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Your Retirement Savings BenefitRIC Participationand EnrollmentGet to know your retirement plan benefitsIowaRetirementInvestors’Club (RIC)

Iowa Retirement Investors’ Club (RIC)Your employer and supporting associations takeyour retirement readiness seriously. They havepartnered with the Retirement Investors’ Clubto provide a supplemental retirement savingsplan that helps you now AND in the future!

IntroductionPlan BasicsInvestmentsEnrollment

IntroductionThere is a large array ofvoluntary retirementsavings plans availableto investors today.As an education-relatedemployee, you have theoption to save throughyour employer’s 403bplans.

IntroductionThe tax treatment of contributions, earnings, and distributions ofall retirement savings plans are regulated by the IRS.Retirement Savings PlansEmployer Sponsored PlansIndividual Plans (IRAs)Funded with payroll deduction or employer contributionFunded through checking/savings401k457403b (TSA)401aTraditionalRothSEPPretax &/orPost-tax RothPretax &/orPost-tax RothPretax &/orPost-tax RothPretaxTaxdeductiblePost-taxTaxdeductible

IntroductionCertain plan provisionshave been customizedby your employer.Customizable Plan optionsEnrollment periodSalary reduction frequencyThis presentation willrefer to both pretax &post-tax Roth benefits.For details specific to yourplan, see the EmployerPlan Details web page.Loan provisionsHardship withdrawalsRoth accountsEmployer contributionsInactive provider exchangesAccept roll-ins from outside plans

IntroductionRIC plan participants enjoy: Convenience of automaticsavings through salary reduction Tax advantages Competitive low-cost investments and access toinvestment experts while you save and throughoutretirement Income at retirement

IntroductionSources of income in retirementRetirementIncomePersonal SavingsSocial SecurityPersonal savings (RIC, IRAs, CDs,mutual funds, etc.) provides asafety net for income short-falls.Full social security benefitsmay account for 40% ofincome replacement.IPERSFull IPERS benefits account for 60% ofincome replacement.No COLA!

IntroductionPlan BasicsInvestmentsEnrollment

Plan basicsAs a RIC participant, youchoose to have a portion ofyour wages automaticallydeducted from your paycheckto save for future incomeneeds.Contributions are depositedinto your selection of RICinvestments.

Plan basicsThe RIC savings plans offerchoice and flexibility.Choose/ChangePlan OptionAmountIRS annual maximum limitsFrequency/monthDetermined by employerTax treatmentPretax or post-tax Roth (if allowed in your plan)Investment selectionFixed rate accounts & 100 & variable rate fundsRoll-insNon-taxable rollover into RICDistributions (distributable event)Stay invested in RIC, take cash, or roll out

Plan basics (contribution limits)The total of all employeecontributions made to the 403baccount in a calendar year mustnot exceed the IRS annualmaximum limits.IRS 403b Annual Maximum Contribution Limits*RegularAge 50 15-yr Special Catch-upTotal EE100% of compensationup to:The regular limit 5,500 ifage 50 If employed w/current employer 15 yrs & meet eligibility rulesIf eligible for age 50 & 15-yrcatch-up limits 18,000 24,000 3,000 27,000*Limits shown are for 2015 & 2016. Current contribution limits available here.

Plan basics (contribution limits)15-year special catch-up rules: You have 15 years of employmentwith your current employer Must not exceed 15,000 May be utilized over a 5-year period( 3,000 x 5 years)IRS 403b Annual Maximum Contribution Limits*RegularAge 50 15-yr Special Catch-upTotal EE100% of compensationup to:The regular limit 5,500 ifage 50 If employed w/current employer 15 yrs & meet eligibility rulesIf eligible for age 50 & 15-yrcatch-up limits 18,000 24,000 3,000 27,000*Limits shown are for 2015 & 2016. Current contribution limits available here.

Plan basics (tax benefits)Tax advantages differdepending on thetaxation ofdeductions.Access your employerplan options to see ifthe Roth is available inyour plan.

Plan basics (tax benefits)PretaxTax treatmentof deductions No withholdingTax benefit inyear savedPost-tax RothRegular incometax withholdingImmediate-lower Nonetaxable incomeTax treatment Tax-deferred until Tax-free forwithdrawn asqualifiedof earningscashdistributionsConsiderationPossibility oflower tax rate inretirementPossibility ofhigher tax ratein retirement

Plan basics (tax benefits)Which option is right for me?A number of factors may influence what isright for you: Age/years to retirementCurrent tax rate/need for tax reliefProjected tax rate at retirementPossibility of fewer taxdeductions in retirement Projected earningsSchedule a meeting with your financial advisor or taxprofessional if you have questions.

Plan basics (tax benefits)Savers Tax CreditYou may be saying “I can’t afford to save!”Consider the Savers Tax Credit designedto help lower income earners save fortheir own retirement.You may be qualified to receive creditagainst taxes owed, up to 1,000.Find out more on the RIC website under ProgramBasics, then Tax Benefits.

Plan basics (roll-ins)Roll-insOutside pretax retirement assets (IRA,401k, 403b, etc.) may be rolled intoyour RIC active provider account.Roth IRAs are not eligible for roll-in.Assets rolled into RIC may be rolled outwithout restrictions.Consider the RIC benefits of penalty-free competitive fixed rateaccounts, no-load/low-cost mutual funds, expert advisors, etc.

IntroductionPlan BasicsInvestmentsEnrollment

InvestmentsPlease Note: Providers and investments shown in this presentationrepresent Core* provider offerings for the 2016-2022 contractperiod. Core provider investments must meet RIC investmentpolicy standards and annual review requirements. Core provider representatives are your best source ofinformation regarding the funds offered by their firm. RIC does not give investment advise. Investment models usedin this presentation are for illustrative purposes only.*If Optional providers are allowed in your plan, please be aware that investment options are notmonitored and fees are not negotiated by RIC.

Introduction Core Providers RIC Core investment providers give participantsaccess to attractive investment options andservices at low cost due to economies of scale.Your contributions to Core provider productsare put to work in the investment mix youchoose with no sales charges, hidden fees, orsurrender penalties.21

InvestmentsRIC Core providers offer 2 basic types of investments.Fixed Rate Declared rate Guaranteed by provider Fixed period No market risk No restrictions/maturities No feesVariable Rate “Mutual Funds” No guarantees Always liquid Degrees of market risk No restrictions/maturities Fund management feesTotal range of fees (2015) .05% - 1.60%.(2016) 04% - 1.28%

InvestmentsFunds are available in variety of investment categories.Principal ProtectionFixed RateMoney MarketGrowth (US Stock)Large ValueLarge BlendLarge Cap IndexIncome (Bond)Large GrowthCore BondMid ValueInflation ProtectionMid Cap IndexHigh YieldMid GrowthForeign BondSmall ValueBalanced (Stock/Bond) Small Cap IndexTraditional BalancedSmall GrowthTarget DateInternational/GlobalForeign StockEmerging MktsWorld StockAlternativeReal EstateSelf-DirectedBrokerage Account(SDBA-fees vary)

Investments Helping educators plan for retirement since 1961 Serving the Iowa RIC plans for 5 years Offering a full line of personal insurance andretirement planning productsFinancial Experts: Representatives, along with adedicated team serve Iowa RIC participants acrossthe state of IowaWebsite: www.horacemann.com/iowa Retirement savings/planning calculators, personalfinance calculators Asset allocation questionnaire Online account access

InvestmentsFinancial Education: Free financialworkshops include valuableinformation on managing studentloan debt/forgiveness, understandingyour state retirement system, and more.Enrollment 1-on-1 assistance from a Horace Mann representative Self-enrollment - Fillable PDFs available online Online enrollment (coming soon)Extras Managed Account Option through ProNvest (available 1/1/2016) Self-Directed Brokerage through TD Ameritrade (available 1/1/2016) Donors choose

Investments Serving the Iowa RIC for over 14 years 2015 World’s Most Ethical Company by theEthisphere Institute Consistently ranking among the strongestcompanies in the nation (Ratings as of 08/27/15)A.M. BestFitchMoody'sStandard & Poor'sA (Superior)AA (Very strong)Aa2 (Excellent)AA (Very Strong)Financial Experts: State-wide advisors are availableto assist participants with enrollment and financialdecisions to help them reach their retirement goalsand retire on their own terms.

InvestmentsWebsite: http://www.massmutual.com/iowaric 24/7 online account access and support Suite of educational tools and calculatorsEnrollment 1-on-1 assistance from a local representative Self-enrollment - Fillable PDFs available onlineExtras Managed account option through Morningstar Guidance Self Directed Brokerage Account through Charles Schwab

InvestmentsLeading provider of retirement plans for K-12, highereducation, healthcare, government and other notfor-profit institutions with more than 60 years’experience.A.M. BestA Serving Iowa RIC for 15 years Strong financial ratingsStandard & Poor'sMoody'sFitchA A2A Financial Experts: They ask and listen to yourfinancial situation, values and objectives to have aclear set of priorities and goals.Use of sophisticated software helps develop apersonal plan to help you achieve your goals. Periodicreviews with advisors keeps your plan on track.

InvestmentsWebsite: http://valic.com/iowa Retirement planning tools, calculators, videos, webcasts Financial 360o - Financial aggregator 24/7 account accessEnrollment Online enrollment 1-on-1 assistance from a local representative Self-enrollment - Fillable PDFs available onlineExtras Self Directed Brokerage Account Free VALIC Mobile App

InvestmentsAmerica’s Retirement Company Serving the Iowa RIC for 14 years 2015 World’s Most Ethical Company by theEthisphere Institute Strong financial ratingsA.M. BestFitchMoody'sStandard & Poor'sAAA2AFinancial Experts: Advisors throughout Iowa provideone-on-one (or group) education on the benefits ofparticipating, dollar cost averaging, catch-upprovisions, diversification, etc. Ongoing servicesinclude annual reviews and retiree counseling onwithdrawal options and tax implications.

InvestmentsAmerica’s Retirement Company Website: Access from RIC website https://das.iowa.gov/RIC/403b/providers24/7 account access plus retirement planning tools, calculators, videosFinancial Education: Educate participants on the participant website,including the MyOrangeMoney tool and provide financial, investment,and retirement planning seminars and webinarsEnrollment 1-on-1 assistance from Voya representative Self-enrollment – Request enrollment kit by mailExtras MyOrangeMoney and Financial Dashboard (financial aggregator) Free mobile app - Access your account information anywhere Self Directed Brokerage Account

Investments (investor styles)Providers can help you establish your investment style.

Investments (online resources)The RIC At-A-Glance,provider websites,individual fundperformance/fees,advisor listings,fixed rates, etc.,are easilyaccessed from theRIC website.

IntroductionPlan BasicsInvestmentsEnrollment

EnrollmentEnrollment is year-round.But waiting even 1 year to savecan hurt you.Starting ageSavings amountResults at age 6535 1,000 per year 122,35636 1,000 per year 112,283Cost of waiting 1 year Saving early is saving smarter!Assumes average 8% earnings rate 10,073

EnrollmentSTEP 1 -Choose a provider

EnrollmentSTEP 1 -Choose a providerKeep in mind RIC Core providers meet bidstandards and annual investment reviewrequirements. Each offers: Guaranteed rate accounts (no fees or maturities) Low cost mutual funds including, target date funds, indexfunds, SDBA accounts Investment planning tools Investment advisors (some local options) Online access to accounts and educational information