457(b) Employee Module Catalogue code: B15 Presentation or Module? Module Slide numbers: B15-1 to B15-5 Registered/Non-Registered Usage: Allowed for all Last update info: Date updated: Project #25328 Description of changes: Update 2015 limits on #B15-3, update cover slide, update background. Filed with FINRA? No. If yes, date: Notes: HIDDEN DESCRIPTION SLIDE — NOT TO BE SHOWN TO THE PUBLIC

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 B15-1

457(b) Contribution Limits 457(b) PLANS  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 B15-2

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

Other Considerations 457(b) PLANS  Contributions considered general assets of the employer  Any employee can participate  Ability to designate minister’s housing allowance at retirement B15-4

Other Considerations 457(b) PLANS  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 B15-5