Peach State Reserves 401(k) and 457 Plans - GDC Jobs

1 Peach State R eserv es 40 1(k ) an d 457 Plan sAnswer:25% of your life could be spen t in retir em en tYou could leave em ploym en t with th e State befor e youre vested for pension benefitsPortability you can tran sfer it to an oth er em ployer planWor ker s m ay n eed h alf (48 %) of th eir retir em en t in com e to com e fr om per son al savin gs, in cludin g defer r ed compensation Plans *Pre-tax con tr ibution s m ean tax savin gs for you* 2006 Retirement Confidence Survey sponsored by CitiStreetW hy sav e w ith Peach State R eserv es?

2 (PSR )GSEPS 40 1(k ) Em p loy er M atchMatch dollar for dollar on the first 1% of contributions (100% match)For contributions from 2% through 5%, match is on the dollar (50% match)Only the first 5% of contributions will be subject to employer matchTotal m atch will n ot exceed 3% of compensationYou may contribute more, subject to plan maximumsMatch is paid every pay period$ $ $ $ $ $ $ $ per pay periodExample:Based on an annual salary of $30,000 paid semi-monthly$ may contribute over 5% to the plan, but will only be matched on contributions through the 5th%$ $ $ Match per pay periodContribution %No Loans in State 401(k) GSEPS 40 1(k ) Sav in gs PlanYou ar e autom atically en r olled at 1% upon date of h ire un less you complete an Opt Outfor m for th e 40 1(k) at th e tim e of hiringYou may choose to increase your contributions or stop your contributions at any time by contacting INGR emember to take advantage of the entire matching contribution.

3 The State of Geor gia will m atch you th r ou gh 5% of you r con tr ibu tion s. If y ou con tribu te 5% or m ore the State w ill m atch 3% If you stop your contributions, you may re-enroll in the plan any time in the future by contacting ING40 1(k ) M atch Vestin g401(k) employer match is subject to a 5-year vesting scheduleVested amountYears of continuous service100%After 5 years80%After 4 years60%After 3 years40%After 2 years20%After 1 yearERS developed this presentation to provide general information about your retirement benefits. In the case of any conflict between what is presented here and the laws governing this System, the law will take precedence.

4 *Assumes a flat 25% tax bracket without the standard deduction.**Assumes Georgia State Tax to be pay$30,000$30,000 Pre-tax contributionN/A-$1,800 Income subject to tax$30,000$28,200 Federal taxes* $ 7,500 $7,050 State Tax**$1,800$1,692 Net income$20,700$19,458 After-tax contributions $1,800N/AAfter TaxPSRS p e n d a b le i n c o me $18,900$19,458S p e n d a b le i n c o me $18,900$19,458R ed uce taxable in com e w ith PSR0751503 yrs5 yrs10 yrs15 yrs20 yrs25 yrs30 yrs* Example is based on a hypothetical return of 6%. This exampleis for illustration purposes only.

5 The returns you experience may be more or less depending on actual investment returns in your now ..John5 years later ..$100,562$100,562$69,787$69,787 Investing $100/month6% annual return*Dollars in thousandsStart earlyRem em ber Peach State Reser ves Offer s 2 Differ en t Plan s4 0 1( k )and4 5 7 Plan Com p arison40 1(k)401(k) contributions are matched by employer up to 3%No withdrawals prior to separation of service except:59 , even if still employed (except employer contributions)Financial Hardship withdrawal (if approved, employee contributions only)Penalty of 10% for any withdrawal made prior to 59 (limited exceptions)If married must elect spouse as beneficiary unless spouse waives right to be beneficiaryNo quarterly fee457No withdrawals prior to separation of service except.

6 Unforeseen Emergency withdrawal (if approved)Small balance withdrawal (balance must be less than $5, and no contributions may have been made within the last 24 months)No early withdrawal penalty regardless of ageCan designate anyone as beneficiaryAllows for 3 year catch-up contribution prior to retirementQuarterly fee of $ plan should I choose?All withdrawals and distributions are considered taxable income and are subject to ordinary federal and State withholding taxes. Note: The information above is for general information purposes only. You should speak with your tax advisor to the application to your specific Com p arisonBoth Plans offer the same investment choicesEach plan allows for em ployees age 50 or over to con tr ibu te m or e moneyContributions to both Plans are pre-tax Wh en you leave State em ploym en t, eith er plan m ay be r olled in to another em ployer qu alified plan or a tr adition al.

7 457 m on ey r olled over to an IRA, 40 1(k), or 40 3(b) can later be subject to early withdrawal penalties if subsequently withdrawnBoth plan s assess in vestm en t m an agem en t fees by fu n dCombined fee for investment management, securities selection, Plan administrationFees accrue daily and are reflected in the NAVFees vary by fund and are disclosed on the funds fact sheet available on the webAll fund investment fees are under are the 401(k) and 457 similar? All withdrawals and distributions are considered taxable income and are subject to ordinary federal and State withholding taxes.

8 Note: The information above is for general information purposes only. You should speak with your tax advisor to the application to your specific an cial H ar dsh ip With dr awals an d Loan sBoth th e 40 1(k) an d 457 plan s allow for with dr awals due to fin an cial h ar dsh ip or un foreseeable em er gen cies un der ver y lim ited cir cum stan ces an d it can be ver y difficult to qualify. Sign ifican t docum en tation an d fin an cial disclosur e m ust be provided. Th er e is n o guar an tee th at your with dr awal r equest will be appr oved.

9 NO LOANS ar e available from eith er th e 40 1(k) or th e 457 plan with Peach State Com p arisonEn r oll an y tim e an d discon tin u e par ticipation at an y tim eAu tom atically en r olled in 40 1(k) at 1% u n less you Opt Outupon hireMin im u m con tr ibu tion of 1% of pay on a pr e-tax basis (IRS lim it of $ 16,50 0 for 20 10 )Par ticipan ts age 50 an d over m ay con tr ibu te ad dition al $ 5,50 0 to each plan for 20 10 ($ 22,0 0 0 .0 0 m ax)May con tribu te to both 40 1(k) an d 457 plan sOn ly 40 1(k) con tr ibu tion s ar e m atch ed Ch oose fr om a diver se r an ge of in vestm en t option sBasics for Particip atin g in PSRPSR accou n t access24/7 account accessOnlinehttp s:/ / m y GAp sr.

10 In g p lan (1-866-694-2777) For TDD, 1-877-766-8891 Par ticipan t Ser vice Repr esen tatives: weekdays, 8 .-8 *In-StatePlan Consultants:weekdays, 8:30 ** Except New York Stock Exchange holidaysPSR core in v estm en t op tion sThis slide is for illustrative purposes only. Prior to investing you should review all fund information and consider consulting with your financial Value FundCore Bond Index FundAc ti ve La r g e Ca p Va lu e S to c k Fu n dAc ti ve La r g e Ca p Gr o w th S to c k Fu n dLarge-Ca p Va lu e S to c k In d e x Fu n dLarge-Ca p Co r e S to c k In d e x Fu n dLarge-Ca p Gr o w th S to c k In d e x Fu n dAc ti ve S ma ll/ Mi d -Ca p Va lu e S to c k Fu n dAc ti ve S ma ll/ Mi d -Ca p Gr o w th S to c k Fu n dMid-Ca p Co r e S to c k In d e x Fu n dSmall-Ca p Co