Retirement Savings Benefits

2. Retirement Savings Benefits 2014 Stanford Benefits

3. Stanford Contributory Retirement Plan • Type of Plan: 403(b) Defined Contribution Plan. • Contribute pre-tax dollars toward your retirement. • Contributions go into investment funds you choose. • Contributions grow/decline based on investment fund(s) performance. • Generally, retirement plan contributions are invested until retirement.

4. Stanford Contributory Retirement Plan (SCRP)

5. Contributory Retirement Account (CRA) • Available after one year to eligible employees (automatically enrolled at 4% on 1st of month after your anniversary date). • Automatic basic contribution from Stanford. • You can contribute before- and/or after-tax dollars. • If you contribute at least 4% Stanford matches an additional 5%. • If you contribute to both TDA and CRA in the same calendar year and reach the IRS limit, you risk losing some of the Stanford match. Plan your contributions carefully. • Look for more information as you get close to your one-year anniversary!

6. Investment Structure If you don’t select a fund, your contributions go to Vanguard’s Target Retirement Funds. If you elect to contribute to TIAA-CREF and don’t complete the TIAA-CREF contract, your contributions will default into Vanguard’s Target Retirement Funds.

7. Choosing Investments Call or check the websites: • www.fidelity.com • www.vanguard.com • www.tiaa-cref.org Vendor one-on-one meetings Your personal financial advisor Educational seminars (check Stanford Benefits website for dates/times)

8. How to Enroll Go to Stanford Retirement Manager after you receive one paycheck Stanford Retirement Manager is available online or by phone • Call 888-793-8733 • Rehired employees must re-activate contribution percentage online • Print a copy of the confirmation of your elections • Review your paycheck to ensure contributions have begun and are correct Enter contribution percentage, designate investment vendors and investment funds For TIAA-CREF, you must link to its website and complete a TIAA-CREF online application

9. Benefits Website: Retirement Overview

10. Changing Elections Use Stanford Retirement Manager to: • Change payroll deduction percentage • Note: Change by the 10th or 25th of the month before 5 p.m. PST or the business day before if a weekend or holiday (see Benefits website at benefits.stanford.edu for details) Choose new investment options Transfer existing balances among different investment options

11. Contribution Limits For 2014, you may contribute up to: • $17,500; • $23,000 if age 50 or over by 12/31/14; or • 100 percent of your salary if less Important: These limits include any before-tax contributions you made to other plans. These limits apply to both TDA and CRA contributions.

12. Before-Tax Contributions When calculating percentage to reach your maximum before-tax contributions, remember: • December 15 paycheck is the last paycheck for the plan year • Before-tax calculator available on the Stanford Benefits website at benefits.stanford.edu

13. Comparison of SCRP Accounts Important Reminder: Don’t forget to attend the one-year anniversary meeting next year to learn about key differences between the TDA and CRA accounts!

14. Getting Your Retirement Plan Funds Loans available from funds in Fidelity and Vanguard funds Financial hardship: • Purchase of primary residence • Eviction/foreclosure of primary residence • Uninsured medical bills • College tuition • Funeral or burial expenses • Repair of your primary residence due to a natural disaster

15. Controlled Group Restrictions Beginning January 1, 2009, new federal regulations require Stanford Hospital and Stanford University to administer their retirement plans as if they were maintained by the same employer. This means that new and more restrictive rules will apply to retirement plan distributions if you change employment from the hospital to the university, or vice versa. • For example: If you leave Stanford University and then start working at Stanford Hospital, you cannot take all of your money out of the Stanford Contributory Retirement Plan (SCRP). You will not be able to request a distribution from your SCRP plan until you stop working for both the hospital and the university. More restrictive rules apply to loans and hardship withdrawals. All distributions, loans and hardship withdrawals must be approved by the Stanford Benefits Department.

16. Conclusion Keep doing your research. Enroll using the Stanford Retirement Manager after your first paycheck. Stanford Retirement Manager available online and by phone. Remember the dates for payroll deduction elections: 10th and 25th before 5 p.m. PST. Remember to check your paycheck stubs to verify that your contributions have begun and are correct.

17. Benefits highlighted in this presentation are governed by the University plan contracts and policies, and applicable state and federal laws. If there is a conflict between the wording in this presentation and the group policies and contracts, the policies, contracts and applicable laws govern. Stanford reserves the right to alter, amend or terminate any of the benefits described in this presentation at any time.