CREF: In Person: To schedule an appointment with a TIAA-CREF Consultant on campus or at the Spokane TIAA-CREF office, call 1-800-732-8353, Monday to Friday, 5 a.m. to 5 p.m. Pacific time. By Phone: For information about how to enroll, or to discuss your account, call TIAA CREF at 1-800-842-2776, Monday through Friday, 5 a.m. to 7 p.m. and Saturday, 6 a.m. to 3 p.m. Pacific time. Online: To learn how to enroll or to access details about the Gonzaga Retirement Plan, visit www.tiaa-cref.org/gonzaga. 1 Assets under management as of 6/30/13. 2 Morningstar Direct, June 30, 2013. 3 In calculating the awards, Lipper considered funds registered for sale in the United States with at least 36 months of performance as of the end of the calendar year of the respective evaluation year. Fund groups with at least five equity, five bond, or three mixedasset portfolios were eligible for an overall group award. The award is given to the group with the lowest average decile ranking of three years consistent return measure of the eligible funds over the three-year period ended 11/30/12. TIAA-CREF was ranked against 36 fund companies. Past performance is not indicative of future returns. TIAA-CREF products may be subject to market and other risk factors. See the applicable product literature, or visit tiaa-cref.org for more performance and Morningstar data details. Consider the investment objectives, risks, charges, and expenses carefully before investing. Visit tiaa-cref.org for a current prospectus that contains this and other information. Read it carefully before investing. 4 For its stability, claims-paying ability, and overall financial strength, TIAA currently holds the highest possible ratings from the four leading insurance company rating agencies: A.M. Best (A++ as of 5/13), Fitch (AAA as of 6/13), Moody s Investors Service (Aaa as of 7/13), and Standard & Poor s (AA+ as of 6/13). Per S&P criteria, the downgrade of U.S. long-term government debt limits the highest rating of U.S. insurers to AA+ (the second-highest rating available). There is no guarantee that current ratings will be maintained. Ratings represent a company s ability to meet policyholders obligations and do not apply to variable annuities, mutual funds, or any other product or service not fully backed by TIAA s claims-paying ability. 17
Your TIAA-CREF Investment Options TIAA-CREF offers investment choices in major asset classes, from fixed income and equities to real estate. Our goal is to provide a disciplined approach of balancing proven investment strategies with innovative ones. As a TIAA-CREF participant, your financial well-being is our top priority and we believe that working together, we can help you plan for your retirement. Life can be complicated, but planning for retirement doesn t have to be. To help you plan for your goals, in addition to advice, your employer chose to offer investment options in a variety of major asset classes. For information about how to enroll, or to discuss your investment options, call TIAA CREF at 1-800-842-2776, Monday through Friday, 5 a.m. to 7 p.m. and Saturday, 6 a.m. to 3 p.m. Pacific time. You can also visit www.tiaa-cref.org/gonzaga to get advice, learn more about investing, and access your accounts. Investment Name GUARANTEED Guaranteed Annuity TIAA Traditional Annuity* EQUITIES Mutual Fund TIAA-CREF International Equity Fund TIAA-CREF International Equity Index Fund TIAA-CREF Large-Cap Value Fund TIAA-CREF Mid-Cap Growth Fund TIAA-CREF Mid-Cap Value Fund TIAA-CREF Small-Cap Blend Index Fund TIAA-CREF Small-Cap Equity Fund Variable Annuity CREF Equity Index Account CREF Global Equities Account CREF Growth Account CREF Stock Account REAL ESTATE Variable Annuity TIAA Real Estate Account Ticker Symbol N/A TRERX TRIEX TRLCX TRGMX TRVRX TRBIX TRSEX N/A N/A N/A N/A N/A 18 * Any guarantees under annuities issued by TIAA are subject to TIAA s claims-paying ability. TIAA Traditional is a guaranteed insurance contract and not an investment for federal securities law purposes.
Investment Name FIXED INCOME Mutual Fund TIAA-CREF High-Yield Fund Variable Annuity CREF Bond Market Account CREF Inflation-Linked Bond Account MONEY MARKET Variable Annuity CREF Money Market Account MULTI-ASSET Mutual Fund TIAA-CREF Lifecycle 2010 Fund TIAA-CREF Lifecycle 2015 Fund TIAA-CREF Lifecycle 2020 Fund TIAA-CREF Lifecycle 2025 Fund TIAA-CREF Lifecycle 2030 Fund TIAA-CREF Lifecycle 2035 Fund TIAA-CREF Lifecycle 2040 Fund TIAA-CREF Lifecycle 2045 Fund TIAA-CREF Lifecycle 2050 Fund TIAA-CREF Lifecycle 2055 Fund TIAA-CREF Lifecycle Retirement Income Fund Variable Annuity CREF Social Choice Account Ticker Symbol TIHRX N/A N/A N/A TCLEX TCLIX TCLTX TCLFX TCLNX TCLRX TCLOX TTFRX TLFRX TTRLX TLIRX N/A For a complete description of the investment options in the Retirement Plan, refer to the Investment Descriptions section of this guide. Annuity account options are available through annuity contracts issued by TIAA or CREF. These contracts are designed for retirement or other long-term goals, and offer a variety of income options, including lifetime income. Payments from the variable annuity accounts are not guaranteed and will rise or fall based on investment performance. TIAA-CREF products may be subject to market and other risk factors. See the applicable product literature, or visit www.tiaa-cref.org for details. Investment, insurance, and annuity products are not FDIC insured, are not bank guaranteed, are not deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value. TIAA-CREF Individual & Institutional Services, LLC, and Teachers Personal Investors Services, Inc., members FINRA, distribute securities products. Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association (TIAA) and College Retirement Equities Fund (CREF), 730 Third Avenue, New York, NY 10017. You should consider the investment objectives, risks, charges, and expenses carefully before investing. Please call 877-518-9161 or log on to www.tiaa-cref.org for current product and fund prospectuses that contain this and other information. Please read the prospectuses carefully before investing. 19
Investment Descriptions: Fidelity The following are the investment descriptions for the investment options available at Fidelity: Fidelity Money Market Trust Retirement Money Market Portfolio Ticker: FRTXX Objective: Seeks to obtain as high a level of current income as is consistent with the preservation of capital and liquidity. Strategy: Investing in U.S. dollar-denominated money market securities of domestic and foreign issuers and repurchase agreements. Investing more than 25% of total assets in the financial services industries. Potentially entering into reverse repurchase agreements. Risk: Interest rate increases can cause the price of a money market security to decrease. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks. 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. ING STABILIZER Ticker: N/A Objective: To provide a high quality investment option, earnings stability and liquidity, while offering a guarantee of principal and interest. Strategy: The ING Stable Value Account is invested in a separate account of ILIAC. This diversified separate account portfolio consists of publicly traded, high quality, fixed income instruments, including mortgage pass-through securities, and commercial mortgage backed securities. Risk: The fund is invested in a separate account, which is a diversified portfolio of fixed-income assets. Guarantees are subject to the claims-paying ability of the issuer. Restrictions or fees may apply to exchanges or withdrawals. The Contracts provide for the payment of certain withdrawals and exchanges at book value during the terms of the Contracts. In order to maintain the Contract issuers promise to pay such withdrawals and exchanges at book value, the Contracts subject the fund and its participants to certain restrictions. For example, withdrawals prompted by certain events (e.g., layoffs, early retirement windows, spin-offs, sale of a division, facility closings, plan terminations, partial plan terminations, changes in laws or regulations) may be paid at the market value of the fund s securities, which may be less than your book value balance or may restrict withdrawals in these events. Certain investment options offered by your plan (e.g., money market funds, short-term bond funds, certain asset allocation/lifecycle funds and brokerage window) may be deemed by the Contract issuers to compete with this fund. The terms of the Contracts prohibit you from making a direct exchange from this fund to such competing funds. Instead, you must first exchange to a non-competing fund for 90 days. While these requirements may seem restrictive, they are imposed by the Contract issuers as a condition for the issuer s promise to pay certain withdrawals and exchanges at book value. 20
Someone who seeks a slightly higher yield over the long term than is offered by money market funds, but who is willing to accept slightly more investment risk. Someone who is interested in balancing an aggressive portfolio with an investment that seeks to provide a declared crediting rate that is reset on a periodic basis. The investment option is an annuity. The fund is managed by ING Life Insurance and Annuity Company. This description is only intended to provide a brief overview of the fund. The ING Stable Value Account is not a mutual fund and is underwritten and offered by ING Life Insurance and Annuity Company, which guarantees your principal and interest. Information furnished on the ING Stable Value Account was furnished by ING. Fidelity Investments Institutional Services Company, Inc., and ING Life Insurance and Annuity Company are not affiliated. This investment option is not a mutual fund. American Century Investments Government Bond Fund Institutional Class Ticker: ABTIX Objective: The investment seeks high current income. Strategy: Under normal market conditions, the fund invests at least 80% of its assets in U.S. government debt securities, including U.S. Treasury securities and other securities issued or guaranteed by the U.S. government and its agencies and instrumentalities. 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 a fund that invests primarily in securities issued by the U.S. government and its agencies or instrumentalities. Someone who is seeking to diversify an equity portfolio with a more conservative investment option. A mutual fund registered under American Century Government Income Trust, and managed by American Century Inv Mgt, 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. Spartan U.S. Bond Index Fund Fidelity Advantage Class Ticker: FSITX 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. 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) and futures 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). 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. 21
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 investmentgrade 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 Fidelity Advantage Share Class took place. Returns prior to that date are those of the Investor Class and reflect the Investor Class expense ratio. Had the Fidelity Advantage 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. PIMCO Real Return Asset Fund Institutional Class Ticker: PRAIX Objective: The investment seeks maximum real return, consistent with prudent investment management. Strategy: The fund invests at least 80% of net assets in inflation-indexed bonds of varying maturities issued by the U.S. and non-u.s. governments, their agencies or instrumentalities, and corporations. Assets not invested in inflation-indexed bonds may be invested in other types of Fixed Income Instruments. It invests primarily in investment grade securities, but may invest up to 20% of its total assets in 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. The fund is non-diversified. Risk: The interest payments of TIPS are variable; they generally rise with inflation and fall with deflation. 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 and who can tolerate more frequent changes in the size of dividend distributions than those usually found with more conservative bond funds. Someone who is seeking to supplement his or her core fixed-income holdings with a bond investment that is tied to changes in inflation. 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. Fidelity Balanced Fund Class K 22 Ticker: FBAKX Objective: Seeks income and capital growth consistent with reasonable risk. 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. 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 Puritan Fund Class K Ticker: FPUKX Objective: Seeks income and capital growth consistent with reasonable risk. 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. 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. T. Rowe Price Equity Income Fund Ticker: PRFDX Objective: The investment seeks to provide substantial dividend income as well as long-term growth of capital. Strategy: The fund will normally invest at least 80% of its net assets (including any borrowings for investment purposes) in common stocks, with 65% in the common stocks of well-established companies paying above-average dividends. It typically employs a value approach in selecting investments. The fund may invest in foreign stocks in keeping with the fund s objectives. It may sell securities for a variety of reasons, such as to secure gains, limit losses, or redeploy assets into more promising opportunities. 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. 23
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. A mutual fund registered under T. Rowe Price Equity Income Fund, and managed by T. Rowe Price Associates, 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. Spartan 500 Index Fund Fidelity Advantage Class Ticker: FUSVX 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. 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. 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. On October 17, 2005, an initial offering of the Fidelity Advantage Share Class took place. Returns prior to that date are those of the Investor Class and reflect the Investor Class expense ratio. Had the Fidelity Advantage 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. Fidelity Contrafund Class K Ticker: FCNKX Objective: Seeks capital appreciation. 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. 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. 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. 24
Fidelity Growth Company Fund Class K Ticker: FGCKX Objective: Seeks capital appreciation. Strategy: Normally invests primarily in common stocks of domestic and foreign issuers that Fidelity Management & Research Company (FMR) believes offer the potential for above-average growth. Growth may be measured by factors such as earnings or revenue. Uses fundamental analysis of each issuer s financial condition and industry position and market and economic conditions to select investments. Risk: The value of the fund s domestic and foreign investments will vary from day to day in response to many factors, such as adverse issuer, political, regulatory, market, or economic developments. Stock values fluctuate in response to the activities of individual companies, and general market and economic conditions. You may have a gain or loss when you sell your shares. Foreign investments involve greater risks than those of U.S. investments. Growth stocks can perform differently from the market as a whole and other types of stocks and can be more volatile than other types of stocks. 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 Mt. Vernon 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. 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. Neuberger Berman Socially Responsive Fund Institutional Class Ticker: NBSLX Objective: The investment seeks long-term growth of capital by investing primarily in securities of companies that meet the fund s financial criteria and social policy. Strategy: The fund invests primarily in common stocks of mid- to large-capitalization companies that meet the fund s social policy. It seeks to reduce risk by investing across many different industries. The Portfolio Managers employ a research driven and valuation sensitive approach to stock selection, with a long-term perspective. Although the fund invests primarily in domestic stocks, it may also invest in stocks of foreign companies. Risk: 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 with growth-oriented stocks. A mutual fund registered under Neuberger Berman Equity Funds, and managed by Neuberger Berman Management 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. Artisan Mid Cap Value Fund Investor Shares Ticker: ARTQX Objective: The investment seeks maximum long-term capital growth. Strategy: The fund normally invests no less than 80% of its net assets plus any borrowings for investment purposes at market value at the time of purchase in the common stocks of medium-sized companies. It defines a mediumsized company as one with a market capitalization greater than the market capitalization of the smallest company in the Russell Midcap Index and less than three times the weighted average market capitalization of companies in that Index. The fund will generally not initiate a position in a company unless it has a market capitalization between $2 billion and $15 billion. 25