Samples of John Hancock`s §408(b)(2) and §404a

Transcription

Samples of John Hancock’s §408(b)(2)
and §404a-5 disclosure materials
John Hancock Life Insurance Company (U.S.A.) is collectively referred to as “John Hancock”.
FOR PLAN SPONSOR USE ONLY. NOT FOR DISTRIBUTION WITH PARTICIPANTS OR THE PUBLIC.
Overview of ERISA §408(b)(2)
– Service Provider Disclosures
Generally, ERISA §408(b)(2) requires each covered service provider to provide the responsible plan
fiduciary with a description of the services provided, and the direct and indirect compensation
expected to be received in connection with those services.
To comply with this regulation, John Hancock will distribute its ERISA §408(b)(2) Supplemental
Disclosure document to existing plan sponsor clients, which outlines specifically John Hancock
services and compensation, including an estimated cost of recordkeeping. Information required
under §408(b)(2) will also be added to John Hancock’s new business documentation.
Overview of ERISA §404a-5
– Participant Disclosures
Generally, plan sponsors of participant-directed individual account plans are required to disclose
certain specific plan and investment-related information to all their eligible employees, including
beneficiaries who have the right to direct investments.
To help plan sponsors comply with the initial and annual requirements under §404a-5, John
Hancock has developed two documents that they can use: the Investment Comparative Chart
and the Important Plan Information Template. Plan sponsors are responsible for both the
completion (where required) and distribution of these documents, as required by the regulation.
John Hancock has also updated its participant statements to support plan sponsors with the
regulation’s quarterly disclosure requirement.
This package contains samples of the disclosure materials mentioned above. The samples
are for illustrative purposes only, and may be subject to change.
Samples of disclosure materials provided by John Hancock
Sample ERISA §408(b)(2) Supplemental Disclosure – Class 6 Contract....................................Tab
1
Sample ERISA §408(b)(2) Supplemental Disclosure – Class 1 Contract....................................Tab
2
Sample Participant Quarterly Statement: Fees listed under Your Summary of Charges............Tab
3
Sample Participant Quarterly Statement: No fees listed under Your Summary of Charges.......Tab
4
Sample Investment Comparative Chart.................................................................................. Tab
5
Sample Important Plan Information Template.........................................................................Tab
6
This document is provided by John Hancock for informational purposes only, and while every effort is made to ensure the accuracy
of its contents, it should not be relied upon as being tax, legal or financial advice. Neither John Hancock or any of its affiliates,
representatives, employees, or agents provides tax, financial or legal advice.
1
Sample ERISA §408(b)(2)
Supplemental Disclosure
– Class 6 Contract
Contract #: 100100
As of Sep/30/2011
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Sample ERISA §408(b)(2)
Supplemental Disclosure
– Class 1 Contract
Contract #: 12345
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Sample Participant
Quarterly Statement:
Fees listed under
Your Summary of Charges
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Sample Participant
Quarterly Statement:
No fees listed under
Your Summary of Charges
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Sample Investment
Comparative Chart
How to read the
Investment Comparative Chart
This document aims to help you understand the terms and information found in the Investment Comparative Chart.
The Investment Comparative Chart provides you with important investment information, including applicable
fees, about the investment options available to you under your retirement plan’s group annuity contract with
John Hancock. The information is provided in an easy to read format, allowing you to make comparisons of your
investment options against a relevant broad-based index.
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Note: The sample used is for illustrative purposes only and may not reflect all the investment options or all the
applicable sections of the Investment Comparative Chart specific to your plan.
1
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Variable Return Investments are investment options that have returns that vary
according to the performance of each option’s underlying investments. These
underlying investments could be comprised of stocks, bonds and/or money market
instruments. More information about each investment option, such as objectives and
risks, can be obtained by going to the Fund’s corresponding URL, which can be found
under the Fund name.
1
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3
2 The Average Annual Total Return represents
annualized historical returns and can be used to
evaluate and compare the historical performance
of the investment options available under your
plan. The annualized average return information
is displayed annually for the relevant time periods,
ending on the date of the most recently completed
calendar year.
3 The Benchmark Return represents the average
annual total return of the broad-based market index
that is applicable to an investment option. This
information is displayed annually for the relevant
time periods, ending on the date of the most
recently completed calendar year.
4 Equity Funds – the underlying funds of these
investment options invest in equities, more
commonly known as stocks. Equity Funds are often
categorized by market capitalization (e.g. small-cap,
mid-cap, large-cap), investment style (e.g. growth,
value, blend) and geographical concentration that
may include a focus on international, global or
country/region specific investments.
5 Bond Funds – the underlying funds of these
investment options invest primarily in bonds and
other debt instruments. The exact type of debt
the underlying fund invests in will depend on its
focus, but investments may include government,
corporate, municipal and convertible bonds, along
with other debt securities.
6 Other Funds include investment options that are
not exclusively categorized under the Equity or Bond
Fund sections of the Investment Comparative Chart;
they include investment options that span both
types, such as balanced funds or asset allocation
portfolios. This section also includes investment
options that belong to specific categories, such as
sector and index funds.
7
9
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Fixed Return Investments are investment options
that provide a fixed or stated rate of return for a
stated duration.
8
Guaranteed interest account (GIA) is a type of
fixed return investment that accumulates interest
for the duration of the specified term.
9
Term refers to the number of years until the GIA
matures.
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The Risk Categories column provides information
about the general level of risk that may be
associated with each investment option.
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The Total Annual Operating Expenses, also
commonly referred to as the Fund’s “Expense
Ratio” is a measure of what it costs to operate
an investment option. It includes such expenses
as John Hancock’s administrative maintenance
charge (AMC), sales and service fee, and the
expenses of the underlying mutual fund. The
operating expenses of each investment option
are expressed as a percentage of its assets and
as a dollar amount per every $1000 invested.
Total fees payable depend on the dollar amount
you have invested in each Fund and are reflected
through a reduction in the Fund’s rate of return.
L
The Shareholder-type Fees column lists any
additional fees that may be charged directly your
investment and which are not already included
the Total Annual Operating Expenses of the
investment option (e.g. redemption fees).
This document is provided by John Hancock for informational purposes only. It is not intended to be, nor should it be construed as or be relied upon as tax, legal, financial or investment
advice. Neither John Hancock nor any of its affiliates, representatives, employees, or agents provides tax, financial, investment or legal advice.
Both John Hancock Life Insurance Company (U.S.A.) and John Hancock Life Insurance Company of New York do business under certain instances using the John Hancock name. Group
annuity contracts and recordkeeping agreements are issued by: John Hancock Life Insurance Company (U.S.A.), Boston, MA 02210 (not licensed in New York) and John Hancock Life
Insurance Company of New York, Valhalla, NY 10595. Product features and availability may differ by state. John Hancock Investment Management Services, LLC, a registered investment
adviser, provides investment information relating to the contracts
NOT FDIC INSURED | MAY LOSE VALUE | NOT BANK GUARANTEED | NOT INSURED BY ANY GOVERNMENT AGENCY
© 2012 All Rights Reserved.
P19758-GE
04/12-19758
GA11171110173
Investment Comparative Chart
THE TRUSTEES OF WATERS CONSTRUCTION COMPANY 401(K)
PROFIT
SHARING
SAMPLE
USA
401(K) PLAN
document
includes
importantinformation
informationtotohelp
helpyou
youcompare
comparethe
theinvestment
investmentoptions
optionsavailable
availableunder
under your
your retirement
retirement plan. If you would
ThisThis
document
includes
important
receive
additional
investment-relatedinformation
informationononany
anyofofthe
theinvestment
investmentoptions
optionslisted
listedbelow,
below,including
including more
more current
current performance
likelike
to to
receive
additional
investment-related
information,go
gototothe
theFund's
Fund'scorresponding
correspondingwebsite
websiteaddress
address(shown
(shownbelow)
below) or
orto
towww.jhpensions.com.
www.jhpensions.com. To obtain more information, or to receive
information,
a paper copy
of the
information
available available
on the websites
no cost,atcontact
KWIECIEN
(203) 334-8886
30 DANBURY
ROAD,
NEW
a paper
copy
of the information
on the at
websites
no cost,ERROL
contact
Name ofatAdministrator
at (XXX)
XXX-XXXX
ext XXXX
Address,MILLFORD,
City, State,CT,
Zip06776
Code
DOCUMENT
DOCUMENT SUMMARY
This document
is divided
into into
twotwo
parts.
PartPart
I consists
of performance
information
forforyour
This document
is divided
parts.
I consists
of performance
information
yourretirement
retirementplan
planinvestment
investmentoptions
options and
and
illustrates
how how
the investments
havehave
performed
in the
past.
PartPart
II outlines
thethe
fees
and
expenses
illustrates
the investments
performed
in the
past.
II outlines
fees
and
expensesapplicable
applicabletotoeach
eachinvestment
investment option.
option.
E
L
PerformanceInformation
Information
PART II Performance
The table below focuses on the performance
performance of
of investment
investment options
options that
that do
do not
not have
haveaa fixed
fixedor
orstated
statedrate
rateofofreturn.
return.The
Thetable
tableshows
showshow
howthese
theseoptions
optionshave
haveperformed
performed
over time and allows you
you to
to compare
compare them
them with
with an
an appropriate
appropriate benchmark
benchmarkfor
forthe
thesame
sametime
timeperiods.
periods.Past
Pastperformance
performancedoes
doesnot
notguarantee
guaranteehow
howthe
theinvestment
investmentoption
option
will perform in the future. Your
Your investment
investment in
in these
these options
options could
could lose
losemoney.
money.Information
Informationabout
abouteach
eachoption's
option'sprincipal
principalrisks
risksisisavailable
availablebybyaccessing
accessingthe
thewebsite
website
address
with
eacheach
Fund,
as listed
below.below.
addressassociated
associated
with
Fund,
as listed
P
The performance data presented represents
represents past
past performance
performance and
and current
current performance
performancemay
maybe
belower
lowerororhigher
higherthan
thanthe
theperformance
performancequoted.
quoted.An
Aninvestment
investmentininaasubsubaccount will fluctuate
fluctuate in
in value
value to
to reflect
reflect the
the value
value of
of the
the sub-account's
sub-account'sunderlying
underlyingsecurities
securitiesand,
and,when
whenredeemed,
redeemed,may
maybe
beworth
worthmore
moreororless
lessthan
thanoriginal
originalcost.
cost.For
For
month-end
performance,
participants
pleaseplease
call 1-800-395-1113
or visit www.jhpensions.com.
month-end
performance,
participants
call 1-800-395-1113
or visit www.jhpensions.com.
M
A
The Average
Average Annual
AnnualTotal
TotalReturns
Returnsofofthe
theinvestment
investmentoptions
options
available
under
your
qualified
represent
the returns
earned
forstated
the stated
periods
and are
available
under
your
qualified
planplan
represent
the returns
earned
for the
periods
and are
calculated
afteraccounting
accountingfor
forthe
theTotal
TotalAnnual
AnnualOperating
Operating
Expenses,
shown
in Part
of this
document.
Performance
not reflect
any applicable
contractcalculated after
Expenses,
as as
shown
in Part
II ofIIthis
document.
Performance
doesdoes
not reflect
any applicable
contractlevel or
or certain
certain participant-level
participant-levelcharges,
charges,ororany
anyredemption
redemption
fees
imposed
underlying
mutual
company.
These
charges,
if included,
otherwise
fees
imposed
by by
an an
underlying
mutual
fundfund
company.
These
charges,
if included,
wouldwould
otherwise
reduce the
the total
totalreturn
returnfor
foraaparticipant's
participant'saccount.
account.Benchmark
Benchmark
returns
shown
comparative
purposes
Benchmark
returns
represent
the performance
returns
areare
shown
for for
comparative
purposes
only.only.
Benchmark
returns
represent
the performance
of of
market indices,
indices, which
whichcannot
cannotbebeinvested
investedinindirectly.
directly.These
These
returns
calculated
without
taking
account
investment
and/or
expenses. Hypothetical
returns
areare
calculated
without
taking
intointo
account
any any
investment
fees fees
and/or
expenses.
Returns are shown in bold.
*
VARIABLERETURN
RETURNINVESTMENTS*
INVESTMENTS
VARIABLE
S
Name/Type
Option
Name/Type ofofOption
EQUITY
FUNDS
EQUITY FUNDS
28,84
Columbia Value and Restructuring Fund28,84
Large Cap
Cap Value
Value
www.viewjhfunds.com/USA/C01/vrca/index.html
Risk
Risk
Category
Category
Average
AnnualTotal
Total
Return
Average Annual
Return
as of
of 12/31/2010
12/31/2010
1 yr.
5 yr.
10 yr.
†
†
Benchmark
Return
Benchmark Return
as of
of 12/31/2010
12/31/2010
Since
Inception
Inception
Aggressive
Aggressive
Growth
Growth
19.38�
19.38%
3.12�
3.12%
5.05�
5.05%
12.97�
12.97%
Growth
Growth
& Income
Income
13.91�
13.91%
-0.85�
-0.85%
N/A
3.12�
3.12%
Growth
Growth
& Income
Income
14.75�
14.75%
2.37�
2.37%
3.87�
3.87%
Investment Options as of Feb/21/2012
Since
Inception
Inception
15.06�
15.06%
2.29�
2.29%
1.41�
1.41%
99.99�
99.99%
S&P 500 TR
TR
10.82�
10.82%
0.73�
0.73%
4.53�
4.53%
7.97�
7.97%
3.25�
3.25%
4.50�
4.50%
1.27�
1.27%
3.25�
3.25%
12.13�
12.13%
Russell
Russell 1000
1000 Value
ValueTR
TR
15.06�
15.06%
Growth
Growth
& Income
Income
1.27�
1.27%
Russell
Russell 1000
1000 Value
ValueTR
TR
10.64�
10.64%
41,61,96
Mutual Beacon Fund41,61,96
Large Cap
Cap Value
Value
www.viewjhfunds.com/USA/C01/mcva/index.html
10 yr.
15.50�
15.50%
30,31,54
T. Rowe Price Equity Income Fund30,31,54
Large Cap
Cap Value
Value
www.viewjhfunds.com/USA/C01/d_ga/index.html
5 yr.
15.50�
15.50%
101,13,5,73
Fundamental Large Cap Value Fund101,13,5,73
Large Cap
Cap Value
Value
www.viewjhfunds.com/USA/C01/eqia/index.html
1 yr.
2.29�
2.29%
1.41�
1.41%
4.50�
4.50%
S&P 500 TR
TR
Page 11 of
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12
Page
*
VARIABLE RETURN INVESTMENTS
Risk
Category
Name/Type of Option
Average Annual Total Return
as of 12/31/2010
1 yr.
5 yr.
10 yr.
†
Benchmark Return
as of 12/31/2010
Since
Inception
20,43,51,64
Domini Social Equity Fund
Large Cap Blend
www.viewjhfunds.com/USA/C01/soca/index.html
Growth
13.58�
1.64�
0.49�
Growth
& Income
12.21�
1.42�
2.60�
11.96�
Legg Mason ClearBridge Aggressive Growth
19,74,8,81
Fund
Large Cap Growth
www.viewjhfunds.com/USA/C01/stwa/index.html
Aggressive
Growth
23.82�
0.71�
1.19�
9.35�
16.25�
3.30�
1.23�
6.50�
Growth
11.80�
2.60�
0.39�
0.38�
Growth
21.85�
1.45�
P
7.92�
M
A
23,41,47,73,90
Mid Cap Stock Fund
Mid Cap Growth
www.viewjhfunds.com/USA/C01/mcsa/index.html
54,87
American Century Heritage Fund
Mid Cap Growth
www.viewjhfunds.com/USA/C01/hera/index.html
S
Aggressive
Growth
Aggressive
Growth
22.76�
31.18�
4.88�
10.39�
5.32�
S&P 500 TR
4.94�
4.88�
2.02�
10.51�
Aggressive
Growth
30.04�
5.89�
6.98�
6.88�
5.78�
16.22�
26.38�
26.38�
1.39�
N/A
6.22�
Aggressive
Growth
23.85�
7.00�
4.97�
6.63�
7.98�
3.91�
5.67�
4.94�
3.50�
3.75�
0.01�
4.00�
1.45�
3.63�
4.75�
4.88�
3.11�
5.00�
4.88�
3.11�
4.50�
4.88�
3.11�
3.75�
6.43�
5.55�
3.50�
MSCI US Small Cap Growth Index
5.29�
3.77�
5.00�
Russell 2000 Growth TR
2.73�
2.15�
4.25�
Russell 3000 TR
7.81�
12.40�
4.25�
Citigroup Global ex USA <�2billion
7.75�
23,47,73,9
1.41�
Russell MidCap Growth TR
24.42�
41,73
Aggressive
Growth
2.29�
16.92�
22.90�
4.00�
9.78�
Growth
0.30�
Russell 3000 Value TR
30.71�
2.84�
3.88�
29.08�
26.29�
5.00�
S&P 500 TR
26.38�
28.43�
1.41�
11.66�
Aggressive
Growth
Aggressive
Growth
2.29�
S&P 500 TR
4.78�
101,13,22,38,5,50,91
5.00�
10.64�
17,18,44,57,67
International Value Fund
International/Global Value
www.viewjhfunds.com/USA/C01/itva/index.html
1.41�
16.71�
Franklin Balance Sheet Investment Fund
Mid Cap Value
www.viewjhfunds.com/USA/C01/smca/index.html
International Small Cap Fund
www.viewjhfunds.com/USA/C01/isfa/index.html
2.29�
E
L
Growth
12,15,57,73,85
Capital Appreciation Fund
Large Cap Growth
www.viewjhfunds.com/USA/C01/cpaa/index.html
Fundamental All Cap Core Fund
Multi Cap Blend
www.viewjhfunds.com/USA/C01/qaca/index.html
15.06�
15.06�
57,73,90
Invesco Small Cap Growth Fund
Small Cap Growth
www.viewjhfunds.com/USA/C01/scoa/index.html
Since
Inception
17.64�
Blue Chip Growth Fund
Large Cap Growth
www.viewjhfunds.com/USA/C01/bcfa/index.html
41
10 yr.
15.06�
15,31,50,80,90
Small Cap Growth Index Fund
Small Cap Growth
www.viewjhfunds.com/USA/C01/vsga/index.html
5 yr.
7.73�
Davis New York Venture Fund
Large Cap Blend
www.viewjhfunds.com/USA/C01/vala/index.html
Franklin Small-Mid Cap Growth Fund
Mid Cap Growth
www.viewjhfunds.com/USA/C01/scga/index.html
1 yr.
2.45�
3.50�
4.75�
MSCI EAFE TR
Page 2 of 12
*
Risk
Category
Name/Type of Option
as of 12/31/2010
1 yr.
5 yr.
10 yr.
†
Benchmark Return
as of 12/31/2010
Since
Inception
41,80,81
Templeton World Fund
www.viewjhfunds.com/USA/C01/diva/index.html
Growth
7.99�
2.58�
4.68�
12.17�
Aggressive
Growth
9.22�
5.28�
6.37�
11.88�
1 yr.
5 yr.
10 yr.
Since
Inception
11.76�
2.43�
2.30�
4.75�
MSCI World TR
11.60�
38,40,41,47,61,65,85
EuroPacific Growth Fund
International/Global Blend
www.viewjhfunds.com/USA/C01/epga/index.html
Growth
& Income
11.09�
6.08�
8.24�
12.96�
Aggressive
Growth
27.07�
14.99�
19.22�
17.19�
Growth
15.77�
3.44�
4.58�
11.94�
Income
2.72�
4.42�
4.06�
15,83
Short-Term Federal Fund
High Quality Short Term Fixed Income
www.viewjhfunds.com/USA/C01/gova/index.html
M
A
101,13,22,82,83,91
Money Market Fund
www.viewjhfunds.com/USA/C01/mmra/index.html
Conservative
-0.21�
2.12�
1.92�
12.77�
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BOND FUNDS
2.43�
5.00�
15.89�
4.25�
2.43�
2.30�
4.50�
MSCI World TR
2.39�
5.45�
4.03�
2.30�
MSCI Emerging Markets
11.76�
29,56,81
Oppenheimer Global Fund
International/Global Growth
www.viewjhfunds.com/USA/C01/wwfa/index.html
3.75�
MSCI World TR
18.87�
21,56
Oppenheimer Developing Markets Fund
www.viewjhfunds.com/USA/C01/dmka/index.html
5.97�
MSCI All Country World Index ex U.S.
11.76�
42,61
Mutual Global Discovery Fund
www.viewjhfunds.com/USA/C01/disa/index.html
5.28�
4.31�
4.07�
3.50�
BarCap 1-3 Yr Gvt TR
0.13�
2.29�
2.25�
0.01�
Citigroup U.S. Domestic 3 Mo TBill TR
Money Market Fund current 7-day yield is -0.34�. The current yield quotation more closely reflects the current earnings of the Money Market Fund as of the date this report was
prepared while the Annualized returns above refer to a specific past holding period reflecting the period covered by this report. Although the fund strives to maintain a positive yield,
there is no guarantee the fund will be able to do so. An investment in the underlying Money Market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation
or any other government agency. The underlying fund seeks to preserve a value of �1.00 per share but it is possible to lose money by investing in the Money Market Fund that
invests in the underlying fund.
S
41,62
PIMCO Total Return Fund
High Quality Intermediate Term Fixed Income
www.viewjhfunds.com/USA/C01/trna/index.html
T. Rowe Price Spectrum Income Fund
Medium Quality Intermediate Term Fixed Income
www.viewjhfunds.com/USA/C01/inca/index.html
45,54,69,73
High Yield Fund
High Yield Bond
www.viewjhfunds.com/USA/C01/hyfa/index.html
Income
Income
8.29�
9.30�
7.51�
6.17�
6.80�
6.48�
6.54�
7.91�
16.10�
8.01�
6.38�
5.83�
4.00�
BarCap U.S. Aggregate Bond TR
6.54�
7.38�
5.79�
5.83�
5.00�
BarCap U.S. Aggregate Bond TR
14.32�
Income
5.79�
5.47�
8.40�
8.66�
4.00�
Citigroup Hi-Yld TR
OTHER FUNDS
15.06�
31,38,40,50,61,65
American Balanced Fund
Balanced
www.viewjhfunds.com/USA/C01/abfa/index.html
Growth
& Income
13.01�
3.74�
5.13�
10.51�
Aggressive
Growth
10.87�
4.18�
5.13�
6.45�
1.41�
4.00�
S&P 500 (60� S&P 500/40� BarCap Agg Bond)
11.15�
15,21,22,29,76,91
International Equity Index Fund
Index
www.viewjhfunds.com/USA/C01/iifa/index.html
2.29�
4.81�
5.54�
1.30�
MSCI AC World Free ex US
Page 3 of 12
*
Risk
Category
Name/Type of Option
as of 12/31/2010
1 yr.
5 yr.
10 yr.
†
Benchmark Return
as of 12/31/2010
Since
Inception
101,13,22,29,76,91
Small Cap Index Fund
Index
www.viewjhfunds.com/USA/C01/scia/index.html
Aggressive
Growth
26.36�
4.07�
5.63�
Growth
25.98�
5.26�
6.52�
7.10�
Growth
17.20�
2.84�
2.14�
1.52�
Growth
& Income
14.58�
1.80�
0.86�
7.35�
4.47�
6.33�
5.00�
Russell 2000 TR
Aggressive
Growth
20.95�
6.29�
-2.95�
101,13,68
Asset
Allocation
- Lifestyle
Lifestyle Fund - Growth Portfolio
Asset Allocation - Lifestyle
www.viewjhfunds.com/USA/C01/glsa/index.html
15.89�
2.76�
3.01�
M
A
101,13,68,9
Lifestyle Fund - Balanced Portfolio
www.viewjhfunds.com/USA/C01/blsa/index.html
S
Asset
Allocation
- Lifestyle
Asset
Allocation
- Lifestyle
Asset
Allocation
- Lifestyle
Asset
Allocation
- Lifestyle
15.18�
13.46�
12.32�
10.40�
3.70�
4.42�
4.97�
5.57�
3.91�
4.73�
5.05�
5.47�
3.16�
2.29�
E
L
5.26�
2.64�
3.75�
1.41�
4.25�
N/A
N/A
4.25�
Lipper Science & Technology
15.06�
2.29�
1.41�
1.05�
S&P 500 TR
15.06�
2.29�
1.41�
3.75�
15.06�
2.29�
1.41�
4.00�
6.54�
5.64�
5.79�
5.83�
4.25�
BarCap Agg Bond (40� S&P
500/60� BarCap Agg Bond)
6.54�
5.96�
3.50�
S&P 500 TR
3.36�
4.50�
7.15�
DJ Wilshire 5000 TR
10.89�
P
101,13,68
Lifestyle Fund - Aggressive Portfolio
www.viewjhfunds.com/USA/C01/alsa/index.html
5.73�
S&P MidCap 400 TR
N/A
14,62
T. Rowe Price Science & Technology Fund
Sector
www.viewjhfunds.com/USA/C01/scta/index.html
26.85�
15.06�
101,13,22,76,9,91
500 Index Fund
Index
www.viewjhfunds.com/USA/C01/inda/index.html
101,13,68
Since
Inception
17.69�
101,13,22,29,76,91
Lifestyle Fund - Conservative Portfolio
www.viewjhfunds.com/USA/C01/clsa/index.html
10 yr.
26.64�
Total Stock Market Index Fund
Index
www.viewjhfunds.com/USA/C01/tsma/index.html
101,13,31,68
5 yr.
5.53�
101,13,22,48,57,76,82,91
Mid Cap Index Fund
Index
www.viewjhfunds.com/USA/C01/mcia/index.html
Lifestyle Fund - Moderate Portfolio
www.viewjhfunds.com/USA/C01/mlsa/index.html
1 yr.
5.79�
5.83�
4.50�
BarCap Agg Bond (20� S&P
500/80� BarCap Agg Bond)
Page 4 of 12
FIXED RETURN INVESTMENTS
The table below focuses on the performance of investment options that have a fixed or stated return. The table shows the annual 'new money' rate for each Guaranteed
Interest Account, the term or length of the option, and other information relevant to performance.
Risk
Category
Return
as of 02/01/2012
Term
Other
71,78,83
Conservative
0.20�
3-year
5-Year Guaranteed
Five Year Guaranteed Interest Account
www.viewjhfunds.com/USA/C01/giaa/index.html
71,78,83
Conservative
0.70�
5-year
"Return" shown represents the annual interest rate that
is established on the first day of the month indicated. That
interest rate is applied to all contributions made to the
account in that month. John Hancock may adjust the rate of
return prospectively, as each month, a new rate is declared
and applied to contributions made that month. You may call
1-800-395-1113 to obtain the most recent rate.
71,78,83
Conservative
Name/Type of Option
3-Year Guaranteed
Three Year Guaranteed Interest Account
10-Year Guaranteed
Ten Year Guaranteed Interest Account
1.25�
10-year
At the end of each reporting year, a "composite interest
rate" is determined. The composite interest rate is a
dollar-weighted average rate of all contributions to that
Guaranteed Interest Account during that reporting year. A
separate composite interest rate is calculated for each GIA
term and each reporting year, if applicable. For example,
separate composite interest rates would be calculated for
deposits made to the 3-year and 10-year GIAs. Further,
separate composite interest rates would be calculated for
the 3-year GIAs from one reporting year to another. The
GIA balance will continue to earn that reporting year's
composite interest rate until the end of the guaranteed term.
Participants with assets in a Guaranteed Interest Account
can obtain more information on the composite interest rate
that applies to their account by calling Participant Services
at 1-800-395-1113 or viewing their most current Participant
Statement.
E
L
P
M
A
PART II Fee and Expense Information
This section shows fee and expense information for the investment options listed above. Below you will find the Total Annual Operating Expenses and Shareholder-type
Fees (if applicable) as they relate to each investment option. Total Annual Operating Expenses are expenses that reduce the rate of return of the investment option. It is
important to understand that the investment rate of return, as set out in the Performance Information section, is calculated net of the Total Annual Operating Expenses
of the investment option. However, such returns do not take into account any applicable Shareholder-type fees, which are in addition to the Total Annual Operating
Expenses of the investment option.
S
The cumulative effect of fees and expenses can substantially reduce the growth of your retirement savings. Visit the Department of Labor's website for an example
showing the long-term effect of fees and expenses at www.dol.gov/ebsa/publications/401k_employee.html. Fees and expenses are only one of many factors to consider
when you decide to invest in an option. You may also want to think about whether an investment in a particular option, along with your other investments, will help you
achieve your financial goals.
FEES AND EXPENSES
Name/Type of Option
EQUITY FUNDS
28,84
Columbia Value and Restructuring Fund
Large Cap Value
101,13,5,73
Fundamental Large Cap Value Fund
Large Cap Value
30,31,54
T. Rowe Price Equity Income Fund
Large Cap Value
Risk
Category
Total Annual Operating Expenses
as of 09/30/2011
As a �
Per �1000
Shareholder-Type Fees
Aggressive
Growth
1.19�
�11.90
N/A
Growth
& Income
0.78�
�7.80
N/A
Growth
& Income
1.03�
�10.30
N/A
Page 5 of 12
FEES AND EXPENSES
Risk
Category
Name/Type of Option
41,61,96
Mutual Beacon Fund
Large Cap Value
20,43,51,64
Domini Social Equity Fund
Large Cap Blend
www.viewjhfunds.com/USA/C01/soca/index.html
15,31,50,80,90
Davis New York Venture Fund
Large Cap Blend
www.viewjhfunds.com/USA/C01/vala/index.html
Legg Mason ClearBridge Aggressive Growth
19,74,8,81
Fund
Large Cap Growth
www.viewjhfunds.com/USA/C01/stwa/index.html
57,73,90
Blue Chip Growth Fund
Large Cap Growth
www.viewjhfunds.com/USA/C01/bcfa/index.html
12,15,57,73,85
Capital Appreciation Fund
Large Cap Growth
www.viewjhfunds.com/USA/C01/cpaa/index.html
Franklin Balance Sheet Investment Fund
Mid Cap Value
www.viewjhfunds.com/USA/C01/smca/index.html
54,87
S
Franklin Small-Mid Cap Growth Fund
Mid Cap Growth
www.viewjhfunds.com/USA/C01/scga/index.html
41
Small Cap Growth Index Fund
Small Cap Growth
www.viewjhfunds.com/USA/C01/vsga/index.html
17,18,44,57,67
Invesco Small Cap Growth Fund
Small Cap Growth
www.viewjhfunds.com/USA/C01/scoa/index.html
101,13,22,38,5,50,91
Fundamental All Cap Core Fund
Multi Cap Blend
www.viewjhfunds.com/USA/C01/qaca/index.html
41,73
International Small Cap Fund
www.viewjhfunds.com/USA/C01/isfa/index.html
Growth
& Income
1.13�
�11.30
N/A
Growth
1.25�
�12.50
Redemption fee of 2.000� on all exchanges within a 30 day
43
period. See Important Notes for details.
Growth
& Income
0.92�
�9.20
N/A
Aggressive
Growth
1.27�
�12.70
N/A
Growth
0.86�
�8.60
Growth
0.79�
�7.90
Growth
0.99�
�9.90
Aggressive
Growth
0.93�
�9.30
N/A
Aggressive
Growth
1.16�
�11.60
N/A
Aggressive
Growth
1.00�
�10.00
N/A
Aggressive
Growth
0.76�
�7.60
N/A
Aggressive
Growth
1.25�
�12.50
N/A
Growth
0.76�
�7.60
N/A
Aggressive
Growth
1.22�
�12.20
N/A
E
L
P
M
A
23,41,47,73,90
Mid Cap Stock Fund
Mid Cap Growth
www.viewjhfunds.com/USA/C01/mcsa/index.html
American Century Heritage Fund
Mid Cap Growth
www.viewjhfunds.com/USA/C01/hera/index.html
as of 09/30/2011
As a �
Per �1000
N/A
N/A
N/A
Page 6 of 12
FEES AND EXPENSES
Risk
Category
Name/Type of Option
23,47,73,9
International Value Fund
www.viewjhfunds.com/USA/C01/itva/index.html
41,80,81
Templeton World Fund
www.viewjhfunds.com/USA/C01/diva/index.html
38,40,41,47,61,65,85
EuroPacific Growth Fund
www.viewjhfunds.com/USA/C01/epga/index.html
42,61
Mutual Global Discovery Fund
www.viewjhfunds.com/USA/C01/disa/index.html
21,56
Oppenheimer Developing Markets Fund
www.viewjhfunds.com/USA/C01/dmka/index.html
29,56,81
Oppenheimer Global Fund
www.viewjhfunds.com/USA/C01/wwfa/index.html
as of 09/30/2011
As a �
Per �1000
Aggressive
Growth
0.95�
�9.50
N/A
Growth
1.09�
�10.90
N/A
Aggressive
Growth
1.00�
�10.00
N/A
Growth
& Income
1.29�
�12.90
N/A
Aggressive
Growth
1.29�
�12.90
Growth
1.08�
�10.80
Income
0.72�
�7.20
Conservative
0.58�
�5.80
15,83
M
A
101,13,22,82,83,91
Money Market Fund
www.viewjhfunds.com/USA/C01/mmra/index.html
E
L
P
BOND FUNDS
Short-Term Federal Fund
www.viewjhfunds.com/USA/C01/gova/index.html
N/A
N/A
N/A
N/A
Money Market Fund current 7-day yield is -0.34�. The current yield quotation more closely reflects the current earnings of the Money Market Fund as of the date this report was
prepared while the Annualized returns above refer to a specific past holding period reflecting the period covered by this report. Although the fund strives to maintain a positive
yield, there is no guarantee the fund will be able to do so. An investment in the underlying Money Market fund is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. The underlying fund seeks to preserve a value of �1.00 per share but it is possible to lose money by investing in the Money Market
Fund that invests in the underlying fund.
S
41,62
PIMCO Total Return Fund
High Quality Intermediate Term Fixed Income
www.viewjhfunds.com/USA/C01/trna/index.html
T. Rowe Price Spectrum Income Fund
Medium Quality Intermediate Term Fixed Income
www.viewjhfunds.com/USA/C01/inca/index.html
45,54,69,73
High Yield Fund
High Yield Bond
www.viewjhfunds.com/USA/C01/hyfa/index.html
Income
0.96�
�9.60
N/A
Income
1.05�
�10.50
N/A
Income
0.75�
�7.50
N/A
OTHER FUNDS
31,38,40,50,61,65
American Balanced Fund
Balanced
www.viewjhfunds.com/USA/C01/abfa/index.html
15,21,22,29,76,91
International Equity Index Fund
Index
www.viewjhfunds.com/USA/C01/iifa/index.html
Growth
& Income
0.80�
�8.00
N/A
Aggressive
Growth
0.62�
�6.20
N/A
Page 7 of 12
FEES AND EXPENSES
Risk
Category
Name/Type of Option
101,13,22,29,76,91
Small Cap Index Fund
Index
www.viewjhfunds.com/USA/C01/scia/index.html
101,13,22,48,57,76,82,91
Mid Cap Index Fund
Index
www.viewjhfunds.com/USA/C01/mcia/index.html
101,13,22,29,76,91
Total Stock Market Index Fund
Index
www.viewjhfunds.com/USA/C01/tsma/index.html
101,13,22,76,9,91
500 Index Fund
Index
www.viewjhfunds.com/USA/C01/inda/index.html
14,62
T. Rowe Price Science & Technology Fund
Sector
www.viewjhfunds.com/USA/C01/scta/index.html
101,13,68
Lifestyle Fund - Aggressive Portfolio
www.viewjhfunds.com/USA/C01/alsa/index.html
101,13,68
Lifestyle Fund - Growth Portfolio
www.viewjhfunds.com/USA/C01/glsa/index.html
101,13,31,68
S
101,13,68
Lifestyle Fund - Conservative Portfolio
www.viewjhfunds.com/USA/C01/clsa/index.html
FIXED RETURN INVESTMENTS
71,78,83
3-Year Guaranteed
Three Year Guaranteed Interest Account
71,78,83
5-Year Guaranteed
Five Year Guaranteed Interest Account
71,78,83
10-Year Guaranteed
Ten Year Guaranteed Interest Account
Aggressive
Growth
0.63�
�6.30
N/A
Growth
0.56�
�5.60
N/A
Growth
0.57�
�5.70
N/A
Growth
& Income
0.53�
�5.30
N/A
Aggressive
Growth
1.17�
�11.70
Asset
Allocation
- Lifestyle
1.10�
�11.00
Asset
Allocation
- Lifestyle
1.05�
�10.50
Asset
Allocation
- Lifestyle
1.03�
�10.30
N/A
Asset
Allocation
- Lifestyle
0.98�
�9.80
N/A
Asset
Allocation
- Lifestyle
0.95�
�9.50
N/A
Conservative
N/A
N/A
Conservative
N/A
N/A
Conservative
N/A
N/A
E
L
N/A
P
M
A
101,13,68,9
Lifestyle Fund - Balanced Portfolio
www.viewjhfunds.com/USA/C01/blsa/index.html
Lifestyle Fund - Moderate Portfolio
www.viewjhfunds.com/USA/C01/mlsa/index.html
as of 09/30/2011
As a �
Per �1000
N/A
N/A
Transfers between a Guaranteed Interest Account and
other investment options (except for transfers between
Guaranteed Interest Accounts) may be permitted (at book
value) under the terms of your plan's contract with John
Hancock. Some conditions apply, including limitations
as to permitted transfer dates, noted on your quarterly
statement, if applicable. Transfers that are initiated on
dates other than those specified in the contract may be
subject to a market value adjustment. Similarly, withdrawals
taken from Guaranteed Interest Accounts prior to the end
of the guarantee period, may be subject to a market value
adjustment. Book value transfers are subject to an annual
20� book value transfer limit for each Guaranteed Interest
Account balance. Transfers in excess of this limit are made
at the lesser of book and market value.
Please visit www.jhancockpensions.com/do/glossary/financial_terms for a glossary of investment terms relevant to the investment options
under this plan. This glossary is intended to help you better understand your options.
Page 8 of 12
IMPORTANT NOTES
*
Your company's qualified retirement plan offers participants the opportunity to
contribute to investment options available under a group annuity contract with John
Hancock Life Insurance Company (U.S.A.) (John Hancock USA). These investment
options may be sub-accounts (pooled funds) investing directly in underlying mutual
funds, or they may be Guaranteed Interest Accounts.
The placement of investment options within style boxes and according to potential risk/
return shows John Hancock USA's assessment of those options relative to one another
and should not be used to compare these investment options with other investment
options available outside John Hancock USA.
†
Index Performance: Index performance shown is for a broad-based securities market
index. Indices are unmanaged and cannot be invested in directly. Index returns were
prepared using Morningstar, Inc. software and data. The performance of an Index does
not include any portfolio or insurance-related charges. If these charges were reflected,
performance would be lower. Past performance is not a guarantee of future results.
5
The underlying fund changed its name effective on or about May 5, 2008.
Performance shown for periods prior to that date reflect the results under its former
name. The name of this sub-account changed effective on or about May 5, 2008 to
more accurately reflect the name of the underlying fund.
8
name. The name of this sub-account changed effective on or about May 10, 2010 to
more accurately reflect the name of the underlying fund.
9
Account balance reported may include assets transferred from another Fund, which
was permanently closed on or about April 30, 2007. Contact your John Hancock
representative for more information.
12
This sub-account was introduced April 27, 2001.
For internally-managed Funds advised and sub-advised exclusively by John Hancock
USA's affiliates, the total fees John Hancock USA and its affiliates receive from these
Funds may be higher than those advised or sub-advised exclusively by unaffiliated
mutual fund companies. These fees can come from the Fund or trust's Rule 12b-1,
sub-transfer agency, management, AMC or other fees, and may vary from Fund
to Fund. Except for certain asset allocation portfolios (i.e., the Lifecycle Portfolios,
Lifestyle Portfolios, Core Portfolios and the Guaranteed Income Feature Portfolios),
John Hancock USA uses the revenue received from 12b-1, sub-transfer agency, and
management fees to determine the AMC for that Fund, such that the sum of 12b-1,
sub transfer agency, management fees and AMC received by John Hancock USA equals
0.50�.
S
Account balance reported for this Fund may include assets transferred from another
Fund, which will be permanently closed on or about April 26, 2010. Consult your John
Hancock representative for more information.
17
This sub-account previously invested in a different underlying portfolio. It began
investing in the current underlying portfolio effective May 5, 2003. Performance shown
for periods prior to that date is based on the performance of the current underlying
portfolio.
18
The underlying fund's manager or subadviser changed its name from Invesco AIM
Capital Management to Invesco Advisers, Inc. on or about May 10, 2010. Contact your
John Hancock representative for more information.
19
This sub-account previously invested in a different share class of the same underlying
portfolio. It began investing in the current share class effective on or about May 7,
2007. Performance shown for periods prior to that date is based on the performance of
the current share class.
20
The manager for the underlying fund and its objectives changed effective on or about
November 30, 2006. Performance shown for periods prior to that date reflect the
results under its former manager.
22
name.
23
was permanently closed on or about October 29, 2007. Consult your John Hancock
28
Effective on or about November 10, 2008, the Excelsior Value and Restructuring
Fund has been renamed Columbia Value and Restructuring Fund. The underlying fund
name has changed to Columbia Value and Restructuring Fund and its share class has
changed from "Shares" to "Z". There has been no change to the fund manager or the
investment strategy/process.
29
This sub-account was introduced August 21, 2000.
E
L
30
investing in the current underlying portfolio effective November 25, 2002. Performance
shown for periods prior to that date is based on the performance of the current
underlying portfolio.
31
38
P
This sub-account was introduced May 2, 2003.
portfolio. It began investing in the current share class effective on or about July 28,
M
A
The underlying fund concentrates its investments in a sector of the market. A
portfolio of this type may be riskier or more volatile in price than one that invests in
more market sectors.
15
investing in the current underlying portfolio effective May 17, 2004. Performance
40
13
14
21
41
was permanently closed on or about October 27, 2008. Contact your John Hancock
42
The name of this sub-account changed effective on or about November 9, 2009 to
more accurately reflect the name of the underlying fund. Contact your John Hancock
43
Important Redemption Fee Information: Domini Social Equity Fund - Effective
August 18, 2008, the underlying fund will impose a 2� redemption fee on all selling/
exchanges of the fund over �25,000 within a thirty-day period. The ''First-In/FirstOut'' (''FIFO'') method was used to determine whether the shares have been held
for the prescribed holding period and, therefore, whether the redemption fee will be
applied.
44
The underlying fund's manager or subadviser changed its name from AIM
Investments, Inc. to Invesco AIM Capital Management on or about November 10,
2008. Contact your John Hancock representative for more information.
45
The portfolio concentrates its investments in high yield/high risk fixed income
securities, also known as junk bonds, which carry a much greater risk of default and
tend to be more volatile than higher rated bonds.
47
Account balance reported may include assets transferred from another sub-account
which was permanently closed between April 22, 2005 and May 7, 2005.
48
was permanently closed on or about October 25, 2010. Please contact your John
Hancock representative for more information.
50
Account balance reported may include assets transferred from another Fund which
was permanently closed between April 25, 2004 and May 1, 2004.
51
Effective June 1, 2009, the underlying fund changed its name to the Domini Social
Equity Fund Investor Shares.
Page 9 of 12
was permanently closed on or about April 18, 2011. Please contact your John Hancock
54
guaranteed interest accounts seek to preserve the value of an investment, it is possible
to lose money by investing in these portfolios. Guaranteed interest rates are based
upon the claims paying ability of the issuing company.
56
portfolio. It began investing in the current share class effective on or about November
10, 2008. Performance shown for periods prior to that date is based on the
performance of the current share class.
80
investing in the current underlying portfolio effective April 30, 2001. Performance
57
investing in the current underlying portfolio effective February 9, 2004. Performance
61
81
9, 2009. Performance shown for periods prior to that date is based on the performance
of the current share class.
62
83
Account balance reported may include assets transferred from another Fund which
was permanently closed between April 25, 2003 and May 5, 2003.
64
8, 2010. Performance shown for periods prior to that date is based on the performance
of the current share class.
65
portfolio. It began investing in the current share class effective on or about June 1,
67
The underlying fund changed its name effective on or about November 8, 2010.
name. The name of this sub-account changed effective on or about November 8, 2010
to more accurately reflect the name of the underlying fund.
68
This sub-account previously invested in another underlying portfolio. It began
investing in the current underlying portfolio effective October 14, 2005. Performance
underlying portfolio. Performance shown for all periods has been adjusted to reflect the
current sub-account charge and would be lower if it reflected the sub-account charge
that was in effect prior to October 14, 2005, which was .20� higher than the current
sub-account charge.
The sub-adviser or manager changed its name on or about May 6, 2006.
Performance shown for periods prior to that date reflect the results under the subadviser's former name.
S
Only available under certain limited circumstances. Consult your John Hancock
73
investing in the current underlying portfolio effective October 14, 2005.
74
The name of this sub-account changed effective on or about May 6, 2006 to more
accurately reflect the name of the underlying fund. Contact your John Hancock
76
None of the Index Funds nor the underlying portfolios are sponsored, endorsed,
managed, advised, sold or promoted by any of the respective companies that sponsor
the broad-based securities market index, and these companies make no representation
regarding the advisability of investing in the Index Fund. Indexes are unmanaged and
cannot be invested in directly. Since the underlying portfolios are not actively managed,
the Funds will generally reflect the performance of their indexes even in markets when
the indexes do not perform well.
78
Guaranteed Interest rates shown are gross ARA rates and assume the issuance of
a contract at the beginning of each period shown. Actual return may vary depending
on the administrative expense and, if applicable, the Sales and Service fee for the
contract. The sales and service fee for the contract is the same as that shown for the
sub-accounts under the contract. For regular ongoing contributions, interest rates are
published at the beginning of each month and apply to all such contributions in that
month. For other types of contributions, interest rates may change during the month.
An investment in a guaranteed interest account is not insured or guaranteed by The
Federal Deposit Insurance Corporation or any other government agency. Although the
This investment option is deemed a "Competing" investment option with the John
Hancock Stable Value Fund and may not be available. An investment in this portfolio is
not insured or guaranteed by The Federal Deposit Insurance Corporation or any other
government agency. Although the underlying portfolio seeks to preserve the value of
an investment, it is possible to lose money by investing in this portfolio.
E
L
84
The underlying fund's manager or subadviser changed its name from Columbia
Management to Columbia Management Investment Advisers, LLC., on or about
November 8, 2010. Contact your John Hancock representative for more information.
85
P
87
This sub-account was introduced November 5, 2010.
90
M
A
69
71
82
91
The underlying John Hancock Variable Insurance Trust portfolio is not a retail mutual
fund and is only available under variable annuity contracts, variable life policies
or through participation in tax qualified retirement plans. Although the portfolios'
investment adviser or sub-advisers may manage retail mutual funds with similar names
and investment objectives, no representation is made, and no assurance is given, that
any portfolio's investment results will be comparable to the investment results of any
other fund, including other funds with the same investment adviser or sub-adviser. Past
performance is no guarantee of future results.
96
Changes were made to this sub-account effective on or about October 30, 2006.
Contact a John Hancock representative for more information.
101
The underlying fund changed its sub-advisor on December 15, 2010 from MFC
Global Investment Management (U.S.A.) Limited to John Hancock Asset Management,
a division of Manulife Asset Management (North America) Limited.
Risks Applicable to All Funds
Credit and Counterparty Risk
A fund is subject to the risk that the issuer or guarantor of a fixed-income security or
other obligation, the counterparty to a derivatives contract or repurchase agreement, or
the borrower of a fund's securities will be unable or unwilling to make timely principal,
interest, or settlement payments, or otherwise to honor its obligations.
Issuer Risk
An issuer of a security purchased by a fund may perform poorly, and, therefore,
the value of its stocks and bonds may decline. Poor performance may be caused by
poor management decisions, competitive pressures, breakthroughs in technology,
reliance on suppliers, labor problems or shortages, corporate restructurings, fraudulent
disclosures, or other factors.
Liquidity Risk
A fund is exposed to liquidity risk when trading volume, lack of a market maker,
or legal restrictions impair the fund's ability to sell particular securities or close
derivative positions at an advantageous price. Funds with investment strategies that
involve securities of companies with smaller market capitalizations, foreign securities,
Page 10 of 12
derivatives, or securities with substantial market and/or credit risk tend to have the
greatest exposure to liquidity risk.
Manager Risk
The performance of a fund that is actively managed will reflect in part the ability of
the manager to make investment decisions that are suited to achieving the fund's
investment objective. Depending on the manager's investment decisions, a fund may
not reach its investment objective or it could underperform its peers or lose money.
Market Risk
The value of a fund's securities may go down in response to overall stock or bond
market movements. Markets tend to move in cycles, with periods of rising prices and
periods of falling prices. Stocks tend to go up and down in value more than bonds. If
the fund's investments are concentrated in certain sectors, its performance could be
worse than the overall market.
Merger and Replacement Transition Risk
In the case of Fund mergers and replacements, the affected Funds that are being
merged or replaced may implement the redemption of your interest by payment in cash
or by distributing assets in kind. In either case, the redemption of your interest by the
affected Fund, as well as the investment of the redemption proceeds by the "new"
Fund, may result in transaction costs to the Funds because the affected Funds may find
it necessary to sell securities and the "new" Funds will find it necessary to invest the
redemption proceeds. Also, the redemption and reinvestment processes, including any
transition period that may be involved in completing such mergers and replacements,
could be subject to market gains or losses, including those from currency exchange
rates. The transaction costs and potential market gains or losses could have an impact
on the value of your investment in the affected Fund and in the "new" Fund, and
such market gains or losses could also have an impact on the value of any existing
investment that you or other investors may have in the "new" Fund. Although there
can be no assurances that all risks can be eliminated, John Hancock will use its best
efforts to manage and minimize such risks and costs.
Where the redemption of your interest is implemented through a distribution of assets
in kind, the effective date of the merger or replacement may vary from the target date
due to the transition period, commencing either before or after the target date, that is
required to liquidate or transition the assets for investment in the "new" Fund.
Commodity Risk
Commodity investments involve the risk of volatile market price fluctuations of
commodities resulting from fluctuating demand, supply disruption, speculation and
other factors.
S
Funds that invest directly in foreign currencies and in securities that trade in, or receive
revenues in, foreign currencies are subject to the risk that those currencies will decline
in value relative to the currency being hedged.
Derivatives Risk
A fund's use of certain derivative instruments (such as options, futures and swaps)
could produce disproportionate gains or losses. Derivatives are generally considered
more risky than direct investments and, in a down market, could become harder to
value or sell at a fair price.
Equity Securities Risk
Stock markets are volatile, and the price of equity securities such as common and
preferred stocks (and their equivalents) will fluctuate. The value of equity securities
purchased by the fund could decline if the financial condition of the companies in
which the fund invests decline or if overall market and economic conditions deteriorate.
Exchange Traded Funds (�ETF�s) Risk
Exchange Traded Funds are a type of investment company bought and sold on a
securities exchange. An ETF often represents a fixed portfolio of securities designed to
track a particular market index. The risks of owning an ETF generally reflect the risks of
owning the underlying securities the ETF is designed to track.
Fixed-Income Securities Risk
Fixed-income securities or bonds are subject to credit risk and interest rate risk. The
credit rating of bonds in the fund could be downgraded or the issuer of a bond could
default on its obligations. In general, lower-rated fixed-income securities involve more
credit risk. When interest rates rise, bond prices generally fall.
Foreign Securities Risk
Fund of Funds Risk
A fund of funds invests in a number of underlying funds. A fund of fund's ability to
achieve its investment objective will depend largely on the ability of its investment
manager to select the appropriate mix of underlying funds and on the underlying funds
ability to meet their investment objectives. A fund of funds is subject to the same risks
as the underlying funds in which it invests. Each fund of funds bears its own expenses
and indirectly bears its proportionate share of expenses of the underlying funds in
which it invests.
Growth Stock Risk
Because growth securities typically do not make dividend payments to shareholders,
investment returns are based on capital appreciation, making returns dependent on
market increases and decreases. The market prices of growth stocks are highly sensitive
to future earnings expectations. Growth stocks may therefore be more volatile than
non-growth stocks.
High Yield Securities Risk
Fixed-income securities that are not investment grade are commonly referred to as high
yield securities or "junk bonds." These securities offer a potentially higher yield than
other, higher rated securities, but they carry a greater degree of risk and are considered
speculative by the major credit rating agencies
E
L
Index Management Risk
Certain factors may cause the fund to track its Index less closely. For example, the
manager may select securities that are not fully representative of the Index, and the
fund's transaction expenses, and the size and timing of its cash flows, may result in the
fund's performance being different than that of its Index.
P
Initial Public Offerings (�IPO�) Risk
The fund is subject to the risks associated with purchases of shares issued in IPOs by
companies that have little operating history as public companies. The market for IPO
issuers has been volatile and share prices of certain newly-public companies have
fluctuated in significant amounts over short periods of time.
M
A
Additional Risks Applicable to Certain Funds
Currency Risk
Foreign securities involve special risks, including potentially unfavorable currency
exchange rates, limited government regulation (including less stringent investor
protection and disclosure standards) and exposure to possible economic, political
and social instability. To the extent the fund invests in emerging market countries, it's
foreign securities risk will be higher.
Interest Rate Risk
Fixed-income securities are affected by changes in interest rates. When interest rates
decline, the market value of fixed-income securities generally will increase. Conversely,
when interest rates rise, the market value of fixed-income securities will generally
decrease. The longer the remaining maturity of instruments held by the fund, the more
sensitive the fund is to interest rate risk.
Large Cap Risk
The fund's strategy of investing in large cap stocks carries the risk that in certain
markets large cap stocks will underperform small cap or mid cap stocks.
Leverage Risk
The fund may engage in transactions, including the use of synthetic instruments and
derivatives, which may give rise to a form of leverage. Leverage may cause the fund
to be more volatile than if the fund had not been leveraged because leverage can
exaggerate the effect of any increase or decrease in the value of securities held by the
fund.
Lifestyle Portfolio Risk
A Lifestyle Portfolio ("Fund") is a "fund of funds" which invests in a number of
underlying funds. The Fund's ability to achieve its investment objective will depend
largely on the ability of the subadviser to select the appropriate mix of underlying
funds and on the underlying funds' ability to meet their investment objectives. There
can be no assurance that either a Fund or the underlying funds will achieve their
investment objectives. A Fund is subject to the same risks as the underlying funds in
which it invests, which include the following risks. Stocks can decline due to market,
regulatory or economic developments. Investing in foreign securities is subject to
certain risks not associated with domestic investing such as currency fluctuations and
changes in political and economic conditions. The securities of small capitalization
companies are subject to higher volatility than larger, more established companies.
High Yield bonds are subject to additional risks such as the increased risk of default
(not applicable to Lifestyle Aggressive Portfolio). For a more complete description of
these risks, please review the underlying fund's prospectus, which is available upon
request. Diversification does not ensure against loss.
Page 11 of 12
A Lifecycle Portfolio ("Fund") is a "fund of funds" which invests in a number of
underlying funds. The Fund's ability to achieve its investment objective will depend
largely on the ability of the subadviser to select the appropriate mix of underlying funds
and on the underlying funds' ability to meet their investment objectives. There can be
no assurance that either a Fund or the underlying funds will achieve their investment
objectives. A Fund is subject to the same risks as the underlying funds in which it
invests. Each Fund invests in underlying funds which invest in fixed-income securities
(including in some cases high yield securities) and equity securities, including foreign
securities and engage in Hedging and Other Strategic Transactions. To the extent the
Fund invests in these securities directly or engages in Hedging and Other Strategic
Transactions, the Fund will be subject to the same risks. As a Fund's asset mix becomes
more conservative, the fund becomes more susceptible to risks associated with fixedincome securities. For a more complete description of these risks, please review the
underlying fund's prospectus, which is available upon request.
Each Lifecycle Portfolio has an associated target date based on the expected year in
which participants in the portfolio plan to retire and no longer make contributions. The
investment strategy of these Portfolios are designed to become more conservative over
time as the Portfolio approaches and passes the target retirement date. The principal
value of an investment in these Portfolios is not guaranteed at any time, including at or
after the target date.
Mid Cap Stock Risk
Investments in mid-cap companies are subject to more erratic price movements than
investments in larger, more established companies. In particular, mid-sized companies
may pose greater risk due to narrow product lines, limited financial resources, less
depth in management or a limited trading market for their securities.
Mortgage-Backed and Asset-Backed Securities Risk
When interest rates fall, homeowners are more likely to prepay their mortgage loans.
An increased rate of prepayments on the fund's mortgage-backed securities will result
in an unforeseen loss of interest income to the fund as the fund may be required to
reinvest assets at a lower interest rate. Asset-backed securities include interests in
pools of debt securities, commercial or consumer loans, or their receivables. The value
of these securities depends on many factors, including changes in interest rates, the
availability of information concerning the pool and its structure, the credit quality of the
underlying assets, the market's perception of the servicer of the pool, and any credit
enhancement provided. In addition, asset-backed securities have prepayment risks
similar to mortgage-backed securities.
Short Sale Risk
The fund may sell a security that it does not own. A fund will lose money if the price
of the security which it has sold short increases between the time of the short sale and
the date when the fund acquires the security sold short.
Small Cap Stock Risk
The fund's investments in smaller companies are subject to more erratic price
movements than investments in larger, more established companies. Small cap
companies may be developing or marketing new products or services for which
markets are not yet and may never become established. Although small, unseasoned
companies may offer greater opportunities for capital growth than larger, more
established companies, they also involve greater risks and should be considered
speculative.
Small/Mid Cap Stock Risk
The fund's investments in small-cap and mid-cap companies are subject to more
erratic price movements than investments in larger, more established companies. In
particular, mid-sized companies may pose greater risk due to narrow product lines,
limited financial resources, less depth in management or a limited trading market for
their securities. Similarly, small cap companies may be developing or marketing new
products or services for which markets are not yet and may never become established.
While small, unseasoned companies may offer greater opportunities for capital growth
than larger, more established companies, they also involve greater risks and should be
considered speculative.
A fund that is non-diversified may invest a high percentage of its assets in the
securities of a small number of issuers. This approach may result in more volatile
performance relative to more diversified funds. The less diversified a fund's holdings
are, the more a specific security's poor performance is likely to affect the fund's
performance.
S
When a fund's investments are concentrated in a particular industry or sector of the
economy (e.g., real estate, technology, financial services), they are not as diversified
as the investments of most mutual funds and are far less diversified than the broad
securities markets. Funds concentrating in a particular industry sector tend to be more
volatile than other mutual funds, and the values of their investments tend to go up and
E
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Target Allocation Risk
From time to time, one or more of the underlying funds may experience relatively large
redemptions or investments due to reallocations or re-balancings of the assets of a
portfolio, which could affect the performance of the underlying funds and, therefore,
the performance of the fund.
P
Turnover Risk
Active and frequent trading of fund securities results in a high fund turnover rate.
Funds with high turnover rates often have higher transaction costs, which are paid by
the fund, that may have an adverse impact on fund performance, and may generate
short-term capital gains on which taxes may be imposed.
M
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Non-Diversification Risk
Sector Risk
down more rapidly. A fund that invests in a particular industry or sector is particularly
susceptible to the impact of market, economic, regulatory and other factors affecting
than industry or sector.
U.S. Government Securities Risk
U.S. government securities do not involve the degree of credit risk associated with
investments in lower quality fixed-income securities. As a result, the yields available
from U.S. government securities are generally lower than the yields available from
many other fixed-income securities. These securities, like other fixed-income securities,
are subject to interest rate risk.
Value Stock Risk
The fund's investments in value stocks carry the risk that the market will not recognize
a security's intrinsic value for a long time or that a stock believed to be undervalued
may actually be appropriately priced.
To obtain
investment option
option Fund
Fund sheets
sheets and
and prospectuses
prospectuses for
for each
each sub-account's
sub-account's underlying
underlyinginvestment
investmentvehicle
vehiclecall
call1-800-395-1113
1-800-395-1113These
These
To
obtain group
group annuity
annuity investment
documents contain
contain complete
complete details
details on
on investment
investment objectives,
objectives, risks,
risks, fees,
fees, charges
charges and
and expenses
expenses as
as well
well as
as other
otherinformation
informationabout
aboutthe
theunderlying
underlyinginvestment
investment
documents
vehicle, which
which should
should be
be carefully
carefully considered.
considered. Please
Please read
read these
these documents
documents carefully
carefullyprior
priorto
toinvesting.
investing.
vehicle,
Both John
John Hancock
Hancock Life
Life Insurance
Insurance Company
Company (U.S.A.)
(U.S.A.) and
and John
John Hancock
Hancock Life
Life Insurance
Insurance Company
Company of
of New
New York
York do
do business
business under
under certain
certain instances
instancesusing
usingthe
theJohn
JohnHancock
Hancock
Both
Retirement Plan
Plan Services
Services name.
name. Group
Group annuity
annuity contracts
contracts and
and recordkeeping
recordkeeping agreements
agreements are
are issued
issued by:
by: John
John Hancock
HancockLife
LifeInsurance
InsuranceCompany
Company(U.S.A.),
(U.S.A.),Boston,
Boston,MA
MA02210
02210
Retirement
(not licensed
licensed in
in New
New York)
York) and
and John
John Hancock
Hancock Life
Life Insurance
Insurance Company
Company of
of New
New York,
York, Valhalla,
Valhalla, NY
NY 10595.
10595. Product
Product features
features and
and availability
availability may
may differ
differ by
by state.
state. John
John Hancock
Hancock
(not
Investment Management
Management Services,
Services, LLC,
LLC, aa registered
registered investment
investment adviser,
adviser, provides
provides investment
investment information
information relating
relating to
to the
the contracts.
contracts.
Investment
NOT FDIC
INSURED || MAY
MAY LOSE
AGENCY
NOT
FDIC INSURED
LOSE VALUE
VALUE || NOT
NOT BANK
BANK GUARANTEED
GUARANTEED || NOT
NOT INSURED
INSURED BY
BY ANY
ANY GOVERNMENT
GOVERNMENT AGENCY
© 2012
2011 All
All rights
rights reserved.
reserved.
©
P19754
12/11-19754
GA1026119865
P19754-SAMPLE-USA
04/12-19754
GA1026119865
Page 12 of 12
Page 12 of 12
6
Sample Important
Plan Information Template
Insert your Company Logo
here
Important Plan Information
THE TRUSTEES OF SAMPLE USA 401(K) PLAN
As of January 05, 2012
This notice, comprised of three sections, provides you with important information regarding your retirement plan.
Section I includes general operational and identification information. Section II outlines information regarding
charges for administrative expenses. Section III lists the individual expenses for services you may choose to elect.
Comparative information about the investment options available under your plan, including applicable fees for those
options, can be found in the Investment Comparative Chart.
E
L
P
SECTION I: General Plan Information
The following provides an explanation of how you may direct investments in the Plan and outlines the restrictions and
policies that apply to the investment options available under your Plan:
How to provide your investment instructions
You can direct your Plan investments using any of the following:
•
Enrollment form
•
Investment change form
•
Participant website at www.jhpensions.com
•
Participant services toll-free line at 800-395-1113 or 800-363-0530 for Spanish
You may direct the investment of the funds held in your plan account to any of the investment options outlined in the
Investment Comparative Chart. Note: The Trustee will invest the following money type(s) in your account:
EMPLOYER MATCHING CONTRIBUTIONS REGULAR, EMPLOYER MATCHING CONTRIBUTIONS 3 REGULAR.
S
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Timelines regarding your investment instructions
Investment Instructions:
•
Can be given using the options outlined above
•
Can be given at any time and [Modify as required...may be subject to your plan restrictions.]
•
Are generally processed on the same business day, provided they are received by John Hancock before 4
p.m. EST (or before the New York Stock Exchange closes). If received on or after 4 p.m. EST, they will be
processed the next business day.
Short-term Trading Policy
Changes to your investments under your qualified retirement plan account are subject to the following short-term
trading guidelines of John Hancock and may be cancelled if not within these guidelines:
•
Investment exchanges can be made up to a maximum of two exchanges per calendar month.
•
In the event that there may be extreme market or personal circumstances requiring you to make an additional
change, you may move 100% of your assets to the Money Market Fund after the exchange limit has been
reached; no subsequent exchanges may be made for 30 days. Once the 30-day hold has expired, you can
then trade again in accordance with the above guideline.
•
At the request of the fund company of an underlying fund, and as outlined in their prospectus, the following
additional restrictions may be imposed on your account, including but not limited to:
•
Applying redemption fees and/or trade restrictions which may be more restrictive than the above
guidelines,
•
Restricting the number of exchanges made during a defined period,
•
Restricting the dollar amount of exchanges,
•
Restricting the method used to submit exchanges (i.e. requiring exchange requests to be submitted in
writing via U.S. mail),
Page 1 of 3 •
Restricting exchanges into and out of certain investment options.
Redemption fees
An underlying mutual fund of a Sub-account may apply a redemption fee or other fee for certain investment transfers.
•
This fee is deducted from your account.
•
For a list of the funds that have redemption fees, refer to the Investment Comparative Chart or go to the
investment options tab at www.jhpensions.com for the most recent listing.
Personal Brokerage Account
•
•
[Modify as required... In addition to the investment alternatives listed on the Investment Comparative Chart,
your Plan offers you the option of making your own investments through a brokerage account option
established with <<Insert name of PBA provider>>. To establish a brokerage account, contact <<Insert
contact name and phone number>>.]
[If applicable, insert any additional restrictions that would apply to the PBA account. If not applicable, delete
this section.] Voting and other rights
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[If applicable, insert instructions for voting and other rights. If not applicable, delete this section.]
Designated Investment Alternatives
Your Plan provides designated investment alternatives into which you can direct the investment of your account
balance.
•
For a full listing of these Funds, including applicable important information, refer to the Investment
Comparative Chart.
•
A listing of the Funds available for selection can also be accessed under the investment options tab on the
Participant website at www.jhpensions.com.
M
A
Designated investment manager
[If applicable, insert the name and phone number of the designated investment manager(s) available under your
Plan. If not applicable, delete this section.]
S
SECTION II: Administrative Expenses
[Modify as appropriate... Your Plan incurs certain administrative and operating expenses each year. These expenses
are for the following services:]
•
<Legal>
•
<Accounting>
•
<Recordkeeping services>
•
<Trustee services>
•
<Registered Investment Advisor services>
•
<insert additional administrative services>
The cost for these services fluctuates each year based on a variety of factors.
[The Plan Sponsor], at its own discretion, may elect to pay some or all of these Plan administrative expenses. To the
extent these expenses are not paid by [the Plan Sponsor], the Plan may charge these expenses against your account
on a [pro-rata] or [per participant] basis. These expenses will be deducted directly from your account on a quarterly
basis and will appear on your [quarterly benefit statement].
SECTION III: Individual Expenses
Your Plan imposes additional charges if you elect to use certain services/features. These charges are imposed
specifically against your account, and are not imposed on a plan-wide basis.
As of January 05, 2012 the fees listed below apply if you use any of the services or features below:
Page 2 of 3 Fee type
Amount
Loan Fee
Detailed Statement Fee
[Insert Registered Investment Advisor fee if
applicable]
[Insert TPA fee if applicable]
[Insert PBA fee if applicable]
[Insert additional rows if required]
$2.00 per loan, per month
$1 per statement per quarter
[Insert fee]
[Insert fee]
[Insert fee]
[Insert fee]
S
E
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P
M
A
Page 3 of 3 Group annuity contracts and recordkeeping agreements are issued by:
John Hancock Life Insurance Company (U.S.A.), Boston, MA 02210
(not licensed in New York). John Hancock Investment Management
Services, LLC, a registered investment adviser, provides investment
information relating to the contracts.
NOT FDIC INSURED | MAY LOSE VALUE | NOT BANK GUARANTEED |
NOT INSURED BY ANY GOVERNMENT AGENCY
© 2012 All rights reserved.
PS20483
03/12-20483
FOR PLAN SPONSOR USE ONLY. NOT FOR DISTRIBUTION WITH PARTICIPANTS OR THE PUBLIC.GA03071210653

Samples of John Hancock`s §408(b)(2) and §404a

Transcription

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