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Retirement Health Savings Plan: A Retirement Benefit

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  • Talking Points * “Constant asset class exposure”: index funds are designed to remain fully invested in the benchmark indexes they track. Investors should expect the return and risk provided by the benchmark minus mutual fund fees. Actively managed funds select securities based on their fund’s objective and strategy and attempt to beat their benchmark.“ * Index funds generally have lower expenses than actively managed funds that invest in comparable securities.
  • Transcript

    • 1. Retirement Health Savings Plan: A Retirement Benefit Date March 15, 16 & 17th Presented by Steve Klosterman & Meredith Beckman 0110-3672 Madison Firefighters Local 311
    • 2. 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.
    • 3. 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.
    • 4. What is RHS?
      • 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 basis 1
        • Enjoy tax savings on both contributions and payments
        • Invest contributions for your circumstances in the Vantagepoint Mutual Funds
      A Solution to Post Employment Health Care Cost Problem 1 Non-discrimination provisions may result in the taxation of non-insurance premium reimbursements to highly compensated individuals (top 25% of salaries).
    • 5. 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
    • 6. 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-RC’s web site www.icmarc.org
        • VantageLine – Automated telephone line (800-669-7400)
        • Investor Services Representatives (800-669-7400)
    • 7. What are my Investment Options?
      • Actively Managed Funds
      • Index Funds
      • Model Portfolio Funds
      • Milestone Funds
    • 8. Investments Actively Managed Vantagepoint Funds International 3 - See Disclosures at the beginning of the presentation on slide 3 Aggressive Opportunities 2 Risk Return Low Duration Bond 1 Equity Income Asset Allocation Inflation Protected Securities 1 Growth & Income Growth
      • Designed exclusively for our participants
      • Family of funds covering the complete risk/reward spectrum
      • Multiple managers, complementary investment styles
      Select Value 2 Discovery 2
    • 9. Investments Vantagepoint Index Funds Risk Return 500 Stock Index Mid/Small Company Index 2 Broad Market Index Overseas Equity Index 3 Core Bond Index 1
      • Ensure constant asset class exposure
      • For cost-conscious investors
      See Disclosures at the beginning of the presentation on slide 3
    • 10. Investments Vantagepoint Model Portfolio Funds 1 Risk Return Savings Oriented Fund Conservative Growth Fund All-Equity Growth Fund Long-Term Growth Fund Traditional Growth Fund
      • Diversification within a single fund
      • Asset allocation that reflects the investors risk tolerance
      • Rebalancing to maintain a consistent risk exposure
      1 “Fund of fund" arrangement; additional underlying fees may apply. Consult the prospectus for details.
    • 11. Investments
      • 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 fund’s target date
      • Each fund’s risk level gradually declines over time until reaching steady level 10 years after target date
      Vantagepoint Milestone Funds 1 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 Fund’s 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. The Aging Path 2,3
    • 12. How Do I Manage My Account?
      • Meredith Beckman is your Retirement Plans Specialist
        • 608-232-0513
      • Reallocation of funds and transfers of existing balances
        • Account Access – ICMA-RC’s web site www.icmarc.org
        • VantageLine – Automated telephone line (800-669-7400)
        • Investor Services Representatives (800-669-7400)
      Investment Decisions
    • 13. When Can I Use My RHS Plan?
      • At separation from service with no restrictions
      • If a participant becomes totally and permanently disabled
      Your Employer’s Plan Determines
    • 14. What Can I Use RHS For?
      • 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
      Reimbursable Expenses: Your Employer’s Plan Determines
    • 15. What Can I Use RHS For?
      • 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
      Reimbursable Expenses: Your Employer’s Plan Determines
    • 16. Who Can Use RHS Tax-Free?
      • While Participant is living
        • Participant
        • Spouse
        • Dependents
          • Qualifying Child
          • Qualifying Relative
      • After Participant’s Death
        • Surviving spouse
        • Surviving dependents
          • Once eligible, always eligible
      Participant and Survivors
    • 17. 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
    • 18. Where can I Get More Information?
      • 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
      Resources
    • 19. Additional Questions?

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