& California Public California State Employees’ Teachers’ Retirement System (CalPERS) California State Teachers’ Retirement System (CalSTRS) & An overview of your retirement benefits and options Foresters Financial Services, Inc. does not work for any state or school.

Who We are Alexander Sierra Registered Representative 626-408-1333 ext. 416 Alexander.sierra@foresters.com Cory Prigmore 858-650-6830 Cory.prigmore@foresters.com

Foresters Financial Services, Inc. Provide everyday families and individuals with financial solutions, guidance and tools, to meet their needs across all life stages Offer personalized service combined with a solid, long-term approach and fresh thinking, to help you Part of Foresters™ an international financial services provider that gives back to the community and cares deeply about family well-being. Each year Foresters organizes thousands of community activities, providing financial contributions and hands-on volunteerism in support of charitable partners that make a meaningful impact in local communities.   Invest and save for life’s priorities Protect the ones you love Create retirement income strategies Maximize social security benefits Establish a college savings plan Understand your rollover options

Explanation of your retirement benefit Eligibility for retirement Hired Pre-2013 vs. Post-2013 Terms used Benefit estimates Income options

Eligibility rules for retirement CalPERS CalSTRS Normal Retirement Hired Pre-2013 – Age 50 + 30 years service credit or Age 55 + 5 years service credit Hired Post-2013 – Age 55 + 5 years service credit Reduced benefit election – Age 55 + 5 years service credit Normal Retirement Hired Pre-2013 – Age 50 + 5 years service credit Hired Post-2013 – Age 52 + 5 years service credit

A look at your statement CalPERS CalSTRS Annual Member Statement shows years of service credit you’ve accumulated

How to estimate your contributions CalPERS CalSTRS CalPERS members contribute 7% of their annual pay Example: If your annual pay was $60,000, your contribution for that year would be $4,200 Prior to July 2014: 8.00% 2014-2015: 8.15% 2015-2016: 9.20% 2016-2017: 10.25% Example: If your 2015-2016 pay was $60,000, your contribution for that year would be $5,520

How to calculate your defined benefit retirement CalPERS CalSTRS Formula: Service Credit x Age (Benefit) Factor x Final Compensation Service Credit Factors: Full vs. Part-time - Sick Leave Credit - Multiple Positions - Excess Service - Additional Duties Ability to Purchase Service Credit

How to calculate your defined benefit retirement (continued) CalPERS CalSTRS Final Compensation Highest consecutive 12 month compensation Final Compensation Over 25 years of service, your highest yearly salary Less than 25 years of service, average of highest 3 consecutive years

How to calculate your defined benefit retirement – Hired Pre-2013 (cont’d) CalPERS CalSTRS CalPERS Age Factors: 2% @ Age 55 CalSTRS Age Factors: 2% @ Age 60 Example – if Age 60, 28 years service credit and final compensation of $60,000 -------------------------------------------- 28 (Service Credit) x 2.31% (Age Factor) x $60,000 (Final Compensation) = $38,808/year or $3,234/month Example – if Age 60, 28 years service credit and final compensation of $60,000 -------------------------------------------- 28 (Service Credit) x 2.00% (Age Factor) x $60,000 (Final Compensation) = $33,600/year or $2,800/month

How to calculate your defined benefit retirement – Hired Post-2013 (cont’d) CalPERS CalSTRS CalPERS Age Factors: 2% @ Age 62 CalSTRS Age Factors: 2% @ Age 62 Example – if Age 60, 28 years service credit and final compensation of $60,000 -------------------------------------------- 28 (Service Credit) x 1.8% (Age Factor) x $60,000 (Final Compensation) = $30,240/year or $2,520/month Example – if Age 60, 28 years service credit and final compensation of $60,000 -------------------------------------------- 28 (Service Credit) x 1.76% (Age Factor) x $60,000 (Final Compensation) = $29,568/year or $2,464/month

Career factor for CalSTRS Members hired pre-2013 With 30 years service credit, you get an additional 0.2% added to your Age Factor (maximum still at 2.4%) Example: Member is 62 years old with 30 years service credit and final compensation of $60,000. 30 (service credits) x 2.4% (age factor 2.27% + career factor 0.2% = max 2.4%) x $60,000 (final compensation) = $43,200/year or $3,600/month

Choosing your CalPERS Retirement Payment Plan Option Unmodified Allowance – Maximum to retiree: lifetime; nothing for survivors Option 1 – lump sum payment of remaining member contributions payable to beneficiary after death Option 2 (100%), 2W, 3 (50%), 3W or 4 – provides lifetime monthly benefits to your designated beneficiary (Results in a reduction to retiree’s monthly allowance) Example: Member is Age 60, has 28 years service credit and $60,000 final compensation. If Unmodified allowance is $3,234/month: Option 1: $3,135 retiree Option 2: $2,812 retiree / $2,812 Bene Surv (Age 60) Option 3: $3,008 retiree / $1,504 Bene Surv (Age 60)

Choosing your CalSTRS Retirement Payment Plan Option Member – Only Benefit Maximum to retiree: lifetime; lump sum payment of remaining member contributions payable to beneficiary after death 100%, 75% or 50% Beneficiary Options – provides lifetime monthly benefits to your designated beneficiary (results in a reduction to retiree’s monthly allowance) Compound Option Example: Member is Age 60, has 28 years service credit and $60,000 final compensation. If Member-only benefit is $2,800/month: 100% Option: $2,502 retiree / $2,502 Bene Surv (Age 60) 75% Option: $2,592 retiree / $1,944 Bene Surv (Age 60) 50% Option: $2,665 retiree / $1,332 Bene Surv (Age 60)

Inflation adjustment calculations CalPERS CalSTRS Non-compounding 2% Will maintain at least 85% of purchasing power Defined benefit supplement (DBS) account Maximum of 2% compounding – based on the CPI (consumer price index) Will maintain at least 75% of purchasing power

How CalPERS & CalSTRS affect your Social Security benefits Does not contribute to Social Security WEP (Windfall Elimination Provision) GPO (Government Pension Offset) Does contribute to Social Security 40 quarters to be eligible (10 years full-time) When should you apply for your benefits?

Supplemental Retirement Programs 403(b) 457(b) Traditional IRA Roth IRA Which option(s) are best for you?

Excerpt from sample TRAK report

? Questions

Next Steps Complete an RFI Set up an appointment [Rep Name] [Rep Phone Number] [Rep Email Address] [Rep Office Address]

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Foresters Financial Services, Inc Foresters Financial Services, Inc. (“Foresters Financial”) is a broker-dealer engaged in the sale of investment and insurance products. Foresters Financial does not work for any state, state agency, city, county, or PERS. Foresters Financial is the sole sponsor of this seminar. You must consider all of the information presented during the seminar before making any investment decisions. Illustrations and examples in this presentation are hypothetical and not intended to reflect anyone’s specific or individual circumstances. Nothing herein is intended to be a recommendation of any investment strategy or securities product. Neither Foresters Financial Services, Inc. nor any of its affiliates provide legal, tax or estate planning services. Should you require such services, you should consult a legal, tax or estate planning professional.   Foresters Financial Services, Inc. 40 Wall Street, New York, New York 10005. Member FINRA and SIPC.

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