RETIREMENT PLAN CHANGES SEMINAR - Fidelity Investments...Foreign Large Blend T. Rowe Price Overseas Stock TROSX 0.86% Foreign Large Growth Fidelity® Diversified International K FDIKX

RETIREMENT PLAN CHANGES SEMINAR

Boston Children’s Hospital June 2015

2 Retirement Plan Changes Seminar

LEGAL DISCLAIMERS

This presentation is intended as a visual component to a broad educational program presented by CAPTRUST Financial Advisors. This presentation is not individual investment advice. If you have questions or concerns regarding your own individual retirement needs, please contact a CAPTRUST representative for further assistance.

CAPTRUST does not render legal, accounting, or tax advice. This material has been prepared solely for informational purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Any performance data quoted represents past performance. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Past performance is no guarantee of future results.

Individual investors have particular needs in planning for retirement. No single solution fits every investor.

Your individual needs and goals are just as unique as you are.


HOW WE WORK TOGETHER FOR YOU

Boston Children’s Hospital,

CAPTRUST and Fidelity work

together on all aspects of your

retirement plan to ensure a sound

beneficial plan offering for YOU.

Plan Sponsor

Boston Children’s Hospital

Plan Recordkeeper Fidelity

Investment Advisor

CAPTRUST

4

• Consolidated fund line-ups within each plan

• Optional post-tax Roth employee contributions

• Optional self-directed brokerage accounts

Retirement Plan Changes Seminar

ENHANCEMENTS


WHY ARE WE MAKING CHANGES

• Simplify choice for participants and better meet the needs of all types of investors

• Offer a well diversified "best in class" fund lineup

• Lower cost plan administration

• Continue to enhance and provide efficient investment and plan oversight

6

CONSOLIDATION


Investment platforms staying the same: Boston Children’s Hospital Plans will continue to be offered through Fidelity

Tier I Target Date

Tier II Core Investment Options (Active)

Tier III Core Investment Options (Passive)

Tier IV Self-Directed Brokerage

7

ADVANTAGES OF A CONSOLIDATED FUND LINEUP

• Provide choice and solutions for investors with different levels of engagement

• Leverage the plan assets to reduce investment costs charged to individual participants

• Provide a diversified core menu including active and passive options and Target Date funds that are selected and monitored on a regular basis

• Access to a self-directed brokerage account designed for more experienced investors

• Roth retirement savings option


8

TRADITIONAL VS. ROTH

*Deciding to save for retirement is step one. Your personal tax situation will help you determine what “type” of contribution is best for you.

TRADITIONAL SAVINGS (Pre-Tax) ROTH SAVINGS (Post-Tax)

• Tax Deferred Savings – Taxes are paid when money is withdrawn

• Paycheck impact is typically lower due to tax savings

• Beneficiaries will be taxed at distribution

• There are no requirements to have money invested for any specified period

• Participant’s access to accounts will be limited until age 59 ½, normal retirement or death or disability

• Contributions are taxed at current rates

• Investments grow tax free

• Paycheck impact will be slightly higher as taxes are deducted at time of contribution

• Beneficiaries will not be taxed at distribution if they meet time guidelines

• Accounts must be held for 5 years from the initial contribution

• Participant’s access to accounts will be limited until age 59 ½, normal retirement or death or disability

Same payroll deduction convenience

Same investment options Same contribution limits

Different tax consequences

Summary


EX

PE

CTE

D R

ETU

RN

EXPECTED RISK

Cash and Equivalents - Money Market Fidelity Retirement Money Market – JA Only**

Stable Value MetLife Stable Value

Intermediate Term Bond Fidelity Spartan US Bond Index Adv Fidelity Total Bond

Target Date Funds Fidelity Freedom

Large Company Value JHancock Disciplined Value R4

Large Company Blend Fidelity Spartan 500 Index Instl

Large Company Growth Fidelity Contrafund K

Medium Company Value MFS Mid Cap Value R4

Medium Company Blend Fidelity Spartan Extended Mkt Index Adv

Medium Company Growth Eagle Mid Cap Growth R5

Foreign Large Blend Fidelity Spartan Global ex US Index Advtg T Rowe Price Overseas Stock

Foreign Large Growth Fidelity Diversified International K

Small Company Value Goldman Sachs Small Cap Value IR

Small Company Growth Wells Fargo Adv Small Co Growth I

**Will be offered in the BCH JA plan only

Emerging Markets DFA Emerging Markets Core Equity

BOSTON CHILDREN’S HOSPITAL NEW INVESTMENT MENU

Retirement Plan Changes Seminar 9

Passive Investment Options Active Investment Options

Self-Directed Brokerage Option


BOSTON CHILDREN’S HOSPITAL NEW INVESTMENT MENU

Money Market Fidelity Retirement Money Market** FRTXX 0.42%

Stable Value MetLife Fixed - Old - 0.25%

Stable Value Metlife Fixed - New - 0.25%

Stable Value Metlife Policy Credit - 0.25%

Intermediate-Term Bond Fidelity® Total Bond FTBFX 0.45%

Intermediate-Term Bond Fidelity Spartan® US Bond Idx Advtg FSITX 0.10%

Moderate Allocation Fidelity Freedom Series K 0.62%

Large Value JHancock Disciplined Value R4 JDVFX 1.02%

Large Blend Fidelity Spartan® 500 Index Instl FXSIX 0.04%

Large Growth Fidelity® Contrafund® K FCNKX 0.56%

Mid-Cap Value MFS® Mid Cap Value R4 MVCJX 0.97%

Mid-CapGrowth Eagle Mid Cap Growth R5 HARSX 0.89%

Mid-Cap Blend Fidelity Spartan® Extnd Mkt Idx Advtg FSEVX 0.07%

Foreign Large Blend T. Rowe Price Overseas Stock TROSX 0.86%

Foreign Large Growth Fidelity® Diversified International K FDIKX 0.78%

Small Value Goldman Sachs Small Cap Value IR GSQTX 1.10%

Small Growth Wells Fargo Advantage Small Co Growth I WSCGX 0.95%

Diversified Emerging Mkts DFA Emerging Markets Core Equity DFCEX 0.63%

Foireign Large Blend Fidelity Spartan® Glb ex USIdxAdvtg® FSGDX 0.18%

Asset Class Investment Name Ticker Expense Ratio

11

IMPORTANT INFORMATION PROVIDED IN THE TRANSITION GUIDE

NEXT STEPS

1 New fund line-ups will be added on August 4, 2015

2 Review the amount you are saving

3 Consider Roth Retirement Savings Option

4 August 3, 2015 Boston Children’s Hospital will be closing funds certain investment options and replace them with options from the new core investment menu. Final new program will be effective August 4, 2015

5 All future contributions will be directed to the new core investment menu based on either your current personal elections OR based on the tables included in the transition brochures

6 All mutual funds will be moved automatically (“Mapped”) to the new investment menu based on the table in the transition brochure.

7 Review assets with other vendors and consider consolidating to Fidelity.


12

FIDELITY INVESTORS - WISHING TO MAINTAIN INVESTMENTS

1 Investigate a Self Directed Brokerage Account (BrokerageLink) to review available investment options

2 Transfer those assets that are supported on BrokerageLink.


13

IF YOU DO NOTHING

AS OF AUGUST 4TH THE NEW PROGRAM WILL BE LIVE:

• All new contributions will be directed to the new investment menu

After market close on August 3rd, Investments will be directed to a like asset class, if available, or to the Target Date fund based on your current age and the year you will turn 65

• Certain existing assets with Fidelity will also move after market close on August 3rd to like asset classes or to the Target Date fund based on your current age and the year you will turn 65

• Provide a diversified core menu including active and passive options and Target Date funds that are selected and monitored on a regular basis

• Access to a Self-Directed Brokerage designed for more experienced investors


14

IMPORTANT DATES



HELPFUL TIPS

1 Any amount of systematic investing is better than none

2 Determine when you might need access to the money • Short term needs

• Long term needs

3 Identify events when you will increase the amounts you can invest (salary increases, paid off debts)

4 Understand your risk tolerance

16

5 Resist the urge to “time the market”

6 Understand your investment

7 Pick a strategy and stick with it

8 Do not be afraid to ask for help, just about everyone needs it


HELPFUL TIPS


KEY CONTACTS FOR YOUR PLAN

Boston Children’s Hospital Role: PLAN SPONSOR

For: plan questions

Internal: HR Service Center External: HR Service Center Monday through Friday 8:30 am to 5:00 pm

Fidelity Investments Role: RECORDKEEPER

For: check balances, change investments or

contribution amounts, loans, rollovers &

beneficiary designations

Toll Free: 855.242.4032 (Participant Call Center) www.netbenefits.com/BCH (Participant Website)

BOSTON CHILDREN’S HOSPITAL TAX-DEFERRED ANNUITY PLAN

THANK YOU FOR ATTENDING!

Information was provided by Boston Children's Hospital. Fidelity Investments is not responsible for its content.

Documents

RETIREMENT PLAN CHANGES SEMINAR - Fidelity Investments...Foreign Large Blend T. Rowe Price Overseas Stock TROSX 0.86% Foreign Large Growth Fidelity® Diversified International K FDIKX