Participants Gain Greater Control of Assets Using A Defined Contribution
Strategy
As a participant in the defined contribution portion of TRS Plan 3, you have the opportunity to gain greater control over how your retirement savings are invested and how they will be distributed when you are ready to retire.
With this increased flexibility comes added responsibility for choosing investments that meet your goals and tolerance for risk as well as the withdrawal option that is most suitable for your circumstances.
This decision-making process differs considerably from the defined benefit portion of your TRS Plan 3. In that part of the plan, you are guaranteed a benefit based on a stated formula and your distribution will be made in the form of an annuity. In the defined contribution portion of the plan, your benefit will be based on the results of your retirement investment strategy.
Once you have developed your defined contribution retirement investment strategy, you should review your quarterly statements to make sure you are on course. Keep in mind that retirement investing is generally considered to be for the long term, so you should keep short-term changes in perspective.
If you decide to make changes in your investments, you can do so in two ways:
- Change how your contributions are invested as they are received each month;
- Transfer all or part of your existing account balance from one investment to another.
To make the changes, submit the appropriate forms (see page two). RC's VantageLine (1-888-711-TRS3) and VantageLink (http://www.icmarc.org) can be used instead of forms, where noted.
When you are ready to leave employment and start payments from your defined contribution account, you will |
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TRS PLAN 3 WSIB
Total Allocation Portfolio (TAP)1
as of 6/30/1998
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| Average Annual Returns
|
| Fund Name |
2nd Q |
1-YR |
3-YR |
5-YR |
| Total Allocation Portfolio |
1.89% |
17.11% |
17.18% |
13.77% |
1The Washington State Investment Board (WSIB) periodically reviews and adjusts the TAP Fund's asset allocation. Over the last five years, the TAP Fund has shifted to a more aggressive asset mix. These returns reflect the actual asset mixes during the time periods shown. |
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TRS PLAN 3 Self-Directed Funds
as of 6/30/1998 |
| Average Annual Returns |
| Fund Name |
2ndQ |
Incep. |
1-YR |
3-YR |
5-YR |
TRS Plan 3 Small Stock
Index (Incp. 5/9/1997) |
-5.3% |
23.7% |
15.3% |
n/a |
n/a |
TRS Plan 3 U.S. Stock
Market Index (Incp. 5/7/1997) |
1.9% |
30.4% |
26.4% |
n/a |
n/a |
TRS Plan 3 Large Stock
Index (Incp. 5/9/1997) |
3.2% |
32.9% |
29.8% |
n/a |
n/a |
TRS Plan 3 Intl Stock
Index (Incp. 5/7/1997) |
1.3% |
12.1% |
5.3% |
n/a |
n/a |
TRS Plan 3 Money Market (Incp. 5/6/1997) |
1.4% |
5.5% |
5.6% |
n/a |
n/a |
TRS Plan 3 Bond Market
(Incp. 5/9/1997) |
2.4% |
10.3% |
10.3% |
n/a |
n/a |
Returns on the TAP Fund cover the period ending 3/31/1998. Returns for the Self-Directed Funds cover the period ending 6/30/1998. |
All returns are net of fees. Self-directed funds are valued daily; your account balance and rate of return will vary accordingly. Past performance is no guarantee of future results. For more information about the funds please see TRS Plan 3 Investment Guide. |
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have a wide range of choices in both your investment and payment options. For more information about payment options, contact RC for the TRS Plan 3 Withdrawal Packet and the Distribution Options Brochure.
Gain Sharing Reminder:
The last issue of this newsletter and a letter mailed in early July described the increased transfer payment and the gain sharing payment and their eligibility criteria. If eligible, those amounts were credited to your account in July and will be reflected on your November 1998 statement. Alternatively, you can check your account balance by accessing RC's VantageLink at http://www.icmarc.org, or VantageLine at 1-888-711-TRS3.
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To be eligible for gain sharing, the law requires you to meet the following criteria:
1. Be retired from TRS Plan 3, OR
2. Have at least $1,000 in your defined contribution account as of August 31 the year preceding distribution; And either,
- Have earned service credit during the 12-month period from September to August immediately preceding the distribution (e.g., September 1996-August 1997 for the July 1998 payment.) OR
- Meet TRS Plan 3 retirement eligibility requirements. (See your TRS Plan 3 Member Handbook for retirement eligibility criteria.)
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