Retirement Health Savings Plan: A Retirement Benefit

1
Retirement Health Savings PlanA Retirement
Benefit
Madison Firefighters Local 311

• Date March 15, 16 17th
• Presented by Steve Klosterman Meredith Beckman

0110-3672
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Disclosures for All Vantagepoint Funds

• Please consult the current Vantagepoint Funds
  prospectus carefully for a complete summary of
  all fees, expenses, charges, financial
  highlights, investment objectives, risks and
  performance information.
• Investors should consider the Fund's investment
  objectives, risks, charges and expenses before
  investing or sending money.
• The prospectus contains this and other
  information about the investment company. Please
  read the prospectus carefully before investing.
• Vantagepoint Funds are distributed by ICMA-RC
  Services LLC, a wholly owned broker-dealer
  subsidiary of ICMA-RC and member FINRA/SIPC.
• For a current prospectus, contact ICMA-RC
  Services, LLC by calling 1-800-669-7400 or by
  writing to 777 North Capitol Street, NE,
  Washington, DC 20002-4240, or by visiting
  www.icmarc.org.

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Disclosures for Different Investment Options

• 1- Bond Funds
• Funds that invest in bonds can lose their value
  and are subject to risks unique to bonds,
  including interest rate increases
• 2- Small/Mid-Sized Company Stock Funds
• Typically involve greater risks than funds
  investing in larger-size companies
• 3- Foreign Investment Funds
• Are subject to additional risks not associated
  with domestic investments, including currency and
  political risks
• Investors who transfer assets out of these Funds
  must wait at least 91 days before transferring
  assets back into the same Funds. The policy does
  not affect regular contributions or disbursements.

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What is RHS?
A Solution to Post Employment Health Care Cost
Problem

• A medical expense reimbursement program designed
  by your employer and ICMA-RC to benefit you
• A program that allows you to
• Accumulate assets to pay for medical expenses in
  retirement on a tax-free basis1
• Enjoy tax savings on both contributions and
  payments
• Invest contributions for your circumstances in
  the Vantagepoint Mutual Funds

1 Non-discrimination provisions may result in the
taxation of non-insurance premium reimbursements
to highly compensated individuals (top 25 of
salaries).
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How Is RHS Funded?

• Your employer will make contributions of 1.25 of
  your salary
• Your direct employer contributions will be 100
  vested
• Contributions will be made on a bi-weekly basis

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How Is My Money Invested?

• Your assets will be invested in the Vantagepoint
  Funds at Net Asset Value
• An age-appropriate Vantagepoint Milestone Fund
  is the default option
• Your funds will be invested in this option until
  you go online or call to establish your
  investment allocation
• There are several ways to set and modify your
  allocation
• Account Access ICMA-RCs web site
  www.icmarc.org
• VantageLine Automated telephone line
  (800-669-7400)
• Investor Services Representatives (800-669-7400)

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What are my Investment Options?

• Actively Managed Funds
• Index Funds
• Model Portfolio Funds
• Milestone Funds

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Investments
Actively Managed Vantagepoint Funds

• Designed exclusively for our participants
• Family of funds covering the complete risk/reward
  spectrum
• Multiple managers, complementary investment
  styles

International3
Discovery2
Aggressive Opportunities2
Select Value2
Growth
Return
Growth Income
Equity Income
Asset Allocation
Inflation Protected Securities1
Low Duration Bond1
Risk
- See Disclosures at the beginning of the
presentation on slide 3
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Investments
Vantagepoint Index Funds

• Ensure constant asset class exposure
• For cost-conscious investors

Overseas Equity Index3
Mid/Small Company Index2
Return
Broad Market Index
500 Stock Index
Core Bond Index1
Risk
See Disclosures at the beginning of the
presentation on slide 3
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Investments
Vantagepoint Model Portfolio Funds1

• Diversification within a single fund
• Asset allocation that reflects the investors risk
  tolerance
• Rebalancing to maintain a consistent risk
  exposure

All-Equity Growth Fund
Long-Term Growth Fund
Return
Traditional Growth Fund
Conservative Growth Fund
Savings Oriented Fund
Risk
1 Fund of fund" arrangement additional
underlying fees may apply. Consult the prospectus
for details.
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Investments
Vantagepoint Milestone Funds1
The Aging Path2,3

• Age-based funds with target dates (range from
  2010 - 2045)
• Diversification among asset classes within a
  single fund
• Designed for investors who expect to begin
  withdrawals near funds target date
• Each funds risk level gradually declines over
  time until reaching steady level 10 years after
  target date

1 Fund of fund" arrangement additional
underlying fees may apply. Consult the prospectus
for details.2 Share values are not guaranteed at
any time, including at or after each Milestone
Funds target date, which is the date when
investors are expected to begin gradually making
withdrawals, typically at or after retirement.
Asset allocations change over time, as described
in The Vantagepoint Funds prospectus. 3 Actual
allocations may vary each fund is rebalanced
regularly in an attempt to match glide path
target percentages.
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How Do I Manage My Account?
Investment Decisions

• Meredith Beckman is your Retirement Plans
  Specialist
• 608-232-0513
• Reallocation of funds and transfers of existing
  balances
• Account Access ICMA-RCs web site
  www.icmarc.org
• VantageLine Automated telephone line
  (800-669-7400)
• Investor Services Representatives (800-669-7400)

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When Can I Use My RHS Plan?
Your Employers Plan Determines

• At separation from service with no restrictions
• If a participant becomes totally and permanently
  disabled

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What Can I Use RHS For?
Reimbursable Expenses Your Employers Plan
Determines

• All IRC 213 medical expenses for you, your
  spouse and dependents. For example
• Medical Insurance
• Medical Out-of-Pocket Expenses
• Medicare Part A Insurance Premiums
• Medicare Part B Insurance Premiums
• Medicare Part D Insurance Premiums
• Medicare Supplemental Insurance Premiums
• Prescription Drug Insurance Premiums
• COBRA Insurance Premiums

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What Can I Use RHS For?
Reimbursable Expenses Your Employers Plan
Determines

• All IRC 213 medical expenses for you, your
  spouse and dependents. Continued
• Dental Insurance Premiums
• Dental Out-of-Pocket Expenses
• Vision Insurance Premiums
• Vision Out-of-Pocket Premiums
• Qualified Long Term Care Insurance Premiums
• Non-Prescription medication under IRS Guidance
• Other Qualifying medical expenses

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Who Can Use RHS Tax-Free?
Participant and Survivors

• While Participant is living
• Participant
• Spouse
• Dependents
• Qualifying Child
• Qualifying Relative
• After Participants Death
• Surviving spouse
• Surviving dependents
• Once eligible, always eligible

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What Are the Fees?

• You will pay a 30 basis point (.30) annual asset
  fee, charged to your account quarterly
• You will also pay a 25 annual account fee
  (6.25 per quarter)
• Investment management expenses

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Where can I Get More Information?
Resources

• Questions and Answers for Employees, a brochure
  in your VantageCare Retirement Health Savings
  Plan Enrollment Kit
• Account Access and VantageLine for account and
  investment information and transactions in your
  Plan Enrollment Kit
• Your Retirement Plans Specialist is Meredith
  Beckman
• 608-232-0513

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Additional Questions?