457(b) Employer Module Catalogue code: B14 HIDDEN DESCRIPTION SLIDE — NOT TO BE SHOWN TO THE PUBLIC 457(b) Employer Module Catalogue code: B14 Presentation or Module? Module Slide numbers: B14-1 to B14-6 Registered/Non-Registered Usage: Allowed for all Last update info: Date updated: 2015-04-01 Project #25329 Description of changes: Update contribution limits on #B14-3; update cover slide, update background. Filed with FINRA? No. If yes, date: Notes:

457(b) PLANS 457(b) Plans Prior to 2002 — contributions reduced by amounts contributed to a 403(b) or 401(k) plan Beginning in 2002 — coordination of the limits with other plans were removed Two separate contribution limits allow maximizing contributions to both tax-sheltered plans B14-1

457(b) Contribution Limits 457(b) PLANS 457(b) Contribution Limits Each year mirrors 403(b) and 401(k) salary reduction limits Limit includes both elective and non-elective contributions Within three years of retirement, may be eligible for up to double the normal limits B14-2

Tax Saving Example 403(b) contribution $18,000 457(b) PLANS Tax Saving Example For employee age 50 or above in the 25% tax bracket, maximizing 2015 contributions 403(b) contribution $18,000 403(b) catch-up contribution $ 6,000 457(b) contribution $18,000* Total contributions $42,000 2015 tax savings (@ 25%) $10,500 *Employees within three years of retirement may be able to contribute up to double the normal 457(b) limit. B15-3

Eligibility for 457(b) Plans Employers — only non-qualified church-controlled organizations Participants — at employer’s discretion Non-elective (employer) contributions, any or all Elective (employee) deferrals, any or all No nondiscrimination testing B14-4

457(b) PLANS Other Considerations Participation not limited to highly compensated employees Flexible — select employees or open to all Not subject to ERISA requirements Ability to designate minister’s housing allowance at retirement B14-5

457(b) PLANS Other Considerations Contributions considered general assets of the employer Separate accounting for each participant Quarterly account statements provided Access to account information online or by calling the toll-free phone number Variety of benefit payment options B14-6