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SIMPLE Solutionsfor your retirement
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Transamerica. Master Retirement.®
power choice freedom
At Transamerica Retirement Services1 (“Transamerica”), we understand that planning for retirement can be challenging, especially with the complexities of life. That’s why we focus on helping you obtain the power, choice, and freedom to take control of your retirement savings strategy and chart an informed course toward your financial future.
This enrollment workbook provides tools and information to develop a retirement savings plan quickly and easily. As an established and respected provider of retirement services, our Transamerica team is dedicated to serving your education and investment needs.
With over 70 years of experience in the retirement services business, Transamerica creates customized retirement plan solutions to meet the unique needs of small- to mid-size businesses. We are committed to helping companies build a strong retirement plan benefit for their employees by offering a wide range of products, including turn-key 401(k) plans, profit-sharing, defined benefit, and new comparability plans for both clients and third party administrators.
Transamerica Retirement Services is ranked among the nation’s top providers,2 with more than 15,0003 retirement plans totaling more than $13.23 billion in plan assets under management. For more information about Transamerica, please visit www.TA-retirement.com.
Transamerica Financial Life Insurance Company and Transamerica Life Insurance Company are affiliates of Diversified Investors Securities Corp.
1 Transamerica Retirement Services (“Transamerica”), a marketing unit of Transamerica Financial Life Insurance Company (“TFLIC”), 4 Manhattanville Road, Purchase, New York 10577, and Transamerica Life Insurance Company (“TLIC”), 4333 Edgewood Road NE, Cedar Rapids, Iowa 52499, and other TFLIC and TLIC affiliates, specializes in the promotion of retirement plan products and services. TFLIC is not authorized and does not do business in the following jurisdictions: Guam, Puerto Rico, and the U.S. Virgin Islands. TLIC is not authorized in New York and does not do business in New York.
2 The November 2008 PLANSPONSOR® Magazine Defined Contribution Survey results place Transamerica Retirement Services among the top providers out of 52 for retirement plans with up to $50 million in assets based on total number of cups won. See the November 2008 issue of PLANSPONSOR® Magazine for complete results.
3 As of December 31, 2008.
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SIMPLE Solutionsfor your retirement
1
2
3
TABLEof contents
This workbook contains the information needed to enroll in TFLIC Custom Corp.
401(k) Plan. We look to provide you with the right tools at the right time to help
you secure your financial future.
Begin your journey. Enroll today.
The first step in your journey to retirement is enrolling in your retirement savings
plan. Simply review the following forms and instructions and submit the
completed documents to your plan administrator. You can also access plan and
account information online by visiting www.TA-Retirement.com. Our Web site
provides up-to-date information, helpful tips, and interactive tools to help you
discover, build, and manage your account, including a complete set of
investment fact sheets.
Our automated telephone system also offers direct access to your plan account
information. Call (800) 401-8726 to access the system 24 hours a day, seven
days a week.
Remember, it’s never too early or too late to save for retirement. We are here to
help you start saving today for a more enjoyable tomorrow.
Forms and
Instructions
Page 3
Determine your
savings goal
Page 13
Discover your
risk profile and
investment
choices
Page 19
Start Today!
Page 37
2
3999999-TFLIC
Sample
Welcome to the TFLIC Custom Corp. 401(k) Plan
Enroll today! Enrollment Form
1. Employee Information (Please Print)
Married Not Married Social Security No.: __ __ __ - __ __ - __ __ __ __
First Name M.I.
Last Name
Mailing Address Apt. No.
City State Zip Code
Date of Birth Date of Hire
If you would like to select your own contribution percentage and investment choices, SKIP Section 2, Quick Enroll, and go to Section 3,
Contribution Amount on the next page. I understand that the plan offers additional investment choices, listed in Section 5, which I may select
from. For detailed investment choice information, refer to Investment Choices: Performance Overview and Summaries.
If you would like to Quick Enroll, please ONLY complete sections 1, 2, and 6.
2. Quick Enroll
I elect to contribute every pay period the following percentage in the Plan’s Default Investment Choice listed below and understand that I
can request a change to this election:
3% 6% 10%
Default Investment Choice
1 Transamerica Stable Value Account
Keep in mind that Quick Enroll is for before-tax contributions only. If you would like to make after-tax contributions please skip Section 2, Quick
Enroll and complete Section 3, Contribution Amount.
To finish Quick Enroll sign and date the Authorization and Signature area in Section 6.
4 999999-TFLIC
Sample
Social Security No.: __ __ __ - __ __ - __ __ __ __
TFLIC Custom Corp. 401(k) Plan Enrollment Form
3. Contribution Amount
A. ______.0% Traditional 401(k) Salary Deferral Percentage on a before-tax basis.
B. ______.0% Roth 401(k) Salary Deferral Percentage on an after-tax basis.
______.0% Total Salary Deferral Percentage (A + B).
The Company may contribute a discretionary Matching Contribution to the plan.
4. Catch-Up Contribution
Consider making a Catch-up Contribition: if you will be at least 50 years of age by year end, and will contribute the maximum permitted by
the plan, or will reach the federal limit by year end ($16,500 in 2010). The maximum Catch-up Contribution is $5,500 in 2010.
I elect to contribute:
$__________.00 per pay period as a Catch-up Contribution.
$__________.00 as a one-time Catch-up Contribution.
I elect to stop making Catch-up Contributions (except as noted below).
I do not wish to make Catch-up Contributions at this time.
I will not be at least age 50 by the end of the year.
5. Investment Mix
Please invest my future plan contributions as indicated.
Check One
63 Diversified Investors Intermediate Horizon Ret Acct
(8 - 12 years)
100%
64 Diversified Investors Intermediate/Long Horizon Ret Acct
(14 - 20 years)
100%
65 Diversified Investors Long Horizon Ret Acct
(20 or more years)
100%
66 Diversified Investors Short Horizon Ret Acct
(2 - 7 years)
100%
67 Diversified Investors Short/Intermediate Horizon Ret Acct
(5 - 12 years)
100%
Option A: Strategic Allocation Series
The Strategic Allocation Series are designed for you to allocate
100% of your contributions to the one investment choice that
most closely matches your investment mix reflective of your
selected time horizon. Select only one.
If you selected Option A, sign and date in Section 6. Otherwise,
proceed to Option B.
Option B: Create Your Own Investment Portfolio
If you prefer to create your own investment portfolio, just select from the following available investment choices. All elections must be in
whole percentages and total 100%. If you elect to join the plan and fail to make an investment election, or your elections do not equal
100%, your contribution will be invested in 1 Transamerica Stable Value Account.
Asset Class Sub Asset Class Investment Choice % of Contribution
Cash Equivalents
1 Transamerica Stable Value Account ________.0%
Bond
Long Term 10 Transamerica Bond Ret Acct ________.0%
5999999-TFLIC
Sample
Social Security No.: __ __ __ - __ __ - __ __ __ __
TFLIC Custom Corp. 401(k) Plan Enrollment Form
Asset Class Sub Asset Class Investment Choice % of Contribution
High Yield Bond
68 Transamerica Partners High Yield Bond Ret Acct ________.0%
Hybrid
Strategic Allocation Series 63 Diversified Investors Intermediate Horizon Ret Acct ________.0%
64 Diversified Investors Intermediate/Long Horizon Ret Acct ________.0%
65 Diversified Investors Long Horizon Ret Acct ________.0%
66 Diversified Investors Short Horizon Ret Acct ________.0%
67 Diversified Investors Short/Intermediate Horizon Ret Acct ________.0%
Large/Mid Value Equity
Large Cap 62 Transamerica Partners Large Value Ret Acct ________.0%
Mid Cap 61 Transamerica Partners Mid Value Ret Acct ________.0%
Large/Mid Blend Equity
Large Cap 60 Transamerica Partners Large Core Ret Acct ________.0%
Large/Mid Growth Equity
Large Cap 5 Transamerica Equity Ret Acct ________.0%
Mid Cap 3 Transamerica Growth Opportunities Ret Acct ________.0%
Small Company Equity
Growth 74 Artisan Small-Cap Growth Ret Acct ________.0%
International Equity
55 Transamerica Partners International Equity Ret Acct ________.0%
Total for all investment choices must equal 100%: 100 .0%
6 999999-TFLIC
Sample
Social Security No.: __ __ __ - __ __ - __ __ __ __
TFLIC Custom Corp. 401(k) Plan Enrollment Form
6. Authorization and Signature
I hereby authorize payroll deduction of plan contributions in accordance with the level(s) I have indicated in Sections 2, 3 and 4. I
understand this constitutes a “cash or deferred arrangement” under section 401(k) of the Internal Revenue Code and that my
contributions are subject to the withdrawal restrictions of the plan. By authorizing a payroll deduction, I understand I am electing to defer a
portion of my salary to the TFLIC Custom Corp. 401(k) Plan. I understand that certain limitations are imposed on my contributions by
federal law and that my contributions may be refunded to comply with these laws. I further agree that neither TFLIC Custom Corp, the plan
trustee, nor their affiliates will be liable for any loss when acting upon my instructions believed to be genuine.
EMPLOYEE SIGNATURE_________________________________________________________ DATE________________
PLAN ADMINISTRATOR SIGNATURE_______________________________________________ DATE________________
7999999-TFLIC
Sample
TFLIC Custom Corp. 401(k) Plan
Beneficiary Form
Social Security No.: __ __ __ - __ __ - __ __ __ __
You may name anyone you wish as your beneficiary. However, if you are married and you name someone other than your spouse as beneficiary
for all or part of the benefits payable, your spouse must consent to the beneficiary designation and complete Section 8. If your spouse does not
complete Section 8, your beneficiary will be your spouse, even if you designate a different beneficiary on this form. Remember that changes
in marital status may affect your beneficiary designations, so be sure to keep your designation current.
Submit this completed form to your plan administrator.
7. Beneficiary Designation
I name the following individual(s) to receive my plan benefits in the event of my death in accordance with the terms of the plan. This
beneficiary designation cancels and replaces all prior designations and settlement agreements which I have made under the plan. Benefits
will be paid to my primary beneficiary(ies) if living. Benefits will be paid to my contingent beneficiary(ies) only if none of my primary
beneficiaries are living.
Percentages below must equal 100% for Primary Beneficiary(ies).
-and-
Percentages below must also equal 100% for Contingent (Secondary) Beneficiary(ies) - if any.
Primary Plan Beneficiary(ies) - Will receive benefits in the event of your death.
Beneficiary Name(s) and Address(es) Relationship Date of Birth Social Security NumberShare of
Benefits (%)
Contingent Plan Beneficiary(ies) - Will receive benefits if no primary beneficiary is living at the time of your death.
Beneficiary Name(s) and Address(es) Relationship Date of Birth Social Security NumberShare of
Benefits (%)
NOTE: If you do not designate a percentage for your primary beneficiaries, the benefit will be equally divided among your primary beneficiaries who survive you. If
no primary beneficiary survives you and you do not designate a percentage for your contingent beneficiaries, the benefit will be equally divided among your
contingent beneficiaries who survive you. If no beneficiary survives you, benefits will be paid as provided under the plan.
Participant Signature Date
Signed at (City and State) Date
Participant Name
8 999999-TFLIC
Sample
Social Security No.: __ __ __ - __ __ - __ __ __ __
TFLIC Custom Corp. 401(k) Plan Beneficiary Form
8. Spousal Consent - This section must be completed if your spouse is not designated (100%) as Primary Beneficiary
I, spouse of _______________________________________________, hereby consent to the designation of the beneficiary(ies) named on this
form. I understand that my spouse has designated someone other than (or in addition to) myself as a beneficiary to receive benefits under this
plan. I understand the financial impact of this designation. I also understand that my consent to this designation is irrevocable.
By signing below, I hereby waive all rights to the pre-retirement survivor benefit with respect to that portion of the plan benefits payable to a
beneficiary other than myself.
Spouse Name
Spouse Signature Date
Notary Public or Plan Representative Signature Required:
Subscribed and sworn to me before this day of ,
Signature
State County
9999999-TFLIC
Sample
TFLIC Custom Corp. 401(k) Plan
Rollover Form
Five Simple Steps
1. Contact your plan administrator or refer to your Summary Plan Description to make sure you’re eligible to roll over your plan
account balance from a prior qualified retirement plan.
2. Contact your prior company and request a rollover distribution. If you have an IRA, contact your IRA investment manager and
request a withdrawal. Be sure to have the distribution check made payable to Transamerica, FBO “Reference Your Name”
(e.g., Transamerica, FBO Jane Doe) and have it sent directly to you.
3. Complete the Rollover Form below.
5. Your plan administrator will sign, date and submit the form and check to Transamerica for processing.
You must first enroll in the plan and complete a Beneficiary Designation Form.
1. Employee Information (Please Print)
Married Not Married Social Security No.: __ __ __ - __ __ - __ __ __ __
First Name M.I.
Last Name
Mailing Address Apt. No.
City State Zip Code
Date of Birth Date of Hire
2. Previous Plan/IRA Information
Name of Prior Plan
abc
Mark One:* ™ ™ ™ ™ ™
401(k) 401(a) 403(a) 403(b) Profit Sharing
™ ™ ™ ™ ™ ™
Money Purchase Government 457 Conduit IRA Traditional IRA Roth 401(k) - Direct Roth401(k) - Indirect
For Roth 401(k) rollovers, please complete the information below. This information should have been provided by your rollover institution.
Year of first Roth 401(k) Contribution ____________________
Roth Contribution Basis ____________________ (This is the non-taxable portion of your distribution)
*Your plan may not accept rollovers from all plan types listed above. Contact your plan administrator to make sure your rollover qualifies.
Continued on next page
10 999999-TFLIC
Sample
Social Security No.: __ __ __ - __ __ - __ __ __ __
TFLIC Custom Corp. 401(k) Plan Rollover Form
Person to Contact:
First Name M.I.
Last Name
Mailing Address Apt. No.
City State Zip Code
Phone Number
3. Tax Information
All of this distribution amount would be taxable to me if I did not roll it over.
This rollover includes after-tax contributions in the amount of $_____________. The remainder will be taxable income to me
if I did not roll it over.
No part of this rollover is a minimum required distribution.
No part of this rollover is a hardship withdrawal.
All of this distribution is a Roth 401(k) rollover.
4. Employee Authorization
I wish to contribute a single sum rollover in the amount of $_____________, which represents a distribution from another qualified retirement
plan. A check made payable to Transamerica, FBO “Reference Your Name” (e.g., Transamerica, FBO Jane Doe) is attached. I understand the
withdrawal restrictions that apply to these contributions.
Employee Signature Date
5. Plan Administrator Authorization
I authorize these rollover funds to be deposited into the participant’s account.
Plan Administrator Signature Date
6. Investment Mix
Please invest my rollover contribution of approximately $_____________ as indicated on the following % of Contribution column in whole
percentage increments.
If you do not make an investment election or your elections do not equal 100%, your rollover contribution will be invested in Transamerica
Stable Value Account.
Asset Class Sub Asset Class Investment Choice % of Contribution
Cash Equivalents
1 Transamerica Stable Value Account ________.0%
11999999-TFLIC
Sample
Social Security No.: __ __ __ - __ __ - __ __ __ __
TFLIC Custom Corp. 401(k) Plan Rollover Form
Asset Class Sub Asset Class Investment Choice % of Contribution
Bond
Long Term 10 Transamerica Bond Ret Acct ________.0%
High Yield Bond
68 Transamerica Partners High Yield Bond Ret Acct ________.0%
Hybrid
Strategic Allocation Series 63 Diversified Investors Intermediate Horizon Ret Acct ________.0%
64 Diversified Investors Intermediate/Long Horizon Ret Acct ________.0%
65 Diversified Investors Long Horizon Ret Acct ________.0%
66 Diversified Investors Short Horizon Ret Acct ________.0%
67 Diversified Investors Short/Intermediate Horizon Ret Acct ________.0%
Large/Mid Value Equity
Large Cap 62 Transamerica Partners Large Value Ret Acct ________.0%
Mid Cap 61 Transamerica Partners Mid Value Ret Acct ________.0%
Large/Mid Blend Equity
Large Cap 60 Transamerica Partners Large Core Ret Acct ________.0%
Large/Mid Growth Equity
Large Cap 5 Transamerica Equity Ret Acct ________.0%
Mid Cap 3 Transamerica Growth Opportunities Ret Acct ________.0%
Small Company Equity
Growth 74 Artisan Small-Cap Growth Ret Acct ________.0%
International Equity
55 Transamerica Partners International Equity Ret Acct ________.0%
Total for all investment choices must equal 100%: 100 .0%
12
Determine your savings goal
1Step One
• Sources of retirement income
• contribution rate table
• The power of tax deferral
13
abc
1Step One: Determine your savings goal
most of your retirement income will come from you.
Social Security covers only about 37% of the average retiree’s income, and fewer employers offer traditional pension plans. In reality, the majority of your retirement income will likely come from either your own savings or from part-time employment after retirement. If your goal is to live comfortably and work less in retirement, you need to start saving today.
You may need more retirement income than you think.
The income you will need in retirement depends greatly on your individual circumstances, including factors such as your age, health, income, investments, and savings. Retirement experts estimate that retirees may need from 77% to over 94% of their preretirement income due to increased life expectancy and growing health care expenses.1
Based on today’s average life expectancy, you may need retirement income for 20 years or more after your regular paychecks stop. As a result, you need to take steps now to ensure you have enough money to live comfortably in your retirement years.
make a commitment to save.
The table on the following page is designed to help you target a total retirement savings goal of 80% of your projected final preretirement salary for each year in retirement.
SourceS of reTiremenT income
10% Large/Mid Value Equity
10% High Yield Bond
70% Bond
10% Cash Equivalents
Small Company Equity
International Equity
Large/Mid Growth Equity
Large/Mid Blend Equity
Large/Mid Value Equity
Bond
High Yield Bond
Small Company Equity
International Equity
Large/Mid Growth Equity
Large/Mid Blend Equity
Large/Mid Value Equity
Bond
High Yield Bond
10%
7%
10%
8%
15%
40%
10%
Small Company Equity
International Equity
Large/Mid Growth Equity
Large/Mid Blend Equity
Large/Mid Value Equity
Bond
High Yield Bond
14%
10%
14%
11%
21%
22%
8%
20%
15%
20%
15%
30%
6%
4%
6%
5%
9%
55%
15%
Small Company Equity
International Equity
Large/Mid Growth Equity
Large/Mid Blend Equity
Large/Mid Value Equity
18%
15%
37%
3%
28%
Pensions
Savings and investments
Social Security
Other
Earnings from work
Fast Facts & Figures About Social Security, September 2008.
1 Aon Consulting, 2008 Replacement Ratio Study.™
start planning today
to find out what you can expect to receive from social security when you retire, go to
www.ssa.gov or call
(800) 772-1213 to request an estimate.
14
The contribution rates are based on National Savings Guidelines for Individuals, developed by Ibbotson Associates, and are meant to be guidelines only. They assume: an unmarried investor with a retirement age of 65, Social Security income is included; annual inflation of 2.5% and replacement income is targeted at 80% of final preretirement salary for each year in retirement. Some percentages may exceed plan and/or IRS limits.
conTribuTion rATe TAble
This table provides guidelines for determining the percentage of your salary you should be saving. For example, if you were 10 years from retirement, had $50,000 in current retirement savings, and an annual salary of $40,000 your target contribution rate would be 15%.
Current retirement Time horizon savings Current annual salary (in thousands)
Years to retirement Age $20 $30 $40 $50 $75 $100 $125 $150
5 60 $0 18% 26% 30% 30% 40% 46% 51% 54% $50,000 8% 16% 23% 24% 36% 43% 48% 52% $100,000 8% 8% 17% 19% 32% 41% 46% 51% $150,000 8% 8% 11% 14% 29% 38% 44% 49% $250,000 8% 8% 8% 8% 22% 33% 40% 46%
10 55 $0 15% 20% 21% 23% 31% 35% 39% 43% $50,000 8% 12% 15% 18% 27% 32% 37% 41% $100,000 8% 8% 10% 14% 24% 30% 35% 40% $150,000 8% 8% 8% 9% 21% 28% 33% 39% $200,000 8% 8% 8% 8% 18% 26% 31% 37% $250,000 8% 8% 8% 8% 15% 24% 30% 36%
15 50 $0 14% 18% 18% 20% 26% 29% 32% 35% $50,000 6% 10% 13% 15% 23% 27% 30% 33% $100,000 6% 6% 8% 11% 20% 25% 28% 32% $150,000 6% 6% 6% 7% 17% 23% 27% 31% $200,000 6% 6% 6% 6% 14% 21% 25% 30%
20 45 $0 11% 14% 15% 17% 21% 23% 26% 27% $50,000 6% 7% 10% 13% 18% 21% 24% 25% $100,000 6% 6% 6% 9% 15% 19% 22% 24% $150,000 6% 6% 6% 5% 13% 17% 21% 23%
25 40 $0 9% 11% 12% 14% 16% 18% 21% 22% $50,000 4% 4% 7% 10% 13% 16% 19% 20% $100,000 4% 4% 4% 6% 11% 14% 18% 19% $150,000 4% 4% 4% 4% 8% 12% 16% 18%
30 35 $0 7% 9% 9% 11% 13% 15% 16% 18% $25,000 4% 5% 6% 9% 11% 14% 15% 17% $50,000 4% 4% 4% 7% 10% 13% 14% 17% $100,000 4% 4% 4% 4% 8% 11% 13% 16%
35 30 $0 6% 7% 8% 9% 11% 12% 13% 14% $10,000 4% 5% 7% 8% 10% 11% 12% 13% $25,000 3% 3% 6% 7% 9% 11% 12% 13% $50,000 3% 3% 4% 5% 8% 10% 11% 13% $100,000 3% 3% 3% 3% 6% 8% 10% 12%
40 25 $0 4% 6% 6% 7% 8% 9% 10% 11% $10,000 3% 4% 5% 6% 7% 8% 9% 10% $25,000 3% 3% 4% 5% 6% 8% 9% 10% $50,000 3% 3% 3% 3% 5% 7% 8% 10%
15
1plan today for a more secure tomorrow.
For some people, retirement may seem a lifetime away. But, if you postpone your savings plan, it will be extremely difficult to make up for lost time. Saving for your future in a tax-deferred retirement savings plan reduces your taxable income and accelerates your savings. Every dollar you contribute to your retirement savings plan account is deducted from your salary before taxes are taken out. In addition, the money in your plan has the potential to grow tax-free until you withdraw it.
0
$60,000
$120,000
$180,000
$240,000
$300,000
$117,476
$227,822
After 30 years
$2,500 annual contribution
Assumes 6.8% annual return. The after-tax example includes a 28% tax on deposits and gains. Assumptions do not include wage increases or inflation. See disclosures at the end of the workbook.
After-tax
Before-tax
The power of TAx deferrAl
16
The importance of starting early.
The need to start saving as early as possible is demonstrated by the following example: At age 21, Anne and Tracy were hired for similar jobs at the same salary. Anne immediately began investing $30 per week. After 14 years, Anne stopped contributing, but left the money in her plan to grow for the next 30 years. By contrast, Tracy did not begin investing $30 per week until age 35, but did so for the next 30 years. Although Tracy invested twice as much overall, Anne accumulated nearly twice as much as Tracy at retirement because she started saving early.
The imporTAnce of STArTing eArlY
0
$100,000
$200,000
$300,000
Anne (age 21) contributed for 14 years
Tracy (age 35) contributed for 30 years
$46,800
$21,840
$249,614
$142,161
Total contributions
$30 contribution per week
Balance at age 65
Assumes 6.8% annual return. Assumptions do not include wage increases or inflation. See disclosures at the end of the workbook.
Ima
17
18
2Step Two
• discovering your risk tolerance
• understanding asset allocation and diversification
• choosing your investments
Discover your risk profile and investment choices
19
abcabc
understanding asset classes.
The investment choices available through your retirement savings plan fall into a combination of three broad asset classes. Asset classes are categories of investments that exhibit similar characteristics and may behave similarly in the marketplace.
In general, different types of investments react differently to the same market conditions. Understanding how stocks, bonds, and cash equivalents work will help you form the basis for developing a long-term investment strategy that corresponds to your risk tolerance. As shown in the following chart, different types of investments have different rates of return over time. Here are the three main types of asset classes:
Stocks are shares of ownership in a company. Over the past 25 years, stocks have returned an average annual return of about 9.8%.2
bonds represent the loan of money to a company or government. Bonds have
returned an average annual return of about 8.4% over the past 25 years.3
cash equivalents seek to maintain the value of your investments. Over the past 25 years, cash equivalents have returned an average annual return of 5.0%.4
2 Based on average annual total returns of the S&P 500® Index over 25 years from December 1983-December 2008. Source: Morningstar, Inc.
3 Based on average annual total returns of the Barclays Capital Aggregate Bond Index over 25 years from December 1983-December 2008. Source: Morningstar, Inc.
4 Based on average annual total returns of Citigroup 3-month U.S. Treasury Bill Index over 25 years from December 1983-December 2008. Source: Morningstar, Inc.
2Step Two: Discover your risk profile and investment choices
* This chart is for illustrative purposes only, and your circumstances may differ from this example. Chart assumes $1,000 invested in December 1983–December 2008. It does not reflect the actual return of any specific investment and is not intended to imply or guarantee future results. One cannot invest directly in an index. An index is unmanaged and does not take into account the fees and expenses associated with an actively managed fund, so performance may differ. There is no guarantee that any asset class will achieve a certain rate of return or outperform another asset class. Past performance is not a guarantee of future performance. Calculated by Transamerica Retirement Services using data from Morningstar, Inc.
hiSToricAl ASSeT clASS performAnce
Growth of $1,000*
Stocks: S&P 500 Index
Bonds: Barclays Capital Aggregate Bond Index
Cash: Citigroup 3-month U.S. Treasury Bill Index
1983 1988 1993 1998 2003 2008
$20,000.00
$15,000.00
$10,000.00
$5,000.00
$0.00
$10,281.79
$7,532.64
$3,348.02
20
Asset allocation and diversification.
In addition to understanding the asset classes, learning about some basic investment strategies is also vital to creating an investment plan that meets your needs. Asset allocation is how you divide your money among the different types of investments according to your individual goals, risk tolerance, and investment horizon. Each of the three main asset classes—stocks, bonds, and cash equivalents—have different levels of risk and return, so each will behave differently over time. A portfolio is a grouping of financial assets that are held directly by investors or managed by professionals.
rebalancing your portfolio.
Diversification is a risk management technique that mixes a wide variety of investments within a portfolio so that the positive performance of some investments will neutralize the negative performance of others. For example, when stock prices rise, bond prices often decline. A portfolio with different kinds of investments will, on average, yield higher returns and pose a lower risk than any individual investment within a portfolio.
Despite a constantly changing economic climate, consider largely staying the course with your retirement investments. However, you need to monitor your portfolio on a regular basis to ensure you have the right investment mix based on your age, number of years to retirement, and life events, such as marriage, children, or income changes. While some adjustments to your portfolio may be necessary, try to avoid selling your assets because you are disappointed in their short-term performance. Financial markets are cyclical, and selling your assets in a downturn could prevent you from reaping positive gains during a market recovery, while hindering your long-term savings goals.
Stocks Cash equivalentsBonds
20%
30%
50%
Beginningportfolio
20%
20%
60%
Year-endportfolio
20%
30%
50%
Rebalancedportfolio
21
2Your risk profile.
The next step to meeting your retirement savings goal is to consider the level of risk and rate of return that’s right for you. Your overall background—including your age, income, family situation, current financial picture, and overall investment disposition—will guide what level of risk you will be comfortable with in pursuit of your investment goals. Investing is a way to make your money work for you so that you can take calculated risks for the promise of a better reward. The more you know about risk and how it can affect you, the more peace of mind you will have about your investment decisions.
consider the following questions.
whAT iS Your riSk TolerAnce?
Typically, the higher the rate of return you target, the more heavily you will need to invest in stocks. This is because, historically, stocks have delivered higher long-term returns than any other investment type. Stocks have also historically been the most volatile investment type, which means they fluctuate in value the most rapidly. Your ability to stay the course during fluctuations in the stock market and benefit from its long-term growth is called your “risk tolerance.”
how mAnY YeArS do You hAve To inveST?
Before investing, determine the amount of time you have until you plan to retire. If your investment time horizon is short, consider limiting your exposure to the volatility of the stock market. Investing in the stock market typically works better when you have a longer time horizon to recover from economic downturns.
how much hAve You SAved AlreAdY?
If you’ve already started saving for retirement, you’re a step ahead. It’s important to factor those existing savings into your plan for the future.
are you close
to retirement?
typically, employees who are close to retirement gradually shift their portfolios to safer, more conservative investments that are better protected during volatile times. For someone who is farther from retirement, the good news during difficult economic times is that most of their portfolio growth will come from future contributions and earnings.
22
complete the risk tolerance questionnaire.
Your risk tolerance refers to how comfortable you are with fluctuations in the market and the short- and long-term effects they may have on your investments. Read the following questions and circle the point(s) that correspond to your answers. After you’ve completed the questionnaire, total all your points.
1 Do you agree or disagree with the following statement? “I am a long-term investor who expects to do well over the next five to ten years or longer. The final result is more important to me than daily, monthly, or annual fluctuations in the value of my account.”
a totally disagree 1 point
B Willing to accept a small amount of fluctuation, but not much loss of principal 2 points
c can accept a moderate amount of annual volatility, but no significant loss of principal 3 points
d Would accept an occasional annual loss if the final results were good 4 points
e totally agree 5 points
2 Assume you have $10,000 in your retirement account, primarily invested in equity (stock) investments. Over the next 12 months, your account drops to $8,000. What would you do with the remaining assets?
a transfer all assets to money market or cash investments—low risk/lower return 0 points
B transfer the assets to bond investments— moderate risk/moderate returns 1 point
c consider transferring a small portion of your assets to bond investments 3 points
d make no changes to your account 5 points
3 While inflation (the rise in the cost of goods and services) can reduce the buying power of money over time, equity investments have historically outpaced inflation as the result of taking higher amounts of risk. Which of the following describes your views?
a i am comfortable if my investments only keep pace with inflation 0 points
B i am comfortable taking a small amount of risk to outpace inflation 1 point
c i am comfortable taking a moderate amount of risk to significantly outpace inflation 3 points
d i want to fully capitalize on my investments despite the potential risk 5 points
4 What is your age?
a 60 years or more 1 point
B 50–59 years 2 points
c 40–49 years 3 points
d 30–39 years 4 points
e less than 30 years 5 points
5 How many years before you plan on accessing your retirement savings?
a less than 3 years 0 points
B 3–5 years 1 point
c 6–10 years 2 points
d 11–15 years 3 points
e more than 15 years 4 points
Total points.
Locate your risk profile in the table.
Take your total points from the Risk Tolerance Questionnaire and check the risk profile that best describes you.
risK proFile total points
c conservative 7 or less
c moderate/conservative 8–11
c moderate 12–16
c moderate/aggressive 17–21
c aggressive 22 or more
23
match your risk profile to a sample investment allocation.
Now that you have a better understanding of how much you need to save to reach your retirement goal and the amount of investment risk you’re willing to take to get there, it’s time to select the investments that are best suited for you.
Review the following pie charts to find the chart that corresponds to your risk profile. Each chart identifies the “mix” to consider and the percentages you may choose to allocate to each of the eight asset classes.5 In addition to the average rate of return, each sample investment allocation shows the highest and lowest annual rate of return over 50 years.6
As you can see, the more aggressive the investment mix, the higher the average rate of return. However, you can expect greater fluctuation or volatility as illustrated by the higher highs and the lower lows. If your investment’s allocation produces a higher or lower rate of return, you may need to adjust the amount you save to reach your retirement goal.
Using the pie charts provided, select the investment mix that’s right for you and check the box next to your suggested investment allocation.
choose your investments.
Now that you’ve identified an investment allocation mix that will help achieve your retirement goals, you must select the specific investments within each asset class that is identified in your asset mix by following these steps:
• Review your investment choices in the Forms and instructions section along with the performance overview and summaries that follow.
• Select the investment choice(s) you’d like to include in your portfolio.
• Assign a percentage of your contribution to your investment choice(s).
2
risK and return
risk and return go hand-in-hand. the higher your risk tolerance, the more you may wish to invest in stocks because they offer the most potential for growth over the long term. if you’re comfortable with the performance risk, you should expect to experience volatility in the short term.
5 See disclosures at the end of the workbook. Sample investment allocations do not include the following asset classes: Global Equity, Hybrid, and Specialty. Your plan may not offer all asset classes.
6 The rates of return shown are annual rates based on historical rates of return over the past 50 years (1959–2008) and are adjusted for an assumed management fee of 1.25%. These risk and return expectations may not be realized over future time periods or future economic or business cycles; therefore, they are not intended to be predictions of risk or return. The historical and expected rates of return are based on historical performance and do not reflect the performance of any specific investment choice. The rates of return are not guaranteed. Past performance is not necessarily representative of future results.
24
c conservativeaverage return: 6.1%
High: 25.3%
low: -3.7%
suggested investment period: 2-7 years
c moderate/conservativeaverage return: 6.8%
High: 25.3%
low: -13.5%
suggested investment period: 5-12 years
c moderateaverage return: 7.4%
High: 25.8%
low: -20.5%
suggested investment period: 8-15 years
c moderate/Aggressiveaverage return: 7.9%
High: 30.1%
low: -28.4%
suggested investment period: 14-20 years
c Aggressiveaverage return: 8.7%
High: 43.4%
low: -38.8%
suggested investment period: 20 plus years
10% Large/Mid Value Equity
10% High Yield Bond
70% Bond
10% Cash Equivalents
Small Company Equity
International Equity
Large/Mid Growth Equity
Large/Mid Blend Equity
Large/Mid Value Equity
Bond
High Yield Bond
Small Company Equity
International Equity
Large/Mid Growth Equity
Large/Mid Blend Equity
Large/Mid Value Equity
Bond
High Yield Bond
10%
7%
10%
8%
15%
40%
10%
Small Company Equity
International Equity
Large/Mid Growth Equity
Large/Mid Blend Equity
Large/Mid Value Equity
Bond
High Yield Bond
14%
10%
14%
11%
21%
22%
8%
20%
15%
20%
15%
30%
6%
4%
6%
5%
9%
55%
15%
Small Company Equity
International Equity
Large/Mid Growth Equity
Large/Mid Blend Equity
Large/Mid Value Equity
18%
15%
37%
3%
28%
Pensions
Savings and investments
Social Security
Other
Earnings from work
Fast Facts & Figures About Social Security, September 2008.
10% Large/Mid Value Equity
10% High Yield Bond
70% Bond
10% Cash Equivalents
Small Company Equity
International Equity
Large/Mid Growth Equity
Large/Mid Blend Equity
Large/Mid Value Equity
Bond
High Yield Bond
Small Company Equity
International Equity
Large/Mid Growth Equity
Large/Mid Blend Equity
Large/Mid Value Equity
Bond
High Yield Bond
10%
7%
10%
8%
15%
40%
10%
Small Company Equity
International Equity
Large/Mid Growth Equity
Large/Mid Blend Equity
Large/Mid Value Equity
Bond
High Yield Bond
14%
10%
14%
11%
21%
22%
8%
20%
15%
20%
15%
30%
6%
4%
6%
5%
9%
55%
15%
Small Company Equity
International Equity
Large/Mid Growth Equity
Large/Mid Blend Equity
Large/Mid Value Equity
18%
15%
37%
3%
28%
Pensions
Savings and investments
Social Security
Other
Earnings from work
Fast Facts & Figures About Social Security, September 2008.
10% Large/Mid Value Equity
10% High Yield Bond
70% Bond
10% Cash Equivalents
Small Company Equity
International Equity
Large/Mid Growth Equity
Large/Mid Blend Equity
Large/Mid Value Equity
Bond
High Yield Bond
Small Company Equity
International Equity
Large/Mid Growth Equity
Large/Mid Blend Equity
Large/Mid Value Equity
Bond
High Yield Bond
10%
7%
10%
8%
15%
40%
10%
Small Company Equity
International Equity
Large/Mid Growth Equity
Large/Mid Blend Equity
Large/Mid Value Equity
Bond
High Yield Bond
14%
10%
14%
11%
21%
22%
8%
20%
15%
20%
15%
30%
6%
4%
6%
5%
9%
55%
15%
Small Company Equity
International Equity
Large/Mid Growth Equity
Large/Mid Blend Equity
Large/Mid Value Equity
18%
15%
37%
3%
28%
Pensions
Savings and investments
Social Security
Other
Earnings from work
Fast Facts & Figures About Social Security, September 2008.
10% Large/Mid Value Equity
10% High Yield Bond
70% Bond
10% Cash Equivalents
Small Company Equity
International Equity
Large/Mid Growth Equity
Large/Mid Blend Equity
Large/Mid Value Equity
Bond
High Yield Bond
Small Company Equity
International Equity
Large/Mid Growth Equity
Large/Mid Blend Equity
Large/Mid Value Equity
Bond
High Yield Bond
10%
7%
10%
8%
15%
40%
10%
Small Company Equity
International Equity
Large/Mid Growth Equity
Large/Mid Blend Equity
Large/Mid Value Equity
Bond
High Yield Bond
14%
10%
14%
11%
21%
22%
8%
20%
15%
20%
15%
30%
6%
4%
6%
5%
9%
55%
15%
Small Company Equity
International Equity
Large/Mid Growth Equity
Large/Mid Blend Equity
Large/Mid Value Equity
18%
15%
37%
3%
28%
Pensions
Savings and investments
Social Security
Other
Earnings from work
Fast Facts & Figures About Social Security, September 2008.
10% Large/Mid Value Equity
10% High Yield Bond
70% Bond
10% Cash Equivalents
Small Company Equity
International Equity
Large/Mid Growth Equity
Large/Mid Blend Equity
Large/Mid Value Equity
Bond
High Yield Bond
Small Company Equity
International Equity
Large/Mid Growth Equity
Large/Mid Blend Equity
Large/Mid Value Equity
Bond
High Yield Bond
10%
7%
10%
8%
15%
40%
10%
Small Company Equity
International Equity
Large/Mid Growth Equity
Large/Mid Blend Equity
Large/Mid Value Equity
Bond
High Yield Bond
14%
10%
14%
11%
21%
22%
8%
20%
15%
20%
15%
30%
6%
4%
6%
5%
9%
55%
15%
Small Company Equity
International Equity
Large/Mid Growth Equity
Large/Mid Blend Equity
Large/Mid Value Equity
18%
15%
37%
3%
28%
Pensions
Savings and investments
Social Security
Other
Earnings from work
Fast Facts & Figures About Social Security, September 2008.
SAmple inveSTmenT AllocATionS
See disclosures at the end of the workbook. The rates of return shown are annual rates based on historical rates of return over the past 50 years (1959–2008) and are adjusted for an assumed management fee of 1.25%. These risk and return expectations may not be realized over future time periods or future economic or business cycles; therefore, they are not intended to be predictions of risk or return. The historical and expected rates of return are based on historical performance and do not reflect the performance of any specific investment choice. The rates of return are not guaranteed. Past performance is not necessarily representative of future results.
25
26 999999-TFLIC
2
† See description of this asset class in the investment choices summary section.
Not FDIC Insured May Lose Value No Bank Guarantee
Investment Choices: Performance Overview and Summaries
TFLIC Custom Corp. 401(k) Plan
The performance data quoted represents past performance and does not guarantee future results. The investment return and principal
value of an investment will fluctuate; thus an investor’s shares, when redeemed, may be worth more or less than their original cost. Current
performance may be lower or higher than return data quoted herein. Please go to www.TA-Retirement.com to obtain performance current to
the most recent month-end. In addition, comprehensive information on all investment choices is available on the investment fact sheet.
Please refer to the disclosure page for additional information.
Transamerica Financial Life Insurance Company and Transamerica Life Insurance Company are affiliates of Diversified Investors Securities
Corp.
Performance shown in percentages as of December 31, 2009 Average Annual TotalExpense
Ratio
Year to
Date
Last
Quarter1 Year 3 Years 5 Years 10 Years Net
Cash Equivalents†
Transamerica Stable Value Account 3.16 2.83 3.16 3.52 3.54 3.40* 0.00
(*Performance Inception: 11/01/2002)
Bond
Long Term
Transamerica Bond Ret Acct 14.84 1.93 14.84 5.04 4.04 4.03 0.97
High Yield Bond
Transamerica Partners High Yield Bond Ret Acct 56.18 5.89 56.18 3.89 5.14 6.01 1.10
Hybrid
Strategic Allocation Series
Diversified Investors Intermediate Horizon Ret Acct 21.08 3.69 21.08 -1.62 1.54 1.80 1.21
Diversified Investors Intermediate/Long Horizon Ret Acct 23.51 4.45 23.51 -4.42 0.33 0.56 1.28
Diversified Investors Long Horizon Ret Acct 25.18 5.11 25.18 -7.32 -0.97 -1.50 1.34
Diversified Investors Short Horizon Ret Acct 16.44 2.14 16.44 3.53 3.57 4.35 1.10
Diversified Investors Short/Intermediate Horizon Ret
Acct
19.17 3.08 19.17 0.91 2.54 3.02 1.15
Large/Mid Value Equity
Large Cap
Transamerica Partners Large Value Ret Acct 15.82 4.70 15.82 -13.77 -3.93 0.36 1.00
Mid Cap
Transamerica Partners Mid Value Ret Acct 32.18 5.54 32.18 -5.82 1.42 11.30 1.25
27
Performance shown in percentages as of December 31, 2009 Average Annual TotalExpense
Ratio
Year to
Date
Last
Quarter1 Year 3 Years 5 Years 10 Years Net
Large/Mid Blend Equity
Large Cap
Transamerica Partners Large Core Ret Acct 22.66 5.62 22.66 -7.77 -1.45 -4.69 1.15
Large/Mid Growth Equity
Large Cap
Transamerica Equity Ret Acct 29.25 7.76 29.25 -6.25 0.59 -1.41 1.10
Mid Cap
Transamerica Growth Opportunities Ret Acct 33.06 3.28 33.06 -2.65 1.60 -1.55 1.10
Small Company Equity
Growth
Artisan Small-Cap Growth Ret Acct 44.81 6.08 44.81 -5.59 -0.82 -7.85 1.38
International Equity
Transamerica Partners International Equity Ret Acct 26.05 3.70 26.05 -11.36 -0.48 -1.78 1.40
* Performance shown since inception is from the performance inception date of the separate account or underlying
investment as shown on the Investment Choices Performance Overview.
Investment Choices: Summaries
Cash Equivalents - Investment choices whose objectives are to maximize current income, consistent with liquidity and
preservation of principal.
Investment Risk: This category seeks to protect against loss of principal while providing returns comparable to money market funds and
short-term Treasury instruments. An investment in a cash equivalent investment choice is not insured or guaranteed by the FDIC or any
other government agency. Although the investment seeks to preserve the value of your principal, it is possible to lose money by
investing in the investment choice. These investment choices have generally provided a dependable level of stability and liquidity;
nevertheless, the investment is still subject to credit risk and to liquidity risk.
Transamerica Stable Value Account As of 12/31/2009
Inception Date: 11/01/2002
Investment Strategy: Best suited for investors seeking a stable return and safety of principal. The investment seeks to protect against any
loss of principal while providing returns in excess of money market funds and one-year treasury bills. The investment has a portfolio
investment rate design in which all deposits are credited with the same interest rate, credited on a daily basis, and there is no set
maturity. The effective credited interest rate is set monthly and effective on the first day of the month. Contract charges may reduce this
return.
Financial Strength Ratings:
A.M. Best A (Excellent) 3rd of 16
Fitch AA (Very Strong) 3rd of 19
Standard & Poor's AA- (Very Strong) 4th of 21
Moody's A1 (Good) 5th of 21
TFLIC is awarded the above high claims paying ability ratings from the top four financial rating agencies.
28
2Investment information: Not available
AAA
Bond - Investment choices that pursue their objectives primarily through the investment in investment grade bonds, issued
by domestic companies and government agencies. Investment choices may also invest a portion of their assets in below
investment grade securities.
Investment Risk: The values of bonds change in response to changes in economic conditions, interest rates and the creditworthiness of
individual issuers. Investment choices that invest in bonds can lose their value as interest rates rise and an investor can lose principal.
Long Term
Transamerica Bond Ret Acct As of 12/31/2009
Inception Date: 07/01/2001
Investment Strategy: The investment seeks high total return, consistent with capital preservation. It is best suited for investors who wish
to invest in a diversified portfolio of bonds and who have the ability to accept above-average bond price volatility in pursuit of a high total
return. Assets are invested primarily in a diversified selection of longer term, investment grade corporate and government bonds and
mortgage-backed securities. No more than 7% of assets may be invested in below-investment grade-bonds. The manager seeks to
identify bonds whose potential to outperform other similar bonds, by virtue of underlying credit strength and market mispricing, is not
fully reflected in the current valuations.
Expense Ratio: Type 3*: 0.97% of fund assets
Redemption Fee/Term: --
Trading Restrictions: Type A*
Management Company: Transamerica Insurance Company
Subadvisor: Transamerica Investment Mgmt, LLC
*See Disclosure Page for more details.
Investment information: The Transamerica Bond Ret Acct is a Separate Account Sub-Account maintained by TFLIC and invests
exclusively in the Transamerica Bond Ret Opt, a Transamerica Life Insurance Company (TLIC) Separate Account. The TLIC Separate
Account is sub-advised by Transamerica Investment Management, LLC.
AAA
High Yield Bond - Investment choices that invest primarily in bonds which are considered riskier and have a higher yield.
Investing in high yield, lower quality securities generally offer higher yield but also involve heightened risk.
Investment Risk: The investor should note that investment choices that invest in lower-rated debt securities (commonly referred to as
junk bonds) involve additional risks because of the lower credit quality of the securities in the portfolio. The investor should be aware of
the possible higher level of volatility, and increased risk of default.
Transamerica Partners High Yield Bond Ret Acct As of 12/31/2009
Inception Date: 04/01/2002
Investment Strategy: The investment seeks to provide a high level of current income. The fund invests primarily in high-yielding, income
producing debt securities and preferred stocks. Under normal circumstances it invests at least 80% of net assets in high-yield bonds
and related investments. High-yield securities usually are lower-rated debt securities, commonly referred to as "junk bonds." Investing in
junk bonds is an aggressive approach to income investing.
Expense Ratio: Type 4*: 1.10% of fund assets
Redemption Fee/Term: --
Trading Restrictions: --
Management Company: Transamerica Asset Management, Inc
Subadvisor: Eaton Vance Management
*See Disclosure Page for more details.
Investment information: The Transamerica Partners High Yield Bond Ret Acct is a Separate Account Sub-Account maintained by TFLIC
and invests exclusively in the Transamerica Partners High Yield Bond Ret Opt, a Transamerica Life Insurance Company (TLIC) Separate
Account. The TLIC Separate Account invests exclusively in the Transamerica Partners High Yield Bond Fund (Investor Class), a mutual
fund (Fund).
AAA
29
Hybrid - Investment choices that invest in a combination of domestic stocks, bonds, treasuries and money market
securities.
Investment Risk: The values of stocks change in response to general market and economic conditions and the circumstances of
individual issuers. The values of bonds change in response to changes in economic conditions, interest rates and the creditworthiness
of individual issuers.
Strategic Allocation Series
Diversified Investors Intermediate Horizon Ret Acct As of 12/31/2009
Inception Date: 04/01/2002
Investment Strategy: The investment seeks total return. The fund invests in other mutual funds rather than investing directly in
securities; it normally invests substantially all assets in underlying funds and the money market fund. It generally allocates assets within
the following parameters: 25% to 75% of assets in fixed-income funds, 25% to 75% in equity funds, and 0% to 25% in a
money-market fund. The fund is nondiversified.
Expense Ratio: Type 4*: 1.21% of fund assets
Redemption Fee/Term: --
Trading Restrictions: --
Management Company: Transamerica Asset Management, Inc
Subadvisor: --
*See Disclosure Page for more details.
Investment information: The Diversified Investors Intermediate Horizon Ret Acct is a Separate Account Sub-Account maintained by
TFLIC and invests exclusively in the Diversified Investors Intermediate Horizon Ret Opt, a Transamerica Life Insurance Company (TLIC)
Separate Account. The TLIC Separate Account invests exclusively in the Transamerica Asset Allocation - Intermediate Horizon Fund
(Investor Class), a mutual fund (Fund).
Diversified Investors Intermediate/Long Horizon Ret Acct As of 12/31/2009
Inception Date: 04/01/2002
Investment Strategy: The investment seeks long-term growth of capital and growth of income. The fund invests in other mutual funds
rather than investing directly in securities; it normally invests at least 65% of assets in underlying funds that hold equity securities. It
generally allocates assets within the following parameters: 0 to 50% of assets in fixed-income funds, 50% to 100% in equity funds, and
0% to 20% in a money-market fund. The fund is nondiversified.
Expense Ratio: Type 4*: 1.28% of fund assets
Redemption Fee/Term: --
Trading Restrictions: --
Management Company: Transamerica Asset Management, Inc
Subadvisor: --
*See Disclosure Page for more details.
Investment information: The Diversified Investors Intermediate/Long Horizon Ret Acct is a Separate Account Sub-Account maintained by
TFLIC and invests exclusively in the Diversified Investors Intermediate/Long Horizon Ret Opt, a Transamerica Life Insurance Company
(TLIC) Separate Account. The TLIC Separate Account invests exclusively in the Transamerica Asset Allocation - Intermediate/Long
Horizon Fund (Investor Class), a mutual fund (Fund).
Diversified Investors Long Horizon Ret Acct As of 12/31/2009
Inception Date: 04/01/2002
Investment Strategy: The investment seeks long-term returns from growth of capital and growth of income. The fund is an asset
allocation fund. It normally invests all of its assets in Stock funds. Under severe market conditions the fund may invests all of its assets
in the Money Market Fund.
Expense Ratio: Type 4*: 1.34% of fund assets
Redemption Fee/Term: --
Trading Restrictions: --
Management Company: Transamerica Asset Management, Inc
Subadvisor: --
*See Disclosure Page for more details.
Investment information: The Diversified Investors Long Horizon Ret Acct is a Separate Account Sub-Account maintained by TFLIC and
invests exclusively in the Diversified Investors Long Horizon Ret Opt, a Transamerica Life Insurance Company (TLIC) Separate Account.
The TLIC Separate Account invests exclusively in the Transamerica Asset Allocation - Long Horizon Fund (Investor Class), a mutual
fund (Fund).
30
2 Diversified Investors Short Horizon Ret Acct As of 12/31/2009
Inception Date: 04/01/2002
Investment Strategy: The investment seeks income and preservation of capital. The fund normally invests at least 65% of assets in a
combination of fixed-income underlying funds and the money-market fund. It generally allocates assets within the following parameters:
50% to 100% assets in fixed-income funds, 0% to 20% in equity funds, and 0% to 50% in a money-market fund. The fund is
nondiversified.
Expense Ratio: Type 4*: 1.10% of fund assets
Redemption Fee/Term: --
Trading Restrictions: --
Management Company: Transamerica Asset Management, Inc
Subadvisor: --
*See Disclosure Page for more details.
Investment information: The Diversified Investors Short Horizon Ret Acct is a Separate Account Sub-Account maintained by TFLIC and
invests exclusively in the Diversified Investors Short Horizon Ret Opt, a Transamerica Life Insurance Company (TLIC) Separate Account.
The TLIC Separate Account invests exclusively in the Transamerica Asset Allocation - Short Horizon Fund (Investor Class), a mutual
fund (Fund).
Diversified Investors Short/Intermediate Horizon Ret Acct As of 12/31/2009
Inception Date: 04/01/2002
Investment Strategy: The investment seeks to achieve reasonable returns with considerably less than average volatility as compared to
other balance funds. The fund is an asset allocation fund and invests in a combination of the funds. It invests approximately 70% of
assets in Bond funds and about 30% of assets in Stock funds. Under severe market conditions the fund may invests all of its assets in
the Money Market Fund. The fund is nondiversified.
Expense Ratio: Type 4*: 1.15% of fund assets
Redemption Fee/Term: --
Trading Restrictions: --
Management Company: Transamerica Asset Management, Inc
Subadvisor: --
*See Disclosure Page for more details.
Investment information: The Diversified Investors Short/Intermediate Horizon Ret Acct is a Separate Account Sub-Account maintained by
TFLIC and invests exclusively in the Diversified Investors Short/Intermediate Horizon Ret Opt, a Transamerica Life Insurance Company
(TLIC) Separate Account. The TLIC Separate Account invests exclusively in the Transamerica Asset Allocation - Short/Intermediate
Horizon Fund (Investor Class), a mutual fund (Fund).
AAA
Large/Mid Value Equity - Investment choices that invest primarily in stocks issued by larger companies that are
considered to be undervalued or have low P/E ratios.
Investment Risk: Historically, stocks have provided greater long-term returns and have entailed greater short-term risks than other
investments. The securities issued by mid-cap companies may be more susceptible to market downturns, and their prices could be
more volatile than those of larger companies. Value stocks may be subject to special risks that have caused the stocks to be out of favor
and undervalued in the management company’s opinion.
Large Cap
Transamerica Partners Large Value Ret Acct As of 12/31/2009
Inception Date: 04/01/2002
Investment Strategy: The investment seeks long-term capital appreciation. Current income is a secondary goal. The Fund invests
primarily in issues listed on U.S. exchanges that the sub-adviser believes are seasoned, liquid and low priced, with effective
management and positive momentum. the It normally invests at least 80% of net assets in securities of large-cap companies and
related investments. The fund considers large cap companies to be companies with market capitalizations that, at the time of initial
purchase exceed the minimum capitalization of companies that are included in the Russell 1000® Index.
Expense Ratio: Type 4*: 1.00% of fund assets
Redemption Fee/Term: --
Trading Restrictions: --
Management Company: Transamerica Asset Management, Inc
Subadvisor: ARONSON+JOHNSON+ORTIZ, LP
*See Disclosure Page for more details.
31
Investment information: The Transamerica Partners Large Value Ret Acct is a Separate Account Sub-Account maintained by TFLIC and
invests exclusively in the Transamerica Partners Large Value Ret Opt, a Transamerica Life Insurance Company (TLIC) Separate
Account. The TLIC Separate Account invests exclusively in the Transamerica Partners Large Value Fund (Investor Class), a mutual fund
(Fund).
Mid Cap
Transamerica Partners Mid Value Ret Acct As of 12/31/2009
Inception Date: 04/01/2002
Investment Strategy: The investment seeks a high total investment return. The fund normally invests at least 80% of net assets in
securities of medium sized companies. It primarily invests in companies which the fund's advisers believe have valuations below their
intrinsic value and present an opportunity for earnings improvement. The fund may also invest in foreign securities.
Expense Ratio: Type 4*: 1.25% of fund assets
Redemption Fee/Term: --
Trading Restrictions: --
Management Company: Transamerica Asset Management, Inc
Subadvisor: J.P. Morgan Investment Management Inc.
Cramer Rosenthal McGlynn, LLC
*See Disclosure Page for more details.
Investment information: The Transamerica Partners Mid Value Ret Acct is a Separate Account Sub-Account maintained by TFLIC and
invests exclusively in the Transamerica Partners Mid Value Ret Opt, a Transamerica Life Insurance Company (TLIC) Separate Account.
The TLIC Separate Account invests exclusively in the Transamerica Partners Mid Value Fund (Investor Class), a mutual fund (Fund).
AAA
Large/Mid Blend Equity - Investment choices that pursue their objectives primarily through the investment in both
growth and value common stocks of large- to medium-sized domestic issuers.
Investment Risk: Historically, common stocks have provided greater long-term returns and have entailed greater short-term risks than
other investment choices. Smaller or newer issuers carry more risk than larger, more established issuers.
Large Cap
Transamerica Partners Large Core Ret Acct As of 12/31/2009
Inception Date: 04/01/2002
Investment Strategy: The investment seeks current income and capital appreciation. The fund invests primarily in common and
preferred stocks, focusing on growing, financially stable, and undervalued companies. It may also invest in debt securities. It may invest
up to 25% of assets in foreign securities, including sponsored American depositary receipts.
Expense Ratio: Type 4*: 1.15% of fund assets
Redemption Fee/Term: --
Trading Restrictions: --
Management Company: Transamerica Asset Management, Inc
Subadvisor: ARONSON+JOHNSON+ORTIZ, LP
*See Disclosure Page for more details.
Investment information: The Transamerica Partners Large Core Ret Acct is a Separate Account Sub-Account maintained by TFLIC and
invests exclusively in the Transamerica Partners Large Core Ret Opt, a Transamerica Life Insurance Company (TLIC) Separate Account.
The TLIC Separate Account invests exclusively in the Transamerica Partners Large Core Fund (Investor Class), a mutual fund (Fund).
AAA
Large/Mid Growth Equity - Investment choices that invest primarily in stocks issued by larger companies that are
expected to grow faster than the overall economy.
Investment Risk: Historically, common stocks have provided greater long-term returns and have entailed greater short-term risks than
other investment choices. Smaller or newer issuers carry more risk than larger, more established issuers.
32
2Large Cap
Transamerica Equity Ret Acct As of 12/31/2009
Inception Date: 07/01/2001
Investment Strategy: The investment seeks to maximize long-term growth and is best suited for investors who seek long-term equity
appreciation and have the ability to accept above-average volatility in pursuit of it. The separate account invests primarily in common
stocks of growth companies that are perceived by the manager to be undervalued in the stock market. It will generally invest at least
80% of assets in the common stocks of a narrowly defined selection of growth-oriented companies - generally fewer than 60. The
investment managers focus on the potential for each prospective holding and look for companies with strong management, well-defined
plans for the future, low-cost proprietary products, dominance in market share or niche, and strong earnings and cash flows.
Expense Ratio: Type 3*: 1.10% of fund assets
Redemption Fee/Term: --
Trading Restrictions: Type A*
Management Company: Transamerica Insurance Company
Subadvisor: Transamerica Investment Mgmt, LLC
*See Disclosure Page for more details.
Investment information: The Transamerica Equity Ret Acct is a Separate Account Sub-Account maintained by TFLIC and invests
exclusively in the Transamerica Equity Ret Opt, a Transamerica Life Insurance Company (TLIC) Separate Account. The TLIC Separate
Account is sub-advised by Transamerica Investment Management, LLC.
Mid Cap
Transamerica Growth Opportunities Ret Acct As of 12/31/2009
Inception Date: 07/01/2001
Investment Strategy: The investment seeks to maximize long-term growth and is best suited for investors who have the ability to accept
above average volatility. This is done through investing primarily in a diversified portfolio of domestic equity securities including common
stocks, rights, warrants and convertible securities of companies with small to mid market capitalization (normally under $10 billion). The
managers seek to identify stocks which have potential for long-term capital appreciation. These are primarily domestic common stocks
of small and medium size companies selected for their growth potential, resulting from growing franchises protected by high barriers to
competition.
Expense Ratio: Type 3*: 1.10% of fund assets
Redemption Fee/Term: --
Trading Restrictions: Type A*
Management Company: Transamerica Insurance Company
Subadvisor: Transamerica Investment Mgmt, LLC
*See Disclosure Page for more details.
Investment information: The Transamerica Growth Opportunities Ret Acct is a Separate Account Sub-Account maintained by TFLIC and
invests exclusively in the Transamerica Growth Opportunities Ret Opt, a Transamerica Life Insurance Company (TLIC) Separate
Account. The TLIC Separate Account is sub-advised by Transamerica Investment Management, LLC.
AAA
Small Company Equity - Investment choices that invest primarily in stocks issued by smaller companies. Investing in
small company stock involves heightened risk and may be more volatile than larger company stock.
Investment Risk: The investor should note that investment choices that invest in stocks of small companies involve additional risks.
Smaller companies typically have a higher risk of failure, and are not as well established as larger blue-chip companies. Historically,
smaller-company stocks have experienced a greater degree of market volatility than the overall market average.
Growth
Artisan Small-Cap Growth Ret Acct As of 12/31/2009
Inception Date: 09/16/2002
Investment Strategy: The investment seeks to maximize long-term growth of capital. It is best suited for long-term investors who seek a
diversified portfolio of small growth companies and are comfortable with the additional risks these companies may present. The
investment typically holds between 60 and 80 stocks that are broadly diversified across industries and sectors. The managers strive to
identify companies with between $200M and $1.5B in market cap, which have the greatest prospects for growth and purchase stocks
that are at a discount to their intrinsic value as perceived by the manager.
33
Expense Ratio: Type 3*: 1.38% of fund assets
Redemption Fee/Term: --
Trading Restrictions: Type A*
Management Company: Transamerica Insurance Company
Subadvisor: Artisan Partners Holdings LP
*See Disclosure Page for more details.
Investment information: The Artisan Small-Cap Growth Ret Acct is a Separate Account Sub-Account maintained by TFLIC and invests
exclusively in the Artisan Small-Cap Growth Ret Opt, a Transamerica Life Insurance Company (TLIC) Separate Account (SA). The TLIC
SA is sub-advised by Artisan Partners Limited Partnership. Prior to 09-16-02, the TLIC SA invested exclusively in the PBHG Emerging
Growth Fund, a mutual fund.
AAA
International Equity - Investment choices that invest primarily in stocks issued by foreign companies, or that invest
globally. Foreign investing involves special risks including political unrest, economic instability and currency fluctuation.
Investment Risk: The investor should note that investment choices that invest in foreign securities involve special additional risks. These
risks include, but are not limited to, currency risk, political risk, and risk associated with varying accounting standards. Investing in
emerging markets may accentuate these risks.
Transamerica Partners International Equity Ret Acct As of 12/31/2009
Inception Date: 04/01/2002
Investment Strategy: The investment seeks long-term capital appreciation. The fund normally invests at least 80% of assets in foreign
equities. It maintains investments in a minimum of three foreign countries, and it may invest up to 10% of assets in emerging markets.
The fund currently invests most assets in Canada, the Far East, Australia, and Europe.
Expense Ratio: Type 4*: 1.40% of fund assets
Redemption Fee/Term: --
Trading Restrictions: --
Management Company: Transamerica Asset Management, Inc
Subadvisor: Thornburg Investment Management, Inc.
*See Disclosure Page for more details.
Investment information: The Transamerica Partners International Equity Ret Acct is a Separate Account Sub-Account maintained by
TFLIC and invests exclusively in the Transamerica Partners International Equity Ret Opt, a Transamerica Life Insurance Company (TLIC)
Separate Account. The TLIC Separate Account invests exclusively in the Transamerica Partners International Equity Fund (Investor
Class), a mutual fund (Fund).
AAADisclosure
The performance data given represents past performance and should not be considered indicative of future results. Principal value and
investment return will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than the original investment.
Current performance may be lower or higher than the performance quoted herein. Separate account investment choice statistics change
over time. The investment choice is not FDIC insured, may lose value and is not guaranteed by a bank or other financial institution.
The separate account investment choices offered are exempt from registration with the SEC; therefore, no prospectuses are filed for them.
However, certain of the separate account investment choices, other than the Stable Value investment choice(s), invest in mutual funds
which are subject to SEC registration. Prospectuses for these mutual funds can be ordered directly from the fund company or obtained
upon request from Transamerica Retirement Services at www.TA-Retirement.com. Investors should consider the investment objectives,
risks, and charges and expenses of the fund carefully before investing. The prospectus for each fund contains this and other information
about that fund. Read each prospectus carefully before investing. In addition, comprehensive information on all the investment choices is
available on the investment fact sheets.
Performance
Performance shown is average annual total separate account investment choice returns (except last quarter and year-to-date) for the
period indicated, net of the total operating expenses of the separate account or underlying investment as listed on the Investment Choices
Performance Overview. Performance returns reflect reinvestment of dividends and capital gains distributions. Application of the contract
asset charge and any discontinuance charges or service fees deducted from the account would reduce this return.
For separate account investment choices invested in mutual fund shares, except as otherwise indicated, historical performance prior to the
separate account investment choice inception is calculated utilizing past performance for the underlying mutual fund.
Performance shown since inception is from the performance inception date of the separate account or underlying investment as shown on
the Investment Choices Performance Overview.
Past performance is not a guarantee of future performance. An investment in these investment choices, other than for the Stable Value
investment choice(s), is subject to market risk and an investor may experience loss of principal.
34
2Asset Classes
The investment choices have been assigned to various asset classes based solely on Transamerica Retirement Services’ assessment of their
investment policies; additionally, they may not be representative of that particular asset class in the future.
Charges, Fees and Expenses
Deposits made by plan participants are not subject to any front-end loads/sales fees of the underlying mutual fund. Therefore, such fees are
not reflected in the performance reported.
Type 1: The expense ratio quoted reflects the maximum total operating expenses, which consist of Investment Management and Investment
Account Class I Administrative Charges, if applicable. The actual expense ratio experienced may be less than the expense ratio quoted.
There may also be charges to your balance in the separate accounts for contract asset charges, discontinuance charges or service fees, as
applicable under your contract.
Type 2: The expense ratio quoted reflects the maximum total operating expenses, which consist of the total operating expenses (expense
ratio) of the underlying investment. There may also be charges to your balance in the separate accounts for contract asset charges,
discontinuance charges or service fees, as applicable under your contract.
Type 3: The expense ratio quoted reflects the maximum total operating expenses, which consist of the underlying TLIC Separate Account
Investment Management and Investment Account Class VIII Administrative Charges, if applicable. There may also be charges to your balance
in the separate accounts for contract asset charges or service fees, as applicable under your contract.
Type 4: The expense ratio quoted reflects the maximum total operating expenses, which consist of the total operating expenses (expense
ratio) of the underlying investment. There may also be charges to your balance in the separate accounts for contract asset charges or service
fees, as applicable under your contract.
Type 5: The expense ratio quoted reflects the maximum total operating expenses, which consist of the underlying TLIC Separate Account
Investment Account Class VII Administrative Charge and the expense of the underlying mutual fund.
Type 6: The expense ratio quoted reflects the maximum total operating expenses, which consist of the Investment Management and
Investment Account Class VII Administrative Charges for the underlying TLIC separate account.
Type 7: The expense ratio quoted reflects the maximum total operating expenses, which consist of Investment Management Charge,
Administrative Charges (if applicable), and the expenses of the underlying investment. There may also be charges to your balance in the
separate accounts for contract asset charges, discontinuance charges or service fees, as applicable under your contract.
Type 8: The expense ratio quoted reflects the maximum total operating expenses, which consist of the underlying TLIC Separate Account
Investment Management and Investment Account Class VIII Administrative Charges (if applicable), and expenses of the underlying
investment. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable
under your contract.
Contract Asset Charges (CAC)
Contract Asset Charges (CAC) are assessed each Month according to the terms of the plan’s investment contract and vary based upon the
amount of assets held under the contract on the 15th of each month. Based on the plan asset information provided to Transamerica, the
initial monthly CAC rate assessed to the plan is estimated to be 0.0542%.
Plan sponsors should consult their investment contract and participants should consult their enrollment kit for the CAC charges applicable
to their plan.
Note, the commission option selected by your broker will affect the contract asset charges payable under the group variable annuity
contract.
Contract Termination Charges
Depending on the features elected by your plan a surrender charge may apply at the time the investment contract is terminated.
Trading Restrictions
The ability to exchange units of the separate account may be restricted in the event that a sponsor or participant engages in trading patterns
which are detrimental to the separate account or the underlying investment.
Investment choices may be subject to certain transfer restrictions. Participant-directed transfers into this contract account may be limited.
Additionally, plan-level restrictions may apply. Automatic scheduled transactions such as payroll contributions, loan repayment, etc. may not
be subject to these restrictions. However, you may transfer funds out of this contract account at any time. These restrictions may be changed
at any time to comply with any restrictions on trading imposed by the underlying mutual fund.
Type A: Transfers “in” to the investment choice are restricted to once in any rolling 30-day period. Depending on the recordkeeping platform,
certain plans may be subject to a revised restriction where transfers “in” to the investment choice are restricted for a rolling 30-day period
once a round trip transfer (“in” and “out”) has been made.
Additional Notes
— The information contained in the investment choice performance overview and the attached investment profiles is date-sensitive and only valid for the
current quarter. This information is generally updated quarterly. You should obtain updated information from your plan administrator to ensure you have the
most current information.
35
— Transamerica Retirement Services (“Transamerica”), a marketing unit of Transamerica Financial Life Insurance Company (“TFLIC”), 4 Manhattanville Road,
Purchase, New York 10577, and other of its affiliates, specializes in the promotion of retirement plan products and services. Investment choices are available
from Transamerica Retirement Services under contract form number TA-AP-2001-CONT, a group variable annuity contract underwritten by TFLIC. TFLIC is
not authorized and does not do business in the following jurisdictions: Guam, Puerto Rico, and the U.S. Virgin Islands. Fees and charges may apply. For
complete information, contact your Transamerica representative.
— Transamerica Stable Value Account - Effective 01-29-07, the TR Transamerica Stable Value Fund changed its name to the Transamerica Stable Value
Account. Performance shown for the Transamerica Stable Value Account is the annual effective credited rate for the period shown. Application of the
contract asset charge and any discontinuance charges or service fees deducted from the account would reduce this return. The Transamerica Stable Value
Account is available under contract form number TA-AP-2001-CONT, a group variable annuity contract issued by Transamerica Financial Life Insurance
Company ("TFLIC"), 4 Manhattanville Road, Purchase, New York 10577, and Transamerica Retirement Services, a marketing unit of TFLIC and other of its
affiliates, which specializes in the promotion of retirement plan products and services. TFLIC is not authorized and does not do business in the following
jurisdictions: Guam, Puerto Rico, and the U.S. Virgin Islands. The Transamerica Stable Value Account is an investment choice backed by the general
account of TFLIC. The assets in the general account are supported by the financial stability of TFLIC. While TFLIC declares interest rates periodically, and
backs the principal and interest of this investment choice, any guarantees are subject to the claims paying ability of the insurance company. This account
is not guaranteed by the FDIC or any other government agency. Although plan participants generally may withdraw assets from the Stable Value investment
choice without restrictions, TFLIC may impose a hold period at the contract level in the event of a full contract discontinuance or partial contract
discontinuance.AAA
— Transamerica Bond Ret Acct - Effective 01-29-07, the TR Transamerica Bond Fund changed its name to the Transamerica Bond Ret Acct.AAA
— Transamerica Partners High Yield Bond Ret Acct - This Separate Account was named Diversified Investors High Yield Opportunities Ret Acct before
06-30-08 and TR Transamerica High Yield Opportunities Fund before 01-29-07. This Separate Account invests in the Transamerica Partners High Yield
Bond Ret Opt, a TLIC Separate Account. The TLIC Separate Account, for which the underlying mutual fund is a fund within the Transamerica Partners
Funds Group and, under a Core Fund and Feeder structure, invests its assets in a "Core Fund" with a similar investment objective. The Core Fund is a
registered investment management company established on 08-31-95.AAA
— Diversified Investors Intermediate Horizon Ret Acct - Effective 01-29-07, the TR Transamerica Intermediate Horizon Fund changed its name to the
Diversified Investors Intermediate Horizon Ret Acct.
— Diversified Investors Intermediate/Long Horizon Ret Acct - Effective 01-29-07, the TR Transamerica Intermediate/Long Horizon Fund changed its name to
the Diversified Investors Intermediate/Long Horizon Ret Acct.
— Diversified Investors Long Horizon Ret Acct - Effective 01-29-07, the TR Transamerica Long Horizon Fund changed its name to the Diversified Investors
Long Horizon Ret Acct.
— Diversified Investors Short Horizon Ret Acct - Effective 01-29-07, the TR Transamerica Short Horizon Fund changed its name to the Diversified Investors
Short Horizon Ret Acct.
— Diversified Investors Short/Intermediate Horizon Ret Acct - Effective 01-29-07, the TR Transamerica Short/Intermediate Horizon Fund changed its name to
the Diversified Investors Short/Intermediate Horizon Ret Acct.AAA
— Transamerica Partners Large Value Ret Acct - This Separate Account was named Diversified Investors Value & Income Ret Acct before 06-30-08 and TR
Transamerica Value & Income Fund before 01-29-07. This Separate Account invests in the Transamerica Partners Large Value Ret Opt, a TLIC Separate
Account. The TLIC Separate Account, for which the underlying mutual fund is a fund within the Transamerica Partners Funds Group and, under a Core
Fund and Feeder structure, invests its assets in a "Core Fund" with a similar investment objective. The Core Fund is a registered investment management
company established on 01-03-94.
— Transamerica Partners Mid Value Ret Acct - This Separate Account was named Diversified Investors Mid-Cap Value Ret Acct before 06-30-08 and TR
Transamerica Mid-Cap Value Fund before 01-29-07. This Separate Account invests in the Transamerica Partners Mid Value Ret Opt, a TLIC Separate
Account. The TLIC Separate Account historical return prior to 09-30-01 is calculated based on the gross composite performance of the initial sub-adviser
(Cramer, Rosenthal, McGlynn, LLC), but is adjusted to reflect the 1.25% total operating expenses of the underlying mutual fund.AAA
— Transamerica Partners Large Core Ret Acct - This Separate Account was named Diversified Investors Growth & Income Ret Acct before 06-30-08 and TR
Transamerica Growth & Income Fund before 01-29-07. This Separate Account invests in the Transamerica Partners Large Core Ret Opt, a TLIC Separate
Account. The TLIC Separate Account, for which the underlying mutual fund is a fund within the Transamerica Partners Funds Group and, under a Core
Fund and Feeder structure, invests its assets in a "Core Fund" with a similar investment objective. The Core Fund is a registered investment management
company established on 01-03-94.AAA
— Transamerica Equity Ret Acct - Effective 01-29-07, the TR Transamerica Equity Fund changed its name to the Transamerica Equity Ret Acct.
— Transamerica Growth Opportunities Ret Acct - Effective 01-29-07, the TR Transamerica Growth Opportunities Fund changed its name to the Transamerica
Growth Opportunities Ret Acct. Effective 02-11-02, the Transamerica Small Company Fund was renamed the Transamerica Growth Opportunities Fund to
be consistent with its expanded investment criteria. As a result, the TR Transamerica Small Company Fund was renamed the TR Transamerica Growth
Opportunities Fund.AAA
— Artisan Small-Cap Growth Ret Acct - This Separate Account (SA) was named Small-Cap Growth Ret Acct before 06-30-08 and TR Transamerica Small-Cap
Growth Fund before 01-29-07. This SA invests in the Artisan Small-Cap Growth Ret Opt, a TLIC SA. Effective 09-16-02, the TLIC SA is sub-advised by
Artisan Partners Limited Partnership and is subject to TLIC SA Investment Management (IM) and Administrative (Admin) Charges. Prior to 09-16-02, the
TLIC SA invested in the PBHG Emerging Growth Fund (PBHG Class) and was subject to different TLIC SA IM Charges, Admin Charges and underlying
mutual fund expenses. No adjustments have been made to performance prior to 09-16-02 to reflect the difference between the charges and expenses for
the TLIC SA invested in the mutual fund from the charges for the sub-advised TLIC SA.AAA
— Transamerica Partners International Equity Ret Acct - This Separate Account was named Diversified Investors International Equity Ret Acct before
06-30-08 and TR Transamerica International Equity Fund before 01-29-07.AAA
36
3Step Three
• Your future starts today
• plan highlights
Start today!
37
abcabc
38
3
999999-TFLIC
Step Three: Start today!
Your future starts today.
Planning and saving well are the keys to living well when you
reach retirement. By reviewing this workbook and completing
the exercises provided, you have taken a major step forward in
achieving a personalized retirement savings strategy for a more
enjoyable future.
If you are not yet enrolled in your plan, simply complete the
forms and instructions found at the front of this workbook. If
you already participate in your employer-sponsored retirement
savings plan, take this opportunity to review your current
investment portfolio allocation and consider increasing your
contributions.
Plan Highlights
Your Contributions• You can save from 1% to 100% of your eligible
compensation.
• You can choose to make contributions before paying taxes
and/or you can choose to make after-tax contributions
through your plan’s Roth 401(k) account option.
• Federal Tax law limits the total combined before- and
after-tax contributions to $16,500 in 2010.
Eligibility
You must complete 1 year(s) of service.
You must be at least 18 years of age.
Entry Date(s)
January 1, April 1, July 1 and October 1.
Catch-up Contributions
If you are 50 or older, you may qualify to make additional
before- and after-tax “Catch-up” Contributions. Federal
Catch-up Contribution limit is $5,500 for 2010, for total
combined before- and after-tax contributions.
Frequency of Contribution Changes
You may increase or decrease your contribution to the plan on
the first day of each plan quarter, in January, April, July, and
October.
You may also stop making contributions at any time.
Rollovers
You may roll over your plan account balance from a prior
qualified retirement plan at any time.
Vesting
Your contributions are automatically 100% vested.
Your rollover contributions are 100% vested.
Company Contributions
MATCHING CONTRIBUTIONS
• The Company may contribute a discretionary Matching
Contribution to the plan.
• To be eligible to receive Matching Contributions, you must
complete 1,000 hours of service during the plan year and
you must be employed on the last day of the plan year.
Eligibility
You must complete 1 year(s) of service.
You must be at least 18 years of age.
Entry Date(s)
January 1, April 1, July 1 and October 1.
Vesting
You are immediately 100% vested in the Company’s
contributions to the plan.
NON-MATCHING CONTRIBUTIONS
• The Company may make a discretionary Non-Matching
Contribution to the plan on behalf of all eligible employees.
• To be eligible to receive Non-Matching Contributions, you
must complete 1,000 hours of service during the plan year
and you must be employed on the last day of the plan year.
Eligibility
You must complete 1 year(s) of service.
You must be at least 18 years of age.
Entry Date(s)
January 1, April 1, July 1 and October 1.
Vesting
You are immediately 100% vested in the Company’s
contributions to the plan.
Your years of service with a predecessor of the Company will
count toward your eligibility.
39
Learn About Your Plan’s Roth 401(k) Account
Option
The Roth 401(k) option allows you to contribute after-tax
dollars to your plan in a separate account that in most cases
will not be subject to future federal income taxes, regardless of
your income level. So let’s compare some basic features of the
traditional 401(k) and the Roth 401(k):
Feature Traditional
401(k)
Roth 401(k)
Contributions IN Before-tax After-tax
Distributions PAID Taxed Free from Federal tax if
distributions occur five
taxable years after first
Roth Contribution AND
after participant either:
- Attains age 59½
- Dies
- Becomes Disabled
Required Minimum
Distributions (RMDs)
(Some plans provide for RMDs
to begin at the later of age
70½ or separation from
service, provided participant is
not a 5% owner.)
Required Required, but prior to
RMD may be rolled over
to a Roth IRA, which
has no RMD
requirement.
Contribution Limit Total limit in 2010 is $16,500
($22,000 if age 50 or older)
Income Restriction None
How Do I Decide If A Roth 401(k) Contribution
Is Right For Me?
As a general rule, if you believe you will be paying higher taxes
in retirement than you are now, consider making contributions
to your Roth 401(k). However, if you believe your tax rate will
be lower when you take distributions, consider keeping your
contributions in the traditional 401(k).
Another strategy to consider is diversifying your future tax risk
by contributing to both. Keep in mind that you may want to
consult with your attorney, accountant, or tax professional in
helping you decide what balance is right for you.
You will need to decide what percentage of your total
contribution will go to traditional 401(k) and Roth 401(k):
A. Your Traditional 401(k) Salary Deferral Percentage
_____________%
B. Your Roth 401(k) Salary Deferral Percentage
_____________%
Total Salary Deferral may not exceed the plan’s limit.
Total Salary Deferral Percentage (A + B) =
_____________%
Loans
• Your plan offers a loan feature. Please check with your plan
administrator and/or refer to your Summary Plan Description
for details.
In Service Withdrawals
EARLY WITHDRAWALS
• You may make a withdrawal from the plan upon attaining age
59½. Certain restrictions may apply. Refer to your Summary
Plan Description for details.
HARDSHIP
• If you meet the definition of hardship you may make a
withdrawal from the plan. For more information about the
strict rules governing hardship withdrawals, refer to your
Summary Plan Description.
When You Retire Or Leave The Company
Subject to plan provisions, upon retirement, termination,
disability or death, you—or in some cases your
beneficiary—can:
• Keep your money in the plan, subject to certain restrictions.
• Directly roll over your plan account balance into
another eligible savings plan or IRA.
— You can request a Rollover IRA kit online at
www.TA-Retirement.com.
— By choosing to keep your money in the plan or by
electing a direct rollover of your retirement savings
rather than cashing out, you will avoid the 20%
mandatory federal income tax withholding as well
as the 10% early withdrawal penalty that’s assessed
if you have not reached age 59 ½.
• Receive your plan account balance in cash.
• Receive your plan account balance as an annuity or in
installments. Contact your plan administrator or refer to your
Summary Plan Description for additional information.
Some of these options can have significant tax consequences.
Your tax advisor can help you make the decision that is best for
you. For more information, refer to your Summary Plan
Description.
For additional plan information, please contact your plan
administrator or refer to your Summary Plan Description.
40
Investment Choices
The plan offers 15 investment choices.
• Refer to “Investment Choices” located in this enrollment
workbook for a description of your investment choices.
• Some of the investment choices offered by the plan contain
trading restrictions. Prior to finalizing your investment choices
under the plan, please refer to your “Investment Choices” for
more information on these restrictions.
• To obtain a complete set of Investment Fact Sheets
containing detailed, up-to-date information on each of the
investment choices, contact your plan administrator or log on
to www.TA-Retirement.com.
Enrollment Instructions
You will need to complete an enrollment form and designate a
beneficiary.
• If you do not designate a beneficiary the default provisions of
your plan will apply. Submit your completed beneficiary form
to your plan administrator.
That’s all there is to it! Remember - it’s never too early or too
late to save for retirement. Transamerica Retirement Services
is here to simplify your journey on the road to a secure
retirement.
Manage Your Account Via Web Site
www.TA-Retirement.com
• In addition to providing access to your plan account
information, the Web site is loaded with useful information,
helpful tips and interactive tools, all designed to help you
discover, build and manage your plan.
Manage Your Account Via Telephone
1 (800) 401-8726
• The automated telephone system offers you direct access to
your plan account information. You can access the system
24 hours a day — seven days a week.
Investment Choice Information Via Web Site
To access your Performance Overview and Investment Fact
Sheets, follow the simple steps outlined below:
Step 1: Go to www.TA-Retirement.com
Step 2: Click on “Fund Performance” above the navigation
bar on the right hand side of the page
Step 3: Enter your Contract ID and click “Submit”
Step 4: Your Performance Overview will appear
Step 5: Click on the investment choice’s name to view
the Investment Fact Sheet
Account Rebalancing
Account Rebalancing allows you to maintain the investment
percentage you originally established, taking into consideration
market earnings and losses.
• Set up Account Rebalancing via the Web site or by
telephone.
• Automatically rebalance your account by redistributing the
percentage of your total portfolio held in each investment
choice.
— A one-time account rebalance will initiate one
rebalance as of the close of the business day.
— A periodic rebalance will establish a future schedule
for rebalancing based on the period selected
(Monthly, Quarterly, Semi-Annually, Annually).
• There is no minimum balance required and no minimum
amount to transfer.
Automated Periodic Transfers
Automated Periodic Transfer allows you to transfer portions of
your plan account balance from one investment choice to
another in regular increments.
• Use Automated Periodic Transfer to gradually transfer assets
from a conservative investment choice to a more aggressive
investment choice or vice versa.
• You must transfer at least $100 from the holding investment
choice for each periodic transfer.
• Once established, Automated Periodic Transfer will continue
until you request that it be stopped.
• If there is not enough money in the holding investment
choice, the system will ignore the transfer request and check
again the next period.
• Some restrictions may apply. Contact your plan administrator.
Statement Of Account
• You will receive a personalized statement of your account on
a regular basis.
• You may also request your plan account statement any time.
The information in this enrollment workbook is intended to be educational and to provide you with information that may help you make better use of retirement savings opportunities in realizing your retirement goals. Different assumptions concerning earnings, taxes, investment rates of return, and retirement age will generally yield different results. All information in this enrollment workbook is provided for illustrative purposes only and should not be considered legal or investment advice.
general AssumptionsAll calculations in this enrollment workbook are for illustrative purposes only. Your circumstances will differ from these examples. Calculations in this enrollment workbook display the future value of investments. All deposits are assumed made at the end of each year. Your own deposit schedule will depend on your plan specifics. Unless otherwise specified, the annual rate of return is 6.8%, net of fees. This return is for illustrative purposes only, does not reflect the performance of any specific investment choice, and is not intended to imply or guarantee future returns. No taxes are applied to plan balances. Plan balances are fully taxable upon withdrawal. Withdrawals before age 59½ may trigger an additional 10% early withdrawal penalty tax. Returns are assumed to be the same each year. Actual values may increase or decrease in any given year.
To estimate Social Security benefits, we’ve assumed that you have enough participation in the Social Security system to be fully and currently insured and eligible for Social Security benefits and that you have been participating in Social Security since you were first eligible. Several assumptions about your pay history and future pay levels have been made in order to consider Social Security benefits in determining your retirement savings goal.
Asset class disclosuresinvestment mixes Each investment mix is comprised of four or more asset classes: cash equivalents, bond, high yield bond, large/mid value equity, large/mid blend equity, large/mid growth equity, small company equity, or international equity.
cash equivalents This category seeks to protect against loss of principal while providing returns comparable to money market funds and short-term Treasury instruments. An investment in a cash equivalent investment choice is not insured or guaranteed by the FDIC or any other government agency. Although the investment seeks to preserve the value of your principal, it is possible to lose money by investing in the investment choice. These investment choices have generally provided a dependable level of stability and liquidity; nevertheless, the investment is still subject to credit risk and to liquidity risk.
bond The values of bonds change in response to changes in economic conditions, interest rates, and the creditworthiness of individual issuers. Investment choices that invest in bonds can lose their value as interest rates rise and an investor can lose principal.
high Yield bond The investor should note that investment choices that invest in lower-rated debt securities (commonly referred to as junk bonds) involve additional risks because of the lower credit quality of the securities in the portfolio. The investor should be aware of the possible higher level of volatility, and increased risk of default.
large/mid value equity Historically, stocks have provided greater long-term returns and have entailed greater short-term risks than other investments. The securities issued by mid-cap
companies may be more susceptible to market downturns, and their prices could be more volatile than those of larger companies. Value stocks may be subject to special risks that have caused the stocks to be out of favor and undervalued in the management company’s opinion.
large/mid blend equity Historically, common stocks have provided greater long-term returns and have entailed greater short-term risks than other investment choices. Smaller or newer issuers carry more risk than larger, more established issuers.
large/mid growth equity Historically, common stocks have provided greater long-term returns and have entailed greater short-term risks than other investment choices. Smaller or newer issuers carry more risk than larger, more established issuers.
Small company equity The investor should note that investment choices that invest in stocks of small companies involve additional risks. Smaller companies typically have a higher risk of failure, and are not as well established as larger blue-chip companies. Historically, smaller-company stocks have experienced a greater degree of market volatility than the overall market average.
international equity The investor should note that investment choices that invest in foreign securities involve special additional risks. These risks include, but are not limited to, currency risk, political risk, and risk associated with varying accounting standards. Investing in emerging markets may accentuate these risks. Risk tolerance and how to invest is a personal decision. We assume that once you reach age 65, you will, where possible, reduce the risk/return of your portfolio.
weighting of Asset classes and rates of returnFor the period 1959–1985, all data with respect to the investment types included within the weighting of asset classes was obtained from Stocks, Bonds, Bills and Inflation® 2001 Yearbook, Ibbotson Associates (“Ibbotson Yearbook”) and Russell/Mellon Analytical Services: “Cash Equivalents” 100% 30-Day Treasury Bills; “Bond:” 100% Intermediate-Term Government Bonds; “High Yield Bond:” 100% Merrill Lynch High Yield Master Cash Pay Index; “Large/Mid Value Equity” 100% S&P 500® Value Index; “Large/Mid Blend Equity” 100% S&P 500® Index; “Large/Mid Growth Equity” 100% S&P 500® Growth Index; “International Equity” 100% Morgan Stanley Capital International Ex-US Index; “Small Company Equity” 100% Small Company Stocks. Where index data was not available, hypothetical returns were computed by adjusting the actual performance of Intermediate-Term Government Bonds, S&P 500® Index and Small Company Stocks to reflect historical performance differences between the investment types. Past performance does not indicate future results. For the period 1986–2008, all data with respect to the investment types included within the weighting of asset classes was obtained from Morningstar,® Inc: “Cash Equivalents” Citigroup 3-Month T-Bill Index; “Bond” Barclays Capital Aggregate Bond Index; “High Yield Bond” Credit Suisse High Yield Index; “Large/Mid Value Equity” Russell 1000 Value Index;® “Large/Mid Blend Equity” S&P 500® Index; “Large/Mid Growth Equity” Russell 1000 Growth Index;® “International Equity” Morgan Stanley Capital International World ex-US Index; “Small Company Equity” Russell 2000 Index.®
Sample investment Allocation returns An assumed annual management fee of 1.25% has been applied to sample investment returns. Actual management fees may be higher or lower. Other charges may also apply that would reduce the return.
Disclosures
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