Transition Guide

City of Seattle Seattle Department of Human Resources700 5th Avenue, Suite 5500P.O. Box 34028Seattle, WA 98124-4028

We’re changing your deferred

compensation plan administratorPlease read this brochure carefully, so that you can make

informed decisions about your participation in the Plan.

City of Seattle Voluntary Deferred Compensation

Mobile responsive and ADA accessible website

Comprehensive retirement planning tools

Continued access to professional account management

Two responsive on-site education consultants

Your plan is transitioning to Nationwide.

The City of Seattle has selected Nationwide as the administrator of your deferred compensation plan. This decision comes as a result of a thorough analysis completed by the Deferred Compensation Trust Committee through a competitive bid process.

Starting June 9, 2017, Nationwide will begin providing administration and recordkeeping services for all participants. The transition period will be as short and seamless as possible. After the transition concludes, you will have full access to your new Nationwide-provided account.

Our move to Nationwide allows us to deliver:

Important Transition Dates

May 23, 2017 1:00 p.m. PDTThis is the deadline to submit complete* Unforeseeable Emergency Withdrawal requests and Self-directed account trade requests to Prudential.

May 26, 2017 12:00 p.m. PDTThis is the deadline to submit completed* Buyback request forms to DeferredCompQuestions @seattle.gov.

May 26, 2017 1:00 p.m. PDTThis is the deadline to submit completed* Installment Distribution requests and Alternate Payee Distribution requests to Prudential.

May 31, 2017 before 1:00 p.m. PDT This is the deadline to submit all other updates and requests not mentioned above to your Prudential account.

May 31, 2017 1:00 p.m. PDT through June 9, 2017, 5:00 a.m. PDT No transactions can be accepted or processed.

June 7, 2017 After the close of the market, your assets will be moved from Prudential.

June 9, 2017

Your new Deferred Compensation Plan account will be fully active at 5:00 a.m. PDT.

Visit cityofseattledeferredcomp.com with your favorite web-enabled device and use the easy-to-follow prompts to establish a username and password.

You can also manage your account by phone on this date. Just call 855-550-1757 and follow the prompts to establish your PIN for account access.

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* If your submission is not complete by the Prudential deadline, processing of your request will be delayed until after the transition.

Learn more at one of these workshops.

Attend an educational workshop for one-on-one transition support.

Your local education consultant will gladly assist as you make decisions about Plan participation. We encourage you to attend one of the many upcoming transition workshops to learn more about your options.

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DATE TIME LOCATION ROOM

5/16/17 7:00 - 8:00 a.m. Operations Control Center 2700 Airport Way S 98134 DOC Room 239

5/16/17 Noon - 1:00 p.m. Seattle Municipal Tower 700 Fifth Ave, 40th Floor, 98104 SMT 4050/4060

5/16/17 2:30 - 3:30 p.m. Charles Street 805 S Charles Street 98134 Large Conference Rm

5/16/17 3:30 - 4:30 p.m. Charles Street 805 S Charles Street 98134 Large Conference Rm

5/17/17 7:00 - 8:00 a.m. Haller Lake 12600 Stone Ave N, Building C, 98133 Conference Room

5/17/17 10:00 - 11:00 a.m. Seattle Center Armory 305 S Harrison 98109 Loft 1A, 3rd Floor

5/17/17 1:30 - 2:30 p.m. Times Square Center 600 SW 39th, Ste 155, Renton 98057 Mt. Baker Room

5/18/17 1:30 - 2:30 p.m. Seattle Municipal Tower 700 Fifth Ave, 40th Floor, 98104 SMT 4070

5/23/17 8:00 - 9:00 a.m. South Service Center 3613 4th Ave S 98134 Gym

5/24/17 8:00 - 9:00 a.m. Cedar Falls/Cedar River Watershed 1990 Cedar Falls Road, N Bend 98042 Watershed Education Center

5/24/17 Noon - 1:00 p.m. Seattle Municipal Tower 700 Fifth Ave, 40th Floor, 98104 SMT 1610

5/24/17 7:00 - 8:00 p.m. West Precinct 810 Virginia St 98101 Community Room

5/25/17 7:30 - 8:30 a.m. Airport Way Center/Park 95 2203 Airport Way S 98134 Bldg. B / large conf. room

6/1/17 8:00 - 9:00 a.m. Traffic Shop 4200 Airport Way S 98108 Common Area

6/5/17 Noon - 1:00 p.m. West Precinct 810 Virginia St 98101 Community Room

6/5/17 8:00 - 9:00 a.m. North Service Center 1300 N 97th Ave 98103 Auditorium

6/6/17 7:30 - 8:30 a.m. Traffic Shop 4200 Airport Way S 98108 Common Area

6/6/17 9:30 - 10:30 a.m. West Precinct 810 Virginia St 98101 Community Room

6/7/17 2:30 - 3:30 p.m. Operations Control Center 2700 Airport Way S 98134 DOC Room 239

6/8/17 10:30 - 11:30 a.m. Westbridge 4209 W Marginal Way SW 98106 Westbridge Training Rm

6/8/17 8:00 - 9:00 a.m. Seattle Municipal Tower 700 Fifth Ave, 40th Floor 98104 SMT 4080

6/13/17 8:00 - 9:00 a.m. North Service Center 1300 N 97th Ave 98103 Auditorium

6/14/17 7:30 - 8:30 a.m. Bitter Lake 13035 Linden Ave North 98133 MPR

6/14/17 Noon - 1:00 p.m. Rainier Community Center 4600 - 38th Ave S 98118 Gym

Investing options remain the same.

All of the investing choices currently available to you stay the same. However, there will be shifts to different providers of some of those options. Details about these modifications are featured below.

Investment Fund Options The line-up of quality investment options available to you remains the same.

Stable Value Fund The Prudential Galliard Stable Value Fund will transfer to a Nationwide Galliard Stable Value Fund.

Professional Account Management Assets in Prudential’s proprietary professionally managed account GoalMaker®, will be transferred to the Vanguard Target Retirement Fund closest to your estimated retirement date based upon date of birth and an age 65 retirement date. Should you plan to retire significantly earlier or later, you may want to consider a fund with an asset allocation more appropriate to your particular situation.

Participants who desire to invest through a professional managed account option may elect to transfer applicable account assets at any time after the transition to Nationwide ProAccount® professionally managed services available for a fee through Nationwide Investment Advisors. Contact your Nationwide representative for details.

Before investing, please consider the fund’s investment objectives, risks, and charges and expenses carefully. The fund prospectus contains this and other important information about the investment company and will be available by calling 1-877-677-3678 or by download from cityofseattledeferredcomp.com. Read the prospectus carefully before investing.

Nationwide ProAccount: Investment advice for Nationwide ProAccount is provided to plan participants by Nationwide Investment Advisors, LLC (NIA), an SEC-registered adviser. NIA has retained Wilshire® as an Independent Financial Expert for Nationwide ProAccount. While NIA is the investment adviser for your account, Wilshire provides NIA with investment decisions for the Nationwide ProAccount portfolios. NIA will exercise discretionary authority to allocate and rebalance a participant’s account to implement the advice provided by Wilshire. Wilshire is a registered service mark of Wilshire Associates Incorporated, Santa Monica, California, which is not an affiliate of the Plan, NIA or Nationwide.

Stable Value Funds: Because the value of the securities held by stable value funds will fluctuate, there is the risk that an investor will lose money.

Target Date Funds: Investments in Vanguard Target Retirement Funds are subject to the risks of their underlying funds. In addition to the costs of the Fund, investors indirectly pay a proportionate share of the costs of the underlying funds. The year in the Fund name refers to the approximate year (the target date) when an investor in the fund would retire and leave the workforce. The Fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. All investing is subject to risk, including the possible loss of the money you invest. Asset allocation and diversification do not ensure a profit or protect against a loss. An investment in a Target Retirement Fund is not guaranteed at any time, including on or after the target date.

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Voluntary Deferred Compensation Plan and Trust

Date: April 28, 2017

To: Participants in the City of Seattle Voluntary Deferred Compensation Plan

From: The Deferred Compensation Trust Committee

Subject: Fee Transparency

In addition to negotiating fees with the Plan’s various service providers, the Trust Committee is responsible for determining how fees are passed on to Plan participants. After considering a variety of alternatives with the assistance of our professional advisers, the Trust Committee has decided to modify the way the Plan’s expenses are allocated.

Historically, most Plan operating expenses – including annual recordkeeping and administrative fees, audit fees, legal fees, and investment consulting fees – have been paid from “revenue sharing” credits returned to the Plan by mutual funds in the Plan’s investment lineup. This meant that the share of the Plan’s expenses paid by a single participant could be difficult to understand and might vary based on their individual investment choices. Some participants paid nothing at all.

In planning for the vendor transition, the Trust Committee realized it was important to modify the Plan’s approach to paying operating expenses, to increase fee transparency and allocate those costs in a more equitable fashion. As a result, starting June 9, 2017, Plan expenses will be allocated monthly on a proportional basis to each Plan participant based on their account size. Initially, the charge will be 0.14%. For example, a participant with an account balance of $10,000 will pay $14 per year. The amount of the charge may go up or down in future years depending on the Plan’s overall expenses, total amount of assets under management, and number of participants.

The new approach is designed to more equitably allocate costs among all participants and make expenses easier to recognize and understand. This is not a new Plan cost; overall costs of operating the Plan are actually decreasing because of the transition to Nationwide. Fees charged to each individual account will now be clearly reported, where they weren’t before.

Other types of expenses, such as processing fees for participant loans, will continue to be charged to individual participants and are not impacted by this change in methodology.

Nationwide’s call center is available to answer any questions you may have about the transition. Please feel free to contact them at 855-550-1757. Representatives are available Monday through Friday, 5:00 am to 8:00 pm PT and Saturday from 6:00 am to 3:00 pm PT.

This letter is deemed official correspondence from the City of Seattle Voluntary Deferred Compensation Plan and Trust and does not represent the opinion of Nationwide® or its affiliates.

Important message from the City of Seattle Voluntary Deferred Compensation Plan and Trust about Fee Transparency

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Nationwide makes managing your account easy.

Investing involves market risk, including possible loss of principal. No investment strategy or program can guarantee a profit or avoid loss. Nationwide plan representatives are Registered Representatives of Nationwide Investment Services Corporation, member FINRA. They cannot offer investment, tax or legal advice. Consult your own counsel before making decisions about participation in the Plan.

Nationwide, the Nationwide N and Eagle, Nationwide ProAccount and My Interactive Retirement Planner are service marks of Nationwide Mutual Insurance Company. © 2017 Nationwide

NRM-14868WA-SW (04/17)

Beginning June 9, 2017, you can also manage your account by phone. Just call 855-550-1757 and follow the prompts to establish your PIN for account access.

Beginning June 9, 2017, you can access your account with your favorite web-enabled device. Just go to cityofseattledeferredcomp.com and use the easy-to-follow prompts to establish a username, password and your Account Profile.

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For more information about these enhancements, contact Nationwide at 855-550-1757.