roman catholic diocese of austin 403(b) plan highlights · 457(b) plan, 403(b) account or eligible...

Questions? Visit austindiocese403b.org or call 877-800-1114 11

Roman Catholic Diocese of Austin

403(b) PLAN HIGHLIGHTSTaking Your Retirement Plan Upward


A message from the Diocese of Austin 2

I. About your retirement program 3

II. Manage your retirement plan 4

III. A look at your investment options 5-7

FAQ 8

CONTENT


It’s Time to Take Your Retirement Plan UpwardThe opportunities you have available to plan and save for your financial future are very important to us. That’s

why we are pleased to introduce you to the Diocese of Austin retirement plan.

Our retirement plan service providers are as follows:

Retirement Plan Consultants (RPC) is the plan administrator and recordkeeper, and Investing for Catholics

(IFC), a division of Index Fund Advisors, Inc., is the independent fiduciary investment advisor to the plan. Your

retirement plans provide:

• A focused, faith-consistent investment lineup developed to help simplify investing decisions and still

offer flexibility.

• Easy-to-own, lower-cost investment choices.

• Access to services, tools and resources to help you on your journey to retirement.

The investment menu has been designed by IFC to be straightforward and streamlined. The investment

choices were selected by IFC to help you create a diversified retirement portfolio. It includes easy-to-own,

easy-to-manage portfolios such as Target Date Portfolios and Risk-based Portfolios. These portfolios are pre-

built for you, and designed to help make your retirement investing program as simple as possible.

Please review this guide for important information about your plans and service providers. For complete

details, please review the details on page 3. We’re excited to provide you with the opportunities your retirement

plan provides and we hope that you maximize this important benefit to help fulfill your retirement goals.

The Diocese of Austin

Human Resources Department


Your Plan at a GlanceThe table below provides general details about your plan. For site-specific matching programs, please consult

your site’s human resources manager.

Still Have Questions? If you have questions about your plan provisions, please call 877-800-1114, or visit austindiocese403b.org

to view the complete details for your plan investments and access your account.

Plan Employee 403(b) Saving Plan

Eligibility Employees who work 20 or more hours a week.

EnrollmentIf already enrolled in the current plan, you will be automatically enrolled. If a new enrollee, go to austindiocese403b.org. You will need to Register for Access and follow the on-screen instruction to access your new account.

ContributionsEach site has its own contribution schedule. Please consult your human resources manager for site specific vesting information. IRS maximum for 2017 is $18,000. Catch up contributions are an additional $6,000 for those age 50 and over

VestingEach site has its own vesting schedule. Please consult your human resources manager for site specific vesting information.

Withdrawals

You may withdraw vested funds from your plan account in these events:• Retirement normal age, age 65• Termination of employment• Attainment of age 59.5• Disability• Death

Loans Loans and withdrawals are not allowed.

Fiduciary Investment Advisor Investing for Catholics (IFC).

Plan Administrator & Service Provider Retirement Plan Consultants (RPC).


Manage Your Retirement Plans with EaseToday, it is easier than ever before to navigate toward a comfortable

and satisfying retirement. Your plan service providers help you with

a dedicated plan website at austindiocese403b.org. You will have

24/7 account access with daily valuations, tools, and resources to

help you manage your plan. Login to:

• Update your personal information

• Designate your beneficiary(ies)

• Set or change your salary deferral percentage or amount

for the savings plan

• Examine your investment options

• Consider if it makes sense to change your investments

• Monitor your progress

• Repeat annually

Remember, the amount of retirement income you receive will depend on, among other things, how much you

invest, how those investments perform over time, and how you choose to receive income. Financial advisors

are available by phone Monday through Saturday. Consultants are available to answer your questions, talk

you through the website, and your investment options, as well as help you plan for your future so you have a

plan for retirement that you can feel good about.

Online:To update or set up your account online,

go to austindiocese403b.org and log in.

Then select login to your account. First-time

users will need to Register for Access and

follow the on-screen instructions to access

your new account.

By phone:To update or set up your account by

phone, or for questions, call 877-800-1114.

Consultants are available weekdays from

8 a.m. to 5 p.m. (CT).


A Look at Your Investment OptionsInvesting for Catholics (IFC) and the Diocese of Austin selected

low-cost, investment options that align with the Catholic values

espoused by the Diocese. These new choices include an asset

allocation service that provides a complete portfolio in a single

choice. You can choose a model portfolio or build your own

portfolio from the plans’ investment options. If you do not make

a selection, you will automatically be defaulted into the IFC Target

Date Portfolio that most closely matches the year you turn 65.

You have the ability to decide how all contributions are invested

in the plans’ investment lineups. While there’s no guarantee that

diversification will protect against a loss, it can help manage

investment risks.

Strategy 1: If you would like the convenience of a complete retirement portfolio in a single choice

The Investing for Catholics Portfolios help simplify investing by providing a complete retirement portfolio

in a single choice. Each model portfolio includes a professionally selected mix of investments from the

plans’ investment menu that corresponds to criteria developed by the Diocese of Austin in consultation with

Investing for Catholics, their independent investment advisor. Investing for Catholics provides the ongoing

management and annual rebalancing to help your model stay in step with your goals.

Investing InsightWhat’s the benefit of lower-cost investment options?Investing in lower-cost investment options means you pay less for investment fees and a higher percentage of any potential return stays invested. For example, a reduction of 0.10% in mutual fund fees would result in an annual savings of $10 each year for every $10,000 invested. For an account worth $100,000, approximately $100 in fees could be saved per year. While returns can’t be guaranteed, paying lower fees can help your savings add up over time.


The Investing for Catholics Target Retirement Portfolios target a specific retirement date and are the plans’

new default option. As you near retirement, the investment mix in your model portfolio gradually changes,

with more of your savings automatically directed to investments that help manage risk and volatility in your

portfolio. The Investing for Catholics Target Risk Portfolios are managed to maintain a specific level of risk.

If you wish to customize or build your own investment portfolio, you are more than welcome to do so using

the investment funds offered in the lineup, and by using IFC’s Risk Capacity Survey and portfolio construction

tools at austindiocese403b.org or by simply calling IFC at 888-815-5025 to speak with Mary Brunson, your

plan’s investment advisor representative.

Investing for Catholics Model Portfolios at a Glance

Each model portfolio represents a specific mix of the investments available in the plans’ new core investment

lineup. The charts below show the investment mix for each portfolio.

Investing for Catholics (IFC) Target Retirement PortfoliosIFC Target Retirement Portfolio Names

DFA US Social Core

Equity 2 (DFUEX)

DFA Global Real Estate Securities I

(DFGEX)

DFA International Social Core Equity

Institutional (DSCLX)

DFA Emerging Markets Social

Core Equity (DFESX)

DFA Social Fixed

Income (DSFIX)

Total

IFC Target Retirement 2060 54% 10% 18% 10% 8% 100%









IFC Target Retirement Income 32% 6% 11% 6% 45% 100%

Investing for Catholics (IFC) Target Risk PortfoliosIFC Target Retirement Portfolio Names

DFA US Social Core

Equity 2 (DFUEX)

DFA Global Real Estate Securities I

(DFGEX)

DFA International Social Core Equity

Institutional (DSCLX)

DFA Emerging Markets Social

Core Equity (DFESX)

DFA Social Fixed

Income (DSFIX)

Total

IFC Conservative Portfolio 24% 4% 8% 4% 60% 100%

IFC Moderate Portfolio 36% 6% 12% 6% 40% 100%

IFC Aggressive Portfolio 48% 8% 16% 8% 20% 100%


Strategy 2: Build your own portfolio with the core investment lineup

These new choices include index-style options and a guaranteed account that may offer you flexibility to

create a retirement portfolio that matches your investment preferences and goals.

Investment Option Ticker SymbolDFA US Social Core Equity DFUEX

DFA Global Real Estate Securities I DFGEX

DFA International Social Core Equity Institutional DSCLX

DFA Emerging Markets Social Core Equity DFESX

DFA Social Fixed Income DSFIX

DFA Short-Term Government I DFFGX

Vanguard Treasury MMKT INV VUSXX

Investment products may be subject to market and other risk factors. Please see the Q&A section for more information.

You can see details about all the new investment options online at austindiocese403b.org. Click on Investment Options to view the portfolios and individual investment information.


Q: What happens if I become disabled?A: If you become disabled, you will be fully vested in your account. Your disability retirement date will be the first

day of the month following the date that you become disabled. Your account will be paid to you in one lump sum

payment.

Q: Who will be the beneficiary of my death benefits?A: You have the right to designate your beneficiary or beneficiaries at any time. If you fail to designate a beneficiary,

if your beneficiary designation is not valid or if your beneficiary fails to survive you, then your benefits will be paid in

the following order to: (1) your spouse; (2) your descendants; (3) your surviving parents in equal shares; and, (4) your

estate. To make a beneficiary designation, contact your Plan Administrator to request the appropriate beneficiary

designation form.

Q: What are the tax effects of taking my money?A: If you withdraw money from the Plan and you do not directly roll it over into another qualified plan, governmental

457(b) plan, 403(b) account or eligible IRA, you generally will have to pay income taxes on the money. The amount you

withdraw is generally subject to a mandatory 20% Federal income tax. In addition, if you are under age 59 ½ when

you make the withdrawal, an additional 10% IRS penalty tax may apply (unless you are a military reservist called into

active duty and you receive a qualified reservist distribution).

Q: Who are excluded employees?A: You are an excluded employee if you are an employee covered by a collective bargaining agreement where benefits

were the subject of good faith bargaining, a leased employee, a temporary employee (person who regularly and

customarily works less than twenty hours per week), an employee who is covered under the terms of another plan

of retirement benefits sponsored by the Employer or the Corporation Sole, a priest, a professed religious deacon, a

member of a religious order or community, or a person determined the Plan Administrator in its discretion to be an

independent contractor, other clergy, a nun, or a member of a religious society of community.

Q: What happens if I become an excluded employee?A: If you become an excluded employee, you will no longer be allowed to receive additional contributions under the

Plan. You will, however, still have the ability to manage your account and keep certain rights and benefits.

Q: When can I become a participant in the Plan?A: Immediate participation for employee deferral and matching; 1 year for employer contribution.

FAQs


About RPCProviding strong support on the road to retirement

Retirement Plan Consultants, LLC (RPC) is a retirement plan services company specializing

in church plan record keeping and administration for clients just like the Diocese of Austin.

RPC provides day-to-day administration and support for plan participants. RPC’s robust

website is where participants can enroll in the plan, get information about their accounts,

and make changes in contributions and/or investments. This site is always available for easy

access through austindiocese403b.org. A participant can also call 877-800-1114 between

8:00am-5:00pm (CT), to speak with a live representative about your account.

About Investing for Catholics,a division of Index Fund Advisors, Inc. (IFA)

Investing for Catholics (IFC) provides faith-consistent investments rooted in financial science.

IFC was developed to meet the unique needs of Catholic investors—investing responsibly in

line with the Catholic faith while maximizing returns for the risk taken.

As an independent advisor to the plans, IFC has tailored an investment lineup of carefully

selected, lower-cost options for the retirement plans, including “one decision” portfolios

designed as easy-to-use alternatives to choosing your own investments.


You should consider the investment objectives, principal strategies, principal risks, portfolio turnover rate, performance data, and fee and expense information of each underlying investment carefully before directing an investment based on the model. For a free copy of the the underlying investments call 888-815-5025. Please read the program description and the prospectuses or other offering documents for the underlying investments carefully before investing.

The Model is an asset allocation recommendation developed by your Plan Sponsor in consultation with consultants and other investment advisors designated by the Plan Sponsor whereby assets are allocated to underlying mutual funds and annuities that are permissible investments under the plan. Model-based accounts will be managed on the basis of the plan participant’s personal financial situation and investment objectives.

Changes in your personal financial situation or investment objective may require a change in the model recommended for your model-based account. Please contact us at 888-815-5025, visit austindiocese403b.org or contact your Plan Sponsor if you need to update your financial situation or investment objective. As a participant in the Program, you may wish to request a reasonable restriction on the management of your model-based account. Please contact your Plan Sponsor to discuss your options for requesting a reasonable restriction or a modification to an existing restriction.

The Plan Fiduciary and the Plan Advisor may determine that an Underlying Investment(s) is appropriate for a Model Portfolio, but not appropriate as a stand-alone investment for a Participant who is not participating in the Program. In such case, Participants who elect to unsubscribe from the Program while holding an Underlying Investment(s) in their Model-Based Account that has been deemed inappropriate as a stand-alone investment option by the Plan Fiduciary and/or the Plan Advisor will be prohibited from allocating future contributions to that investment option(s).

No registration under the Investment Company Act, the Securities Act or state securities laws—The Model is not a mutual fund or other type of security and will not be registered with the Securities and Exchange Commission as an investment company under the Investment Company Act of 1940, as amended, and no units or shares of the Model will be registered under the Securities Act of 1933, as amended, nor will they be registered with any state securities regulator. Accordingly, the Model is not subject to compliance with the requirements of such acts, nor may plan participants investing in underlying investments based on the Model avail themselves of the protections thereunder, except to the extent that one or more underlying investments or interests therein are registered under such acts.

No guarantee—Investments based on the Model are not deposits of, or obligations of, or guaranteed or endorsed by RPC, the Investment Advisor, The Plan or their affiliates, and are not insured by the Federal Deposit Insurance Corporation, or any other agency. An investment based on the Model is not guaranteed, and you may experience losses, including losses near, at, or after the target date. There is no guarantee that investments based on the Model will provide adequate income at and through your retirement. Investors should not allocate their retirement savings based on the Model unless they can readily bear the consequences of such loss.

The Custom Portfolio Program Model-Based Service (the “Program”) has been implemented by your Plan Sponsor to meet the unique retirement requirements of your plan. The Program is administered by RPC as plan recordkeeper. Should you have any questions about the Program offering, please contact your Plan Sponsor directly.

Distributions from 403(b) plans before age 59½, severance from employment, death or disability may be prohibited, limited and/or subject to substantial tax penalties. Different restrictions may apply to other types of plans.Investment, insurance and annuity products are not FDIC insured, are not bank guaranteed, are not bank deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value.

roman catholic diocese of austin 403(b) plan highlights · 457(b) plan, 403(b) account or eligible...

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