Transition Guide for Participants (Local employers)

Transitioning to a
New Service Provider
The more things change,
the more they stay the
same
Important details inside about Tandem’s move
to a new record keeper and what it means for you
as a current participant.
Tandem Is Moving to Great-West Financial® for Plan Service
Tandem, the State’s 457 savings plan for public employees, is getting a new
partner. Starting in January, Great-West Financial® will begin providing our plan
administration, record keeping and education. Your investment choices and
other account information will move automatically to the new service provider.
Keep in mind that you will still be in the Tandem 457 Plan. Your money is in
Tandem and with its menu of investment options. You do not need to do
anything if you are happy with your current portfolio makeup. We’ll just have
someone else doing the record keeping and paperwork.
Please note, as part of the transition, you will receive a statement with a $0
balance from ING/Voya. Don’t worry, this is just reflecting the transfer to
Great-West Financial. See Page 6 for more information.
The transition from ING/
Voya will begin at
3 p.m. CST on December
23, 2014, and will be
completed on January
21, 2015. During this time
you will not be able to
make changes to your
account. Please see “Plan
Ahead for the Transition”
for more info.
This publication provides important information about the transition, so please
take some time to read it carefully.
Tandem’s
new sidekick
Great-West Financial
has a solid track
record and extensive
experience with 457
plans like ours. Its
strong credit rating,
competitive fees and
focus on retirement
readiness will make it
a great partner.
You will also
see Great-West
Financial referred
to as “EMPOWERTM
Retirement.” Empower
unites the retirement
businesses of GreatWest Financial®,
Great-West Financial
Retirement Plan
Services (formerly J.P.
Morgan Retirement
Plan Services), and
Putnam Investments.
See
Page 6
Why Are We Changing Service Providers?
KPERS oversees Tandem and has your best interest in mind. As part of our
fiduciary commitment to you, we want to be sure you have quality investment
options and tools at a good value to help you save for retirement.
The current service provider contract expires in December, so we took this
opportunity to revisit the market for competitive prices and services. After an
extensive selection process, we selected Great-West Financial as the partner
best suited to help Tandem become an even more effective source of retirement
readiness for public employees.
What to Expect During the Transition
We’ll do everything we can to make this transition as simple and seamless as possible.
Keep in mind the following:
• You do not need to do anything with your investments. Everything will
transfer automatically. But there will be a time when you cannot access your
account (called the “blackout period”). See Page 6 for how to prepare.
• We will hold informational group meetings across the State. This publication
covers all of the transition information, but these meetings will give you a
chance to ask questions in person if you’d like. You can find up-to-date meeting
information at www.kpers.org/tandem.html.
• Retiree payments will continue as scheduled. If you are receiving periodic
payments from your Tandem account, you will receive a separate letter
explaining how we will handle your payments during the transition.
P21-888-275-5737  www.kpers.org/tandem.html
Features and Services
Retirement planning could be overwhelming ... but Tandem can help!
Even superheroes have a sidekick.
New website
New advisory services
Tandem is updating its website with the transition.
You’ll see a clean, simple, smart design with tools
and information to get you retirement ready.
If you are a do-it-yourself investor, investment
help is just a click or call away. New to Tandem,
Reality Investing® Advisory Services (Advisory
Services), available
through Advised
Assets Group,
New account login
LLC (AAG), a
With Tandem’s new website,
federally registered
you’ll also have a new account
login. Great-West Financial
investment adviser,
will mail you a Personal
provides Guidance
Identification Number (PIN)1
and Advice services
and instructions the week
that can help take
of January 12, 2015. After
the guesswork
January 21, use it to activate
out of investing.
your new account login at
These free tools
www.tandem457.org.2
and services
can provide a
personalized
retirement strategy for your portfolio that you
implement and manage on your own.
Everyone will be able to designate beneficiaries,
update investment choices and choose electronic
statement delivery, if that option works best for
you. Completing paper forms with your Tandem
representative is always available, too.
There are also financial tools and calculators to help
guide you through retirement planning and your
saving decisions.
There is no guarantee that participation in Advisory
Services will result in a profit or that your account will
outperform a self-managed portfolio.
Real people for real help
Custom calculator just for you
Most Tandem savers are also KPERS members. To
see the big picture for your retirement, you need to
see all the pieces. And because of the partnership
between Tandem and KPERS, we’re in tune with
how the benefits fit together.
We’ll have a calculator that estimates income
amounts from your Tandem account, KPERS
benefits and Social Security. You’ll even be able to
try out early retirement scenarios as you explore
your options.
Tandem will continue to have dedicated education
representatives throughout the State to help you
understand your investment options and help you
manage your account. You’ll see some familiar
faces and have a chance to meet some new ones.
Check out www.tandem457.org2 in January for a
list of who’s available locally to help you with your
account.
1-888-275-5737  www.kpers.org/tandem.html
P3
Fee Transparency: What you see is what you get
The KPERS Board of Trustees made a decision to change how Tandem’s fees are charged and make the fees easy for participants
to see. But minimizing expenses for everyone continues to be our main objective.
How fees work now
Right now you are paying fees even though you
might not have noticed them. They are not really
spelled out in your quarterly statement.
fees will be prorated and charged monthly to your
account. You will also see any funds credited to you
from revenue sharing. These credits will go directly
back into your account.
Each of the fund managers charge you a
management fee to participate in their investment
fund. It is a percentage of the assets in your account.
You can see these fees on the “fund fact sheet”
for each investment option, available from your
Tandem representative or at www.tandem457.org.
For example, someone with $5,000 in his or her
account would see information something like this:
The management fee is subtracted from the fund’s
investment return before it hits your statement. The
returns on your quarterly statements are now “net
of fees.” Like the arrangement in many 457 plans,
some fund managers make payments back to the
record keeper (often called “revenue sharing”).
Currently, Tandem’s administrative expenses
(record keeper and KPERS) are funded through
revenue sharing. Some participants pay more and
others less depending on how the investment fund
they chose handles fees.
If your investment fund makes revenue sharing
payments, you will see it credited to your account as
a line item on your statement.
A new way of doing things
Beginning in January, your fees will be
straightforward and transparent. You will see
administrative and oversight fees spelled out
specifically on each quarterly statement. The annual
If you have a loan
from your Tandem
account ...
We’ll send you a
separate letter about
how we will handle
your loan payments.
Great-West Financial® (0.173%)
KPERS (0.048%)
$0.72*
$0.20*
* Annual amount is divided by 12 for the prorated monthly amount.
We are also adding a listing of all fund manager
fees. Your investment returns will still be net of fees.
But you can find your investment fund in the list to
see what the manager is charging you to invest your
money.
All things being equal
Fund manager fees will continue to vary according
to which investment fund you choose. But all
participants will pay the same plan administration
fee. Equity for all participants was an important goal
for the board of trustees in making these changes.
About the Stable Value Fund
The Stable Value Fund’s management will transfer to Great-West Financial. It will
keep the same objective of preserving your principal and providing a stable,
competitive return. KPERS will continue to oversee the investment guidelines, just
as it has been since 2007. The guarantee behind Tandem’s Stable Value Fund will
remain in place and will do so at a significantly lower fee than you have now.
P41-888-275-5737  www.kpers.org/tandem.html
Investment Options
You do not need to do anything if you are happy with your current portfolio makeup. Your money is invested in the
Tandem 457 Plan and its menu of investment options. Even with the move to a new record keeper, the investment options
are staying pretty much the same.
Four investment options will have a name change, but they will still be the same investments. Totally unrelated to the
recordkeeper change, one fund, Columbia Mid Cap Value Opportunity, has recently broadened its types of investments
and no longer fits within the asset class. We will replace this fund in January. Otherwise, it’s business as usual.
Current Investment
Fund Name
Ticker
Expense
Ratio
Shared
Net Fund
Revenue* Manager
Expense
INVESTMENTS WITH A FUND NAME CHANGE
Stable Value Option
Stable Value Funda
VOYA T. Rowe Price Cap Appreciation - Inst T. Rowe Price Capital Appreciationb
American Funds Growth Fund of Amer R5 American Funds Growth Fund of Amer R6
American Funds Capital World G/I R5
American Funds Capital World G/I R6c
N/A
PRWCX
RGAGX
RWIGX
0.28%
0.71%
0.34%
0.45%
0.00%
0.15%
0.00%
0.00%
0.28%
0.56%
0.34%
0.45%
REPLACEMENT INVESTMENT
Columbia Mid Cap Value Opportunity K
Vanguard Selected Value Invd
VASVX
0.44%
0.00%
0.44%
CONTINUING INVESTMENTS
Vanguard Total Bond Market Index Inst
Vanguard Target Retirement Income Inv
Vanguard Target Retirement 2015 Inv
Vanguard Target Retirement 2025 Inv
Vanguard Target Retirement 2035 Inv
Vanguard Target Retirement 2045 Inv
Vanguard Target Retirement 2055 Inv
AllianzGI NFJ Dividend Value Instl
Vanguard Institutional Index Instl
Fidelity Contrafund
Vanguard Mid Cap Index Inst
Columbia Acorn A
AllianzGI NFJ Small-Cap Value Instl
Vanguard Small Cap Index Instl
Baron Growth Instl
Dodge & Cox International Stock Fund
Vanguard Total Bond Market Index Inste
Vanguard Target Retirement Income Invb
Vanguard Target Retirement 2015 Invb,f
Vanguard Target Retirement 2025 Invb,f
Vanguard Target Retirement 2035 Invb,f
Vanguard Target Retirement 2045 Invb,f
Vanguard Target Retirement 2055 Invb,f
AllianzGI NFJ Dividend Value Instl
Vanguard Institutional Index Instl
Fidelity Contrafund
Vanguard Mid Cap Index Instd
Columbia Acorn Ad
AllianzGI NFJ Small-Cap Value Instld
Vanguard Small Cap Index Instld
Baron Growth Instld
Dodge & Cox International Stock Fundc
VBTIX
VTINX
VTXVX
VTTVX
VTTHX
VTIVX
VFFVX
NFJEX
VINIX
FCNTX
VMCIX
LACAX
PSVIX
VSCIX
BGRIX
DODFX
0.07%
0.16%
0.16%
0.17%
0.18%
0.18%
0.18%
0.71%
0.04%
0.67%
0.08%
1.08%
0.77%
0.08%
1.05%
0.64%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.10%
0.00%
0.25%
0.00%
0.50%
0.10%
0.00%
0.15%
0.10%
0.07%
0.16%
0.16%
0.17%
0.18%
0.18%
0.18%
0.61%
0.04%
0.42%
0.08%
0.58%
0.67%
0.08%
0.90%
0.54%
* Some fund managers make payments back to the record keeper, often called revenue sharing. Beginning January 1, 2015, Tandem will
credit funds from revenue sharing back to the individual participant invested in the fund.
Note: If you have a self-directed brokerage account through Voya Ultimate, you will receive a separate
letter explaining how the transition will affect this investment option.
Please consider the investment objectives, risks, fees and expenses carefully before investing. For this and other important information
about investments offered through your Plan, you may obtain mutual fund prospectuses for registered investment options and/or
disclosure documents from your registered representative or Plan website. Please read them carefully before investing.
aThe Stable Value Fund is a separate account product offered by Great-West Life & Annuity Insurance and is not backed by the general assets of
the insurer.
b Asset allocation and balanced investment options and models are subject to the risks of the underlying funds, which can be a mix of stocks/stock
funds and bonds/bond funds. For more information, see the prospectus and/or disclosure documents.
c Foreign investments involve special risks, including currency fluctuations and political developments.
d Equity securities of small- or medium-sized companies may be more volatile than securities of larger, more established companies.
e A bond fund’s yield, share price and total return change daily and are based on changes in interest rates, market conditions, economic and
political news, and the quality and maturity of its investments. In general, bond prices fall when interest rates rise and vice versa.
f The date in a Target Date Fund represents an approximate date when an investor turns age 65. The principal value of the funds is not guaranteed
at any time, including the target date.
1-888-275-5737  www.kpers.org/tandem.html
P5
Plan Ahead for the Transition
The recordkeeper transition will begin at 3 p.m. CST on December 23, 2014, and will be completed
by the end of the business day on January 21, 2015. During this time you will not be able to make
changes to your account so that records can be transferred. Your money will remain invested.
What is the blackout period?
For retirees
The blackout period is a time that, although
your funds continue to be invested, you can’t do
any transactions. This includes activities such
as investment option changes, fund transfers,
contribution amount changes and withdrawals.
If you are getting regular payments from your
Tandem account, they will continue as usual
through December 22, 2014. Payments between
December 23 and January 21 will be affected by
the blackout period. You’ll receive a separate letter
explaining the timing of your payments during the
blackout period.
The blackout period is necessary for the current
service provider to finalize records and transfer
them to the new service provider. The new provider
will then process and verify them.
Blackout period starts: 3 p.m. CST, December 23
Blackout period ends: close of business, January 21
How does this affect you?
If you are planning to make account changes toward
the end of this year, you need to have them done by
December 23, but the earlier the better. Otherwise,
you’ll need to wait until January 22.
Take some time to consider if this blackout period
might affect your retirement planning and timing
for any account activity. Because your funds will
stay invested, they will continue to gain and/or
lose value depending on market conditions. Please
see the “Important Notice Concerning Your Rights
Under the Plan” insert for more information.
During the blackout period, you will still be able to
see your information through your current online
account at www.tandem457.org. But you won’t
be able to make any changes. You can also call or
e-mail ING/Voya during this time.
P61-888-275-5737  www.kpers.org/tandem.html
New online account access
With Tandem’s new website, you’ll also have a
new account login. We will mail you instructions
the week of January 12. Beginning January 21,
you can use it to activate your new account at
www.tandem457.org.2
That would be a good time to review your
beneficiary information to be sure the right person
would get your Tandem account balance should the
unthinkable happen.
$0 balance on your statement
The ING/Voya quarterly account statement you
will receive in January for the fourth quarter of 2014
will show a $0 ending balance. Don’t panic!
This is the final statement prepared by the current
service provider. The $0 balance is a normal part of
the recordkeeping transition process. In April, you
will receive your statement for the first quarter of
2015, prepared by Great-West Financial. It will show
a starting balance of $0 and a “deposit” for your full
account balance, plus any contributions, dividends,
etc., from the first quarter.
Key Transition Dates3
Remember, there is nothing you need to do with your investments! Your
investment choices and other account information will move automatically
to the new service provider. And your money will stay invested in the
market during the blackout period.
Important
reminders
November and December
Informational group meetings across the State
about the transition.4
• All accounts will be
restricted from 3 p.m.
CST on December 23
until close of business
on January 21.
Week of December 1
Letters mailed to retirees about payments
during the blackout period.
• Complete any account
activity by December 23.
December 23
3 p.m. CST
Cutoff date to make fund transfers and other
changes to your account before the transition
blackout period begins.
Week of January 12
Setup information mailed to you for new
online account access. After January 21,
use it to activate your account login at
www.tandem457.org.2
• You can continue to view
your account online
during the transition or
by calling Tandem.
Important Dates
Week of January 12
Final quarterly statement from current record
keeper with a $0 ending balance. Your full
balance will show on your next quarterly
statement, mailed in April.
January 21
Close of business
Blackout period ends. You can make transfers
and changes to your account again at www.
tandem457.org or by calling 1-800-232-0024.2
Use your new login credentials to access your
new online account.
January 2
Tandem’s Topeka office is open for business at
800 SW Jackson, 11th Floor, our new location.
• You will have a new
online account login
starting January 21. We’ll
send you a PIN1 for access.
Questions?
Account service:
1-800-232-0024
tandem457@kpers.org
The transition:
1-888-275-5737
kpers@kpers.org
You can also attend an
informational meeting.
If you are planning to retire in December or January
See www.kpers.org/
If you are planning to retire in December or January, please work with your
Tandem representative to create a plan tailored to your specific situation.
He or she will also be able to help you with the rollover process if you are
receiving a partial lump sum from KPERS as part of your retirement.
tandem.html for the most
current schedule.
1-888-275-5737  www.kpers.org/tandem.html
P7
Attend a Meeting in Your Area
As part of Tandem’s transition to
Great-West Financial, we will hold
more than 250 employee meetings
MEETINGS
MEETINGS
MEETINGS
all over the State during the weeks of:
•
November 17-21
MEETINGS
•
December 1-5
•
December 8-12
MEETIN
MEETINGS
MEETINGS
MEETINGS
MEETINGS
MEETINGS
MEETINGS
MEETINGS
MEETINGS
MEETINGS
MEETINGS
MEETINGS
MEETINGS
MEETINGS
MEETINGS
MEETINGS
MEETINGS
MEETINGS
MEETINGS
MEETINGS
MEETINGS
MEETINGS
MEETINGS
MEETINGS
MEETINGS
MEETINGS
MEETI
NGS
MEETINGS
MEETINGS
MEETINGSGS
MEETINGS
Visit www.kpers.org/tandem.html
to see a complete schedule. New meetings are being
added every day, so check the calendar often!
LOCAL EMPLOYEE TRANSITION BULLETIN
1 The account owner is responsible for keeping the assigned PIN/password confidential. Please contact Great-West Financial immediately if
you suspect any unauthorized use.
2 Access to the information line and/or any website may be limited or unavailable during periods of peak demand, market volatility, systems
upgrades/maintenance or other reasons. Transfer requests made via the website and/or the information line received on business days prior
to close of the New York Stock Exchange (4:00 p.m. Eastern Time or earlier on some holidays or other special circumstances) will be initiated
at the close of business the same day the request was received. The actual effective date of your transaction may vary depending on the
investment option selected.
3 These dates and times are subject to change based on the ability of ING/Voya and Great-West Financial to meet the associated deadlines
and the successful transfer of data and assets by ING/Voya to Great-West Financial.
4 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.
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 Great-West Life & Annuity Insurance Company. GreatWest Financial® refers to products and services provided by Great-West Life & Annuity Insurance Company (GWL&A), Corporate
Headquarters: Greenwood Village, CO, and its subsidiaries and affiliates. ING/Voya and Voya Ultimate are not affiliated with GWFS
Equities, Inc. Core investment options offered through mutual funds and a separately managed account. 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. 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. ©2014 Great-West Life & Annuity Insurance Company. All rights reserved. CB1209LTB PT211648 (11/2014)
1-888-275-5737  www.kpers.org/tandem.html