403(b) Retirement Plan
Benefits Overview

PLAN FACTS

The Plan Facts presented are designed to provide you with a general description of our
403(b) Tax-Deferred Retirement Plan (the “403(b) Plan”). The Plan Facts are not
intended to be a Summary Plan Description, nor is it the intention of our Plan to be
subject to Title I ERISA coverage.

In order to enable our employees to save for their retirement, we have established an
Internal Revenue Code 403(b) tax-deferred annuity plan for the exclusive benefit of
eligible employees and their beneficiaries. A Code Section 403(b) Plan is a retirement
vehicle that may be offered to employees of certain tax-exempt (i.e. non-profit)
organizations and public schools.

The 403(b) Plan offers you the opportunity to save for your retirement on a pre-tax, tax-
deferred basis. The money you contribute for your retirement is deducted from your
gross wages before federal and state income taxes are figured. The contributions then
grow tax-free until the time of withdrawal. You may choose to invest your money in an
individual annuity and/or custodial account (i.e., mutual funds) selected by you.

This brochure is intended to answer basic questions about the 403(b) Plan, including its
main provisions and features, as well as your rights, obligations, and benefits. Full
details of the 403(b) Plan are contained in the individual annuity contract(s) and/or
custodial account(s) that fund the 403(b) Plan. Copies of your individual annuity
contract(s) and/or custodial account(s) that fund the 403(b) Plan may be obtained from
your investment company(s). In the event there is a conflict between this summary and
your individual annuity contract(s) and/or custodial account(s) under the 403(b) Plan,
the terms of such annuity contract(s) and/or custodial account(s) will control.

For more details regarding the 403(b) Plan, contact the Human Resources/Payroll
Office to find out where to obtain the 403(b) Tax-Deferred Retirement Plan Provisions.

403(b) “Gatekeeper” ServicesSM

Gatekeeper Administration & Consulting, LLC
1338 W. Forest Meadows St, Suite 220
Flagstaff, AZ 86001
928-774-4291 – phone 877-403-4411 – toll free 800-707-9490 – fax

We strive to provide competitive benefit programs and high quality support while
building client relationships through our integrity and professionalism.

info@gatekeeperteam.com

ELIGIBILITY

All Employees who normally work more than or equal to 20 hours per week are required
by federal law to be eligible to make participant contributions to the 403(b) Plan
following the performance of their first hour of service for the Employer. Please refer to
your 403(b) Tax-Deferred Retirement Plan Provisions for the specific requirements of
our Plan. There is no minimum age or minimum years of service in order to participate.

ENROLLMENT

If you elect to participate, you must complete the Salary Reduction Agreement &
Investment Company Selection Form and return it promptly to the Human
Resources/Payroll Office. Contributions will begin the first payroll after you submit your
forms. We require that all forms be submitted prior to the payroll cut off date each month
in order to be effective for that pay period. Please contact the Human Resources/Payroll
Office for specific requirements.

REVISION OF CONTRIBUTIONS

The Salary Reduction Agreement & Investment Company Selection Form applies to all
compensation until the date you complete and submit a revised Salary Reduction
Agreement & Investment Company Selection Form. You may terminate your
contributions at any time. This revision will become effective the first payroll following
the submission of the new forms, if received prior to any payroll deadlines.

PARTICIPANT CONTRIBUTIONS

Participant contributions are pre-tax contributions subject to Social Security & Medicare
withholding, if applicable, but not federal and state income tax. Additionally, participant
403(b) contributions are subject to State Retirement. Participant contributions are also
fully and immediately vested.

LIMITATIONS ON CONTRIBUTIONS

The maximum amount you may contribute to the 403(b) Plan increases each year. In
the year 2007, you are eligible to contribute $15,500 and if you are over the age of 50
you qualify for “catch up” contributions in the amount of $5,000 (amounts are indexed in
subsequent years). Additional amounts may be possible if you have over 15 years of
service with this Employer.

OTHER RETIREMENT PLANS

The contribution limitations are further limited by pre-tax contributions made to other
retirement plans such as 401(k), SIMPLE 401(k), SIMPLE IRAs, and SEP IRAs. Notify
your Employer of any pre-tax contributions made to these plans.

FUNDS & INVESTMENTS

Participant contributions will be used to purchase an annuity contract(s) and/or a
custodial account(s) as selected by you. You will receive a list of investment companies
that provide services to our Plan and may allocate your contribution between multiple
investment companies using whole percentages. You are the owner of the
contact(s)/account(s) and your rights and obligations will be set forth by the specific
annuity contract(s) and/or custodial account(s).

You may change investment companies at any time. Changes will begin the first payroll
after the new Salary Reduction Agreement & Investment Company Selection Form has
been received, if received prior to any payroll deadlines.

The availability of an investment company under the 403(b) Plan is not to be considered
an endorsement by us as your Employer. Information regarding each investment
company can be obtained by contacting the investment company.

VALUATION

The value of your benefits is determined under the terms of the investment provider
through which you are invested.

FUNDS TRANSFER

You may transfer funds accumulated under your 403(b) Plan to be a different
investment vehicle and/or investment provider as dictated under regulatory
requirements.

ROLLOVER

If you have one of the following types of plans you MAY rollover the funds into the
403(b) Plan. Eligible plans include another 403(b) Plan, 401(k) Plans, 457(b) Plans, or
IRAS.

DISTRIBUTIONS

You may receive a distribution upon one of the following occurrences, separation from
service, disability, attainment of age 59 ½, and death (your beneficiary).

HARDSHIP WITHDRAWALS

Under certain circumstances, you may make withdrawals from your investment
provider, if permitted under the provider’s terms. You MUST have taken all loans
available to you and depleted all other personal assets before you may utilize this
option. Written documentation is required to show there is an immediate and heavy
financial burden as defined by the Internal Revenue Code.

Immediate and heavy financial burden is defined specifically as, covering the cost of
funeral expenses, deductible home repairs, purchase of a home, prevention of
foreclosure or evection from your home, tuition and expenses for post secondary
education for the next 12 months for yourself or any dependent, and extreme medical
expenses not covered by any other insurance.

If you qualify for this type of early withdrawal and take the distribution, you will be
unable to make participant contributions for six months, and the amount you contribute
to the 403(b) Plan during the next year may be limited.

LOANS

Loans may be available through your investment vehicle and/or investment company.
For more information, contact your investment company.

NORMAL RETIREMENT AGE

Normal Retirement Age is defined by your State Retirement Plan.

REQUIRED MINIMUM DISTRIBUTIONS

You are required to begin receiving minimum benefit payments under the 403(b) Plan no later than April 1 of the calendar year following the calendar year in which you attain age 70 ½ or retire, whichever occurs later.

FOR MORE DETAILS REGARDING THE 403(b) PLAN, CONTACT YOUR HUMAN RESOURCES/PAYROLL OFFICE TO FIND OUT WHERE TO OBTAIN THE 403(b) TAX-DEFERRED RETIREMENT PLAN PROVISIONS.

TAX CREDIT

Beginning in 2002 and continuing through 2007, you may make contributions to our
403(b) Plan, which may be eligible for a tax credit, called the “saver’s credit.” A tax
credit reduces your federal income tax, dollar-for-dollar, based on the contributions you
make and your adjusted gross income (AGI). Your AGI and filing status determine the
amount of your credit, ranging from 10% to 50%. The tax credit applies to the first
$2,000 you defer from your salary.

The credit is available if you are 18 years or older, are not a full-time student, are not
claimed as a dependent on someone else’s return, and have adjusted gross income
(shown on your tax return for the year of the credit) that does not exceed: $50,000 if you
are married filing jointly, $37,500 if you are a head of household with a qualifying
person, or $25,000 if you are single or married filing separately.

POTENTIAL

This graph illustrates what is possible to achieve using your 403(b) Plan. This does not
guarantee investment results.

Participant A who began 80,000 contributing $600 per year, 70,000
earning a 7% Rate of 60,000 Return, at Age 22 and 50,000 stopped at Age 30, but left 40,000
his/her funds in the plan to 30,000 participant B who began contributing $600 per year, 20,000
earning a 7% Rate of 10,000 Return, at Age 35, and 0 contributed continuously for 30 years.

Participant A contributing 4% of pay, earning a 7% Rate of Return to Participant B contributing
6% of pay, earning a 7% Rate of Return

Participant A Participant B
Contribution
Value at Age
0
20,000
40,000
60,000
80,000
100,000
120,000
1 4 7 10 13 16 19 22 25 28
Participant B
Participant A

NOTICE
OF THE 403(b) PLAN
OFFERED BY YOUR EMPLOYER

Employer:

Printed Name: SSN:

Signature: Date:

By signing, I hereby acknowledge I have received a Retirement Plan Benefits Overview
and have been informed of my eligibility to participate in the Plan.

Please check the box below that applies to your situation.

. I am currently participating in the 403(b) Plan and I have completed a Salary Reduction agreement & Investment Company Selection Form to continue
participation.
. I am interested in participating in the 403(b) Plan and I would like a 403(b) Enrollment Kit to learn more.
. I am not interested in participating in the plan at this time. I understand my choice
is completely voluntary and I may change my choice to participate at any time,
subject to our specific provisions.

Online Enrollment and Elections 

Go to www.gatekeeperteam.com 

Click on Participant Log-in on the left hand side, bottom of column 

Click on ‘New to the System?  Enroll Now!’ 

Enter social security number and password.  The password for your district is COM403.   Click Begin. 

Step 1 of 4: 

Create a user name and password using numbers and letters 

Complete any personal information that is not already completed, or make corrections to information that is entered  

Click on Save and Continue

Step 2 of 4: 

Select the amount or percentage of money you want taken from your check each pay period  

If you have contributed to another 401(k) or 403(b) plan, please be sure to fill in the amount that has been contributed so far this year 

Click on Save and Continue  

Step 3 of 4: 

Select the “Employee 403(b) contributions” 

Select the funds and amounts (%) you wish to invest.  The total must equal 100% for any fund or multiple funds   

Click Save and Continue 

Step 4 of 4: 

Verify all information and make sure it is correct and select edit if any changes need to be made 

If everything is correct, click Finish 

You should receive a message congratulating you on your enrollment!  From here you can review your account or make changes when you like. 

Click on logout.  The next time you would like to check your account or make changes to you may use your new login and password. 

403B Enrollment Kit
FEES AND CHARGES

Fees and charges will reduce the value of your account and the return on your investment. Note: Fees vary from product to product and company to company. A company may charge any or all of the fees discussed.

Mutual Fund Company

Sales Loads – Mutual funds may charge a sales load to pay commission to brokers for their service and advice.

• Front-end Load – sales charge paid when shares are purchased. Load cannot exceed 8.5%.

• Back-end Load – sales charge paid when shares are sold. Load is usually 5-6% the first year and decreases each year until zero.

• No-load – mutual fund that does not charge any sales loads.

12b-1 Fee – on-going fee taken out of fund assets to pay commissions and advertising costs. Fee is usually between 0.25-1.00% of assets.

Annual Operating Expense/Management Fee– on-going fee taken out of fund assets to cover the cost of managing the money in the fund. Fee is usually between 0.20-3.00%.

Custodial Fee – annual charge paid to the custodian for holding the securities in the fund.

Additional Fees & Charges – some funds may carry additional fees. Charges may include a fee for transferring shares to another account or for withdrawing shares during the first few years.

Insurance/Annuity Company

Variable annuities have more features and generally carry higher fees than fixed annuities.

Mortality & Expense Fee (M&E) – on-going charge based on account value to compensate the insurance company for risks it assumes under the contract. Fee is usually 1.25%.

Surrender Fee – sales charge assessed if you withdraw money within a certain period of time. The charge is a percentage of the amount withdrawn, typically 7% the first year, and declines 1% annually until zero. Some contracts allow a withdrawal of 10-15% of the account value each year without paying the surrender fee.

Management Fee – on-going fee the variable annuity indirectly pays to the mutual fund. The fee varies depending on the annuity, but typically will be less than what is charged directly by the mutual fund.

Administrative Fee – annual charge to cover record-keeping and administrative expenses. The charge may be flat (typically $25-$30) or as a percentage of the account (typically 0.15%)

Additional Fees & Charges – some variable annuities may carry additional fees. Charges may
include an initial sales load or a transfer fee for transferring shares to another investment option.

HOW THE COMPANY IS RATED

Mutual Fund Company

Mutual Fund companies are not rated for their creditworthiness. However, independent financial research firms, such as Morningstar and Lipper, provide fund ratings based on their own criteria. These ratings are widely accepted throughout the industry.

Insurance/Annuity Company

Insurance/annuity companies are rated by nationally known rating services such as A.M. Best, Moody’s and Duff & Phelps to determine how financially sound they are.

OPENING AN ACCOUNT

There are several ways to make an investment in a 403(b) account at a mutual fund company or to invest in a TSA at an insurance/annuity company.

Contact the mutual fund directly via an 800 number or website. Contact a licensed insurance agent or call the local Insurance/Annuity Company office.

Contact a third party such as a licensed broker, banker, financial planner or investment professional.
Typically you will pay an extra sales charge for the advice and assistance received from a third party.

TRANSFERS

Mutual Fund Company

Mutual Funds allow transfers between funds or investment companies without paying taxes.
Transfer and/or surrender fees may apply.

Insurance/Annuity Company

Insurance/annuity companies allow transfers from one investment option to another within an available annuity without paying taxes. Transfer and/or surrender fees may apply, in addition to a new surrender period and fees.

DISTRIBUTION OPTIONS AT RETIREMENT

Mutual Fund Company

Mutual fund distribution options at retirement include:

• Leave funds in the existing 403(b) account until ready to distribute.
• Roll assets to an IRA Rollover or other retirement account.
• Take a partial or lump sum distribution based on the current value of the account.
• Receive a series of payments until a distribution at age 70 ½ or retirement, whichever is later.

Insurance/Annuity Company

Insurance annuity distribution options at retirement include:

• Periodic payment for a set period of time or life. Payments can be fixed or vary. Once payments start, additional withdrawals may not be allowed.
• Lump sum distribution based on the current value of the account. There may be a penalty for not opting to annuitize.
• Begin taking the required minimum distribution at age 70 ½ or retirement, whichever is later. Note: A participant cannot request a distribution until a qualifying event has occurred.

DISTRIBUTION OPTIONS AT DEATH

Mutual Fund Company

The beneficiary receives the full value of the account and must distribute within five years. A spouse has the option of rolling the account to an IRA to defer taxes.

If required minimum distributions have begun, the spouse must continue to receive distributions– either at the same rate or at a greater frequency as required by the decedent.

Insurance/Annuity Company

Distribution options from an annuity depend on how the annuity contract was set up.

Death Benefit – if the participant dies before payout begins the beneficiary is guaranteed a minimum payout of what was put into the contract.

Life Only – upon the death of the participant, nothing is passed on to the beneficiary.

Term Certain – the participant receives payments for a certain period. If the participant dies before the period elapses, the remaining payments go to the beneficiary.

Joint Life – upon the death of the participant, the beneficiary will continue to receive payments for the rest of their lifetime.

ADVANTAGES/DISADVANTAGES

Mutual Fund Company
Advantages of investing in a mutual fund:
• Funds are run by a team of professional
managers who research, analyze, buy and sell
stock for a living.
• Owning shares of a mutual fund instead of
individual stocks reduces investment risk.
• Greater potential for higher returns, but there is
a higher risk of loss.
• Generally, the fees are lower than annuity fees.

Disadvantages of investing in a mutual fund:
• A mutual fund is not FDIC insured.
• Investment in a mutual fund is regulated but not guaranteed or insured by a bank or government agency.
• A mutual fund investment can be risky with no guarantee against losses.

Insurance/Annuity Company
Advantages of investing in an annuity:
• Death benefit guarantees a minimum payout, even if there is a loss on the account.
• A fixed annuity guarantees the safety of the principal and a minimum interest rate.
• Annuity payouts offer protection against the possibility of out-living your retirement assets.

Disadvantages of investing in an annuity:
• A fixed annuity is not segregated and can be at risk if insurer declares bankruptcy.
• A variable annuity is not FDIC insured.
• A variable annuity is regulated but not guaranteed or insured by a bank or government agency.
• Not suited for short term investments.
• Sizeable surrender charges may apply if you withdrawal early.

ADDITIONAL RESOURCES SEC PUBLICATIONS

Call the SEC to request publications at

1-800-SEC-0330 or visit their website at www.sec.gov/invsetor/pubs.shtml.

Helpful topics include:
• Invest Wisely – An Introduction to Mutual Funds
• Variable Annuities – What You Should Know…
• Mutual Fund Investing – Look at More than a
MutualFund’sPastPerformance

MORNINGSTAR’S VARIABLE ANNUITY AND
LIFE PERFORMANCE REPORT
Check your local library.

WEBSITES

• www.403bwise.com
• www.morningstar.com
• www.fool.com
• www.benefitslink.com

WHAT’S NEXT?

I am currently contributing to the plan, what form do I need to return?

Because all investment vendors have different forms and the language may not be consistent with plan policies and procedures, complete and return:

The Salary Reduction Agreement & Investment Company Selection Form reconfirming your election amount, intent to participate and your investment company choices.

I would like to begin participating in the plan, what form do I need to return?

1. Choose an investment company from the enclosed list and contact the company to get an account of your choice established.
2. Complete the Salary Reduction Agreement& Investment Company Selection Form in order for your employer to be able to establish the correct payroll deduction. Indicate your intent to participate, your election amount& investment company choices. Attach a copy of your investment company account application form or list the account number.

ALL FORMS MUST BE RETURNED TO YOUR HUMAN RESOURCES/PAYROLL OFFICE FOR PROCESSING.

403(b) “Gatekeeper” ServicesSM
877-403-4411
info@gatekeeperteam.com

Gatekeeper Administration
& Consulting, LLC
1338 W. Forest Meadows, Ste. 220
Flagstaff, AZ 86001

Gatekeeper does not endorse, evaluate or sell any investment products or endorse any investment provider under your 403(b) Plan. The ultimate decision of where funds are invested rests with each individual participant using the employer’s approved list of vendors.