IMPORTANT ANNOUNCEMENT ABOUT YOUR RETIREMENT … · 2017-04-03 · 705 BROAD STREET TELEPHONE (919)...

705 BROAD STREET TELEPHONE (919) 684-5600 BOX 90502 FAX (919) 668-8620 DURHAM, NC 27708

IMPORTANT ANNOUNCEMENT ABOUT YOUR RETIREMENT PLAN(S) March 23, 2017 Dear Retirement Plan Participant, You are receiving this notice because you are participating or eligible to participate in the Duke Faculty and Staff Retirement Plan, Duke University Commissioned Police Officers Plan or Duke 457(b) Deferred Compensation Plan (the “Retirement Plans”). As part of our ongoing commitment to ensure that Duke Retirement Plan participants have access to quality investment options, Duke’s Investment Advisory Committee regularly reviews and evaluates the investment options in Tier 1 and Tier 2 in terms of management team, diversification, investment style, expenses, and investment return. As a result of a recent review, Duke’s Investment Advisory Committee has decided to make the following changes effective May 9, 2017: Changes at Fidelity

Replace the Fidelity Freedom Funds with the Vanguard Institutional Target Retirement Funds If you are invested in a Fidelity Freedom Fund, your balance and future investment allocation to these funds will be changed to the corresponding Vanguard Institutional Target Retirement Fund. The Vanguard Target Date Retirement Funds are being added to the Fidelity platform. Your account will remain with Fidelity. No action is required on your part. However, if you do not want your balance directed to the corresponding Vanguard Institutional Target Retirement Funds, you must reallocate your investments and/or change your future investment election before 4 p.m. (ET) on May 8, 2017. The Fidelity Freedom funds will no longer be offered as an investment option.

Changes at TIAA

Replace the TIAA-CREF Lifecycle Funds with the Vanguard Institutional Target Retirement Funds If you are invested in a TIAA-CREF Lifecycle Fund, your balance and future investment allocation to these funds will be changed to the corresponding Vanguard Institutional Target Retirement Fund. The Vanguard Target Date Retirement Funds are being added to the TIAA platform. Your account will remain with TIAA. No action is required on your part. However, if you do not want your balance directed to the corresponding Vanguard Institutional Target Retirement Funds, you must reallocate your investments and/or change your future investment election before 4 p.m. (ET) on May 8, 2017. The TIAA-CREF Lifecycle Funds will no longer be offered as an investment option. Redirect future contributions from the CREF Money Market Account to the Vanguard Federal Money Market Fund TIAA has announced they will end the voluntary expense waiver on the CREF Money Market Account effective April 14, 2017. Due to the potential of additional fees to the CREF Money Market Account, Duke’s Investment Advisory Committee has recommended redirecting future contributions to the Vanguard Federal Money Market Fund (VMFXX) effective May 9, 2017. No action is required on your part. However, if you do not want your future contributions to be redirected from the CREF Money Market Account to the Vanguard Federal Money Market Fund, you must reallocate your investments options for your future contributions before 4 p.m. (ET) on May 8, 2017.

Duke HUMAN RESOURCESDuke HUMAN RESOURCES

The CREF Money Market Account will remain as an investment option at TIAA. Duke cannot map existing assets from the CREF Money Market Account to the Vanguard Federal Money Market Fund because these assets are individually owned annuity contracts. You, as the plan participant, may transfer existing balances from the CREF Money Market Account to the Vanguard Federal Money Market Fund or any other investment option available in the Retirement Plan at any time online at www.tiaa.org/duke or by calling 1-800-842-2252.

Changes at VALIC

Replace the T Rowe Price Retirement Funds with the Vanguard Institutional Target Retirement Funds If you are invested in a T Rowe Price Retirement Fund, your balance and future investment allocation to these funds will be changed to the corresponding Vanguard Institutional Target Retirement Fund. The Vanguard Target Date Retirement Funds are being added to the VALIC platform. Your account will remain with VALIC. No action is required on your part. However, if you do not want your balance directed to the corresponding Vanguard Institutional Target Retirement Fund, you must reallocate your investments and/or change your future investment election before 4 p.m. (ET) on May 8, 2017. Please note, if you have an account balance at VALIC, your account will be temporarily restricted from all transactions from Monday, May 8 at 4 p.m. (ET) until Wednesday, May 10 at 4 p.m. (ET). The T Rowe Price Retirement Funds will no longer be offered as an investment option.

Changes at Vanguard

Lower cost share class for Vanguard Target Retirement Funds and lower cost share class for 50 other funds The Vanguard Target Retirement Funds and 50 additional funds will be offered at a lower cost share class as of May 9, 2017. No action is required on your part. Fees at Vanguard will change The Vanguard menu has funds with some of the lowest cost share classes available to employer-sponsored plans. Effective May 9, 2017, Vanguard will separate the cost of operating the plan from the fund expenses. All Vanguard participants will be charged a flat administrative fee, regardless of which funds you are using. Administrative fees have historically been included in expense ratios of the funds in the plan. This is not a new charge. This fixed fee will be listed on your account statement. If your account balance at Vanguard is $5,000 or less, the administrative fee will be $6.25 per quarter or $25.00 per year. If your account balance at Vanguard is over $5,000, the administrative fee will be $13.50 per quarter or $54.00 per year. Administrative fees cover expenses such as recordkeeping, account management, customer service call center support and other services.

For long-term retirement security, you should give careful consideration to the importance of a well-balanced and diversified investment portfolio taking into account all of your assets, income and investments. Fees and expenses should also be considered. You may change your investments at any time. Your Default Investment Alternative Effective May 9, 2017, the Vanguard Institutional Target Retirement Fund has been designated as the default investment alternative under the Retirement Plans for Fidelity, TIAA, VALIC and Vanguard. For additional information, see enclosed “Qualified Default Investment Alternative Notice.” Where can I go for more information? Please refer to the enclosed notice, contact your investment carriers or visit hr.duke.edu/retirement for additional information. Sincerely,

Kyle Cavanaugh, Vice President for Administration

Duke Faculty and Staff Retirement Plan, Duke University Commissioned Police Officers Plan, Duke 457(b) Deferred Compensation Plan (the “Retirement Plans”)

NOTICE OF CHANGE IN THE PLAN’S INVESTMENT OPTIONS

March 23, 2017 The Duke Faculty and Staff Retirement Plan Investment Advisory Committee is replacing several investment options in the Retirement Plans. If you have any money invested in these funds, and/or if you have directed that your future contributions be allocated to these funds, those amounts/percentages will be automatically transferred/directed to the replacement fund. This notice explains your rights and obligations with respect to the automatic transfer. Description of Investment Option(s): The investment options involved in this change are shown in the Replacement Investment Option Chart on the next page. The chart lists the existing fund as well as the replacement fund to which the assets will be transferred and future allocations directed. All the replacement funds are reasonably similar in investment characteristic compared to the existing funds. For additional information about the new funds, including the attendant risk and return characteristics as well as fees and expenses, please review the enclosed information. When Will the Transfer Take Place: The automatic transfer will take place on May 9, 2017 (the “automatic transfer date”). After the transfer date, your next quarterly statement will reflect any transactions in your account from the automatic transfer. For long-term retirement security, you should give careful consideration to the importance of a well-balanced and diversified investment portfolio taking into account all of your assets, income and investments. Fees and expenses should also be considered. Your Right To Direct Investments: Although the investment options in the plan are determined by the Investment Advisory Committee, you have the right to direct the investment of your individual account balance and your contributions under the Retirement Plans into one or more of the investment options. If you do not wish to have your assets or your allocations in and/or existing funds transferred to the replacement fund, you have the right to transfer your money and/or change the allocation of your future contributions prior to the automatic transfer by making an affirmative investment transfer election prior to the automatic transfer date. After the automatic transfer, you will have the right to transfer any of your assets held in the replacement fund and/or redirect your contributions allocated to such fund to one or more of the Retirement Plans’ other investment options. Obtain Additional Information

Website Telephone

Number TIAA tiaa.org/duke (800) 842-2776

Fidelity Fidelity.com/duke (800) 343-0860

Vanguard duke.vanguard-education.com (800) 523-1188

VALIC valic.com/duke (800) 842-2776

Duke Benefits hr.duke.edu (919) 684-5600

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Replacement Investment Options Chart (expense ratios as of 12/31/2016) FIDELITY

Current Option Ticker Symbol

Expense Ratio (%) Replacement Option Ticker

Symbol Expense

Ratio (%) Fidelity Freedom K Income FFKAX 0.44%

u Vanguard Institutional Target Retirement Income Fund

VITRX 0.10%

Fidelity Freedom K 2005 FFKVX 0.49% u Vanguard Institutional Target Retirement Income Fund

VITRX 0.10%

Fidelity Freedom K 2010 FFKCX 0.53% u Vanguard Institutional Target Retirement Income Fund

VITRX 0.10%

Fidelity Freedom K 2015 FKVFX 0.56% u Vanguard Institutional Target Retirement 2015 Fund

VITVX 0.10%

Fidelity Freedom K 2020 FFKDX 0.58% u Vanguard Institutional Target Retirement 2020 Fund

VITWX 0.10%

Fidelity Freedom K 2025 FKTWX 0.61% u Vanguard Institutional Target Retirement 2025 Fund

VRIVX 0.10%

Fidelity Freedom K 2030 FFKEX 0.65% u Vanguard Institutional Target Retirement 2030 Fund

VTTWX 0.10%

Fidelity Freedom K 2035 FKTHX 0.67% u Vanguard Institutional Target Retirement 2035 Fund

VITFX 0.10%

Fidelity Freedom K 2040 FFKFX 0.67% u Vanguard Institutional Target Retirement 2040 Fund

VIRSX 0.10%

Fidelity Freedom K 2045 FFKGX 0.67% u Vanguard Institutional Target Retirement 2045 Fund

VITLX 0.10%

Fidelity Freedom K 2050 FFKHX 0.67% u Vanguard Institutional Target Retirement 2050 Fund

VTRLX 0.10%

Fidelity Freedom K 2055 FDENX 0.67% u Vanguard Institutional Target Retirement 2055 Fund

VIVLX 0.10%

Fidelity Freedom K 2060 FDKNX 0.67% u Vanguard Institutional Target Retirement 2060 Fund

VILVX 0.10%

TIAA


Expense Ratio (%)

Replacement Option Ticker Symbol

Expense Ratio (%)

TIAA-CREF Lifecycle Retirement Income Fund

TLRIX 0.37% u Vanguard Institutional Target Retirement Income Fund

VITRX 0.10%

TIAA-CREF Lifecycle 2010 Fund

TCTIX 0.37% u Vanguard Institutional Target Retirement Income Fund

VITRX 0.10%


TCNIX 0.38% u Vanguard Institutional Target Retirement 2015 Fund

VITVX 0.10%


TCWIX 0.40% u Vanguard Institutional Target Retirement 2020 Fund

VITWX 0.10%


TCYIX 0.41% u Vanguard Institutional Target Retirement 2025 Fund

VRIVX 0.10%


TCRIX 0.42% u Vanguard Institutional Target Retirement 2030 Fund

VTTWX 0.10%


TCIIX 0.43% u Vanguard Institutional Target Retirement 2035 Fund

VITFX 0.10%


TCOIX 0.44% u Vanguard Institutional Target Retirement 2040 Fund

VIRSX 0.10%


TTFIX 0.45% u Vanguard Institutional Target Retirement 2045 Fund

VITLX 0.10%


TFTIX 0.45% u Vanguard Institutional Target Retirement 2050 Fund

VTRLX 0.10%


TTRIX 0.45% u Vanguard Institutional Target Retirement 2055 Fund

VIVLX 0.10%


TLXNX 0.45% u Vanguard Institutional Target Retirement 2060 Fund

VILVX 0.10%

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VALIC Current Option Ticker

Symbol Expense

Ratio (%) Replacement Option Ticker

Symbol Expense

Ratio (%) T Rowe Price Retirement Balanced

TRRIX 0.57% u Vanguard Institutional Target Retirement Income Fund

VITRX 0.10%

T Rowe Price Retirement 2005 TRRFX 0.60% u Vanguard Institutional Target Retirement Income Fund

VITRX 0.10%

T Rowe Price Retirement 2010 TRRAX 0.59% u Vanguard Institutional Target Retirement Income Fund

VITRX 0.10%

T Rowe Price Retirement 2015 TRRGX 0.62% u Vanguard Institutional Target Retirement 2015 Fund

VITVX 0.10%

T Rowe Price Retirement 2020 TRRBX 0.66% u Vanguard Institutional Target Retirement 2020 Fund

VITWX 0.10%

T Rowe Price Retirement 2025 TRRHX 0.69% u Vanguard Institutional Target Retirement 2025 Fund

VRIVX 0.10%

T Rowe Price Retirement 2030 TRRCX 0.72% u Vanguard Institutional Target Retirement 2030 Fund

VTTWX 0.10%

T Rowe Price Retirement 2035 TRRJX 0.74% u Vanguard Institutional Target Retirement 2035 Fund

VITFX 0.10%

T Rowe Price Retirement 2040 TRRDX 0.76% u Vanguard Institutional Target Retirement 2040 Fund

VIRSX 0.10%

T Rowe Price Retirement 2045 TRRKX 0.76% u Vanguard Institutional Target Retirement 2045 Fund

VITLX 0.10%

T Rowe Price Retirement 2050 TRRMX 0.76% u Vanguard Institutional Target Retirement 2050 Fund

VTRLX 0.10%

T Rowe Price Retirement 2055 TRRNX 0.76% u Vanguard Institutional Target Retirement 2055 Fund

VIVLX 0.10%

T Rowe Price Retirement 2060 TRRLX 0.76% u Vanguard Institutional Target Retirement 2060 Fund

VILVX 0.10%

VANGUARD


Expense Ratio (%)


Expense Ratio (%)

Vanguard Target Retirement 2010

VTENX 0.13% u Vanguard Institutional Target Retirement Income Fund

VITRX 0.10%


VTXVX 0.14% u Vanguard Institutional Target Retirement 2015 Fund

VITVX 0.10%


VTWNX 0.14% u Vanguard Institutional Target Retirement 2020 Fund

VITWX 0.10%


VTTVX 0.14% u Vanguard Institutional Target Retirement 2025 Fund

VRIVX 0.10%


VTHRX 0.15% u Vanguard Institutional Target Retirement 2030 Fund

VTTWX 0.10%


VTTHX 0.15% u Vanguard Institutional Target Retirement 2035 Fund

VITFX 0.10%


VFORX 0.16% u Vanguard Institutional Target Retirement 2040 Fund

VIRSX 0.10%


VTIVX 0.16% u Vanguard Institutional Target Retirement 2045 Fund

VITLX 0.10%


VFIFX 0.16% u Vanguard Institutional Target Retirement 2050 Fund

VTRLX 0.10%


VFFVX 0.16% u Vanguard Institutional Target Retirement 2055 Fund

VIVLX 0.10%


VTTSX 0.16% u Vanguard Institutional Target Retirement 2060 Fund

VILVX 0.10%

Vanguard Target Retirement Income

VTINX 0.13% u Vanguard Institutional Target Retirement Income Fund

VITRX 0.10%

T. Rowe Price Growth Stock Fund

PRGFX 0.67% u T. Rowe Price Growth Stock Fund (I)

PRUFX 0.52%

Vanguard 500 Index Fund (Adm)

VFIAX

0.05% u Vanguard Institutional Index Fund (Inst)

VINIX 0.04%

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Expense Ratio (%)


Expense Ratio (%)

Vanguard Balanced Index Fund (Inv)

VBINX 0.22% u Vanguard Balanced Index Fund (Inst)

VBAIX 0.07%

Vanguard Capital Opportunity Fund (Inv)

VHCOX 0.45% u Vanguard Capital Opportunity Fund (Adm)

VHCAX 0.38%

Vanguard Developed Markets Index Fund (Inv)

VDVIX 0.20% u Vanguard Developed Markets Index Fund (Adm)

VTMGX 0.09%

Vanguard Dividend Appreciation Idx Fund (Inv)

VDAIX 0.19% u Vanguard Dividend Appreciation Idx Fund (Adm)

VDADX 0.09%

Vanguard Emerging Mkt. Stock Index Fund (Inv)

VEIEX 0.33% u Vanguard Emerging Markets Stock Index Fund (Inst)

VEMIX 0.12%

Vanguard Energy Fund (Inv)

VGENX 0.37% u Vanguard Energy Fund (Adm) VGELX 0.31%

Vanguard Equity Income Fund (Inv)

VEIPX 0.26% u Vanguard Equity Income Fund (Adm)

VEIRX 0.17%

Vanguard European Stock Index Fund (Inv)

VEURX 0.26% u Vanguard European Stock Index Fund (Adm)

VEUSX 0.12%

Vanguard Explorer Fund (Inv)

VEXPX 0.49% u Vanguard Explorer Fund (Adm) VEXRX 0.35%

Vanguard Extended Market Index Fund (Inv)

VEXMX 0.22% u Vanguard Extended Market Index Fund (Inst)

VIEIX 0.07%

Vanguard FTSE All-Wld ex-US Index Fund (Inv)

VFWIX 0.26% u Vanguard FTSE All-Wld ex-US Index Fund (Adm)

VFWAX 0.13%

Vanguard GNMA Fund (Inv)

VFIIX 0.21% u Vanguard GNMA Fund (Adm) VFIJX 0.11%

Vanguard Growth & Income Fund (Inv)

VQNPX 0.34% u Vanguard Growth & Income Fund (Adm)

VGIAX 0.23%

Vanguard Growth Index Fund (Inv)

VIGRX 0.22% u Vanguard Growth Index Fund (Inst)

VIGIX 0.07%

Vanguard Health Care Fund (Inv)

VGHCX 0.36% u Vanguard Health Care Fund (Adm)

VGHAX 0.31%

Vanguard High-Yield Corporate Fund (Inv)

VWEHX 0.23% u Vanguard High-Yield Corporate Fund (Adm)

VWEAX 0.13%

Vanguard Inflation Protected Secs. Fund (Inv)

VIPSX 0.20% u Vanguard Inflation Protected Securities Fund (Inst)

VIPIX 0.07%

Vanguard Intermediate Term Investmemt Grade Fund (Inv)

VFICX 0.20% u Vanguard Intermediate Term Investment Grade Fund (Adm)

VFIDX 0.10%

Vanguard Intermediate-Term Treasury Fund (Inv)

VFITX 0.20% u Vanguard Intermediate-Term Treasury Fund (Adm)

VFIUX 0.10%

Vanguard Intermediate-Term Bond Index Fund (Inv)

VBIIX 0.16% u Vanguard Intermediate-Term Bond Index Fund (Inst)

VBIMX 0.06%

Vanguard International Growth Fund (Inv)

VWIGX 0.46% u Vanguard International Growth Fund (Adm)

VWILX 0.33%

Vanguard Large Cap Index Fund (Inv)

VLACX 0.20% u Vanguard Large Cap Index Fund (Adm)

VLCAX 0.08%

Vanguard Long-Term Bond Index Fund (Inv)

VBLTX 0.16% u Vanguard Long-Term Bond Index Fund (Inst)

VBLLX 0.06%

Vanguard Long-Term Investment Grade Fund (Inv)

VWESX 0.21% u Vanguard Long-Term Invest. Grade Fund (Adm)

VWETX 0.12%

Vanguard Long-Term Treasury Fund (Inv)

VUSTX 0.20% u Vanguard Long-Term Treasury Fund (Adm)

VUSUX 0.10%

Vanguard Mid-Cap Growth Index Fund (Inv)

VMGIX 0.20% u Vanguard Mid-Cap Growth Index Fund (Adm)

VMGMX 0.08%

Vanguard Mid-Cap Index Fund (Adm)

VIMAX 0.08% u Vanguard Mid-Cap Index Fund (Inst)

VMCIX 0.07%

Vanguard Mid-Cap Value Index Fund (Inv)

VMVIX 0.20% u Vanguard Mid-Cap Value Index Fund (Adm)

VMVAX 0.08%

Vanguard Morgan Growth Fund (Inv)

VMRGX 0.40% u Vanguard Morgan Growth Fund (Adm)

VMRAX 0.27%

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Expense Ratio (%)


Expense Ratio (%)

Vanguard Pacific Stock Index Fund (Inv)

VPACX 0.26% u Vanguard Pacific Stock Index Fund (Adm)

VPADX 0.12%

Vanguard PRIMECAP Fund (Inv)

VPMCX 0.40% u Vanguard PRIMECAP Fund (Adm)

VPMAX 0.34%

Vanguard REIT Index Fund (Inv)

VGSIX 0.26% u Vanguard REIT Index Fund (Inst)

VGSNX 0.10%

Vanguard Short-Term Bond Index Fund (Inv)

VBISX 0.16% u Vanguard Short-Term Bond Index Fund (Inst)

VBITX 0.06%

Vanguard Short-Term Federal Fund (Inv)

VSGBX 0.20% u Vanguard Short-Term Federal Fund (Adm)

VSGDX 0.10%

Vanguard Short-Term Invest. Grade Fund (Inv)

VFSTX 0.20% u Vanguard Short-Term Investment Grade Fund (Inst)

VFSIX 0.07%

Vanguard Short-Term Treasury Fund (Inv)

VFISX 0.20% u Vanguard Short-Term Treasury Fund (Adm)

VFIRX 0.10%

Vanguard Small-Cap Growth Index Fund (Inv)

VISGX 0.20% u Vanguard Small-Cap Growth Index Fund (Inst)

VSGIX 0.07%

Vanguard Small-Cap Index Fund (Inv)

NAESX 0.20% u Vanguard Small-Cap Index Fund (Inst)

VSCIX 0.07%

Vanguard Small-Cap Value Index Fund (Inv)

VISVX 0.20% u Vanguard Small-Cap Value Index Fund (Inst)

VSIIX 0.07%

Vanguard Total Bond Market Index Fund (Inv)

VBMFX 0.16% u Vanguard Total Bond Market Index Fund (Inst)

VBTIX 0.05%

Vanguard Total International Stock Index Fund (Inv)

VGTSX 0.19% u Vanguard Total International Stock Index Fund (Inst)

VTSNX 0.10%

Vanguard Total Stock Market Index Fund (Inv)

VTSMX 0.16% u Vanguard Total Stock Market Index Fund (Inst)

VITSX 0.04%

Vanguard U.S. Growth Fund (Inv)

VWUSX 0.46% u Vanguard U.S. Growth Fund (Adm)

VWUAX 0.32%

Vanguard Value Index Fund (Inv)

VIVAX 0.22% u Vanguard Value Index Fund (Inst)

VIVIX 0.07%

Vanguard Wellesley Income Fund (Inv)

VWINX 0.23% u Vanguard Wellesley Income Fund (Adm)

VWIAX 0.16%

Vanguard Wellington Fund (Inv) VWELX 0.26% u Vanguard Wellington Fund (Adm)

VWENX 0.18%

Vanguard Windsor Fund (Inv)

VWNDX 0.39% u Vanguard Windsor Fund (Adm) VWNEX 0.29%

Vanguard Windsor II Fund (Inv) VWNFX 0.34% u Vanguard Windsor II Fund (Adm)

VWNAX 0.26%

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Fee and Performance Information as of 12/31/2016 It is important to remember that past performance is not an indicator or guarantee of future results and that higher or lower fees are not necessarily indicative of the performance of the fund. For additional information about these funds, please visit: www.vanguard.com or visit hr.duke.edu/performance.

Investment Name Benchmark

Ticker Symbol

Expense (%) Average Annual Total Returns (%) Net Expense

ratio 1 year 5 year 10 year

Vanguard Institutional Target Retirement 2015 Fund VITVX 0.10% 6.27% -- -- MSCI U.S. Broad Market GR Index 12.67% 14.71% 7.26% Vanguard Institutional Target Retirement 2020 Fund VITWX 0.10% 7.04% -- -- MSCI U.S. Broad Market GR Index 12.67% 14.71% 7.26% Vanguard Institutional Target Retirement 2025 Fund VRIVX 0.10% 7.48% -- -- MSCI U.S. Broad Market GR Index 12.67% 14.71% 7.26% Vanguard Institutional Target Retirement 2030 Fund VTTWX 0.10% 7.97% -- -- MSCI U.S. Broad Market GR Index 12.67% 14.71% 7.26% Vanguard Institutional Target Retirement 2035 Fund VITFX 0.10% 8.39% -- -- MSCI U.S. Broad Market GR Index 12.67% 14.71% 7.26% Vanguard Institutional Target Retirement 2040 Fund VIRSX 0.10% 8.89% -- -- MSCI U.S. Broad Market GR Index 12.67% 14.71% 7.26% Vanguard Institutional Target Retirement 2045 Fund VITLX 0.10% 8.94% -- -- MSCI U.S. Broad Market GR Index 12.67% 14.71% 7.26% Vanguard Institutional Target Retirement 2050 Fund VTRLX 0.10% 8.95% -- -- MSCI U.S. Broad Market GR Index 12.67% 14.71% 7.26% Vanguard Institutional Target Retirement 2055 Fund VIVLX 0.10% 8.44% -- -- MSCI U.S. Broad Market GR Index 12.67% 14.71% 7.26% Vanguard Institutional Target Retirement 2060 Fund VILVX 0.10% 8.94% -- -- MSCI U.S. Broad Market GR Index 12.67% 14.71% 7.26% Vanguard Institutional Target Retirement Income Fund VITRX 0.10% 5.29% -- -- Bloomberg Barclays U.S. Aggregate Bond Index 2.65% 2.23% 4.34% T. Rowe Price Growth Stock Fund (I) PRUFX 0.52% 1.58% — — S&P 500 Index 11.96% 14.66% 6.95% Vanguard Institutional Index Fund (Inst) VINIX 0.04% 11.93% 14.63% 6.95% S&P 500 Index 11.96% 14.66% 6.95% Vanguard Balanced Index Fund (Inst) VBAIX 0.07% 8.81% 9.64% 6.43% CRSP U.S. Total Market Index 12.68% 14.62% 7.27% Vanguard Capital Opportunity Fund (Adm) VHCAX 0.38% 10.65% 17.97% 9.14% Russell Mid Cap Growth Index 7.33% 13.51% 7.83% Vanguard Developed Markets Index Fund (Adm) VTMGX 0.09% 2.45% 6.90% 1.03% MSCI World NR Index 7.51% 10.41% 3.83% Vanguard Dividend Appreciation Index Fund (Adm) VDADX 0.09% 11.79% — — Russell 1000 Index 12.05% 14.69% 7.08% Vanguard Emerging Markets Stock Index Fund (Inst) VEMIX 0.12% 11.76% 1.48% 1.91% MSCI World NR Index 7.51% 10.41% 3.83% Vanguard Energy Fund (Adm) VGELX 0.31% 33.18% 1.74% 2.82% Dow Jones U.S. Total Stock Market Float Adjusted Index 12.62% 14.59% 7.18% Vanguard Equity Income Fund (Adm) VEIRX 0.17% 14.82% 13.78% 7.53% Russell 1000 Value Index 17.34% 14.80% 5.72% Vanguard European Stock Index Fund (Adm) VEUSX 0.12% -0.63% 6.60% 0.63% MSCI World NR Index 7.51% 10.41% 3.83% Vanguard Explorer Fund (Adm) VEXRX 0.35% 12.47% 13.28% 7.21% Russell 2500 Growth Index 9.73% 13.88% 8.24% Vanguard Extended Market Index Fund (Inst) VIEIX 0.07% 16.15% 14.67% 7.99% S&P Completion Index 15.95% 14.55% 7.84% Vanguard FTSE All-Wld ex-US Index Fund (Adm) VFWAX 0.13% 4.77% 5.40% — MSCI All Country World ex-US NR Index 4.50% 5.00% 0.96% Vanguard GNMA Fund (Adm) VFIJX 0.11% 1.95% 2.05% 4.47% Bloomberg Barclays GNMA Index 1.56% 1.81% 4.35% Vanguard Growth & Income Fund (Adm) VGIAX 0.23% 12.12% 15.20% 6.49% S&P 500 Index 11.96% 14.66% 6.95%

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Ticker Symbol



Vanguard Growth Index Fund (Inst) VIGIX 0.07% 6.13% 14.06% 8.17% CRSP U.S. Large Cap Growth Index 6.16% 13.62% 7.83% Vanguard Health Care Fund (Adm) VGHAX 0.31% -8.94% 16.84% 10.29% Dow Jones U.S. Total Stock Market Float Adjusted Index 12.62% 14.59% 7.18% Vanguard High-Yield Corporate Fund (Adm) VWEAX 0.13% 11.30% 6.62% 6.43% Bloomberg Barclays U.S. Corporate High Yield Index 17.13% 7.36% 7.45% Vanguard Inflation Protected Securities Fund (Inst) VIPIX 0.07% 3.37% 0.61% 4.13% Bloomberg Barclays U.S. Treasury TIPS Index 4.68% 0.89% 4.36% Vanguard Inter. Term Invest. Grade Fund (Adm) VFIDX 0.10% 3.93% 3.83% 5.38% Bloomberg Barclays U.S. Credit 5-10 Year Index 5.23% 4.39% 5.86% Vanguard Intermediate Term Treasury Fund (Adm) VFIUX 0.10% 1.29% 1.39% 4.53% Bloomberg Barclays U.S. Government Index 1.05% 1.22% 3.86% Vanguard Intermediate-Term Bond Index Fund (Inst) VBIMX 0.06% 2.85% 2.88% 5.40% Bloomberg Barclays U.S. Aggregate Bond Index 2.65% 2.23% 4.34% Vanguard International Growth Fund (Adm) VWILX 0.33% 1.84% 7.21% 2.58% MSCI All Country World ex-US NR Index 4.50% 5.00% 0.96% Vanguard Large Cap Index Fund (Adm) VLCAX 0.08% 11.65% 14.52% 7.09% CRSP U.S. Large Cap Index 11.75% 14.54% 7.05% Vanguard Long-Term Bond Index Fund (Inst) VBLLX 0.06% 6.51% 4.05% 6.89% Bloomberg Barclays U.S. Government/Credit Long Index

6.67% 4.07% 6.85%

Vanguard Long-Term Invest. Grade Fund (Adm) VWETX 0.12% 7.92% 5.64% 7.08% Bloomberg Barclays U.S. Credit A+ Long Index 7.88% 5.13% 6.52% Vanguard Long-Term Treasury Fund (Adm) VUSUX 0.10% 1.29% 2.45% 6.53% Bloomberg Barclays U.S. Treasury Long Index 1.33% 2.52% 6.68% Vanguard Mid-Cap Growth Index Fund (Adm) VMGMX 0.08% 6.75% 12.96% — CRSP U.S. Mid Cap Growth Index 6.78% 13.09% 7.68% Vanguard Mid-Cap Index Fund (Inst) VMCIX 0.07% 11.23% 14.38% 7.69% Russell Mid Cap Index 13.80% 14.72% 7.86% Vanguard Mid-Cap Value Index Fund (Adm) VMVAX 0.08% 15.26% 15.56% — CRSP U.S. Mid Cap Value Index 15.28% 15.91% 7.42% Vanguard Morgan Growth Fund (Adm) VMRAX 0.27% 3.35% 13.80% 7.03% Russell 3000 Growth Index 7.39% 14.44% 8.28% Vanguard Pacific Stock Index Fund (Adm) VPADX 0.12% 5.29% 6.95% 1.56% MSCI World NR Index 7.51% 10.41% 3.83% Vanguard PRIMECAP Fund (Adm) VPMAX 0.34% 10.72% 16.86% 9.41% S&P 500 Index 11.96% 14.66% 6.95% Vanguard REIT Index Fund (Inst) VGSNX 0.10% 8.51% 11.79% 5.26% MSCI U.S. REIT GR Index 8.60% 11.86% 4.96% Vanguard Short-Term Bond Index Fund (Inst) VBITX 0.06% 1.51% 1.20% — Bloomberg Barclays U.S. Government/Credit Float Adjusted 1-5 Year Index

1.57% 1.30% —

Vanguard Short-Term Federal Fund (Adm) VSGDX 0.10% 1.24% 0.92% 2.81% Bloomberg Barclays U.S. Government 1-5 Year Index 1.02% 0.80% 2.76% Vanguard Short-Term Investment Grade Fund (Inst) VFSIX 0.07% 2.85% 2.33% 3.37% Bloomberg Barclays U.S. Credit 1-5 Year Index 2.58% 2.46% 3.86% Vanguard Short-Term Treasury Fund (Adm) VFIRX 0.10% 1.18% 0.67% 2.45% Bloomberg Barclays U.S. Government 1-5 Year Index 1.02% 0.80% 2.76% Vanguard Small-Cap Growth Index Fund (Inst) VSGIX 0.07% 10.74% 12.80% 8.26% CRSP U.S. Small Cap Growth Index 10.62% 12.35% 7.77% Vanguard Small-Cap Index Fund (Inst) VSCIX 0.07% 18.32% 14.85% 8.21% Russell 2000 Index 21.31% 14.46% 7.07% Vanguard Small-Cap Value Index Fund (Inst) VSIIX 0.07% 24.80% 16.37% 7.80% CRSP U.S. Small Cap Value Index 24.82% 17.05% 9.36% Vanguard Total Bond Market Index Fund (Inst) VBTIX 0.05% 2.61% 2.15% 4.32% Bloomberg Barclays U.S. Aggregate Bond Index 2.65% 2.23% 4.34% Vanguard Total International Stock Index Fund (Inst) VTSNX 0.10% 4.70% 5.53% — MSCI All Country World ex-US NR Index 4.50% 5.00% 0.96%

8


Ticker Symbol



Vanguard Total Stock Market Index Fund (Inst) VITSX 0.04% 12.67% 14.63% 7.24% CRSP U.S. Total Market Index 12.68% 14.62% 7.27% Vanguard U.S. Growth Fund (Adm) VWUAX 0.32% -0.59% 14.48% 7.35% Russell 1000 Growth Index 7.08% 14.50% 8.33% Vanguard Value Index Fund (Inst) VIVIX 0.07% 16.87% 14.99% 6.01% CRSP U.S. Large Cap Value Index 16.93% 15.37% 6.25% Vanguard Wellesley Income Fund (Adm) VWIAX 0.16% 8.16% 7.36% 6.74% Bloomberg Barclays U.S. Aggregate Bond Index 2.65% 2.23% 4.34% Vanguard Wellington Fund (Adm) VWENX 0.18% 11.09% 10.53% 6.99% S&P 500 Index 11.96% 14.66% 6.95% Vanguard Windsor Fund (Adm) VWNEX 0.29% 12.64% 14.98% 5.50% Russell 1000 Value Index 17.34% 14.80% 5.72% Vanguard Windsor II Fund (Adm) VWNAX 0.26% 13.49% 13.32% 5.77% Russell 1000 Value Index 17.34% 14.80% 5.72%

Summary of other changes Effective May 9, 2017, future contributions will be redirected from the CREF Money Market Account to the Vanguard Federal Money Market Fund (VMFXX). The CREF Money Market Account will remain as an investment option for existing balances. Please contact your investment carrier for a prospectus.

Investment Carrier Website

Telephone Number

Vanguard duke.vanguard - education.com

(800) 523-1188

VALIC valic.com/duke (877) 375-2424

Fidelity Investments

fidelity.com/duke (800) 343-0860

TIAA tiaa.org/duke (800) 842-2252

Qualified Default Investment Alternative Notice DUKE UNIVERSITY FACULTY AND STAFF RETIREMENT PLAN (May 2017)

This notice describes how your contributions to the Faculty and Staff Retirement Plan (the “Plan”) will be invested if you have a payroll deduction set up to contribute but do not choose an investment carrier or do not select specific investment funds. It also describes your rights and responsibilities in connection with default investments. No action is required at this time unless you would like to make changes to your investment selections. Your Right to Direct Investments

You have the right to direct contributions for investment into one or more of the plan's approved investment carriers. Each investment carrier offers a broad range of investments, intended to allow you to achieve a diversified portfolio. The approved investment carriers are: Vanguard, VALIC, Fidelity Investments, and TIAA.

If you have a payroll deduction set up to contribute or will start receiving Duke’s contribution but do not select an investment carrier for contributions, contributions will be automatically deposited with Vanguard and invested in the appropriate default investment fund. The default investment fund established under the Plan for Vanguard, VALIC, Fidelity Investments and TIAA is the Vanguard Institutional Target Retirement Date Fund series.

If you select an investment carrier but do not make investment elections with that investment carrier, contributions will be automatically invested in the default investment fund. Contributions invested in a default investment fund will remain invested in the default fund until you direct otherwise. You may transfer your contributions to other investment options with any of the approved investment carrier(s) at any time without incurring financial penalty. However, the value of your account at the time of transfer is based on current market value and is subject to any gains or losses. Additional information about transfer of funds is available on the retirement section of our website: hr.duke.edu/403btransfer.

It is intended that the default investment fund be a "qualified default investment alternative" (QDIA) as defined under ERISA. Details about the Vanguard Institutional Target Retirement Date Fund are included in this notice. Understanding Your Investments

You should consider the investment objectives, risks, charges and expenses carefully before investing. The fee disclosure information which includes fees and services associated with the plan is available at: hr.duke.edu/performance. This disclosure is intended to provide you with important information about your retirement plan investment options.

You may also obtain a prospectus from your investment carrier for any investment fund. The prospectus will contain detailed information. If you invest in a target retirement fund, either by default or by affirmative election, the risks of each target retirement fund are the same as those of the underlying mutual funds in which they invest. The net expense ratio includes fees for the target retirement fund and fees for the underlying funds; each target retirement fund indirectly bears its pro rata share of the fees and expenses incurred by the underlying funds. Learn More... Contact Your Investment Carrier

You may change your investment selections or transfer your account balance to another investment carrier at any time by contacting the investment carrier directly. Contact information for each investment carrier is provided below. You may change your investment carrier election for future contributions by logging on to Retirement Manager at: hr.duke.edu/retirementmanager.

Please contact your investment carrier to make changes to your current investment elections. It is strongly recommended that you review the investment objectives, risks, charges, and expenses prior to making an investment decision. This information can be found in each fund's prospectus.

Additional information about the Plan is also available on the retirement section of our website: hr.duke.edu/benefits/retirement. If you have questions regarding this notice, please contact the Benefits Office at (919) 684-5600.

Default Investment Fund Details for the Plan

The Vanguard Institutional Target Retirement Date Fund series has been designated as the default investment fund under the Plan. This fund series is available at Fidelity, TIAA, VALIC, and Vanguard. Your contributions will be invested in the appropriate age based fund based on the year you turn age 65. These funds seek to provide capital appreciation and current income consistent with their current asset allocations. Once your money is invested in the fund with the date that is closest to the year when you turn age 65, the fund will gradually and automatically shift from more aggressive investments (stocks) to more conservative ones (bonds and short-term reserves). Use this chart to determine where your future contributions will be invested:

Date of Birth Retirement Date

Range Fund Name

Ticker Symbol

Expense Ratio as of

12/31/2016*

1947 and Earlier 2010 and before Vanguard Institutional Target Retirement Income Fund

VITRX 0.10%

1948-1952 2015 – 2020 Vanguard Institutional Target Retirement 2015 Fund

VITVX 0.10%

1953-1957 2020 - 2025 Vanguard Institutional Target Retirement 2020 Fund

VITWX 0.10%


VRIVX 0.10%


VTTWX 0.10%


VITFX 0.10%


VIRSX 0.10%


VITLX 0.10%


VTRLX 0.10%

1988 -1992 2055 - 2060 Vanguard Institutional Target Retirement 2055 Fund

VIVLX 0.10%

1993 and Later 2060 and beyond Vanguard Institutional Target Retirement 2060 Fund

VILVX 0.10%

* Contact your investment carrier for a fund fact sheet or prospectus for additional details about a fund’s fees and expenses.

IMPORTANT ANNOUNCEMENT ABOUT YOUR RETIREMENT … · 2017-04-03 · 705 BROAD STREET TELEPHONE (919)...

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