Your Life Choice Plan

We’ve selected a vendor. Now it’s time to consider all your new retirement options.

A tool to help you decide

When it's time to weigh your retirement choice options, you’ll have access to an online tool you can use in the privacy of your home. You’ll be able to change variables, like your monthly retirement contribution and the age at which you plan to retire, to find out which retirement option is best for you and your family.

LVHHN currently offers a:

• 403(b) plan, for its not-for-profit entities, which is administered by three different vendors (AIG Valic, CitiStreet and Fidelity); and
• 401(k) plan, for its for-profit entities, which is administered by Diversified Investment Advisors.

Depending on your employment history, you may have account balances with one or more of these administrators. And, each offers a different range of investments—through a variety of investment managers—with varying fees and administrative procedures. You also may have account balances with prior LVHHN vendors such as Lincoln National.

Managing these multiple accounts can be confusing. As part of the Retirement Choice program, we’ve decided to use one company to administer our current savings plans as well as our new Personal Retirement Plan. After a thorough review of potential vendors, we have chosen AIG Valic—a leading provider of retirement services—to be our sole administrator effective July 1, 2006. This means:

• “One-stop shopping” for all your plan accounts. Effective with the first pay period in July 2006, all future contributions to your 403(b), 401(k) and Personal Retirement Plan will be invested with and administered by Valic.
• New selection of investment funds for your retirement savings. You may choose from 19 professionally managed funds. Valic offers a range of funds allowing you to create an investment strategy that can fit both your needs and your investment style.
• Improved access to information and the ability to more easily track the performance of your plan accounts through Valic’s Web site and online tools such as Valic Retirement Manager.
• One-on-one retirement planning with a Valic financial advisor. Through individual, face-to-face meetings, Valic financial advisors provide a wide range of on-site services to plan participants, including computer-based retirement planning and asset allocation services, plan enrollment, financial education programs and annual account reviews.

How and when does this affect your retirement benefits?
Beginning July 1, 2006, no new money may be contributed to CitiStreet, Diversified, Fidelity or our current Valic plan. When you make your Retirement Choice election, you will be asked to visit Valic’s Web site and make savings and investment elections for contributions that will be made beginning July 1, 2006. You also can speak with a Valic representative to discuss your enrollment.

This change in administrator also may affect your existing 403(b) or 401(k) accounts.

If you have an LVHHN 403(b) plan account…
You have a choice and you can:

Keep your account balance as of June 30, 2006 with your existing vendor—AIG Valic, CitiStreet or Fidelity.

or

Consolidate your accounts by transferring that money to a new account with Valic. (Note: Valic investment fund choices and program expenses differ between the current and new arrangement, so you may want to consider transferring your
Valic savings as well.)

You will have a one-time opportunity to consolidate your 403(b) savings with Valic without the risk of any charges to your account, often referred to as “surrender fees.” That’s because Valic will reimburse your account for any surrender fees incurred for money transferred from your existing 403(b) account to Valic, provided the funds are transferred by June 30, 2007. You may be charged a surrender fee to transfer money after that date.

If you have an LVHHN 401(k) plan account…
Your savings in that plan as of June 30, 2006 will be transferred to Valic effective July 1, 2006.

Your money will automatically be directed or “mapped” to similar funds with Valic. This mapping process will require a blackout period during which time you will not be able to access account information, change investments or withdraw any funds transferring from Diversified to Valic. This is necessary to allow adequate opportunity to reconcile all
transferred fund balances. Note: Any money currently invested through a Schwab Personal Choice Retirement Account will not be affected. You will continue to have access to the same full range of investing services as you do now; the only difference is that your Schwab account will be re-registered to Valic effective July 1, 2006. You will receive information from Valic regarding the re-registration process.

Once your Diversified savings are transferred to Valic, you can visit Valic’s Web site to change how this money is invested in addition to choosing investment funds for your future contributions. You may elect separate investment funds for your old and new money.

Later this spring, you will receive more details about Valic, including investment fund information, Valic’s online tools and resources, and access to a Valic financial advisor. Valic advisors also will be available on-site during the Retirement Choice enrollment period to help you select the most appropriate investments for your financial situation, answer your questions and give you more information about their services. Valic financial advisors also will be available seven days a week by phone.

In next month’s CheckUp, we’ll take one last look at your Retirement Choice options and remind you about what’s ahead as you make your decision.

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