February 4, 2014

Re: CBJ 457 Plan Review

155 South Seward Street

Juneau, AK 99801-1397

Phone: (907) 586-5215

February 04, 2014

Dear Plan Participant:

You are receiving this notification as a participant (either a current or former employee) in CBJ’s 457 Deferred Compensation Plan (DCP). You previously received a letter, in September 2013, informing you that CBJ’s DCP Fiduciary Oversight Committee had decided to move forward with a Request for Proposals (RFP) in order to meet the following goals:

  1. To provide Plan Participants with effective education, counseling and investment advice services.
  2. To provide a professionally designed and selected investment menu that offers access to key asset classes without unneeded duplication.
  3. To provide these services and investments at the lowest possible cost to participants.

We have completed a very extensive evaluation of the 8 qualified RFP responses that were received. Proposals were received from all 3 of our existing providers: 1) AXA Equitable, 2) Hartford (Mass Mutual), and 3) ICMA-RC. CBJ was assisted in the evaluation process by the consulting firm HYAS Group.

The top proposal was submitted by ICMA-RC. Their proposal successfully met or exceeded the goals we set out above. ICMA-RC currently administers 47% of the existing CBJ accounts and 58% of the invested dollars. They have committed to providing for the same number of personal onsite sessions to discuss participant’s accounts as currently provided by all providers. The savings realized from significantly reduced fees (both administrative and investments) will mean more dollars in your account that earn more income towards your retirement

The participants currently with AXA Equitable and Mass Mutual will be transitionedto ICMA-RC. Mass Mutual has the option to transition guaranteed income type assets over a 5 year period and the actual timing has not been determined yet. As a current plan participant there is nothing you need to do at this time. There will be a detailed transition plan developed and implemented over the next 4 months. CBJ and ICMA-RC will be in communication with you throughout the process as information becomes available.

We understand there will be many questions on why the change was necessary and how will we move forward. To assist with the questions we have attached a Frequently Asked Questions (FAQ) document and an issue paper that was presented to the CBJ Assembly Finance Committee in September 2013.

Your current contributions will continue to be deposited into your existing account(s) as usual.

If you have immediate questions please e-mail them to Natasha Peterson, Risk Management Specialist, at

Sincerely,

Robert N. Bartholomew

Finance Director

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