OHIO DEFERRED COMPENSATION

877-644-6457 Ohio457.org Second Quarter 2018

A publication of the Ohio Deferred Compensation Board

Visit our website at Ohio457.org

Give us a call at 877-644-6457

Feel Empowered in Your Retirement Planning

Account Executives are Registered Representatives of Nationwide Investment Services Corporation, member FINRA.

How do you want to experience retirement? Meet with an Account Executive and take charge of your plan.

You have probably imagined your retirement, but have you taken the steps to help make it happen? We realize that having someone to talk with can make the difference between wanting to stay on track and actually making it happen. Your Ohio DC Account Executive is just the one to help.

Field Account Executives are located throughout Ohio to give you the personal attention you need—face-to-face at your place of employment. They can help guide you in finding the right financial solutions related to your retirement account throughout your career.

Retirement Planning Specialists are available throughout retirement. That’s because retirement planning doesn’t stop when you’re ready to retire. We can answer questions about how to get started and can discuss your options when you start taking withdrawals.

So, whether you have a very specific plan and want to know if you’re on track, or if you want help getting started, ask your employer to schedule a meeting with a local Account Executive today. If you are at or near retirement, call to make an appointment with a Retirement Planning Specialist.

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Message from the Executive Director...The Federal Reserve Board’s report on the Economic Well-Being of U.S. Households indicates that more than 40 percent of nonretired adults do not think their retirement savings is on track, and 25 percent say they have no retirement savings or pension.

I recently attended a focus group of people who were not saving for retirement, although most of them thought they were capable of saving something. One common theme preventing saving was their fear of investing.

Ohio DC’s Stable Value Option is a low-risk fund focused on preserving your savings, if you have a fear of investing. We also have LifePath funds that are professionally managed, diversified funds, if you are not comfortable making investment choices. And of course, we also have a broad range of investment options to choose from, if you are confident in your ability to manage your investments.

Don’t let fear of investing deter you from saving for retirement. Please contact us, and one of our Account Executives can help you decide which investment options are best for you.

Keith OverlyExecutive Director

Steitz Wins Board Special ElectionA retiree representative seat on the Ohio DC Board of Trustees became open in November, when former trustee John Maurer passed away. A special election was held, and Timothy C. Steitz was elected to this position. Mr. Steitz's term began in May and will run through 2021.

Timothy C. Steitz

New Fund ProfilesIf you are looking for detailed information about the Ohio DC investment options, fund profiles are available on our website under “Investments.” Ohio DC recently partnered with Morningstar® to prepare comprehensive reports that cover the important details for each investment option. While Ohio DC has always provided fund profiles, they were produced by multiple sources. The new fund profiles have the same layout and data, which allow participants to make more effective comparisons.

Go to Ohio457.org for information about each fund we offer.

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Technology TransitionOhio DC’s mission is “Guiding participants along the path to retirement income security.” Ohio DC strives to achieve this mission by meeting your expectations and making it easy for you to stay actively engaged in your retirement savings plan. To continue to provide you with this level of service, Ohio DC will transition to a new recordkeeping system soon.

Updating the current system will take advantage of the latest technologies, resulting in a more flexible and secure, state-of-the-art system. This will position Ohio DC to be better prepared for the future and will enhance the overall service we provide to you. While most of this update will be behind the scenes, the new system will eliminate the use of your Social Security Number as your account number. Participants will be assigned a unique account number for each Program account.

We appreciate your participation and look forward to helping you achieve retirement income security.

Americans Are Working Longer for Many ReasonsThe National Press Foundation recently held the conference “Why Americans Are Working Longer.” Beginning in the late 1800s, most older men dropped out of the labor market, but in the mid-1990s both men and women started working longer, according to Courtney Coile, a professor of economics at Wellesley College.

Reasons for working longer include better health and longevity; higher levels of education; and a shift from “defined benefit” retirement plans, that were provided in the form of pensions, to “defined contribution” plans, like 457 and 401(k) plans. These plans rely on the employee, rather than the employer, to provide the vast majority of retirement contributions. Many people can no longer rely on a pension to provide all of their retirement income. Some people are driven to work longer since they don’t have the financial resources to retire. While not everyone wants to or even has the ability to work later in life, there are a lot of people who do. Some work longer for better financial security, some for social interaction, and some just because they enjoy what they do.

Whether or not you continue to work later in life, Ohio DC has the resources to help you save for a more comfortable retirement.

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Ohio Deferred Compensation Service Center257 East Town Street, Suite 457Columbus, Ohio 43215-4626

Walk-in hours: 8 a.m.–4:30 p.m., Monday–FridayPhone hours: 8 a.m.–5:30 p.m., Monday–FridayAutomated Telephone System: 24/7

877-644-6457

Ohio457@Nationwide.com

Ohio457.org

Ohio Deferred Compensation

The Ohio Deferred Compensation Program is a supplemental retirement benefit plan regulated by Section 457 of the Internal Revenue Code.

Ohio DC Board of Trustees

Elected Julie AlbersCounty EmployeesRandy DespositoNon-teaching College/University EmployeesChristopher MabeState EmployeesCinthia SledzMiscellaneous EmployeesTimothy C. SteitzRetired GroupKen ThomasMunicipal EmployeesSteve Toth, ChairRetired Group

Keith OverlyExecutive Director

AppointedSeth MetcalfInvestment ExpertHerman Mollmann, Vice ChairInvestment ExpertJames TillingInvestment Expert

This newsletter is printed on recycled paper.

StatutoryRobert BlairDirector, Department ofAdministrative ServicesRichard BrownHouse of RepresentativesJay HottingerSenate

Meet with a Retirement Planning SpecialistRetirement Planning Specialists (RPSs) are Chartered Financial Consultants (ChFC), who help Ohio DC participants with retirement planning at no charge, in the most convenient of three ways—at the Service Center in Columbus, at meeting sites listed below, or over the phone. RPSs will be available to meet with you during normal business hours, depending on your city.

Make an appointment to discuss your Ohio DC account with an RPS. Call 877-644-6457 and an Account Executive will assist you.

Topics covered by an RPS during an appointment:

• Your retirement goals• Deferring tax on unused sick and vacation leave• Age 70½ Required Minimum Distribution• Withdrawal strategies• Asset allocation

RPSs will be in the following librarieson these dates:

August 2018 Meetings:August 14 Cleveland, North Royalton Branch

August 16 Canton, North Branch

August 20 Cincinnati, Blue Ash Branch

August 22 Cleveland, Mayfield Branch

August 23 Toledo, Maumee Branch

September 2018 Meetings:September 11 Cleveland, Bay Village Library

September 12 Toledo, Reynolds Corners Library

September 13 Dayton, Yellow Springs Library

Information presented by the RPS is for educational and planning purposes only and is not intended as investment advice. Neither Nationwide nor its representatives provide tax, legal, or investment advice. Please consult your professional advisor for such advice.

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Ohio Deferred CompensationInvestment Performance Report—As of June 30, 2018

The results shown represent past performance and should not be considered a representation of future performance or experience. Past performance cannot guarantee future results. Current investment results may be lower or higher than quoted in this report. The principal value and investment return of an investment will fluctuate so that an investor's units/shares, when redeemed, may be worth more or less than their original cost. Performance data current to the most recent month-end may be obtained by visiting Ohio457.org. Although data is gathered from investment providers, the Program cannot guarantee completeness and accuracy. Please see other important disclosures at the end of this report. Consider the investment objectives, risks, charges, and expenses carefully before investing by consulting your prospectuses, which contain this and other information. Prospectuses are available by calling 877-644-6457 or visiting Ohio457.org. Read the prospectus carefully before investing. Inception 2nd Average Annual Returns ExpenseFund Name (Manager or Ticker Symbol) Date Quarter YTD 1 Year 3 Year 5 Year 10 Year Ratio(1)

Ohio DC LifePath Portfolios (BlackRock)(2)

LifePath Retirement(3) 8/15/2017 0.75% -0.25% 4.90% 4.56% 5.18% 5.28% 0.06%

LifePath 2020(3) 8/15/2017 0.79% -0.21% 5.68% 5.10% 5.99% 5.42% 0.06%

LifePath 2025(3) 8/15/2017 1.00% -0.05% 6.92% 5.89% 6.77% 5.80% 0.06%

LifePath 2030(3) 8/15/2017 1.18% 0.09% 8.03% 6.60% 7.47% 6.13% 0.06%

LifePath 2035(3) 8/15/2017 1.35% 0.22% 9.08% 7.26% 8.10% 6.41% 0.06%

LifePath 2040(3) 8/15/2017 1.51% 0.33% 10.02% 7.83% 8.66% 6.64% 0.06%

LifePath 2045(3) 8/15/2017 1.63% 0.40% 10.64% 8.19% 9.07% 6.80% 0.06%

LifePath 2050(3) 8/15/2017 1.66% 0.41% 10.84% 8.32% 9.28% 7.00% 0.06%

LifePath 2055(3) 8/15/2017 1.65% 0.40% 10.82% 8.30% 9.40% 10.29%(4) 0.06% International Stock FundsTempleton Foreign (FTFGX)(5) (6) 5/1/2013 -0.39% -3.53% 2.09% 4.25% 5.57% 4.01% 0.65%

Vanguard International Growth (VWILX)(5) 8/31/2001 0.71% 4.12% 20.00% 12.26% 11.73% 6.34% 0.32%

Vanguard Total International Stock Index (VTPSX)(5) (6) 11/30/2010 -3.17% -3.61% 7.12% 5.37% 6.46% 2.68% 0.07%

Small-Cap Stock FundsOhio DC Small-Cap Growth (Westfield, Fiera)(2) 6/2/2017 4.68% 7.95% 19.89% 18.43%(4) n/a n/a 0.72%

Ohio DC Small-Cap Value (Westwood)(2) 6/2/2017 5.80% 5.70% 16.00% 14.39%(4) n/a n/a 0.57%

Vanguard Small-Cap Index (VSCPX)(5) (6) 12/17/2010 6.21% 6.00% 16.52% 10.49% 12.43% 11.30% 0.04%

Mid-Cap Stock FundsVanguard Capital Opportunity (VHCAX)(5) 11/12/2001 2.57% 4.35% 16.68% 13.97% 16.51% 12.15% 0.37%

Large-Cap Stock FundsDodge & Cox Stock (DODGX)(5) 1/4/1965 2.76% 0.96% 11.85% 10.95% 12.81% 9.70% 0.52%

Fidelity Contrafund Commingled Pool(2) 1/17/2014 6.37% 9.76% 24.93% 15.28% 13.50%(4) n/a 0.38%

Fidelity Growth Company Commingled Pool(2) 12/13/2013 5.88% 11.55% 28.73% 18.59% 18.07%(4) n/a 0.38%

Ohio DC Large-Cap Growth (T. Rowe Price)(2) 8/1/2014 6.71% 11.70% 28.99% 17.94% 17.06%(4) n/a 0.36%

Vanguard Institutional Index (VIIIX)(5) 7/7/1997 3.43% 2.63% 14.35% 11.91% 13.41% 10.19% 0.02%

Bond Funds Ohio DC Intermediate Bond (TCW)(2) 1/30/2015 0.10% -1.15% 0.01% 1.71% 0.87%(4) n/a 0.25%

Vanguard Total Bond Market Index (VBMPX)(5)(6) 2/5/2010 -0.17% -1.64% -0.51% 1.68% 2.22% 3.68% 0.03%

Stable ValueOhio DC Stable Value Option (Multiple Managers)(2) 1/1/1994 0.57% 1.13% 2.26% 2.21% 2.21% 2.81% 0.29% Annualized Crediting Rates: 2nd Quarter 2018—2.30% 3rd Quarter 2018—2.30%

(1) Investment performance has been reduced for expense ratios. These expense ratios may vary from period to period. Expense ratios do not include administrative fees or rebates of fee reimbursements. See "Administrative Fees and Rebates" for more information.

(2) These options are not publicly traded mutual funds and do not have a ticker symbol or prospectus. Additional information regarding the manager(s) and investment strategy can be found in the fund profile at Ohio457.org. The value of the securities held by the SVO will fluctuate. The SVO focuses on principal preservation and a stable rate of return.

(3) Returns shown are of the respective LifePath Index N series. Returns for periods prior to the inception of the N series are those of the respective LifePath Index F series.(4) Average annual return since inception date. (5) These options are publicly traded mutual funds, and they have a ticker symbol and prospectus. (6) Returns include performance of a different share class achieved prior to the inception of the current share classes. Returns were not recalculated to reflect the fees of the prior

share class.

Account Executives are registered representatives of Nationwide Investment Services Corporation, member FINRA.

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LifePath Portfolios—Each LifePath Portfolio is based on a target year (when you expect to begin using your money). Portfolios are designed to provide diversification and asset allocation across several types of investments and asset classes, primarily by investing in underlying funds. LifePath Portfolios are designed for people who plan to begin withdrawing funds during or near a specific year. Like other funds, LifePath Portfolios are subject to market risk and loss. Loss of principal can occur at any time, including before, at, or after the target year. There is no guarantee that LifePath Portfolios will provide enough income for retirement.

International Stock Funds—International funds involve risks not associated with investing solely in the United States, such as currency fluctuation, differences in accounting standards, and the limited availability of information. Over the long term, an investor should be willing to accept a high level of risk resulting from potentially higher market volatility.

Small-Cap Stock Funds—Small-cap funds contain stocks from companies with less than $2 billion in capitalization, including many start-up companies. Small companies can grow much faster than big companies, but small company stocks tend to be more volatile than the stocks of larger companies. Over the long term, an investor should be willing to accept a high level of risk resulting from potentially higher market volatility.

Mid-Cap Stock Funds—Mid-cap funds contain stocks from companies with market values between $2 billion and $10 billion, and often include companies that are well established and growing. Over the long term, an investor should be willing to accept a moderate to high level of risk resulting from potentially higher market volatility.

Large-Cap Stock Funds—Large-cap funds contain stocks from companies with market values of more than $10 billion, and they include blue-chip and Fortune 500 companies. They are typically more mature, diversified companies with many products and services. Over the long term, an investor should be willing to accept a moderate to high level of risk resulting from potentially higher market volatility.

Bond Funds—Bonds are loans or debt instruments issued by governments or corporations that need to raise money. Bond funds have the same interest rate, inflation, and credit risks associated with the underlying bonds owned by the fund. Bonds are generally a more conservative form of investment than stocks, and usually provide a more steady flow of income. Typically, bonds have a lower long-term total return than stocks.

Stable Value—These options own short to intermediate term, high-quality securities. Investors who seek safety of principal as well as a competitive rate of return compared to money market funds may invest in these options. The Ohio DC Stable Value Option returns are shown net of fees for investment management, custody, and principal protection. A fund profile can be obtained for the Ohio DC Stable Value Option by calling 877-644-6457 or at Ohio457.org.

Investment Performance Report Notes

Investment PerformanceAll reported returns assume reinvestment of capital gains and dividends and reflect the fund's expense ratio, but not the deduction of the administrative fee or reinvestment of rebates.

Administrative Fees and RebatesAdministrative FeesAn annual administrative fee of 0.0014 or 0.14% is charged to each participant. Administrative fees will be charged each quarter and are based on the total of a participant’s account balance(s). Administrative fees will be waived if the total of a participant’s account balance(s) is below $5,000. Administrative fees will be capped at $55 per quarter, per participant.

Rebates of Fee ReimbursementsThe Dodge & Cox Stock fund has an annual administrative fee reimbursement of 0.10% included in its expense ratio. Ohio DC will rebate the fee reimbursement quarterly to the participant accounts invested in this option.

Investment decisions should not be made based on fee reimbursements. Before investing in a fund, carefully consider its objectives, risks, and charges and expenses. This information and other important facts can be found in the prospectus or fund profile at Ohio457.org. Read them carefully before investing.

NRM-3831OH.49 6/2018