Discover the Benefits of the National Electrical 401

NATIONAL ELECTRICAL
401(k) PLAN
Perhaps your most important connection.
Discover the Benefits of the
National Electrical 401(k) Plan
Another tool to help you prepare for a better tomorrow
One of the reasons you work so hard today is to help yourself and your family enjoy a better financial future. Of course,
as a member of the IBEW/NECA family, you already have some valuable benefits that will help to put you on the road to
a retirement that’s filled with possibilities.
The IBEW and NECA recognize that everyone’s dreams are different. For that reason, they are pleased to offer the
National Electrical 401(k) Plan (NEFP). This retirement plan offers a wide array of benefits. Most importantly, it allows
you to save on your own in an effort to boost your retirement income.
What is the National Electrical 401(k) Plan?
The NEFP is a 401(k) plan that is serviced by Prudential Retirement®. It is a “defined contribution” plan, which means
that it’s fully funded by the individuals who join the Plan. If you decide to enroll, you will make contributions to your
Plan account through convenient payroll deductions. There’s never a check to write.
Why are IBEW and NECA offering the NEFP?
It’s just one more way for you to provide yourself and your loved ones with a source of income after your working
years. The money you set aside in the NEFP can help you have more choices in retirement. With the NEFP, just a
little planning today can help you enjoy an even better tomorrow.
What are some of the benefits of participating in the Plan?
In addition to the convenient payroll deductions, the Plan offers you numerous benefits, including:
• Y
ou pay less in current federal taxes: Because your contributions are made before federal income taxes are
calculated, your current taxable income will be lower.
• Y
our money works harder for you: All of your contributions and any money your contributions potentially earn
will grow tax-deferred until you withdraw them.* This can help your account balance grow faster than it might in a
conventional savings account, which does not permit tax-deferred earnings.
• “ Compounding” helps your money grow: “Compounding” means you’ll potentially earn interest on both the
money you contribute to the Plan and any interest your contributions may have earned in prior years.
• G
uaranteed income for life! An investment option called Prudential IncomeFlex Target® is available through
NEFP. For an additional fee of about 1%, IncomeFlex provides you with income protection from market downturns.
Regardless of market conditions, you can regularly withdraw a specified amount of income from this investment
option for as long as you live, guaranteed.**
Keep in mind, this guarantee is of your income base and does not provide a market value guarantee which may
fluctuate with market volatility. Guarantees are backed by the claims paying ability of Prudential Retirement
Insurance and Annuity Company.
*Amounts withdrawn before age 59½ may be subject to a 10% federal income tax penalty, applicable taxes and plan restrictions. Withdrawals are generally taxed at ordinary income tax rates.
**Guarantees are based on the claims-paying ability of the insurance company and are subject to certain limitations, terms, and conditions. Withdrawals or transfers out of the fund proportionately
reduce guaranteed values prior to locking in. After Lock-in withdrawals in excess of the Lifetime Annual Withdrawal Amount will reduce future guaranteed withdrawals proportionately.
0207842
Why contribute to the Plan?
The NEFP is designed to provide you with a valuable source of retirement income. And the Plan’s great benefits—
particularly its tax-deferred features—will make it attractive to save today for a stronger financial future.
Remember: You don’t pay current federal income taxes on the money you contribute to the Plan. Your money will grow
tax-deferred within your account, until you begin to make withdrawals.
How much can you contribute to the Plan?
In 2013, you may contribute a maximum of $17,500 to the Plan before taxes are deducted. If you are age 50 or older,
you may contribute up to $23,000 to the Plan by taking advantage of “catch-up contributions.”
By joining the Plan—and contributing as much as possible—you can help to ensure you’ll have the kind of income that
will help you enjoy your retirement years on your terms.
A wide range of investment options puts you in the driver’s seat.
When you join the NEFP, you decide how your money is invested. The NEFP offers you a wide variety of investment
options, so you should find one or more funds designed to suit your needs.
If you’re like many people, you may be hesitant about choosing your investments. But it’s not as complicated as you might
think. You don’t need to be a finance wiz, and you don’t need to know how to analyze the stock market. In fact, one of the
easiest ways to choose your investments is by taking advantage of a simple investment strategy called asset allocation.
What is asset allocation?
When you use asset allocation, you invest in several funds from different asset classes such as stable-value
investments, fixed-income investments, and stock/equity investments. Although it’s not possible to predict which
investments will perform well at any given time, when you divide your money among different asset classes,
you’re not relying on any one investment or investment type to fuel your retirement savings. You are also minimizing
your savings’ exposure to risks that might affect any one asset class.
Asset allocation is a form of diversification.
What is diversification?
When you “diversify,” you invest your money in a variety of investments. Even if your strategy is to allocate assets
across several asset classes, you may find it wise to diversify your investments within each of those classes. This
may help you spread your investment risk. Keep in mind that application of asset allocation and diversification
concepts does not assure a profit or protect against loss in a declining market. It is possible to lose money by
investing in securities.
2
How can you put asset allocation to work?
Consider the following factors when figuring out how much money you may want to invest in each asset class:
1. What’s your investor style?
Market conditions constantly change. Sometimes the markets move up; other times, they go down. That’s normal.
But, if you understand how you feel about risk and make your investment choices accordingly, you’re more likely
to develop a sound investment strategy.
The table below provides a general breakdown of the three main types of investors—Conservative, Moderate,
and Aggressive. See which description most closely fits you.
What type of investor are you?
You may be a conservative investor if you:
Conservative
• Want to minimize risk and maintain principal
• Seek stability and little fluctuation in the value of your investments
You may be a moderate investor if you:
Moderate
Aggressive
• Are willing to sacrifice safety of principal for potentially greater returns
• Can tolerate modest fluctuations in the value of your investments
You may be an aggressive investor if you:
• Seek to maximize your investment return
• Are willing to tolerate substantial fluctuations in the value of your investments
2. How many years until you retire?
The second factor to consider is the approximate number of years you have until you wish to retire or plan on using
the money. Knowing this time frame is important; someone with five years until retirement, for instance, might invest
much differently than an investor with 25 years until retirement. This is because those who have a longer period of
time in which to invest will have more time to ride out fluctuations in the market.
A great asset allocation tool: GoalMaker.
For those who are either too busy to select their own investments or who don’t feel comfortable choosing their own
funds, the NEFP offers GoalMaker®. It’s an optional investing tool that helps to make your decision-making fast and
easy. And it’s available to you at no additional cost.
By answering just a few simple questions, GoalMaker will recommend a professionally-designed investment portfolio
made up of the fund options available through the NEFP. And because investments tend to fluctuate, GoalMaker will
automatically rebalance your investment portfolio every quarter to ensure that it stays true to your model portfolio.
You may access your account online or by phone.
• Go to www.prudential.com/nefp (If this is your first time logging in, click “Register Now” and follow the instructions).
• Call 1-877-778-2100 (Representatives are available from 8 a.m. to 9 p.m. ET to assist you).
Continued on back...
3
Build a better retirement for yourself.
One way you can help yourself plan for a better future is by making sure that you understand the numerous
benefits of the Plan.
Keep in mind that participation in the Plan is voluntary. But the Plan’s wide array of investment options and other
advantages—such as the before-tax contributions and convenient payroll deductions—provide benefits that are
hard to overlook.
It’s your retirement. And IBEW and NECA want to help you create the kind of future you want. Enroll in the Plan
as soon as you become eligible and give yourself a retirement that’s filled with possibilities.
Fund Listing
Stable Value
• Guaranteed Income Fund
Mid-Cap Value
• Mid Cap Value (sub-advised by Wellington Management)
Fixed Income
• Core Plus Bond/PIMCO Fund
• High Yield Bond/Caywood-Scholl Fund
Small-Cap Growth
• Small Cap Growth/TimesSquare Fund
Equity Index
• IBEW-NECA Equity Index Fund
Large-Cap Growth
• T. Rowe Price Blue Chip Growth Fund R*
Large-Cap Value
• Large Cap Value/Barrow Hanley Fund
Mid-Cap Growth
• Mid Cap Growth/Artisan Partners Fund
Small-Cap Value
• Small Cap Value/Opus Capital Fund
International
• Dreyfus WorldWide Growth A*
IncomeFlex®
• IncomeFlex Target EasyPath Balanced Fund
* Registered mutual fund
All investing involves various risks, such as fixed income (interest rate), default, small cap, international and sector ‐ including the possible loss of principal.
Investors should consider the fund’s investment objectives, risks, charges and expenses before investing. The
prospectus, and if available the summary prospectus contain complete information about the investment options
available through your plan. Please call 1-877-PRU-2100 for a free prospectus and if available, a summary prospectus
that contain this and other information about our mutual funds. You should read the prospectus and the summary
prospectus, if available carefully before investing. It is possible to lose money when investing in securities.
Registered mutual funds are offered through Prudential Investment Management Services LLC (PIMS), Three Gateway Center, 14th Floor, Newark, NJ 07102-4077. PIMS is a Prudential Financial company.
Prudential Retirement’s group variable annuity contracts are issued by Prudential Retirement Insurance and Annuity Company (PRIAC), Hartford, CT, a Prudential Financial company.
The Guaranteed Income Fund (GIF) is a group annuity product issued by Prudential Retirement Insurance and Annuity Company (PRIAC), Hartford, CT 06103. Amounts contributed to the contract
are deposited in PRIAC’s general account. Payment obligations and the fulfillment of any guarantees specified in the group annuity contract are insurance claims supported by the full faith and
credit of PRIAC. PRIAC periodically resets the interest rate credited on contract balances, subject to a minimum rate specified in the group annuity contract. Past interest rates are not indicative
of future rates. This product is neither a mutual fund nor a bank product. The obligations of PRIAC are not insured by the FDIC or any other federal governmental agency.
Application of asset allocation and diversification concepts does not ensure safety of principal and interest. It is possible to lose money by investing in securities. The GoalMaker portfolios are
subject to change including, for example, the replacement of investment options and allocations within the portfolios. You will be notified in writing in advance of such changes.
The Prudential IncomeFlex® Target Fund is separate accounts under a group variable annuity contract issued by Prudential Retirement Insurance and Annuity Company (PRIAC),
Hartford, CT. PRIAC does not guarantee the investment performance or return on contributions to this separate accounts. You should consider the objectives, risks, charges and expenses
of the Fund and guarantee features before purchasing this product. Like all variable investments, this fund may lose value. For this and other information, please access the
participant website or call 877-778-2100 for a copy of the Prudential IncomeFlex Target Important Considerations before investing.
Availability and terms may vary by jurisdiction; subject to regulatory approvals. Annuity contracts contain exclusions, limitations, reductions of benefits
and terms for keeping them in force. Contract form # GA-2020-TGWB4-0805 or state variation.
©2013 Prudential Financial, Inc. and its related entities. Prudential, the Prudential logo, the Rock symbol and Bring Your Challenges are service marks of Prudential Financial, Inc., and its related
entities, registered in many jurisdictions worldwide.
0207842-00004-00
04/2012
ZEBR006
Printed 04/2012