DEFERRED COMPENSATION PLAN
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DEFERRED COMPENSATION PLAN
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Managed Account Service Opt-Out Process
Frequently Asked Questions
What is the Managed Account Service optout process?
What if I’m already in enrolled the Managed
Account service?
The Managed Account service on your account
automatically will be activated based on the information
and assumptions provided by your plan sponsor (such as
your birthdate, annual income, desired retirement age
and state of residence). If you opt out of the Managed
Account service, you are responsible for managing your
own account.
If you are already enrolled in the Managed Account
service, nothing will change, but we recommend that
you take time to personalize your financial profile if you
have not done so already.
Why is the City of Baltimore making this change?
The City of Baltimore works with an outside consultant
to evaluate how participants are using the Deferred
Compensation Plan (DCP) and if participants are
accumulating enough savings to provide sufficient
supplemental retirement income. After a thorough
review of the DCP, the City, working with the outside
consultant, determined that many DCP participants
were not accumulating sufficient savings to provide
necessary supplemental retirement income. The City is
making this change so that DCP participants will better
be able to plan for addressing their retirement goals.
Is everyone enrolled in the Managed
Account service?
There are certain exclusions that are not part of the
Managed Account service’s enrollment process. Some
of the excluded groups include deceased participants,
participants over age 70½, participants who are
invested in two or fewer target date funds, terminated
participants with less than $100, and participants
enrolled in the Great-West SecureFoundation®
investment option. Other exclusions may apply.
How do I personalize my financial profile?
You may personalize and update your financial profile
using the Retirement Income Control Panel (RICP),
brought to you by AAG.1
What is RICP?
RICP is a tool on the website that measures retirement
readiness. RICP calculates a projected retirement
income based on your unique factors, creates a gap
analysis chart to estimate monthly income necessary
to maintain your current lifestyle in retirement, and
provides specific information for addressing your
retirement readiness.1
How do I add my outside assets so they are
included in my Managed Account analysis?
•
In the Retirement Income Control Panel, select
“Update My Profile.”
•
Select “View my Strategy.”
•
You will then see the “Information” section on the
left-hand side of the page; select “Accounts.”
•
In this section, you will see your City of Baltimore
Deferred Compensation Plan account. Below your
account, select the “Add New Account” link.
•
This will allow you to select whom the account
belongs to (you or a spouse) and what type of
account it is (401(k), Roth IRA, taxable account,
etc.); then select ”Next.”
•
You will then be allowed to name the account,
determine if you would like contribution and
asset allocation guidance, and stat your current
contribution amount. Select ”Next.”
Who is Advised Assets Group, LLC (AAG)?
Why were they chosen to manage my account?
AAG is a registered investment adviser that specializes
in providing tailored investing consulting and advisory
services to plan participants. With a dedicated
education call center, AAG is dedicated to helping make
you retirement ready.
City of Baltimore
Deferred Compensation P lan
•
Enter the specific investment and dollar amount for
each investment within the account ; then select
“Save to Investments.”
•
Once you are back to the Information section, select
“Get Advice.” This will rerun the simulation and
include the account you created.
•
You may do this as many times as necessary to
include all of the accounts you wish to include in
your calculation.
Will a savings recommendation be included in
my account management?
Yes, along with its Managed Accounts service, AAG
offers a whole suite of Advisory Services offerings that
consider savings rates. The Managed Account service
will make a savings recommendation for you on a perpaycheck basis. You can view this recommendation by
going to your participant website, by calling Advisory
Services at (844) 302-2448, or by reviewing your
Welcome and Annual kits.
The recommended savings rate is more than
I can afford right now. Can I still use the
Managed Account service?
Yes! You can still use the service. The savings rate is only
a recommendation; you can determine the amount you
wish to contribute as part of your personalized strategy.
Will Social Security income be considered
in my retirement income calculations and
account management?
Yes, Advisory Services will consider your potential
Social Security income when calculating your retirement
income and account management. It’s important
to review the estimated Social Security income and
determine if it’s correct for you and based on your target
retirement date. You have the ability to customize the
estimate based on your goals and situation.
Are there any fees for the Advisory Services?
Yes, some fees apply.
Advisory Services consists of three levels of services.
These services and fees include:
• Online Investment Guidance – This tool is designed
for you if you’re simply seeking help in designing
your own portfolio’s asset allocation.
Managed Account Opt-Out Process
Frequently Asked Questions
The Guidance tool provides asset allocation
assistance and allows you to choose from the plan’s
investment options. There is no fee for this service.
• Online Investment Advice – This tool is geared
toward you if you’re wishing to manage your own
retirement account but value the assistance of online
tools and advice. You create a personal profile that
outlines your financial situation and retirement goals.
The Advice tool provides tailored, fund-specific
recommendations from the plan’s investment lineup
that meet your goals and objectives. There is a $6.25
quarterly fee.
• Managed Account – A financial expert professionally
manages your account and provides periodic updates
regarding progress toward your retirement goals.
The Managed Account service utilizes your personal
profile to generate an asset allocation model,
implements the model using the plan’s investment
options, reviews and updates your portfolio quarterly,
and provides you with an Annual Portfolio Review that
updates you on your retirement readiness. A quarterly
asset-based fee is assessed based on account
balance (as the chart below illustrates).
There is no guarantee that participation in any of
the advisory services will result in a profit or that the
account will outperform a self-managed portfolio.
Participant Account Balance
First $100,000 of account
balance
Next $150,000,
up to $250,000 account balance
Next $150,000,
up to $400,000 account balance
Amounts in excess of $400,000
Annual Managed
Account Fee
0.40%
0.30%
0.20%
0.10%
Important reminder: You can take advantage of the
Managed Account service with a free-look period
ending 90 days after your enrollment date. If you remain
in the Managed Account service beyond the free-look
end date, the appropriate fees listed below will be
assessed to your account for the entire period, including
the free-look period.
City of Baltimore
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How is the fee charged?
The annual fee is assessed on a quarterly basis.
For example, if your account balance is $50,000, the
annual Managed Account fee is:
$50,000 X 0.0004 = $200
You are charged $50 each quarter.
If your account balance is $500,000:
The first $100,000 is subject to a maximum annual
fee of 0.40% ($400);
the next $150,000 is subject to a maximum annual
fee of 0.30% ($450);
the next $150,000 is subject to a maximum annual
fee of 0.20% ($300);
and any amounts over $400,000 (in this case,
$100,000) are subject to a maximum annual fee of
0.10% ($100).
The total annual fee of a $500,000 account is
$400+$450+$300+$100 = $1,250
Each quarter, your account is assessed $1,250/4 =
$312.50
There is a free-look period for 90 days from the day you
enroll in the Managed Account service. If you remain in
the Managed Account service beyond the free-look end
date, the appropriate fees listed above will be assessed
to your account for the entire period, including the freelook period. After the free-look period is over, you will
be charged each quarter for the service.
I received a letter about the Managed Account
service. Do I need to do anything?
Three different letters are sent to ensure that you are
given ample time to make an informed decision.
The first letter is sent at the start of the process and
at the beginning of the special enrollment period.
Everyone (except participants who were excluded)
receives the first letter.
If you choose not to participate, you will need to call
the AAG service center or initiate a qualifying financial
transaction (e.g., make your own fund allocation
decision) to opt out of the enrollment process. You will
not receive any more letters.
A second letter is sent 35 days after the first letter to
remind you that you need to take action if you do
Managed Account Opt-Out Process
Frequently Asked Questions
not want to be enrolled in the Managed Account
service. Again, if you either make a qualifying financial
transaction or opt out of the enrollment process, you will
not receive any more letters.
The third letter is sent at the end of the process to
congratulate you on your enrollment into the Managed
Account service.
I decided that I want to opt out of the Managed
Account service. What do I need to do?
You may contact AAG by calling (844) 302-2448
and asking to speak to an AAG Investment Adviser
Representative.
What if I change my mind and want to re-enroll
in the Managed Account service?
You may contact AAG by calling (844) 302-2448
and asking to speak to an AAG Investment Adviser
Representative.
I still have some questions. Whom do I call
about my account?
You may contact AAG by calling (844) 302-2448
and asking to speak to an AAG Investment Adviser
Representative.
You may also contact your local representative
at (877) 223-2748 or email Retirement.Plans@
BaltimoreCity.Gov.2,3
1 The Retirement Income Control Panel and the Projected Retirement Income are
educational tools that provide hypothetical information for illustrative purposes
only. They are not intended to provide financial planning or investment advice.
Both Retirement Income Control Panel and Projected Retirement Income are
brought to you by Advised Assets Group, LLC, a registered investment adviser.
All rights reserved.
2 Representatives of GWFS Equities, Inc. are not registered investment advisors
and cannot offer financial, legal or tax advice. Please consult with your financial
planner, attorney and/or tax advisor as needed.
3 Access to the voice response system may be limited or unavailable during
periods of peak demand, market volatility, systems upgrades/maintenance or
other reasons.
Core securities, when offered, are offered through GWFS Equities, Inc. and/or
other broker dealers.
GWFS Equities, Inc., Member FINRA/SIPC, is a wholly owned subsidiary of GreatWest Life & Annuity Insurance Company.
GWFS Equities, Inc., or one or more of its affiliates, may receive a fee from the
investment option provider for providing certain recordkeeping, distribution and
administrative services. Managed Account, Guidance and Advice services are
offered by Advised Assets Group, LLC (AAG), a federally registered investment
adviser and wholly owned subsidiary of Great-West Life & Annuity Insurance
Company. More information can be found at www.adviserinfo.sec.gov. All
trademarks, logos, service marks, and design elements used are owned by their
respective owners and are used by permission. ©2015 Great-West Life & Annuity
Insurance Company. All rights reserved. Form# CB1114OOFAQ (4/2015) PT225709