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CBB Enrollment Booklet for prospective members
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Get Real WithYour RetirementA Guide To Enrolling In Your Retirement Plan
Cooperative Baptist Fellowship 403(b) Plan
Time To DreamIf you’re living the American Dream — or simply living in America — it’s a given that you have competing fi nancial priorities. Maybe you’re saving for a new home, season tickets or a European vacation. Perhaps you’re losing sleep wondering how you’re going to cover your child’s college tuition and your aging parents’ care at the same time. Or maybe you’re too busy worrying about the garden-variety expenses of everyday living.
Any time more than one issue is competing for your attention, there’s typically a loser; in the battle of fi nancial goals, it’s often retirement. Losing this battle could mean less fi nancial resources to rely on during what may be three — or more — decades in retirement.
Consider this booklet to be one resource to help you reach your retirement goal. Its purpose is to motivate you to develop a clear vision of what your retirement will be, as well as a savings and investment plan that will fi t into your life right now.
Time To Dream
Time To Get Real
Savings and Investment Plan Snapshot
Get Started
Pick Your Approach
Time To Enroll
Enrollment Forms
Investment Fund Descriptions
Time To Plan (Educational Materials And Illustrations)
Plan Highlights
Glossary
What’s Included In This Booklet?
x
Enroll now! www.standard.com/retirement, 800.858.5420
What Can You Do To Prepare For Your Life After Working? You can get real about your retirement needs, hopes and dreams. To get you started down this path, here are a few questions to inspire you.
Your answers will define your retirement.
As you think about how and where you’ll be spending your life after work, it makes sense to pause and think about retirement as a whole. What does this word mean to you?
It likely means something different to you than it does to your friend, co-worker, neighbor or brother. But while you all have different visions, you just might agree that before any of your retirement dreams can become reality, planning and saving must come first.
Planning Transforms Dreams Into RealityAs you make your way through the booklet, keep the following things foremost in mind:
Your retirement dreams (your answers from above)
How starting to save early can help, but just starting is most important
The plan you set in motion today can help you reach your retirement goal
To Get Started Now:Enroll online (www.standard.com/retirement)
Enroll by phone (800.858.5420)
Enroll with the forms in this booklet
Susanna, age 26
hopes to save more someday
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Time To Get RealPlanning can help you comfortably and effi ciently reach your retirement goal. But does knowing that inspire you to take action? The reality is that you are infl uenced by the challenges you encounter — many of which you are not even consciously aware of — on a daily basis.
Understanding how these daily behavioral challenges work to sabotage our savings efforts is the fi rst step. Getting out of our own way is the second.And the third is doing the work toward making our dreams a reality.
What’s Your Challenge?Psychological challenges abound when it comes to saving for retirement. Do any of the following sound familiar to you?
Trapped In A State Of InertiaInertia is the tendency to stay at rest or keep moving in one direction until acted upon by an outside force. In the case of saving, planning or investing for retirement, maybe you have never fi lled out the necessary forms or taken steps to enroll.
Overwhelmed By ChoicesHaving too many choices can actually get in the way of making a purchase or an investment. This booklet simplifi es retirement planning for you.
Compelled To Put Things Off Until LaterMaybe you’re thinking, “I can’t fi t saving for retirement into the budget now” or “I’ll enroll next time open enrollment comes around.” Put these thoughts aside, act now and enroll.
Desiring An Immediate PayoffBuy and enjoy something now or invest in your retirement plan knowing you won’t be able to enjoy the benefi ts for many years? It’s a tough choice, but your future, older self is confi dent you’ll make the right choice today.
William, age 52
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Enroll now! www.standard.com/retirement, 800.858.5420
You Are Not AloneWhen it comes to facing challenges with starting to save or saving enough, you are not alone.
Starting to save is an essential piece of realizing your retirement dreams, yet 31 percent of workers surveyed in the 2010 Employee Benefi t Research Institute’s “Retirement Confi dence Survey” have not saved anything.
The survey also revealed that 35 percent of workers do not feel confi dentthat they are doing well in preparing fi nancially for retirement. And not even half said that they had completed a retirement needs calculation.
Whether or not you can relate to these fi ndings, there’s work to be done to move you closer to your retirement goals. Everything in this booklet was designed to do just that, starting with the Savings and Investment Plan Snapshot in two pages.
Failing To Plan = A Failed Plan
31%
35%
2010 Employee Benefi t Research Institute’s (EBRI) Retirement Confi dence Survey, workers surveyed were age 25 or older.
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Luis, age 47; Gloria, age 44
and pleasure
has not yet started
A Retirement Reality CheckOn the next page is a sample Savings and Investment Plan Snapshot. It’s a tool that is used to give a person a “snapshot” illustration of whether they are currently on track to meet their retirement goals. Such illustrations are built using the basic information you see described below.
The amount in the gray box under Projected Monthly Retirement Income answers whether you are on track to have the income you will need to reach your goals.
If the number is positive, you currently appear to be on track
If the number is in parentheses (negative), you currently do not appear to be on track.
Most people find that they fall into the latter category. If you do, take heart. Continue through the booklet to learn more about how you can use tools and services from The Standard to help increase your actual monthly retirement income and get you back on track to achieve your goals.
Remember, the Snapshot is an estimate that is only as good as the information that was available to The Standard. With additional information — for example, you may have assets in another plan or investments that were not included in this estimate — your actual situation may appear considerably different.
How Was This Snapshot Prepared?This Snapshot is a sample illustration. In preparing a Snapshot, The Standard follows this process:
Information was provided by your employer, including your current
- age
- salary
- retirement plan account balance, if applicable
Assumptions were made concerning:
- future increases in your pay
- your current savings rate
- rate of return on your plan investments
- your additional retirement income sources, if any
- the rate of inflation
- other factors
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Savings And Investment Plan Snapshot For:Participant Name Preliminary (09/30/11)
Consider the Snapshot a kind of retirement reality check. It allows you to compare what savings you may have today with the income you may need during retirement to maintain your lifestyle.
Date of birth: Retirement plan contribution:
Annual salary: Investment strategy: moderate risk*
Average long-term salary growth: Other retirement investments and savings: not yet considered
Retirement account balance: Unique personal circumstances and considerations: not yet considered
* Default value was used.
Identify your investment objective and invest in a portfolio of quality investments. As your career progresses, continue to evaluate your needs and investment objectives to make appropriate adjustments to your portfolio allocation. Keep a close eye on important economic factors, financial markets, and fund managers. Manage your portfolio with a well defined investment policy.
Your Retirement Goals
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,310 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,347
. . . . . . . . . . . . . . . $3,657. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,231
Projected Monthly Retirement Income
Based on the information we currently have about your retirement savings, you may want to consider contributing a straight 9 percent of your salary to get you off to a healthy start. As your situation changes or as you provide us with more information, this percentage can likely be adjusted.
Savings Plan Strategy
Investment Plan Strategy
Assumptions
Fixed Income: 40% Fixed Income: 60% Fixed Income: 70% Fixed Income: 80% Equity: 60% Equity: 40% Equity: 30% Equity: 20%
Initial Allocation 14 Years Allocation 9 Years Allocation 5 Years Allocation from Retirement from Retirement from Retirement
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Monthly income shortfall to be addressed by Savings and Investment Plan Strategy . . . . . . . . . . . . . . . . . . . . . ($575)
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Get StartedYou may be feeling a bit overwhelmed now that you’ve experienced a “reality check” by reviewing your Savings and Investment Snapshot. At this point it’s crucial that you use this information to get started and move forward on a plan for your retirement.
Later in this booklet you will fi nd a worksheet titled, “How Much Do YouNeed to Save?” It allows you to enter information about your current situation and goals, then calculate how much you should be contributing to your plan now to enjoy a retirement in line with your goals.
If the Savings and Investment Plan Snapshot on the preceding page waspersonalized for you, the “Savings Plan Strategy” recommends how much you should be saving today. If you’ve chosen to use Mainspring Managed, your Savings and Investment Plan Strategy will spell this out for you.
Use The Power Of Your Retirement PlanYour employer’s retirement plan includes two important features that make saving for retirement easier: tax-deferred compounding and pre-tax savings. In addition, the plan’s service partner, The Standard, offers a variety of tools that take the mystery out of deciding how much to save and choosing investments.
Tax-Deferred CompoundingGenerally, investments are subject to income taxes as they grow in value. Investments in retirement plans are different; your contributions will grow tax-deferred until withdrawn from the plan. Plus, your money will earn interest on the money you would have otherwise paid in taxes.
This chart, which compares the returns of a tax-deferred account to a regular taxable account, helps you visualize the importance of starting to accumulate retirement income now.
This chart is hypothetical and for illustrative purposes only and is not intended to be a projection of future values of any product. The investment return and principal value of an investment will fl uctuate and an investor’s interest, when redeemed, may be worth more or less than the original investment. Past performance is no guarantee of future results. The Standard imposes certain asset-based fees and administrative fees. These charges were not included; if they were, the tax-deferred performance would have been lower. Withdrawals prior to age 591/2 may be subject to a 10 percent federal income tax penalty. This illustration assumes a $25 weekly contribution, a 25 percent federalincome tax rate, a gross annual growth rate of 8 percent, and a 3 percent annual wage increase with a corresponding increase in weekly contributions. Note that lowermaximum tax rates on capital gains and dividends could make the investment return for the taxable investment more favorable, thereby reducing the difference in performance between the investments shown. Please consider your personal investment horizon and income tax bracket, both current and anticipated, when making an investment decisionas these may further affect the results of the comparison. Withdrawals from the tax-deferred account will be subject to federal and possibly state income tax.
$217,906
10 years
The Power Of Tax-Deferred Compounding
20 years
30 years $114,196
$15,081$22,368
$47,740$79,809
Taxable Savings AccountTax-deferred Savings Account
Ryan, age 35
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Pre-Tax SavingsYour contribution will be deducted on a pre-tax basis — before taxes are withheld — which will reduce your income taxes and reduce the out-of-pocket cost of contributing to the plan. In addition, certain people may qualify for tax credits that will further reduce the out-of-pocket cost of saving.
The table below can help you estimate how much money will come out of your paycheck before taxes compared to the amount you are actually contributing to your retirement account.
The figures are based on the 2011 federal tax rate: single filer, withholding one, no state tax. Your actual dollar amounts may vary.
1. Find your approximate weekly gross pay across the top.
2. Find the percentage you intend to contribute along the left edge.
3. The top (black) number shows your contribution amount, and the bottom (blue) number shows the amount by which your paycheck is actually reduced. The difference represents your tax withholding savings.
The highlighted areas of the chart illustrate the saving scenario for someone making $800 a week and contributing 9 percent to her retirement account. She contributed $72, but her paycheck was only reduced by $57. The $25 difference represents her tax withholding savings.
1 Amounts saved in the plan are taxable upon withdrawal.
Tax Savings Calculator For Pre-tax Contributions1
$400 $500 $600 $700 $800 $900 $1,000 $1,500 $2,000
4% 16 20 24 28 32 36 40 60 80
13 17 19 23 23 26 30 27 58
5% 20 25 30 35 40 45 50 75 100
17 20 25 29 31 32 37 40 72
6% 24 30 36 42 48 54 60 90 120
19 25 30 34 37 39 45 53 86
7% 28 35 42 49 56 63 70 105 140
23 29 34 41 44 45 52 65 101
8% 32 40 48 56 64 72 80 120 160
26 34 40 47 50 52 60 78 115
9% 36 45 54 63 72 81 90 135 180
30 37 45 52 57 58 67 91 130
10% 40 50 60 70 80 90 100 150 200
34 42 51 59 65 67 75 104 144
11% 44 55 66 77 88 99 110 165 220
36 46 55 65 71 74 82 116 158
12% 48 60 72 84 96 108 120 180 240
40 51 60 70 78 80 90 129 173
Gross Weekly Salary
Cont
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Perc
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Anne, age 60; Roger, age 64
to Europe
a retirement date
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Pick Your ApproachWith any luck, the talk about tax savings has motivated you to take action about your retirement. As you begin to plan, the two most important decisions you will face are:
• How much do I need to save?
• How will I invest it?
Few of us feel adequately prepared by our education or life experience to make these important decisions. The good news is that your plan is working with The Standard to offer options that will simplify the process of making these decisions.
Simply choose one of the two approaches — Guided or Independent — to receive the amount of assistance you need to make these important decisions and move closer to reaching your retirement goals.
Guided takes the mystery out of fund selection for your retirement plan account. You will have all the information and tools you need to navigate the entire decision-making process. By following a simple, step-by-step process, you will be able to answer the question “How should I invest my money?”
With Guided, we:• Provide tools to help you reach your retirement income goals
- a calculator to determine whether you are on track to reach your retirement goals
- a calculator to determine how much to save
- a quiz (on the following page or online at www.standard.com/retirement)
• Offer pre-mixed investment portfolios that provide a diversified investment portfolio for your tolerance for risk and timeline until retirement
• Offer automatic rebalancing of your portfolio
Your quiz score is an important piece to the Guided process. The score will help identify which pre-mixed portfolio will provide you with a diversified investment strategy that is appropriate for your circumstances. You can then set investment directives and transfer assets to be consistent with the chosen portfolio. The quiz takes about 10 minutes and should be taken annually; if results change, you will have the opportunity to adjust investment portfolios in line with your new score.
Guidedmaybea goodchoiceifyou:
• Prefertoevaluateyoursituation annuallyusingavailabletools
• Wanttosetandmanageyour savings rate
• Wanttousepre-mixedinvestmentportfoliostomanageyour owninvestments
• Needalittlehelpmanaging your investments
• Wantyouraccounttobe automaticallyrebalanced
Guided: Guide Me Through The Process
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Independentmaybea goodchoiceifyou:
• Prefertoevaluateyoursituation annuallyusingavailabletools
• Wanttosetandmanageyour savings rate
• Prefertodoyourown investment research
• Wanttorebalanceyourportfolio yourselfasneeded
• Wanttoincreaseyoursavings rateyourselfasneeded
Independent: I’ll Do It All Myself
If you prefer doing your own research when it comes to your retirement planning, Independent is for you. You can maintain personal control over your retirement account using the quality investment options in your plan. You can still rely on The Standard for educational and online planning tools that help you navigate the investing landscape.
You will have all the same benefits of Guided, but with a difference. Rather than select one of the pre-mixed portfolios, you will have access to a diversified selection of investment options to help you implement your own unique investment strategy.
Ready To Sign Up Now?Regardless of which approach you take — Guided or Independent — the “Time to Enroll” section has all the instructions you need to sign up.
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Find Your Investment StyleTake the quiz to determine which pre-mixed portfolio is appropriate for you. If you are interested in the Managed service, you do not need to take the quiz. After each question, circle the letter that best describes you. Then add up the points and match the total with the investor profile on the next page. Please note that this profiling tool is only a guide; for advice specific to your situation, you will want to consider other factors, such as your retirement savings, tax considerations and investing time frame. You should contact your investment professional or tax advisor for personalized advice.
Enter your total score:
Investor Profile Quiz
your retirement account? Points
Less than five years 0
Between five and 10 years 20
Between 10 and 15 years 30
40
Points
a I expect my pay to increase much faster than
inflation (due to promotions, new job, etc.). 12
I expect my pay to increase
slightly faster than inflation. 10
I expect my pay to just keep up with inflation. 5
I expect my pay to decrease (due to retirement,
part-time work, depressed industry, etc.). 0
Points
a I am seeking maximum stability,
even if returns are low. 0
I can tolerate a small amount of fluctuation
in my investment account, and I am seeking
consistent returns. 4
I am middle-of-the-road, prefer both growth
potential and consistency of returns and can
tolerate a fair amount of market movement in
exchange for attractive long-term returns. 8
I am willing to assume a relatively high level
of volatility for potentially greater returns. 12
e I am seeking maximum long-term growth, even
if it means wide swings in my account value. 15
take in order to potentially increase your investment return? Points
I am willing to take a lot of risk
with all of my retirement account. 15
I am willing to take a lot of risk
with some of my retirement account. 12
I am willing to take a little risk
with all of my retirement account. 8
I am willing to take a little risk
with some of my retirement account. 4
I am unwilling to take on more risk. 0
Points
Sell all of my stock funds immediately and
put the money in something more stable. 0
Transfer some of my stock funds into
less aggressive investments. 2
Do nothing and wait for it to come back. 4
Buy more: increase my stock investments
while prices are low. 8
Points
Sell all of my stock funds immediately and
put the money in something more stable. 0
Transfer some of my stock funds
into less aggressive investments. 3
Do nothing and wait for it to come back. 6
Buy more: Increase my holdings
in stock funds while prices are low. 10
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Use Your Quiz Results To Select A PortfolioYour asset allocation is an important part of your investing strategy. The following pre-mixed portfolios show how you may want to diversify your investments. Match your score from the Investor Profile Quiz to help determine which portfolio is appropriate for you. If you need more information, you may wish to contact a personal financial advisor.
You should carefully consider the investment objectives, risks, charges and expenses of the investment options offered under the retirement plan before investing. Small-company (small cap) investing involves specific risks not necessarily encountered in large-company investing, such as increased volatility. Funds that invest in bonds are subject to certain risks, including interest-rate risk, credit risk and inflation risk. As interest rates rise, the prices of bonds fall. International investing involves certain risks, such as currency fluctuations, economic instability and political developments. These risks may be accentuated in emerging markets.
Your plan may be funded by a mutual fund trust or a group annuity contract. Both are suitable for long-term investing, including saving for retirement. While annuities generally provide tax-deferred treatment of earnings, the group annuity contract does not provide any additional tax-deferred treatment beyond the treatment provided by your retirement plan.
Guided Portfolios
■ Cash Equivalents 30%
■ Bonds 50%
■ Lg Cap Stocks 13%
■ Sm/Mid Cap 4%
■ Int’l Stocks 3%
■ Cash Equivalents 20%
■ Bonds 40%
■ Lg Cap Stocks 26%
■ Sm/Mid Cap 8%
■ Int’l Stocks 6%
■ Cash Equivalents 10%
■ Bonds 30%
■ Lg Cap Stocks 39%
■ Sm/Mid Cap 12%
■ Int’l Stocks 9%
■ Cash Equivalents 0%
■ Bonds 20%
■ Lg Cap Stocks 52%
■ Sm/Mid Cap 16%
■ Int’l Stocks 12%
■ Cash Equivalents 0%
■ Bonds 0%
■ Lg Cap Stocks 65%
■ Sm/Mid Cap 20%
■ Int’l Stocks 15%
Less Risk/Less Potential Return Higher Risk/Higher Potential Return
ModeratelyAggressive
(Score: 67-79)
Aggressive(Score: 80 and above)
Conservative(Score: Less than 40)
ModeratelyConservative
(Score: 41-53)
Moderate(Score: 54-66)
We’ll Rebalance For YouThe Standard can rebalance your portfolio to ensure it stays in line with your original wishes. On the Investing Form, you can indicate how frequently you’d like your portfolio rebalanced: quarterly, semiannually or annually.
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Enroll today Plan for tomorrow Take an important step toward making tomorrow financially secure and join the Cooperative Baptist Fellowship 403(b) Retirement Plan, available only through the Church Benefits Board. In conjunction with our benefit provider The Standard, the information on the following pages will assist you in taking this important step for you and your family. The CBF 403(b) Retirement Plan was specifically created for CBF staff, churches and related organizations. It allows members to take advantage of tax benefits provided for church-related organizations and employees. Information for Informed Decisions If you are joining for the first time, or rolling over benefits from another retirement plan, you’ll find the forms and information you need to make this process as painless as possible. In the Plan Overview section, you’ll find information on the savings and investing tools offered by The Standard and Church Benefits Board. In addition to the many options, you’ll find statistics and portfolio data to help you make informed decisions about retirement investing. Need More Help? Detailed investing information is also available at www.churchbenefits.org. The staff at the Church Benefits Board is committed to helping you make the best possible decisions on benefits that support quality leadership in God’s mission. If you have additional questions, or would like to know how to begin the process of transferring your retirement funds to the Church Benefits Board, please call our office direct at 800-352-8741. You can also e-mail your questions to [email protected]. We look forward to hearing from you soon!
12
CBF 403(b) Plan MEMBERSHIP APPLICATION FORM
Church/Employer Acct: New or #__________
Please check below the participant program enrollment(s), indicate monthly contribution amount or salary annual percentage, and the plan effective date.
Monthly Contributions
Effective Date
403(b) Church/Employer Retirement Plan Contribution. Employer monthly contribution amount. Employee needs to complete the 403(b) Retirement Beneficiary section below.
7
403(b) Employee Deferral Election Contribution. Employee elects to defer from each paycheck the following percentage or amount as pre-tax contribution. Complete the CBB SRA Form for payroll processing, see 2nd page for more info on ED Plan
Employee Life, AD&D & Disability Insurance. ELIGIBILITY – Enrolled in a CBB 403(b) Account and with taxable benefits working at least 20 hour or per employer policy. Complete the CBB Insurance section below. 3%
Note: The effective date can’t be prior to the employee’s hire date. The first month’s premium check will be allocated to the month indicated above.
1- Participant Information Title Last Name First Name Middle Initial
Home Address Social Security # Date of Birth
City / State / Zip Gender Male Female Home Phone
Date of Hire Job Title Email
2- Employment Information Church or Employer Administrator Name Tax ID#
Address Admin Phone# Fax#
City / State / Zip Email
Are you currently enrolled in a medical plan, or do you intend to enroll following the submission of the Retirement Plan? Yes No For Clergy ONLY: Please indicate ministerial status Ordained Commissioned Licensed
Ordination Status Granted By CBF church Other church
For Clergy: Is your employer eligible to designate a portion of your compensation as housing allowance or rental value of parsonage, plus utilities, which would not be reported as taxable income? Yes No 3- Compensation Information - REQUIRED TO ENSURE COMPLIANCE WITH IRS REGULATIONS (Calculate carefully; amount is used
to ensure compliance with IRS regulations regarding contribution limits). Application won’t be processed without this information)
Compensation Amount (round to the nearest dollar) Per Year Year Total A) Annual Cash Salary (include amounts to be withheld for per year Employee Payroll Contribution & Flexible
Spending Account) =
B) Clergy Housing (complete either 1 or 2)
1) Housing Allowance Total or 1)
2) Parsonage rental value
a) Parsonage allowance =
b) Utilities allowance =
Total Parsonage (a + b) 2)
Total Housing (select either 1 or 2 amount)
=
C) Social Security/Medicare Tax Offset Amount Should it be included in the premium calculation? Yes No
=
D) Total Annual Compensation Amount: (total A + B + C) Does not include life & disability premiums or retirement contribution, medical premiums, or ministry—related exp. such as car exp., continuing education, convention expenses, books, periodicals, etc
=
4- 403(b) Beneficiary Information
STATEMENT OF MARITAL STATUS
Married Participant Naming Spouse as Sole Beneficiary
By checking this box, I hereby certify to the Church Benefits Board that I am married and intend to name my spouse as the beneficiary of any benefits payable upon my death. (Complete Beneficiary information below)
Married Participant Naming Primary Beneficiary (ies) other than Spouse
By checking this box, I hereby certify to the Church Benefits Board that I am married and intend to name my primary beneficiary as someone other than my spouse. (Complete Alternate Beneficiary Designation Form)
Unmarried Participant By checking this box, I hereby certify to the Church Benefits Board that I am unmarried. (Complete beneficiary information below)
403(b) PRIMARY BENEFICIARY (IES) Name Address SS# Relationship % of Proceeds
Name Address SS# Relationship % of Proceeds
Name Address SS# Relationship % of Proceeds
* Note: If you are married, Federal Law requires that your spouse be your primary beneficiary unless spousal consent is provided. If you choose someone other than, or in addition to your spouse as primary beneficiary, a signed, notarized Spousal Consent Form must be presented to waive the survivor benefit provided by the Plan. Contact your Plan Administrator should you require a Spousal Consent Form.
403(b) SECONDARY BENEFICIARY(IES If none of my primary beneficiary(ies) survive me, I designate the following as secondary beneficiary(ies).
Name Address SS# Relationship % of Proceeds
Name Address SS# Relationship % of Proceeds
Name Address SS# Relationship % of Proceeds
If no beneficiary survives me or if no beneficiary is named, my account balance will be payable in accordance with the provisions of the Plan. I authorize the Plan Administrator to execute my directions as set forth above. I understand these directions will be in effect until a subsequent election is submitted, or as required by law or the Plan. Furthermore, I understand that all benefits and rights to which I am entitled under the Plan will be determined only in accordance with the Plan and Trust Agreement, all amendments thereto, and regulations thereunder. I agree, if more than one beneficiary is designated, payments will be made in equal shares to those persons designated as beneficiaries who survive me, unless indicated otherwise.
403(b) Employee Payroll Election Contributions (Please complete the Salary Reduction Agreement Form) The maximum deferral limits are calendar year limits that include all plans you have participated in during the year is $17,000. • Participants who will be age 50 or older this year, may elect to make catch-up contributions. You may defer an additional $5,500 catch-up
contribution. Participants must first reach the maximum deferral limits under the regulations or other limits defined by the plan before any catch-up contributions may be made.
By checking this box, I am confirming that I will be age 50 or older this year and would like to make catch-up contributions. Furthermore, I confirm that the 403(b) Employer Payroll deferral election made above includes any amounts that I am permitted to designate as catch up contributions.
5- Insurance Information (complete only if you are enrolling in the CBB Life, AD&D and Disability Insurance) Let us know how the Insurance Premium payment will be processed: Employer/Church - Employer/Church paid Employee Voluntary - Employer paid via Employee Salary Reduction Agreement – Check here if paid with after-tax dollars Life & Life Dep (after tax) LTD Gross-Up Earnings (pre-tax) - Please contact the CBB office to review this option at (800) 352-8741. For Clergy ONLY: Do you participate in Social Security? Yes No, Form 4361 filed with IRS 6- Insurance Primary Beneficiary (ies)
This designation applies to Life/Life with AD&D Insurance available through the Church Benefits Board, if any. Designations are not valid unless signed, dated, and delivered to the Church Benefits Board during your lifetime. See page 2 for further information.
Full Name Address Soc. Sec. No. Relationship % of Benefit
Full Name Address Soc. Sec. No. Relationship % of Benefit
Full Name Address Soc. Sec. No. Relationship % of Benefit
Insurance Contingent Beneficiary (ies) Full Name Address Soc. Sec. No. Relationship % of Benefit
Full Name Address Soc. Sec. No. Relationship % of Benefit
Full Name Address Soc. Sec. No. Relationship % of Benefit
Insurance Beneficiary Information • Your designation revokes all prior designations. • Benefits are only payable to a contingent Beneficiary if you are not survived by one or more primary Beneficiary (ies). • If you name two or more Beneficiaries in a class:
1. Two or more surviving Beneficiaries will share equally, unless you provide for unequal shares. 2. If you provide for unequal shares in a class, and two or more Beneficiaries in that class survive, we will pay each surviving Beneficiary his
or her designated share. Unless you provide otherwise, we will then pay the share(s) otherwise due to any deceased Beneficiary (ies) to the surviving Beneficiaries pro rata based on the relationship that the designated percentage or fractional share of each surviving Beneficiary bears to the total shares of all surviving Beneficiaries.
3. If only one Beneficiary in a class survives, we will pay the total death benefits to that Beneficiary.
• If a minor (a person not of legal age), or your estate, is the Beneficiary, it may be necessary to have a guardian or a legal representative appointed by the court before any death benefit can be paid. If the Beneficiary is a trust or trustee, the written trust must be identified in the Beneficiary designation. For example, “Dorothy Q. Smith, Trustee under the trust agreement dated________________________ .”
• A power of attorney must grant specific authority, by the terms of the document or applicable law, to make or change a Beneficiary designation.
If you have any questions, consult your legal advisor.
• Dependents Insurance, if any, is payable to you, if living, or as provided under your Employer’s coverage under the Group Policy.
• Effective on the 1st of the following month that the employee is approved and for which premiums are paid. The eligible employee shall be enrolled in the CBF-CBB Group Life, AD&D, Long Term Disability and all other insurance and benefit programs available to its eligible employees and their eligible dependents. The effective date of this insurance coverage is intended to be first of the month as outlined above or such other date as the Insurance Companies approve, whichever is later. If approved, no insurance for which evidence of insurability or good health is required will become effective until approved by the Insurance Company at its Home Office.
• The Employer/Applicant authorizes the Church Benefits Board to act as its agent for the purposes set forth in any and all Insurance agreements for the individual named above. This includes functions relevant to the procurement of group insurance policies, including but not limited to: (1) execution of applications for any master group insurance policy (ies); (2) holding any master group insurance policy (ies); and (3) delegation of agency to insurers.
• The Employer/Applicant acknowledges that the master group insurance policy or summary of benefits held by CBB under which insurance is provided may contain numerous optional provisions which are available in order to provide each participating employer with the ability to select provisions which meet its own needs. It is understood and agreed that only those provisions which appear in a Summary of Benefits or certificate provided to the each participating employer apply to such participating employer’s insurance coverage, including the Employer/Applicant.
Participation Authorization I authorize the Church Benefits Board to execute my directions as set forth above. • I understand these directions will be in effect until a subsequent election is submitted, or as required by law or the Plan. • I understand that all benefits and rights to which I am entitled under the Plan will be determined only in accordance with the Plan and Trust
Agreement, all amendments thereto, and regulations thereunder. I agree, if more than one beneficiary is designated, payments will be made in equal shares to those persons designated as beneficiaries who survive me, unless indicated otherwise
• I understand that my ability to take distributions from my account may be limited. • I understand my contributions and account balance are automatically invested in the default fund directive, unless I elect to make investment
choices. • I understand that my eligibility for premium-paying membership depends upon my continuing to serve a church or organization appropriately related
to the Cooperative Baptist Fellowship, Inc., continuing to serve in ministry as a member ordained by the CBF, and/or continuing to serve in ministry as a member whose ordination is in good standing with CBF.
• I agree to adhere to the provisions and any amendments of said plans for which I apply. • I wish to make the choices indicated on this form. If electing coverage, I authorize deductions from my wages to cover my
contribution, if required, toward the cost of insurance. I understand that my deduction amount will change if my coverage or costs change.
Signature of Applicant Date
Signature of Employer Date
Please keep a copy of this form for your records and return the original to: Church Benefits Board Phone: (800) 352-8741 2930 Flowers Road, Suite 133A Fax: (770) 220-1661 Atlanta, GA 30341 Web: www.churchbenefits.org
PARTICIPANT INFORMATION Name Social Security Number
SPOUSAL CONSENT (IF SPOUSE IS NOT DESIGNATED AS THE SOLE BENEFICIARY)
I, the undersigned, being the spouse of the above-named Plan participant, consent to the Non-Spouse Primary Beneficiary designated and to any distribution made pursuant thereto in accordance with the terms of the Plan. I understand that any Plan benefits payable upon the death of the above-named Participant shall be payable to the primary beneficiary(ies) named in the Plan Beneficiary Designation Form in the percentages designated on such form and not to myself, and I hereby consent to the designation and payment to such non-spouse.
Spouse Name
Spouse’s Signature Date
Notarized by:
_______________ Name of Employer or church Administrator SIGNATURE DATE
Please keep a copy of this form for your records and return the original to: Church Benefits Board 2930 Flowers Road, Suite 133A Phone: (800) 352-8741 Atlanta, GA 30341 Fax: (770) 220-1661 Web: www.churchbenefits.org
Primary Beneficiary Designation Form CBF 403(b) Plan
Spousal Consent Form
YOUR INFORMATION Social Security Number Last Name First Name
Mailing Address City/State/Zip
Date of Birth (mm/dd/yy) Date of Hire (mm/dd/yy) Phone# Email address
WHERE DO YOU WANT TO INVEST YOUR SAVINGS The Church Benefits Board can help you manage your investments when you select a Guided Portfolio or you may also create your own Independent Portfolio. If you do not indicate where to invest your savings, your assets will be placed in the plan’s default fund(s). The decisions you make regarding your investments will stay in effect until you modify them via The Standard’s Web site at (http://retirement.standard.com) or via INFOLINE (800.858.5420). Select only one box of the Guided Portfolios below, OR select your own investments by entering whole percentages in the “Independent” column. Be sure that your selections total 100% and that the minimum any investment is 1%. This investing Form is to be used ONLY by eligible plan participants. To make changes to your current investment directive, visit (http://retirement.standard.com) or via INFOLINE (800.858.5420).
Choose ONE Guided Portfolio OR create your Independent Portfolio
Fund Name Style Conservative Moderately
Conservative Moderate Moderately
Aggressive Aggressive Independent
Cash Equivalent 30% 20% 10% 0% 0% The Standard Stable Asset A Stable Value 30% 20% 10% 0% 0% __ %
Bonds 50% 40% 30% 20% 0% Metropolitan West TotRe Bd I Intermed-term Bond 50% 40% 30% 20% 0% ___ % Vanguard Inflat Prot Sec Adm Intermed-term Bond 0% 0% 0% 0% 0% ___ % Equities Large Cap Stock 13% 26% 39% 52% 65% Vanguard 500 Index Signal Larger 7% 13% 19% 26% 33% ___ % JPMorgan Large Cap Grwth R6 Larger Growth 3% 7% 10% 13% 16% ___ % Vanguard Windsor II Admiral Larger Value 3% 6% 10% 13% 16% ___ % Neuberger Berman Soc Res Inv Larger Blend 0% 0% 0% 0% 0% ___ % Mid/Small Cap Stock 4% 8% 12% 16% 20% Neuberger Berman Md Cp Gr Inv Mid-Cap Growth 1% 2% 3% 4% 5% ___ % Columbia Mid Cap Val Opp R4 Mid-Cap Value 1% 2% 3% 4% 5% ___ % Columbia Small Cap Value II Z Small Value 2% 4% 6% 8% 10% ___ % Alger Small Cap Growth Institutional Small Growth 0% 0% 0% 0% 0% ___ % International Stock 3% 6% 9% 12% 15% Thornburg International Value R5 Foreign Stock 3% 6% 9% 12% 15% ___ % Other DFA Emerging Mrkts Core Eq I Diversified EmergMrkts 0% 0% 0% 0% 0% % Vanguard Wellington Inv Mod Allocation 0% 0% 0% 0% 0% ___ % Vanguard Balanced Indx Signl Mod Allocation 0% 0% 0% 0% 0% ___ %
Total 100% 100% 100% 100% 100% 100%
AUTOMATIC REBALANCER Check a box below to select the Automatic Rebalancer service for your Plan account. If you select this service, your account assets will be rebalanced to match your investment directives at the time of rebalancing. Automatic Rebalancer will remain off if you do not make a selection below. How often would you like your account rebalanced? Quarterly Semiannually Annually
AUTHORIZATION I authorize my employer and the plan administrator to invest my savings as outlined on this form. I also direct my employer and the plan administrator to implement any other instructions I have provided on this form. I have read the Disclosure Statement on this form and, by signing here, I agree to be bound by its terms. The employer, trustees and any others concerned with the administration of the Plan are entitled to rely on these instructions; each shall be fully protected in taking or omitting any action under any provisions of the Plan in reliance on this information.
Participant Signature Date
Disclosure Statement: You must notify The Standard within 15 days of receipt of your quarterly account statement if an error occurred, or if you requested and confirmed an investment transfer or directive change that was not completed during the period covered by the statement. You may give notice by contacting a customer service representative at 800.858.5420 or by e-mailing [email protected]. Unless you give such notice, The Standard will not be liable for any resulting loss to your account. In any case, The Standard will not be liable if circumstances beyond its control prevent the transaction, or if its liability is otherwise limited by regulation or agreement. Please keep a copy of this form for your records and return the original to: Church Benefits Board, 2930 Flowers Road, Suite 133A, Atlanta, GA 30341 Phone: (800) 352-8741 Fax: (770) 220-1661
Investing Form CBF 403(b) Plan
Page 1 of 2
Plan Fiduciary Advisor Disclosure StanCorp Advisers, Inc. and the Standard Stable Asset Fund
This document contains important information about StanCorp Investment Advisers, Inc. (SIA) and how they are compensated for the investment advice provided in connection with your Plan. You should carefully consider this information in your evaluation of that advice and the investment alternatives offered in the plan. SIA will provide investment advisory services to be used by the plan for which this notice is provided. SIA will be providing these services as a fiduciary under the Employee Retirement Income Security Act. SIA, therefore, must act prudently and with only the plan’s and the plan’s participants’ interest in mind when providing recommendations on the investments to be offered. Compensation of the Fiduciary Advisor and Related Parties SIA is compensated for the advice it provides as part of a bundled service arrangement with Standard Retirement Services, Inc., an affiliate of SIA that provides recordkeeping and administrative services to the plan. SIA receives a flat fee from Standard Retirement Services to provide investment advisory services that may benefit Standard Retirement Services, Inc., retirement plan clients. SIA is not compensated on the basis of investment(s) offered by the plan, or those selected by participants. Two affiliates of SIA may provide services to the plan for which they will be compensated. These affiliates and services are: (1) Standard Retirement Services, Inc., for recordkeeping, administrative and compliance services; and (2) Standard Insurance Company, if the plan includes the Standard Stable Asset Fund as an investment option, for financial services provided as the issuer of the Standard Stable Asset Fund. Standard Insurance Company is compensated in connection with this product when general account investment returns exceed the interest credited on contract balances. Included in the return is a 0.18 percent expense associated with the investment expenses of the product. Additionally, employees of StanCorp Equities, a broker-dealer affiliate of SIA, receive additional compensation when the Standard Stable Asset Fund is included in the plan as a result of recommendations of SIA. Such employees, who are registered representatives of SIA, do not individually provide investment advice regarding the Standard Stable Asset Fund. This information should be reviewed carefully before an investment decision is made. Consider Impact of Compensation on Advice The compensation that Standard Insurance Company and representatives of StanCorp Equities, Inc., receive on account of assets invested in the Standard Stable Asset Fund may be a significant source of revenue for them. The impact of any such fees and compensation should be carefully considered in any evaluation of the Standard Stable Asset Fund as an investment option. Investment Returns While understanding investment-related fees and expenses is important in making informed investment decisions, it is also important to consider additional information about investment options, such as performance, investment strategies and risks. Specific information related to the past performance and historical rates of return of the investment options available under the plan has been provided in the proposal materials, in the participant enrollment booklet, and is available on-line in the Personal Savings Center at http://retirement.standard.com. For options with returns that vary over time, past performance does not guarantee how an investment in the option will perform in the future; an investment in these options could lose money.
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Use of Personal Information Our Privacy Notice is attached to this disclosure. It describes the personal information that we will collect, describes how it will be used and how we will protect it. A link to the privacy notice is posted on each page of our website. Should you have any questions about StanCorp Investment Advisers or the information contained in this disclosure, you may contact the Vice President and Managing Director of StanCorp Investment Advisers, Inc., at 1100 SW Sixth Avenue, Portland, Oregon, 97204, or call #800.262.7111.
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Privacy Notice
The notice applies to:
StanCorp Financial Group, Inc.
Standard Insurance Company
Standard Retirement Services, Inc.
The Standard Life Insurance
Company of New York
StanCorp Mortgage Investors, LLC
StanCorp Real Estate, LLC
StanCorp Investment Advisers, Inc.
Standard Management, Inc.
StanCorp Equities, Inc.
Please direct inquiries to:
Privacy Notice (P7E)
PO Box 711
Portland, OR 97207-0711
To get more information
about StanCorp Financial
Group, Inc. and its subsidiaries and/or view
this notice online,
visit www.stancorpfinancial.com.
The privacy of your personal information is important to us. To help you understand how we protect the information we receive about you, this notice describes our current privacy policy and practices.
We want you to know that:
have about you to anyone;
outside companies for the purpose of selling their products or services to you; and
we only share information about you with others as permitted or required by law.
Information We May Collect and From WhomWe collect your personal information to offer you insurance and financial products and services. The type of information we collect and the extent to which it is used depends on the products and services we provide to you. For example, we may obtain information such as:
telephone number, Social Security number, employment, occupation, assets and income from applications and other forms from you, your employer and others;
and payment history from your dealings with us;
other insurance companies, the Medical Information Bureau (“MIB”) or consumer reporting agencies, if you apply for life or disability insurance;
from medical providers or facilities, with your authorization, if you apply for life or disability insurance; and
our Web sites from online information collection devices.
We may request an insurance support organization to collect information that we need about you. If we do, they will submit a report to us. They may keep a copy of the
report and share its contents with others. They will do this only with appropriate authorization from you.
Information We May DiscloseWe may share the types of information described above with others. These disclosures are only made as authorized by you or as permitted or required by law. These may include disclosures:
or functions on our behalf or to serve you;
to reinsurers, to other insurance companies, and to the MIB for purposes related to insurance you may have or apply for;
marketing agreement with us, unless state law restricts such use;
with the regulation of our business;
prevent fraud or illegal activities;
the law;
subpoena, warrant or other court order; and
insurance or financial products and services to you.
When information about you is disclosed to others, we expect them to protect your information. We expect them to use the information only for the limited purpose for which it was shared. We do not share medical information except with your authorization or as permitted or required by law.
Your RightsWe want to make sure that we have accurate information about you. In general, you have the right to review your personal information that we have. If you believe that any of the information about you is not accurate, you may inform us in writing of any changes you believe should be made. We will review your request and respond to it accordingly.
Confidentiality and SecurityWe restrict access to information about you to those employees who need to know that information to provide products or services to you. We safeguard your information through written privacy policies and physical, electronic and procedural protections.
Further Information We will advise you of our privacy policy at least once a year. We may change our privacy policy at any time. As long as you remain a customer, we will inform you of any changes. If your relationship with us ends, we will continue to limit disclosures of your information in accordance with our stated privacy policy.
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APPLICATION FOR ROLLOVER FORM
Cooperative Baptist Fellowship 403(b) Plan #806561
PARTICIPANT INFORMATION
Title Last Name First Name Middle Initial
Email /phone# Social Security # Date of Birth
ROLLOVER CONTRIBUTION INFORMATION See your Summary Plan Description or Plan Administrator for your plan’s rollover provisions. I request the Plan Administrator to accept my rollover, based on the following information. The Plan Administrator reserves the right to require additional evidence that my distribution is from a qualified retirement plan, a tax sheltered annuity, a governmental 457 plan, or an IRA, as allowed by the Plan. Name of distributing plan or IRA custodian: ___________________________________________________________________
Amount $ ______________ All Eligible Accounts or All Total Balance The requested rollover represents:
a. An eligible rollover distribution from: a qualified retirement plan a tax-sheltered annuity a governmental 457 plan
b. a distribution from a traditional IRA that would otherwise be includable in my gross income.
a. a distribution from a Conduit IRA which consisted solely of an eligible rollover distribution from a qualified plan and any associated earnings, for which I wish to preserve capital gains and averaging treatment. The distribution:
Will be paid directly from the distributing plan to The Standard on behalf of this Plan.
Is from another qualified plan; it includes after-tax contributions of $______________,which must be accounted for separately.
Was paid to me on_____________________________. (The Standard must receive distribution within 60days.)
PARTICIPANT SIGNATURE I verify that the information provided above is true and complete. I understand that the Plan Administrator may choose not to accept this rollover if it would jeopardize the Plan’s tax status. I also understand that if this rollover is accepted, it will be directed to investments based on my contribution directives in place at the time the rollover is received by The Standard. If I do not have directives in place, the rollover will be deposited into the Plan’s Default Fund.
PAYEE AND MAILING INSTRUCTIONS The distribution check should be
payable Church Benefits Board FBO: (Participant’s Name)
and mailed to: Church Benefits Board
2930 Flowers Road, Suite 133A Atlanta, GA 30341 Attention: Plan No.:806561 Plan Name: Cooperative Baptist Fellowship 403(b) Plan
PLAN ADMINISTRATOR ACCEPTANCE As an authorized representative of the Cooperative Baptist Fellowship 403(b) Plan, I certify the Plan Administrator has investigated the rollover requested above and is satisfied that it will not jeopardize this Plan’s qualified status under the Internal Revenue Code. Therefore, the rollover is accepted, and The Standard is authorized to invest these funds as directed and to establish the appropriate additional accounts for the participant.
Please keep a copy of this form for your records and return the original to: Church Benefits Board Phone: (800) 352-8741
2930 Flowers Road, Suite 133A Fax: (770) 220-1661
Atlanta, GA 30341 Web: www.churchbenefits.org
Signature of Applicant Date
Name and Title (please print)
Signature Date
Employee Information Check one: Initial Agreement Change to Prior Agreement
Last Name First Name M.I.
Social Security No. Name of Employer
Salary Reduction Agreement
The employee authorizes the employer to make salary reduction contributions on the employee’s behalf to Employee Deferral 403(b)
Plan. All such salary reduction contributions shall be forwarded by the employer to The Church Benefits Board (CBB) to be allocated to
the employee’s Employee Deferral account administered by The Church Benefits Board (CBB). For purposes of making such
contributions, the employee agrees that his/her compensation will be reduced as indicated below.
Contribution
1. Deduct From Paycheck: (Select one) 3. Salary Reductions continue: (Select one)
$ ______________________ per month OR Until I request an end date
___________% of base salary amount Through the last paycheck of the calendar year
Indicate base salary: $ ______________________ % will change as base salary changes
For one paycheck only
Until (month/day/year) ______ /______ /______
2. Salary Reductions start with the payroll period beginning:
________ /________ /________
Terms and Conditions
This agreement is legally binding on the undersigned employee and employer, and is irrevocable with respect to compensation earned
by such employee while this agreement is in effect. This agreement shall continue until it is terminated or amended. This agreement may
be amended, with regard to compensation not yet earned, by the execution of a Salary Reduction Agreement by the employer and the
employee no less than 14 days before the start of a payroll period. This agreement supersedes all prior Salary Reduction Agreements
and contributions pursuant to this agreement shall immediately cease upon the employee’s termination of employment with the employer.
If the employee is re-hired, a new Salary Reduction Agreement will be necessary. This agreement may be terminated at any time by the
employee for compensation not yet earned, upon written notice delivered by the employee to the employer. A termination request is
permanent and remains in effect until a new Salary Reduction Agreement is submitted.
The employee and employer understand that the contributions originate and the tax deferral applies to amounts derived through a
reduction of the employee’s salary, and the employer forwarding such contributions to CBB. In no event shall these contributions
exceed the limits provided by Section 402(g) and/or 415 of the Internal Revenue Code or other applicable limits, which limits are also
set forth in the Plan. The employee agrees to promptly notify the employer in the event that these limits are affected by any other
plan(s) maintained outside of this employer [for example, a Section 401(k) plan or pension plan] or if he/she has knowledge that they
reached any of the foregoing limits. The employer and CBB reserve the right to automatically reduce the amount of the employee’s
contribution if it is determined that these deductions will exceed any applicable legal limits.
This agreement is not a contract of employment between the employee and the employer, and does not restrict the right of the employer
to discharge the employee or the right of the employee to terminate his/her own employment.
Signature of employee Date
Signature of employer representative Date
Please return this completed form to: Church Benefits Board Phone: (800) 352-8741
2930 Flowers Road, Suite 133A Fax: (770) 220-1661
Atlanta, GA 30341 Web: www.churchbenefits.org
SALARY REDUCTION AGREEMENT
CBF 403(b) Plan
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As of September 29, 2010
Plan Overview Cooperative Baptist Fellowship 403(b) Plan This Overview is provided as a quick reference to certain key provisions of the retirement plan. Since the plan is based on a complex legal document, the Overview does not attempt to describe every aspect of the plan or to detail all of its terms. For a more complete description of plan provisions, refer to the Summary Plan Description. If there is a conflict between this Overview and the plan, the plan's provisions will prevail.
Entering the Plan
All employees are eligible to participate in the plan on the first entry date.
Entry date is immediate after service requirements, if any, are met.
Participant Contributions
Participants may contribute to the plan on a pre-tax or after-tax basis. These contributions, known as “elective deferrals,” must fall within the following range:
Maximum $17,000 in 2012 (additional $5,500 if age 50 or older) or maximum allowed by law, whichever is less
Other factors may further limit contributions.
Traditional 403(b) contributions are made on a pre-tax basis, thus reducing your current taxable income. Your contributions and earnings grow on a tax-deferred basis and will be taxable upon distribution.
You may change your contribution percentage or re-enter the plan on the first day of any future payroll period. Contact your payroll department for details. If necessary, you may stop your contributions on the first day of any payroll period with reasonable advance notice.
You may also contribute a portion of your after-tax income to the plan. These “voluntary contributions” will not reduce your taxable income. Minimum and maximum allowable voluntary contributions are specified in the Summary Plan Description. Voluntary contribution limits may be reduced by other factors, including legal limits and other contributions you or your employer make to the retirement plan.
Your participant contributions are 100 percent vested - which means that you own them - at all times.
Employer Contributions
The plan also provides for your Church or Employer to make contributions. These employer contributions are 100 percent vested at all times.
Housing Allowance
The minister’s housing allowance is an important tax benefit available to ministers under Section 107 of the Internal Revenue Code. With this plan you may be entitled to receive the minister's housing allowance benefit in retirement.
Loans
You may qualify to borrow a portion of your vested account balance under the terms of the plan's Loan Policy. The Loan Policy spells out specific details and restrictions, including the amounts that you may borrow from the plan, repayment terms, loan fees and interest rates. The Loan Policy is available on the Personal Savings Center Web site at www.standard.com/retirement.
We recommend that you consider other sources for your loan needs before borrowing from your retirement account.
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As of September 29, 2010
Distributions and Withdrawals
A distribution from your account may be available to you or your beneficiary at: • normal retirement, which is age 65 • age 59.5 while still employed • financial hardship (as defined by the plan) • termination of employment • death or disability Additional requirements for distributions may also exist. Please review your Summary Plan Description for complete details.
Hardship Withdrawal
A hardship withdrawal may be made in cases of financial need defined in the plan, provided there are no other sources available to meet the need; the withdrawal is taxable as a distribution and subject to a 10 percent early withdrawal tax penalty.
Rolling over retirement accounts
Combining assets from several retirement accounts is much easier now than in the past. Plans may now accept rollovers from: • 401(k) and other qualified retirement plans • governmental deferred compensation (457) plans • tax-sheltered annuities (TSAs) and IRAs
Follow the instructions on the “Application for Rollover” form available on Personal Savings Center at www.standard.com/retirement. Rollover money received by the plan will be invested according to your investment directives for new contributions.
If you have received a distribution check from a retirement plan, you must complete a rollover within 60 days of receipt. If the rollover is not completed within this period, the distribution cannot be rolled over and becomes taxable income. It may also be subject to a 10 percent early withdrawal penalty.
Plan Expenses
Redemption Fees - Please be aware that redemption fees may apply to transactions made in your account. It is possible to incur a redemption fee any time you sell a fund share. Transactions that may result in a redemption fee are: distributions, in-service withdrawals, loans, and fund transfers. A redemption fee is a charge upon the sale of a mutual fund share within a specified time period. A time period varies by Fund Company, but is typically assessed on shares sold within 30 to 90 days after purchase. The fee is generally 1% to 2% of the sale amount. You will see this message any time a transfer is requested through our Internet site, notifying you that these fees may apply. Default Fund
If The Standard does not receive an Investment Directive Form from you, any transferring assets and future contributions will be invested in the Vanguard Balanced Index Signal fund. You can transfer assets out of the Vanguard Balanced Index Signal fund on the Personal Savings Center Web site at http://retirement.standard.com or via the automated telephone system at 800.858.5420.
Questions
If you have questions about the plan, please contact Church Benefit Board at 1-800-352-8741 or at [email protected]. To contact a Customer Service Representative at the plan's service partner, The Standard, e-mail [email protected].
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More information about your investment options Descriptions of the plan's investment options are included in the enrollment booklet. Each description provides basic information about an option, including investment objectives, fund managers, relative risk and a snapshot of its holdings.
Additional information is available through the Personal Savings Center, The Standard's Web site for retirement plan participants.
1. Visit www.standard.com/retirement
2. Select Personal Savings Center.
3. Log in.
4. Select Performance on the Investment menu at the top of the page.
This page provides performance information for all of the investment options. Click on the name of the investment option for more information about that option, including a link to the mutual fund company's Web site where you can review a prospectus.
Frequent Trading Policy
Your retirement plan is intended to help you accumulate assets for your retirement. The plan and the services provided by The Standard have been designed to help support your long-term investment needs throughout your working and retirement years.
The plan is not intended to facilitate frequent trades among investment options or provide “day trading” opportunities. Short-term trading adversely affects the plan's operations and increases the expenses of both the plan and the investment options.
The Standard's agreements with our mutual fund alliance partners require us to adhere to trading rules established in the prospectuses. Besides normal contribution activity, generally one purchase and one redemption in an investment option during a 90-day period is considered reasonable transfer activity.
Trading activity will be monitored. If excessive transfer activity is identified, we may suspend the participant's ability to execute transfers through the Personal Savings Center Web site and INFOLINE telephone system. Any transfers will have to be requested using paper forms and will be executed according to trading guidelines. This may lead to delays in the execution of requested transactions.
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Standard Retirement Services, Inc.
How To Read A Fund Fact Sheet
Example: ABC Balanced Fund (ABCBF)
Morningstar Category, Rating, Return And RiskA high-level overview that includes the fund’s asset class, as well as several assessments that compare it to similar funds to obtain a “star rating” based on performance (after adjusting for risk and accounting for all sales charges), its excess return over a risk-free rate (the return of the 90-day Treasury bill), and its variations in monthly returns.
Investment StrategyA description of the fund’s aims or objectives as well as investment strategies, such as:
Capital Preservation – Seeks to protect against loss of principal, uses a conservative investment approach focused on low risk
Growth And Income – aims for some income and some growth, uses a moderate approach with higher risk than capital preservation
Aggressive Growth – seeks capital appreciation, employs aggressive high-risk strategies aimed at higher long-term returns than the other approaches
This section can include more details about investment strategies such as focusing on certain sectors of the market, or employing a bottom-up (company-by-company) approach to investing.
Volatility AnalysisAn attempt to quantify the risk associated with investing in the fund based on its short-term volatility relative to its long-term past performance.
Portfolio AnalysisFacts and figures such as:
Composition – a graphic representation of the fund’s holdings into broad asset classes such as stocks, bonds or cash.
Top 5 Holdings – the top five largest holdings in the fund by company/government agency or industry; an indicator of diversification
Total Number Of Holdings – the number of holdings in the fund; an indicator of diversification (lower risk) versus concentration (higher risk)
Annual Turnover Ratio % – the percentage of the investment option’s holdings that have been “turned over” or replaced with other holdings in a given year
Total Fund Assets – the total amount of investor money in the fund
Morningstar Style Box™ – the size and type of companies (in the case of stocks) or the length and quality of bonds, often in a grid or box that indicates its risk/return potential
Morningstar Super Sectors – a breakdown of the fund’s assets according to Morningstar’s overarching consolidation of all industries into one of three “economic spheres”
Fund fact sheets don’t always look alike. Some include graphics, others have more facts and figures, many use different headings for the same subjects. However, most of them contain the same basic information.
A fund name, “ABC Balanced Fund” in the example, often indicates the type of fund.
The ticker symbol, “ABCBF” in the example, is an identifying number that can be used to do more research.
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Enroll now! www.standard.com/retirement, 800.858.5420
Credit Analysis: % Bonds – a depiction of the quality of bonds in the fund’s portfolio. Bonds rated AAA are considered to have the lowest default risk among issuers. Bonds rated below BBB are considered below investment grade and bonds rated B or below are considered speculative
Risk Measures – uses standard deviation to measure the fund’s historical price volatility on an absolute basis. The higher the number, the more volatile the fund
OperationsFund Inception Date – The day on which a fund began offering shares
Portfolio Manager/Management Company – names of the people and firms who are managing the fund and/or providing sub-advisory services
Web Site: Web address of the fund company managing the investment option
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33
The Standard Stable Asset Fd A Release Date09-30-2011
....................................................................................................................................................................................................................................................................................................................................................Morningstar CategoryStable Value
Overall Morningstar Rating™ Morningstar Return Morningstar Risk. . .
Investment StrategyThe Standard’s Stable Asset Fund seeks to provide liquidityand safety of principal, along with a competitive, guaranteedrate of return. The Standard invests the deposits of planparticipants as part of its general account assets, whichinclude its fixed income securities portfolio and itscommercial mortgage loan portfolio. A participant’s return isdetermined by a declared interest rate, which is accrueddaily and compounded quarterly.
The fixed-income portfolio has an average credit qualityof A (Standard & Poor’s). The percentage of fixed maturitysecurities below investment grade was 5.2% as of09/30/2010.
The commercial mortgage loan portfolio is underwrittenand serviced by StanCorp Mortgage Investors. The portfoliois composed of small fixed-rate commercial loans whichhave been rigorously underwritten. The average loan to valueratio of the portfolio was 66% as of year-end 2009. Thedelinquency rate was 0.42% as of September 30, 2010.
Portfolio AnalysisComposition as of 09-30-11 % Assets
Synthetic GICs 0.0Traditional GICs 0.0Cash 0.0Other 100.0
What do Stable Value Funds invest in?
Stable value funds tend to invest in high-quality bonds withshort- to intermediate-term maturities. They also purchaseinsurance contracts which aim to provide price stability on aday-to-day basis. The horizontal axis of the Morningstarfixed-income Style Box shows duration, a measure of howthe funds price will change in response to interest-ratechanges. Because stable value funds insurance contractsusually prevent any fluctuations in the funds prices, thesefunds are insulated from interest-rate volatility and theirduration is effectively zero.
Morningstar Style Box™ as of 09-30-11
HighM
edLow
Ltd Mod Ext
OperationsFund Inception Date 04-01-11Total Fund Assets ($mil) .Portfolio Manager Management TeamManagement Company Standard Insurance CompanyWeb Site .
Volatility AnalysisRisk: Below Average
In the past, this investment has shown a relatively smallrange of price fluctuations relative to other investments.Based on this measure, currently more than two thirds of allinvestments have shown higher levels of risk. Consequently,this investment may appeal to investors looking for aconservative investment strategy.
Vanguard Inflation-Protected Secs Adm VAIPX Release Date09-30-2011
....................................................................................................................................................................................................................................................................................................................................................Morningstar CategoryInflation-Protected Bond
Overall Morningstar Rating™ Morningstar Return Morningstar RiskQQQQ Above Average AverageOut of 154 Inflation-Protected Bond funds. An investment's overall Morningstar Rating, based on its risk-adjustedreturn, is a weighted average of its applicable 3-, 5-, and 10-year Ratings. See disclosure for details.
Investment Strategy from investment's prospectus
The investment seeks to provide inflation protection andincome consistent with investment in inflation-indexedsecurities.
The fund invests at least 80% of assets ininflation-indexed bonds issued by the U.S. government, itsagencies and instrumentalities, and corporations. It mayinvest in bonds of any maturity; however, its dollar-weightedaverage maturity is expected to be in the range of 7 to 20years. At a minimum, all bonds purchased by the fund will berated “investment-grade.”
Volatility AnalysisRisk: Below Average
In the past, this investment has shown a relatively smallrange of price fluctuations relative to other investments.Based on this measure, currently more than two thirds of allinvestments have shown higher levels of risk. Consequently,this investment may appeal to investors looking for aconservative investment strategy.
Portfolio AnalysisComposition as of 06-30-11 % Assets
U.S. Stocks 0.0Non-U.S. Stocks 0.0Bonds 99.8Cash 0.2Other 0.0
Morningstar Style Box ™ as of 06-30-11
HighM
edLow
Ltd Mod Ext
Avg Eff Duration 8.13Avg Eff Maturity 9.00Avg Wtd Coupon 1.97Avg Wtd Price 126.30
Top 5 Holdings as of 06-30-11 % Assets
US Treasury Note 1.125% 01-15-21 6.48US Treasury Note 2% 01-15-14 5.75US Treasury Bond 3.875% 04-15-29 4.96US Treasury Note 2.625% 07-15-17 4.78US Treasury Bond 2.375% 01-15-25 4.76
...........................................................................................................Total Number of Stock Holdings 0Total Number of Bond Holdings 31Annual Turnover Ratio % 29Total Fund Assets ($mil) 36,713.99
Credit Analysis: % Bonds as of 06-30-11
AAA 100 BB 0AA 0 B 0A 0 Below B 0BBB 0 NR/NA 0
Risk Measures as of 09-30-11 Port Avg Rel LB Aggr Rel Cat
3 Yr Std Dev 8.43 0.40 0.983 Yr Beta 1.45 . 1.013 Yr Alpha -3.32 . 0.88
Operations
Fund Inception Date 06-10-05Portfolio Manager John Hollyer
Management Company Vanguard Group, Inc.Web Site www.vanguard.com
34
Metropolitan West Total Return Bond I MWTIX Release Date09-30-2011
....................................................................................................................................................................................................................................................................................................................................................Morningstar CategoryIntermediate-Term Bond
Overall Morningstar Rating™ Morningstar Return Morningstar RiskQQQQQ High Above AverageOut of 1026 Intermediate-Term Bond funds. An investment's overall Morningstar Rating, based on itsrisk-adjusted return, is a weighted average of its applicable 3-, 5-, and 10-year Ratings. See disclosure fordetails.
Investment Strategy from investment's prospectus
The investment seeks to maximize long-term total return.The fund pursues its objective by investing, under
normal circumstances, at least 80% of net assets ininvestment grade fixed income securities or unratedsecurities that are determined by the Adviser to be of similarquality. Up to 20% of the fund’s net assets may be investedin securities rated below investment grade. Under normalconditions, the portfolio duration is two to eight years andthe dollar-weighted average maturity ranges from two tofifteen years.
Volatility AnalysisRisk: Below Average
In the past, this investment has shown a relatively smallrange of price fluctuations relative to other investments.Based on this measure, currently more than two thirds of allinvestments have shown higher levels of risk. Consequently,this investment may appeal to investors looking for aconservative investment strategy.
Portfolio AnalysisComposition as of 06-30-11 % Assets
U.S. Stocks 0.0Non-U.S. Stocks 0.0Bonds 93.6Cash 4.7Other 1.7
Morningstar Style Box ™ as of 06-30-11High
Med
Low
Ltd Mod Ext
Avg Eff Duration 4.28Avg Eff Maturity 6.91Avg Wtd Coupon 4.70Avg Wtd Price 95.87
Top 5 Holdings as of 06-30-11 % Assets
US Treasury Note 1.5% 06-30-16 4.27Freddie Mac 03-15-26 2.93Fnma Tba 04-25-41 2.04US Treasury Bond 4.375% 05-15-41 1.99FHLMC FRN 10-12-12 1.51
...........................................................................................................Total Number of Stock Holdings 0Total Number of Bond Holdings 891Annual Turnover Ratio % 228Total Fund Assets ($mil) 15,814.12
Credit Analysis: % Bonds as of 06-30-11
AAA 52 BB 5AA 9 B 4A 10 Below B 10BBB 9 NR/NA 0
Risk Measures as of 09-30-11 Port Avg Rel LB Aggr Rel Cat
3 Yr Std Dev 4.46 1.10 0.823 Yr Beta 0.82 . 0.923 Yr Alpha 4.60 . 3.15
Operations
Fund Inception Date 03-31-00Portfolio Manager Tad Rivelle
Management Company Metropolitan West AssetManagement LLC.
Web Site www.mwamllc.com
Vanguard Balanced Index Signal VBASX Release Date09-30-2011
....................................................................................................................................................................................................................................................................................................................................................Morningstar CategoryModerate Allocation
Overall Morningstar Rating™ Morningstar Return Morningstar RiskQQQQ Above Average Below AverageOut of 847 Moderate Allocation funds. An investment's overall Morningstar Rating, based on its risk-adjustedreturn, is a weighted average of its applicable 3-, 5-, and 10-year Ratings. See disclosure for details.
Investment Strategy from investment's prospectus
The investment seeks to track the performance of a broad,market-weighted bond index and a benchmark index thatmeasures the investment return of the overall U.S. stockmarket.
The fund employs a “passive management”—orindexing—or investment approach designed to track theperformance of two benchmark indexes. With approximately60% of assets, it seeks to track the investment performanceof the MSCI US Broad Market Index, which represents 99.5%or more of the total market capitalization of all U.S. commonstocks. The fund also seeks to track the investmentperformance of the Barclays Capital U.S. Aggregate FloatAdjusted Index with 40% of assets.
Volatility AnalysisRisk: Below Average
In the past, this investment has shown a relatively smallrange of price fluctuations relative to other investments.Based on this measure, currently more than two thirds of allinvestments have shown higher levels of risk. Consequently,this investment may appeal to investors looking for aconservative investment strategy.
Portfolio AnalysisComposition as of 06-30-11 % Assets
U.S. Stocks 57.7Non-U.S. Stocks 0.4Bonds 37.7Cash 3.6Other 0.6
Morningstar Style Box™ as of 06-30-11 (EQ) ; 06-30-11 (F-I)
LargeM
idSm
all
Value Blend Growth
HighM
edLow
Ltd Mod Ext
Top 5 Holdings as of 06-30-11 % Assets
CMT Market Liquidity Rate 3.10Exxon Mobil Corporation 1.57Apple, Inc. 1.20International Business Machines Corp 0.81Chevron Corp 0.80
...........................................................................................................Total Number of Stock Holdings 3141Total Number of Bond Holdings 4981Annual Turnover Ratio % 49Total Fund Assets ($mil) 10,625.50
Morningstar Super Sectors as of 06-30-11 % Fund
Cyclical 30.57
Sensitive 45.00
Defensive 24.44
Risk Measures as of 09-30-11 Port Avg Rel S&P 500 Rel Cat
3 Yr Std Dev 13.56 0.64 0.893 Yr Beta 0.95 . 0.903 Yr Alpha 0.24 . -0.17
Operations
Fund Inception Date 09-01-06Portfolio Manager Michael Perre
Management Company Vanguard Group, Inc.Web Site www.vanguard.com
35
Vanguard Wellington Inv VWELX Release Date09-30-2011
....................................................................................................................................................................................................................................................................................................................................................Morningstar CategoryModerate Allocation
Overall Morningstar Rating™ Morningstar Return Morningstar RiskQQQQQ High AverageOut of 847 Moderate Allocation funds. An investment's overall Morningstar Rating, based on its risk-adjustedreturn, is a weighted average of its applicable 3-, 5-, and 10-year Ratings. See disclosure for details.
Investment Strategy from investment's prospectus
The investment seeks to provide long-term capitalappreciation and reasonable current income.
The fund invests 60% to 70% of its assets individend-paying and, to a lesser extent, non-dividend-payingcommon stocks of established, medium-size and largecompanies. These stocks are commonly referred to as valuestocks. It invests 30% to 40% of the assets in fixed incomesecurities that the advisor believes will generate areasonable level of current income. These securities includeinvestment-grade corporate bonds, with some exposure toU.S. Treasury and government agency bonds, andmortgage-backed securities.
Volatility AnalysisRisk: Below Average
In the past, this investment has shown a relatively smallrange of price fluctuations relative to other investments.Based on this measure, currently more than two thirds of allinvestments have shown higher levels of risk. Consequently,this investment may appeal to investors looking for aconservative investment strategy.
Portfolio AnalysisComposition as of 06-30-11 % Assets
U.S. Stocks 54.1Non-U.S. Stocks 11.5Bonds 31.1Cash 2.2Other 1.2
Morningstar Style Box™ as of 06-30-11 (EQ) ; 06-30-11 (F-I)Large
Mid
Small
Value Blend Growth
HighM
edLow
Ltd Mod Ext
Top 5 Holdings as of 06-30-11 % Assets
Exxon Mobil Corporation 2.47AT&T Inc 2.44Chevron Corp 2.03International Business Machines Corp 1.95Wells Fargo & Co 1.71
...........................................................................................................Total Number of Stock Holdings 100Total Number of Bond Holdings 667Annual Turnover Ratio % 35Total Fund Assets ($mil) 51,814.60
Morningstar Super Sectors as of 06-30-11 % Fund
Cyclical 28.41
Sensitive 44.81
Defensive 26.79
Risk Measures as of 09-30-11 Port Avg Rel S&P 500 Rel Cat
3 Yr Std Dev 14.23 0.67 0.943 Yr Beta 1.00 . 0.953 Yr Alpha 0.33 . -0.23
Operations
Fund Inception Date 07-01-29Portfolio Manager Edward P. Bousa
Management Company Wellington ManagementCompany, LLP
Web Site www.vanguard.com
Vanguard Windsor II Adm VWNAX Release Date09-30-2011
....................................................................................................................................................................................................................................................................................................................................................Morningstar CategoryLarge Value
Overall Morningstar Rating™ Morningstar Return Morningstar RiskQQQQ Average AverageOut of 1114 Large Value funds. An investment's overall Morningstar Rating, based on its risk-adjusted return, isa weighted average of its applicable 3-, 5-, and 10-year Ratings. See disclosure for details.
Investment Strategy from investment's prospectus
The investment seeks long-term capital appreciation andincome.
The fund invests mainly in mid- and large-capitalizationcompanies whose stocks are considered by an advisor to beundervalued. Undervalued stocks are generally those that areout of favor with investors and that the advisor feels aretrading at prices that are below average in relation to suchmeasures as earnings and book value. These stocks oftenhave above-average dividend yields.
Volatility AnalysisRisk: Average
In the past, this investment has shown a relatively moderaterange of price fluctuations relative to other investments. Thisinvestment may experience larger or smaller price declinesor price increases depending on market conditions. Some ofthis risk may be offset by owning other investments withdifferent portfolio makeups or investment strategies.
Portfolio AnalysisComposition as of 06-30-11 % Assets
U.S. Stocks 90.5Non-U.S. Stocks 6.7Bonds 0.0Cash 2.8Other 0.0
Morningstar Style Box™ as of 06-30-11 % Mkt Cap
LargeM
idSm
all
Value Blend Growth
Giant 54.12..........................................................Large 33.74Medium 11.56Small 0.57..........................................................Micro 0.01
Top 5 Holdings as of 06-30-11 % Assets
ConocoPhillips 3.60International Business Machines Corp 3.17Pfizer Inc 3.17CMT Market Liquidity Rate 2.70JPMorgan Chase & Co 2.63
...........................................................................................................Total Number of Stock Holdings 264Total Number of Bond Holdings 0Annual Turnover Ratio % 29Total Fund Assets ($mil) 30,666.26
Morningstar Super Sectors as of 06-30-11 % Fund
Cyclical 27.95
Sensitive 43.92
Defensive 28.14
Risk Measures as of 09-30-11 Port Avg Rel S&P 500 Rel Cat
3 Yr Std Dev 22.22 1.05 1.003 Yr Beta 1.04 . 1.023 Yr Alpha -0.94 . 0.53
Operations
Fund Inception Date 05-14-01Portfolio Manager James P. Barrow
Management Company VanguardWeb Site www.vanguard.com
36
Neuberger Berman Socially Resp Inv NBSRX Release Date09-30-2011
....................................................................................................................................................................................................................................................................................................................................................Morningstar CategoryLarge Blend
Overall Morningstar Rating™ Morningstar Return Morningstar RiskQQQQ High Above AverageOut of 1652 Large Blend funds. An investment's overall Morningstar Rating, based on its risk-adjusted return, isa weighted average of its applicable 3-, 5-, and 10-year Ratings. See disclosure for details.
Investment Strategy from investment's prospectus
The investment seeks long-term growth of capital byinvesting primarily in securities of companies that meet thefund’s financial criteria and social policy.
The fund invests mainly in common stocks of mid- tolarge-capitalization companies. It seeks to reduce risk byinvesting across many different industries. The PortfolioManagers employ a research driven and valuation sensitiveapproach to stock selection, with a long term perspective.Although the fund invests primarily in domestic stocks, itmay also invest in stocks of foreign companies.
Volatility AnalysisRisk: Average
In the past, this investment has shown a relatively moderaterange of price fluctuations relative to other investments. Thisinvestment may experience larger or smaller price declinesor price increases depending on market conditions. Some ofthis risk may be offset by owning other investments withdifferent portfolio makeups or investment strategies.
Portfolio AnalysisComposition as of 07-31-11 % Assets
U.S. Stocks 84.8Non-U.S. Stocks 12.2Bonds 0.0Cash 3.0Other 0.0
Morningstar Style Box™ as of 07-31-11 % Mkt CapLarge
Mid
Small
Value Blend Growth
Giant 24.96..........................................................Large 46.94Medium 22.50Small 4.58..........................................................Micro 1.03
Top 5 Holdings as of 07-31-11 % Assets
BG Group PLC 4.53Newfield Exploration Company 4.43Danaher Corporation 4.24Google, Inc. 4.09The Procter & Gamble Co 4.02
...........................................................................................................Total Number of Stock Holdings 35Total Number of Bond Holdings 0Annual Turnover Ratio % 41Total Fund Assets ($mil) 1,514.02
Morningstar Super Sectors as of 07-31-11 % Fund
Cyclical 18.24
Sensitive 51.18
Defensive 30.57
Risk Measures as of 09-30-11 Port Avg Rel S&P 500 Rel Cat
3 Yr Std Dev 22.00 1.04 1.003 Yr Beta 1.00 . 0.983 Yr Alpha 0.01 . -0.01
Operations
Fund Inception Date 03-16-94Portfolio Manager Arthur Moretti
Management Company Neuberger Berman ManagementLLC
Web Site www.nb.com
Vanguard 500 Index Signal VIFSX Release Date09-30-2011
....................................................................................................................................................................................................................................................................................................................................................Morningstar CategoryLarge Blend
Overall Morningstar Rating™ Morningstar Return Morningstar RiskQQQQ Above Average AverageOut of 1652 Large Blend funds. An investment's overall Morningstar Rating, based on its risk-adjusted return, isa weighted average of its applicable 3-, 5-, and 10-year Ratings. See disclosure for details.
Investment Strategy from investment's prospectus
The investment seeks to track the performance of abenchmark index that measures the investment return oflarge-capitalization stocks.
The fund employs a passive management or indexinginvestment approach designed to track the performance ofthe Standard & Poor‘s 500 Index, which is a widelyrecognized benchmark of U.S. stock market performance thatis dominated by the stocks of large U.S. companies. Itattempts to replicate the target index by investing all, orsubstantially all, of its assets in the stocks that make up theindex, holding each stock in approximately the sameproportion as its weighting in the index.
Volatility AnalysisRisk: Average
In the past, this investment has shown a relatively moderaterange of price fluctuations relative to other investments. Thisinvestment may experience larger or smaller price declinesor price increases depending on market conditions. Some ofthis risk may be offset by owning other investments withdifferent portfolio makeups or investment strategies.
Portfolio AnalysisComposition as of 06-30-11 % Assets
U.S. Stocks 99.7Non-U.S. Stocks 0.1Bonds 0.0Cash 0.2Other 0.0
Morningstar Style Box™ as of 06-30-11 % Mkt Cap
LargeM
idSm
all
Value Blend Growth
Giant 51.93..........................................................Large 35.87Medium 12.06Small 0.15..........................................................Micro 0.00
Top 5 Holdings as of 06-30-11 % Assets
Exxon Mobil Corporation 3.33Apple, Inc. 2.58Chevron Corp 1.72International Business Machines Corp 1.72General Electric Co 1.66
...........................................................................................................Total Number of Stock Holdings 502Total Number of Bond Holdings 0Annual Turnover Ratio % 5Total Fund Assets ($mil) 90,775.72
Morningstar Super Sectors as of 06-30-11 % Fund
Cyclical 28.48
Sensitive 45.59
Defensive 25.93
Risk Measures as of 09-30-11 Port Avg Rel S&P 500 Rel Cat
3 Yr Std Dev 21.25 1.00 0.963 Yr Beta 1.00 . 0.983 Yr Alpha 0.04 . -0.05
Operations
Fund Inception Date 09-29-06Portfolio Manager Michael H. Buek
Management Company Vanguard Group, Inc.Web Site www.vanguard.com
37
JPMorgan Large Cap Growth R6 JLGMX Release Date09-30-2011
....................................................................................................................................................................................................................................................................................................................................................Morningstar CategoryLarge Growth
Overall Morningstar Rating™ Morningstar Return Morningstar Risk. . .
Investment Strategy from investment's prospectus
The investment seeks long-term capital appreciation andgrowth of income by investing primarily in equity securities.
The fund normally invests at least 80% of assets inequity securities of large companies with marketcapitalizations equal to those within the universe of theRussell 1000® Growth Index at the time of purchase. Itinvests in common stocks of companies with a history ofabove-average growth or companies expected to enterperiods of above-average growth.
Volatility AnalysisRisk: .
The volatility measure is not displayed for investments withfewer than three years of history.
Portfolio AnalysisComposition as of 08-31-11 % Assets
U.S. Stocks 88.1Non-U.S. Stocks 3.2Bonds 0.0Cash 7.5Other 1.2
Morningstar Style Box™ as of 08-31-11 % Mkt Cap
LargeM
idSm
all
Value Blend Growth
Giant 41.83..........................................................Large 44.82Medium 13.36Small 0.00..........................................................Micro 0.00
Top 5 Holdings as of 08-31-11 % Assets
Apple, Inc. 8.30Jpmorgan Liquid Assets Money Market Fu 12-31-49 7.53Amazon.com Inc 4.67International Business Machines Corp 3.71The Coca-Cola Co 3.09
...........................................................................................................Total Number of Stock Holdings 65Total Number of Bond Holdings 0Annual Turnover Ratio % 84Total Fund Assets ($mil) 2,152.89
Morningstar Super Sectors as of 08-31-11 % Fund
Cyclical 22.90
Sensitive 52.54
Defensive 24.57
Risk Measures as of 09-30-11 Port Avg Rel S&P 500 Rel Cat
3 Yr Std Dev . . .3 Yr Beta . . .3 Yr Alpha . . .
Operations
Fund Inception Date 11-30-10Portfolio Manager Giri Devuapally
Management Company JPMorgan Investment AdvisorsInc.
Web Site www.jpmorganfunds.com
Columbia Mid Cap Value Opportunity R4 RMCVX Release Date09-30-2011
....................................................................................................................................................................................................................................................................................................................................................Morningstar CategoryMid-Cap Value
Overall Morningstar Rating™ Morningstar Return Morningstar RiskQQQ Average Above AverageOut of 354 Mid-Cap Value funds. An investment's overall Morningstar Rating, based on its risk-adjusted return,is a weighted average of its applicable 3-, 5-, and 10-year Ratings. See disclosure for details.
Investment Strategy from investment's prospectus
The investment seeks long-term capital appreciation.The fund normally invests at least 80% of assets in
equity securities of medium-sized companies whose marketcapitalizations at the time of purchase fall within the rangeof the Russell Midcap(R) Value Index. It may invest up to25% of assets in foreign investments. The fund may investup to 20% of assets in stocks of smaller or larger companies,preferreds, convertibles, or other debt securities. It caninvest in any economic sector and, at times, the fund mayemphasize one or more particular sectors.
Volatility AnalysisRisk: Above Average
In the past, this investment has shown a wide range of pricefluctuations relative to other investments. This investmentmay experience significant price increases in favorablemarkets or undergo large price declines in adverse markets.Some of this risk may be offset by owning other investmentsthat follow different investment strategies.
Portfolio AnalysisComposition as of 07-31-11 % Assets
U.S. Stocks 90.3Non-U.S. Stocks 6.1Bonds 0.0Cash 3.4Other 0.2
Morningstar Style Box™ as of 07-31-11 % Mkt Cap
LargeM
idSm
all
Value Blend Growth
Giant 1.50..........................................................Large 29.03Medium 63.90Small 4.75..........................................................Micro 0.82
Top 5 Holdings as of 07-31-11 % Assets
Columbia Short-Term Cash 12-31-12 3.41Lorillard, Inc. 3.30CIT Group Inc 2.61Mylan Inc 2.50Newfield Exploration Company 2.43
...........................................................................................................Total Number of Stock Holdings 119Total Number of Bond Holdings 0Annual Turnover Ratio % 62Total Fund Assets ($mil) 1,632.73
Morningstar Super Sectors as of 07-31-11 % Fund
Cyclical 36.54
Sensitive 42.97
Defensive 20.50
Risk Measures as of 09-30-11 Port Avg Rel S&P 500 Rel Cat
3 Yr Std Dev 26.88 1.26 1.053 Yr Beta 1.23 . 1.063 Yr Alpha -0.02 . -0.02
Operations
Fund Inception Date 02-14-02Portfolio Manager Steven R. Schroll
Management Company Columbia ManagementInvestment Adv LLC
Web Site www.columbiafunds.com
38
Neuberger Berman Mid Cap Growth Inv NMANX Release Date09-30-2011
....................................................................................................................................................................................................................................................................................................................................................Morningstar CategoryMid-Cap Growth
Overall Morningstar Rating™ Morningstar Return Morningstar RiskQQQQ Above Average Below AverageOut of 676 Mid-Cap Growth funds. An investment's overall Morningstar Rating, based on its risk-adjusted return,is a weighted average of its applicable 3-, 5-, and 10-year Ratings. See disclosure for details.
Investment Strategy from investment's prospectus
The investment seeks growth of capital.The fund normally invests at least 80% of net assets in
common stocks of mid-capitalization companies, which itdefines as those with a total market capitalization within themarket capitalization range of the Russell Midcap Index atthe time of purchase.
Volatility AnalysisRisk: Average
In the past, this investment has shown a relatively moderaterange of price fluctuations relative to other investments. Thisinvestment may experience larger or smaller price declinesor price increases depending on market conditions. Some ofthis risk may be offset by owning other investments withdifferent portfolio makeups or investment strategies.
Portfolio AnalysisComposition as of 07-31-11 % Assets
U.S. Stocks 90.2Non-U.S. Stocks 6.2Bonds 0.0Cash 3.5Other 0.0
Morningstar Style Box™ as of 07-31-11 % Mkt CapLarge
Mid
Small
Value Blend Growth
Giant 0.00..........................................................Large 21.52Medium 70.25Small 8.23..........................................................Micro 0.00
Top 5 Holdings as of 07-31-11 % Assets
Carbo Ceramics, Inc. 1.95Alexion Pharmaceuticals, Inc. 1.80Stericycle, Inc. 1.79Informatica Corporation 1.62Concho Resources, Inc. 1.56
...........................................................................................................Total Number of Stock Holdings 100Total Number of Bond Holdings 0Annual Turnover Ratio % 70Total Fund Assets ($mil) 487.01
Morningstar Super Sectors as of 07-31-11 % Fund
Cyclical 20.30
Sensitive 62.45
Defensive 17.24
Risk Measures as of 09-30-11 Port Avg Rel S&P 500 Rel Cat
3 Yr Std Dev 20.27 0.95 0.833 Yr Beta 0.90 . 0.833 Yr Alpha 4.44 . 1.60
Operations
Fund Inception Date 03-01-79Portfolio Manager Kenneth Turek
Management Company Neuberger Berman ManagementLLC
Web Site www.nb.com
Columbia Small Cap Value II Z NSVAX Release Date09-30-2011
....................................................................................................................................................................................................................................................................................................................................................Morningstar CategorySmall Value
Overall Morningstar Rating™ Morningstar Return Morningstar RiskQQQ Average AverageOut of 308 Small Value funds. An investment's overall Morningstar Rating, based on its risk-adjusted return, is aweighted average of its applicable 3-, 5-, and 10-year Ratings. See disclosure for details.
Investment Strategy from investment's prospectus
The investment seeks long-term capital appreciation.The fund normally invests at least 80% of net assets in
equity securities of companies that have marketcapitalizations in the range of the companies in the Russell2000 Value Index at the time of purchase that the Advisorbelieves are undervalued and have the potential forlong-term growth. It may invest up to 20% of total assets inforeign securities and also may invest in real estateinvestment trusts.
Volatility AnalysisRisk: Above Average
In the past, this investment has shown a wide range of pricefluctuations relative to other investments. This investmentmay experience significant price increases in favorablemarkets or undergo large price declines in adverse markets.Some of this risk may be offset by owning other investmentsthat follow different investment strategies.
Portfolio AnalysisComposition as of 05-31-11 % Assets
U.S. Stocks 94.8Non-U.S. Stocks 1.8Bonds 0.0Cash 3.4Other 0.0
Morningstar Style Box™ as of 05-31-11 % Mkt Cap
LargeM
idSm
all
Value Blend Growth
Giant 0.00..........................................................Large 0.00Medium 17.40Small 60.51..........................................................Micro 22.09
Top 5 Holdings as of 05-31-11 % Assets
Healthspring, Inc. 1.21Domino's Pizza, Inc. 1.18WellCare Health Plans, Inc. 1.17Kindred Healthcare, Inc. 1.16U-Store-It Trust 1.09
...........................................................................................................Total Number of Stock Holdings 133Total Number of Bond Holdings 0Annual Turnover Ratio % 60Total Fund Assets ($mil) 1,497.96
Morningstar Super Sectors as of 05-31-11 % Fund
Cyclical 46.11
Sensitive 38.07
Defensive 15.82
Risk Measures as of 09-30-11 Port Avg Rel S&P 500 Rel Cat
3 Yr Std Dev 28.62 1.35 0.993 Yr Beta 1.28 . 1.013 Yr Alpha -0.70 . -1.43
Operations
Fund Inception Date 05-01-02Portfolio Manager Christian K. Stadlinger
Management Company Columbia ManagementInvestment Adv LLC
Web Site www.columbiafunds.com
39
Alger Small Cap Growth Institutional I ALSRX Release Date09-30-2011
....................................................................................................................................................................................................................................................................................................................................................Morningstar CategorySmall Growth
Overall Morningstar Rating™ Morningstar Return Morningstar RiskQQQ Average AverageOut of 661 Small Growth funds. An investment's overall Morningstar Rating, based on its risk-adjusted return, isa weighted average of its applicable 3-, 5-, and 10-year Ratings. See disclosure for details.
Investment Strategy from investment's prospectus
The investment seeks long-term capital appreciation.The fund focuses on small, fast-growing companies
that offer innovative products, services or technologies to arapidly expanding marketplace. It normally invests at least80% of net assets, plus any borrowings for investmentpurposes, in the equity securities of small-capitalizationcompanies. A small-capitalization company has a marketcapitalization within the range of companies in the Russell2000 Growth Index or the S&P Small-Cap 600 Index.
Volatility AnalysisRisk: Above Average
In the past, this investment has shown a wide range of pricefluctuations relative to other investments. This investmentmay experience significant price increases in favorablemarkets or undergo large price declines in adverse markets.Some of this risk may be offset by owning other investmentsthat follow different investment strategies.
Portfolio AnalysisComposition as of 07-31-11 % Assets
U.S. Stocks 91.1Non-U.S. Stocks 4.9Bonds 0.0Cash 4.0Other 0.0
Morningstar Style Box™ as of 07-31-11 % Mkt CapLarge
Mid
Small
Value Blend Growth
Giant 0.00..........................................................Large 0.00Medium 28.78Small 65.46..........................................................Micro 5.75
Top 5 Holdings as of 07-31-11 % Assets
Barnes Group, Inc. 1.31Waste Connections, Inc. 1.29Clean Harbors, Inc. 1.28AAR Corporation 1.26Esterline Technologies 1.26
...........................................................................................................Total Number of Stock Holdings 131Total Number of Bond Holdings 0Annual Turnover Ratio % 61Total Fund Assets ($mil) 1,042.87
Morningstar Super Sectors as of 07-31-11 % Fund
Cyclical 29.09
Sensitive 50.50
Defensive 20.41
Risk Measures as of 09-30-11 Port Avg Rel S&P 500 Rel Cat
3 Yr Std Dev 26.10 1.23 0.983 Yr Beta 1.14 . 0.983 Yr Alpha 2.87 . 1.44
Operations
Fund Inception Date 11-08-93Portfolio Manager Jill Greenwald
Management Company Fred Alger Management, Inc.Web Site www.alger.com
Thornburg International Value R5 TIVRX Release Date09-30-2011
....................................................................................................................................................................................................................................................................................................................................................Morningstar CategoryForeign Large Growth
Overall Morningstar Rating™ Morningstar Return Morningstar RiskQQQQQ Above Average LowOut of 206 Foreign Large Growth funds. An investment's overall Morningstar Rating, based on its risk-adjustedreturn, is a weighted average of its applicable 3-, 5-, and 10-year Ratings. See disclosure for details.
Investment Strategy from investment's prospectus
The investment seeks long-term capital appreciation.The fund normally invests at least 75% of assets in
foreign securities or depository receipts of foreign securities.It may invest in developing countries. The fund typicallymakes equity investments in the following three types ofcompanies: basic value companies with well-establishedbusinesses whose stock is under valued; consistent earnercompanies when they are selling at valuations below historicnorms; and emerging franchises that are in the process ofestablishing a leading position in a product, service ormarket expecting growth at an above average rate.
Volatility AnalysisRisk: Average
In the past, this investment has shown a relatively moderaterange of price fluctuations relative to other investments. Thisinvestment may experience larger or smaller price declinesor price increases depending on market conditions. Some ofthis risk may be offset by owning other investments withdifferent portfolio makeups or investment strategies.
Portfolio AnalysisComposition as of 07-31-11 % Assets
U.S. Stocks 3.3Non-U.S. Stocks 93.4Bonds 0.2Cash 0.6Other 2.6
Morningstar Style Box™ as of 07-31-11 % Mkt Cap
LargeM
idSm
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Value Blend Growth
Giant 79.73..........................................................Large 18.85Medium 1.42Small 0.00..........................................................Micro 0.00
Top 5 Holdings as of 07-31-11 % Assets
LVMH Moet Hennessy Louis Vuitton SA 2.42Volkswagen AG Shs Sponsored American Deposit Recei 2.42Sap AG 2.40British American Tobacco PLC 2.39Komatsu Ltd. 2.36
...........................................................................................................Total Number of Stock Holdings 66Total Number of Bond Holdings 3Annual Turnover Ratio % 22Total Fund Assets ($mil) 27,061.12
Morningstar Super World Regions as of 07-31-11 % Fund
Americas 12.30Greater Europe 60.57Greater Asia 27.13
Risk Measures as of 09-30-11 Port Avg Rel S&P 500 Rel Cat
3 Yr Std Dev 22.94 1.08 0.893 Yr Beta 0.88 . 0.903 Yr Alpha 1.22 . 0.60
Operations
Fund Inception Date 02-01-05Portfolio Manager William V. Fries
Management Company Thornburg InvestmentManagement, Inc.
Web Site www.thornburg.com
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DFA Emerging Markets Core Equity I DFCEX Release Date09-30-2011
....................................................................................................................................................................................................................................................................................................................................................Morningstar CategoryDiversified Emerging Mkts
Overall Morningstar Rating™ Morningstar Return Morningstar RiskQQQQ High AverageOut of 314 Diversified Emerging Mkts funds. An investment's overall Morningstar Rating, based on itsrisk-adjusted return, is a weighted average of its applicable 3-, 5-, and 10-year Ratings. See disclosure fordetails.
Investment Strategy from investment's prospectus
The investment seeks long-term capital appreciation.The fund purchases a broad and diverse group of
securities associated with emerging markets, includingfrontier markets (emerging market countries in an earlierstage of development), authorized for investment by theAdvisor’s Investment Committee (“Approved Markets”), withan increased exposure to securities of small cap issuers andsecurities that it considers to be value securities. As anon-fundamental policy, the fund invests at least 80% of itsnet assets in emerging markets investments that are definedas Approved Market securities.
Volatility AnalysisRisk: Above Average
In the past, this investment has shown a wide range of pricefluctuations relative to other investments. This investmentmay experience significant price increases in favorablemarkets or undergo large price declines in adverse markets.Some of this risk may be offset by owning other investmentsthat follow different investment strategies.
Portfolio AnalysisComposition as of 07-31-11 % Assets
U.S. Stocks 0.0Non-U.S. Stocks 99.0Bonds 0.0Cash 1.0Other 0.0
Morningstar Style Box™ as of 07-31-11 % Mkt CapLarge
Mid
Small
Value Blend Growth
Giant 28.54..........................................................Large 34.27Medium 25.41Small 9.15..........................................................Micro 2.63
Top 5 Holdings as of 07-31-11 % Assets
Samsung Electronics Co Ltd 1.67OAO Gazprom ADR 1.48Petroleo Brasileiro SA Petrobras ADR 1.24Petroleo Brasileiro SA Petrobras ADR 0.97China Mobile Ltd. ADR 0.96
...........................................................................................................Total Number of Stock Holdings 3341Total Number of Bond Holdings 0Annual Turnover Ratio % 4Total Fund Assets ($mil) 4,634.06
Morningstar Super World Regions as of 07-31-11 % Fund
Americas 20.95Greater Europe 16.22Greater Asia 62.83
Risk Measures as of 09-30-11 Port Avg Rel S&P 500 Rel Cat
3 Yr Std Dev 33.10 1.56 1.053 Yr Beta 1.20 . 1.053 Yr Alpha 10.95 . 1.65
Operations
Fund Inception Date 04-05-05Portfolio Manager Karen E. Umland
Management Company Dimensional Fund Advisors LPWeb Site www.dimensional.com
41
A redemption fee may apply to short-term investments. TheStandard charges fees in addition to those charged by theFund.
Investments are subject to market risks and fluctuate invalue. Past performance is no guarantee of future results.
Plan sponsors and participants should carefullyconsider the investment objectives, risks, charges andexpenses of the investment options offered under theretirement plan before investing. The prospectuses forthe individual mutual funds contain this and otherimportant information. Prospectuses may be obtainedby calling 877.805.1127. Please read the prospectuscarefully before investing.
NOT A DEPOSIT – NOT FDIC INSURED – NOT INSURED BYANY FEDERAL GOVERNMENT AGENCY – NOTGUARANTEED BY THE INSTITUTION – MAY GO DOWN INVALUE
Morningstar Rating™Often simply called the Star Rating, the Morningstar Ratingbrings load-adjustments, performance (returns) and risktogether into one evaluation. To determine a fund’s starrating for a given time period (three, five, or 10 years), thefund's risk-adjusted return is plotted on a bell curve: If thefund scores in the top 10% of its category, it receives 5 stars(Highest); if it falls in the next 22.5% it receives 4 stars(Above Average); a place in the middle 35% earns 3 stars(Average); those lower still, in the next 22.5%, receive 2stars (Below Average); and the bottom 10% get only 1 star(Lowest). The Overall Morningstar Rating is a weightedaverage of the available three-, five-, and 10-year ratings.
Morningstar ReturnThis statistic is a measurement of a fund’s excess return overa risk-free rate (the return of the 90-day Treasury bill), afteradjusting for all applicable loads and sales charges. In eachMorningstar Category, the top 10% of funds earn a HighMorningstar Return, the next 22.5% Above Average, themiddle 35% Average, the next 22.5% Below Average, andthe bottom 10% Low. Morningstar Return is measured for upto three time periods (three-, five-, and 10-years). Theseseparate measures are then weighted and averaged toproduce an overall measure for the fund. Funds with lessthan three years of performance history are not rated.
Morningstar RiskThis statistic evaluates the variations in a fund’s monthlyreturns, with an emphasis on downside variations. In eachMorningstar Category, the 10% of funds with the lowestmeasured risk are described as Low Risk, the next 22.5%Below Average, the middle 35% Average, the next 22.5%Above Average, and the top 10% High. Morningstar Risk ismeasured for up to three time periods (three-, five-, and10-years). These separate measures are then weighted andaveraged to produce an overall measure for the fund. Fundswith less than three years of performance history are notrated.
Risk MeasuresR-squared reflects the percentage of a fund’s movementsthat are explained by movements in its benchmark index,
showing the degree of correlation between the fund and thebenchmark.
Beta is a measure of a fund’s sensitivity to marketmovements. A portfolio with a beta greater than 1 is morevolatile than the market, and a portfolio with a beta less than1 is less volatile than the market.
Alpha measures the difference between a fund’s actualreturns and its expected performance, given its level of risk(as measured by beta).
Sharpe ratio uses standard deviation and excess return todetermine reward per unit of risk.
Standard deviation is a statistical measure of the volatility ofthe fund’s returns.
Morningstar Style Box™The Morningstar Style Box reveals a fund’s investmentstrategy. For equity funds and fixed-income fundsrespectively, the vertical axis shows the marketcapitalization of the stocks owned or the average creditquality of the bonds owned. The horizontal axis showsinvestment style (value, blend, or growth) or interest ratesensitivity as measured by a bond’s duration (short,intermediate or long). Duration is a measure of interest-ratesensitivity-the longer a fund’s duration, the more sensitivethe fund is to shifts in interest rates.
Investment RiskForeign Securities Funds/Emerging Markets Funds: Fundsthat invest in foreign securities involve special additionalrisks. These risks include, but are not limited to, currencyrisk, political risk, and risk associated with varyingaccounting standards. Investing in emerging markets mayaccentuate these risks.
Sector Funds: Funds that invest exclusively in one sector orindustry involve additional risks. The lack of industrydiversification subjects the investor to increasedindustry-specific risks.
Non-Diversified Funds: Funds that invest more of their assetsin a single issuer involve additional risks, including shareprice fluctuations, because of the increased concentration ofinvestments.
Small Cap Funds: Funds that invest in stocks of smallcompanies involve additional risks. Smaller companiestypically have a higher risk of failure, and are not as wellestablished as larger blue-chip companies. Historically,smaller-company stocks have experienced a greater degreeof market volatility than the overall market average.
Mid Cap Funds: Funds that invest in companies with marketcapitalizations below $10 billion involve additional risks. Thesecurities of these companies may be more volatile and lessliquid than the securities of larger companies.
High-Yield Bond Funds: Funds that invest in lower-rated debtsecurities (commonly referred to as junk bonds) involveadditional risks because of the lower credit quality of the
securities in the portfolio. The investor should be aware ofthe possible higher level of volatility, and increased risk ofdefault. The investor should also be aware that as interestrates rise, bond prices will fall.
Funds that invest in Derivatives: Funds that invest inderivatives are subject to a number of risks, such as liquidityrisk, interest rate risk, market risk, credit risk, andmanagement risk. A Fund investing in a derivative instrumentcould lose more than the principal amount invested, asstated in the Fund's prospectus.
Real Estate Funds: Real estate investment funds are subjectto risks, such as market forces, that may affect the values oftheir underlying real estate assets.
Important Disclosures
©2009 Morningstar, Inc., Morningstar Investment Profiles™ 312-696-6000. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers;(2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arisingfrom any use of information. Past performance is no guarantee of future performance. Visit our investment website at www.morningstar.com.
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Educational Materials
Your monthly retirement goal Example
a. Current monthly pay (before taxes and deductions) $4,000
b. Pay increase factor (enter number from table 1 on next page) x 2.09
c. Monthly pay at retirement (multiply line a by line b) $8,360
d. Percentage of pay needed at retirement (for example, 70%, 80% or 90%) x 80%
e. Monthly retirement goal (multiply line c by line d) $6,688
Your retirement income sources
f. Current value of all retirement accounts $75,000
g. Monthly income factor (enter number from table 2 on next page) x .0221
h. Monthly income at retirement (multiply line f by line g) $1,658
i. Monthly income from Social Security (see table 3 on next page) $3,260
j. Total expected monthly income at retirement (add lines h and i) $4,918 If this number is less than line e, you are short of your goal.
Amount you need to save
k. Subtract line j from line e $1,771
l. Monthly savings factor (enter number from table 4 on next page) x .215
m. Monthly savings amount needed to meet retirement goal $381 (multiply line k by line l)
You
If line m is zero or negative, congratulations! You’re on your way to being ready for retirement. If line m is positive, don’t be discouraged. By joining your plan, you can start moving closer to your savings goal.
Time To PlanThis part of your enrollment booklet includes educational content, information about features specific to your plan, worksheets and illustrations designed to help you better prepare for retirement.
How Much Can You Afford?Maybe you feel like every dollar you earn is already spoken for and you just can’t afford to put anything aside. However, even investing a small amount of your pay can make a big difference at retirement. Use this worksheet to calculate what you may need to keep you on target to meet your goals.
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Your Current Age
25 30 35 40 45 50 55 60
.0136 .0117 .0101 .0087 .0075 .0065 .0056 .0048
.0530 .0396 .0296 .0221 .0165 .0124 .0092 .0069
.1619 .1052 .0684 .0444 .0289 .0188 .0122 .0079
Table 2 — Monthly Income From Retirement Account
Annual Investment
Return
3%
6%
9%
Table 3 — Monthly Income From Social Security
Your Current Age
25 30 35 40 45 50 55 60
$2,972 $2,525 $2,141 $1,812 $1,531 $1,292 $1,158 $988
3,748 3,190 2,709 2,295 1,940 1,637 1,468 1,254
4,524 3,854 3,276 2,777 2,350 1,983 1,778 1,519
5,300 4,519 3,843 3,260 2,758 2,329 2,089 1,784
6,076 5,184 4,410 3,743 3,168 2,674 2,399 2,049
6,853 5,841 4,943 4,177 3,526 2,973 2,664 2,273
7,256 6,152 5,209 4,403 3,718 3,135 2,810 2,397
7,620 6,464 5,475 4,630 3,910 3,297 2,955 2,521
7,984 6,775 5,740 4,856 4,101 3,458 3,100 2,639
Current Annual
Pay
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
Your Current Age
25 30 35 40 45 50 55 60
.156 .207 .280 .389 .564 .872 1.517 3.516
.067 .097 .142 .215 .337 .563 1.057 2.639
.033 .053 .086 .143 .245 .447 .911 2.458
Table 4 — Monthly Savings Needed to Fund Monthly Retirement Income Shortage
Annual Investment
Return
3%
6%
9%
Educational Materials Your Current Age
25 30 35 40 45 50 55 60
3.26 2.81 2.43 2.09 1.81 1.56 1.34 1.16
Table 1 — Pay Increase Factor
Table 1: Results assume retirement at age 65, 3 percent annual pay increase and 3 percent inflation in retirement. Mortality based on 2013 Table for Distributions Subject to §417(e)(3) as published in IRS Notice 2008-85. Expected returns in retirement vary based on pre-retirement returns. For 3 percent pre-retirement returns, post-retirement returns are 3 percent. For 6 percent and 9 percent pre-retirement returns, post-retirement returns are 5 percent.
If you are a plan participant, you can access an interactive, online retirement calculator at www.standard.com/retirement. Be sure to have your user ID and password available.
This information is not intended to represent the return of any specific investment. There is no guarantee that these results will be achieved or sustained. Actual results will vary.
Table 3: Based on 2011 calculation date and limits, 3 percent annual inflation and 3.5 percent annual wage increase. For an estimate of your Social Security benefits, you can use this table or contact the Social Security Administration at 800.772.1213 or www.ssa.gov for a Personal Earnings and Benefit Estimate Statement.
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Understanding RiskNow that you have a better idea of what you’ll need to save, look at the
investment options offered by your retirement plan. When it comes to
investing your money, a little understanding can go a long way. The more you
know about different types of investments — as well as the risks involved —
the more you will be empowered to make better choices. Investments can
usually be described in three ways:
Cash Equivalents
Bonds
Stocks
Risk — the chance you could lose money — is a simple fact of investing.
But riskier investments sometimes have a greater potential for growth. The
reason for this is simple: An investor choosing between two investments
generally would not choose the riskier of the two unless it offered a chance
of earning a higher return. To attract investors, riskier investments generally
provide more growth potential. The graph below shows where different
investments fall on the risk/return scale.
Of the three basic investment groups, stocks offer the highest potential
investment returns — and the most risk to principal (the amount invested).
Bonds offer moderate potential return and less risk of principal loss
than stocks. Cash equivalent investments offer low risk and returns that
historically have been at, or slightly above, infl ation. Losing money with cash
equivalents is unlikely. However, your returns may not be high enough to
stay ahead of infl ation. In effect, the returns you earn may be just enough to
maintain your purchasing power as prices rise.
Diversifi cation Helps You Manage RiskDiversifi cation is the process of spreading your money among different
investments. Most mutual funds are automatically diversifi ed. Let’s say
you invest your money in a stock fund. That fund may hold stock in many
individual companies. Even if a few of those companies do poorly, those
losses may be offset by the stocks that perform better than expected. But
be aware that diversifi cation does not guarantee a profi t or protect against
a loss in a declining market.
Potential Risk
Po
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Stocks
Bonds
Cash Equivalents
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100K
200K
300K
400K
500K
600K
20 30 40 50
Potential growth of a hypothetical $100 monthly retirement plan contribution
$530,970
$230,917
$95,736$34,835
This example is hypothetical and for illustrative purposes only and is not indicative of the performance of any
specifi c investment. Investments are subject to market risk and fl uctuate in value. Past performance is no
guarantee of future results. This illustration assumes a gross annual growth rate of 8 percent, compounded
monthly and assumes contributions are made at the beginning of each month.
As this chart illustrates, it pays to start earlier rather than later when it comes to saving.
Time Is On Your Side
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Time Can Help Smooth Out Risk
Stocks have historically been much riskier
than investments like bonds or cash
equivalents. But as you can see from the
chart to the right, stocks have historically
outperformed other types of investments
over time.
■ Stocks (S&P 500 Index)
■ Bonds (BarCap U.S. Aggregate Bond Index)
■ Cash Equivalents (3-Month T-Bill Index)
■ Inflation (Consumer Price Index)
1980 1990 2000
$21,190
$12,980
$4,821$2,645
2010
Different Investments, Different Returns (Dec. 1980 – Dec. 2010)
The index performance shown is for illustrative purposes only and is not indicative of the performance of any
specifi c investment. Illustration assumes $1,000 invested in each category in December 1980 and held through
December 2010. S&P 500 Index: A market capitalization-weighted index of 500 widely held stocks. Investing in
stocks carries more risk than investing in bonds or cash equivalents. BarCap U.S. Aggregate Bond Index: An
index that covers the U.S. investment-grade, fi xed-rate bond market, with index components for government and
corporate securities, mortgage pass-through securities and asset-backed securities. Bonds are subject to certain
risks including interest-rate risk, credit risk and infl ation risk. Investing in bonds carries more risk than investing in
cash equivalents. 3-Month T-Bill Index: An index based on the results of auctions the U.S. Treasury holds for its
Treasury bills, which are short-term government securities. Consumer Price Index: A measure of the average
price of consumer goods and services purchased by households. Past performance is no guarantee of future
results. Investments are subject to market risk and fl uctuate in value. An investment cannot be made directly in an
index. Sources: Morningstar Direct, Legg Mason.
46
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GlossaryAsset Allocation: The allocation of investments among options that have different investment objectives and that invest in different segments of the fi nancial markets to distribute the risk to your savings.
Asset Class: Types of investments such as stocks, bonds and cash equivalents.
Automatic Rebalancer: An optional service that will periodically transfer assets in your account so the allocation of assets remains aligned with your current investment directives.
Balanced Fund: A fund investing in stocks, bonds and cash equivalent securities.
Benefi ciary: A person designated by you, or by the terms of your plan, who is or may be eligible for benefi ts under the plan if you die.
Cash Equivalents: Assets that are very liquid, highly stable (do not have a lot of volatility) and have a great degree of principal protection.
Compound Returns: Earnings that occur when returns remain in an account and begin to earn their own return.
Diversifi cation: Investing in different companies in various industries or in several different types of investment vehicles to spread risk.
Eligibility: Requirements that defi ne who may participate in the plan and when participation may begin. Consult your Summary Plan Description or the plan overview in this booklet for the specifi c requirements that apply to your plan.
ERISA: The Employee Retirement Income Security Act of 1974 is the federal law that protects employees’ interest in employee benefi t plans.
Expense Ratio: A mutual fund’s expenses for operation and management of the fund during a year, expressed as a percentage of the fund’s total assets.
Growth Fund: A mutual fund that invests primarily in stocks of companies that the fund manager expects to have earnings that grow faster than the rest of the market.
Index (Stock or Bond): A benchmark for measuring market activity. Investment indices are created by taking a sample of those investments that you are trying to compare. Different indices measure different types and sizes of investments.
Investment Objective: The stated goals of the fund manager for a particular investment option.
Investment Options: The choices available to you for the investment of your retirement plan contributions.
Large Cap: Companies whose market capitalization typically exceeds $10 billion.
Lifecycle Fund: Lifecycle funds and target date funds share the risks associated with the types of securities held by each of the underlying funds in which they invest. The principal value of target date funds and lifecycle funds is not guaranteed at any time, including at the target date. Their objectives and investment strategies change over time, generally becoming more conservative as the investor nears retirement. The target date is the approximate date when investors may begin withdrawing from the fund.
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Market Capitalization: A measure of how large a company is, market capitalization is calculated by multiplying the market price per share times the total number of shares outstanding.
Mid Cap: Companies whose market capitalization typically falls in the range of $1 billion to $10 billion.
Net Asset Value: The closing price of a mutual fund as of a specifi c date.
Principal: The amount you invest in a plan, as distinguished from interest or profi t.
Prospectus: Printed material that provides full disclosure of pertinent information about an investment option.
Real Estate Fund: A fund that invests in securities related to real estate, such as real estate investment trusts and stocks of companies in the real estate business. Real estate investment funds are subject to risk, such as market forces, that may affect the values of their underlying real estate assets.
Return: The increase or decrease in the value of an investment due to investment performance.
Risk: The chance that the value of an investment could decline in the marketplace.
Rollover: Transfer of a distribution from a retirement plan to another plan or IRA without payment of taxes.
S&P 500: A composite index of 500 stocks compiled by Standard & Poor’s Corporation that is used as a broad measure of stock market performance.
Securities: Assets such as stocks, bonds, etc., that allow you to participate in earnings and the distribution of property or other assets of the corporation issuing the security.
Small Cap: Companies whose market capitalization is typically less than $1 billion. Small-company investing involves specifi c risks not necessarily encountered in large-company investing, such as increased volatility.
Stocks: Also known as equities, stocks represent shares of ownership in corporations and their value will fl uctuate with market conditions. Future returns may or may not be enough to overcome possible annual declines. Depending on the circumstances, there may be tax consequences associated with the sale or purchase of stocks.
Summary Plan Description: A written description of your plan in an easy-to-read form, including a statement of eligibility, employee rights and appeal procedures.
Target-Date Fund: See “Lifecycle Fund” entry.
Value Fund: A mutual fund investing primarily in stocks of companies that the fund manager thinks are currently undervalued in price and expects eventually to see their worth recognized by the market.
Vesting: Your degree of ownership of retirement benefi ts or contributions made on your behalf. Benefi ts or contributions that are vested belong to you even if you leave your current employment. Benefi ts may be partially or fullyvested, depending on your plan’s provisions. Employee contributions are always fully vested. Employer contributions may be vested immediately, after a specifi ed length of time or gradually over a number of years.
Volatility: The tendency of an investment to experience price swings (ups and downs) in a short period of time.
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Retirement Account Information and Management Tools
Plan sponsors and participants should carefully consider the investment objectives, risks, charges and expenses of the investment options offered under the retirement plan before investing. The prospectuses for the individual mutual funds and each available investment option in the group annuity contain this and other important information. Prospectuses may be obtained by calling 877.805.1127. Please read the prospectus carefully before investing. Investments are subject to market risk and fl uctuate in value.
The Standard is the marketing name for StanCorp Financial Group, Inc. and its subsidiaries. StanCorp Equities, Inc., member FINRA, distributes group annuity contracts issued by Standard Insurance Company and may provide other brokerage services. Third-party administrative services are provided by Standard Retirement Services, Inc. Investment advisory services are provided by StanCorp Investment Advisers, Inc., a registered investment advisor. StanCorp Equities, Inc., Standard Insurance Company, Standard Retirement Services, Inc., and StanCorp Investment Advisers, Inc. are subsidiaries of StanCorp Financial Group, Inc. and all are Oregon corporations.
00001001000001
PHONE
800.858.5420between 5 a.m. and 5 p.m. Pacifi c time, 8 a.m and 8 p.m. Eastern
WEBSITE
www.standard.com/retirement
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Return Address Line 12930 Flowers Road SouthSuite 133AAtlanta, GA 30341
Standard Retirement Services, Inc.1100 SW Sixth AvenuePortland, OR 97204800.858.6420
www.standard.com/retirment
806561 (11/11/2011)
00001001_E_000001_ABC123