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With 2003 coming to a close, it's a good time to review your contributions to the State's Deferred Compensation Plan. If you are not a participant in the plan, you might consider enrolling. Since the annual contribution limit is increasing in 2004, you may want to increase your contribution rate. Or, if your contributions were stopped for 2003 because you reached the limit, you need to submit a new form if you want to start contributing again in 2004. This issue includes details on how to maximize your contributions, as well as a brief update on some changes in the plan's investment offerings. |  |
| State Comptroller Nancy Wyman |
Consider Saving More in 2004
With the new maximum annual contribution limits for 2004, you will be able to save even more through the State's Deferred Compensation Plan. The annual contribution limit for 457 plans like the State's plan is $13,000 in 2004, up from the $12,000 allowed in 2003. And, if you will be age 50 or older by December 31, 2004, you may be eligible to take advantage of the special age 50 "catch-up" contribution.
| Contribution Limits for Upcoming Years | ||
| Year | Maximum Annual Contribution Limit |
Annual Special Age 50 Catch-Up Contribution |
|---|---|---|
| 2004 | $13,000 | $3,000 |
| 2005 | $14,000 | $4,000 |
| 2006* | $15,000 | $5,000 |
If you are eligible, you can contribute an extra $3,000 to the plan in 2004. So, if you want to contribute the maximum allowed under the plan, and you will be age 50 by December 31, 2004, you could contribute a total of $16,000.
If you want to take advantage of the increased limit, or if you simply feel now is a good time to increase your contributions to take full advantage of the plan, then you will need to complete a new Participation Agreement/ Beneficiary Designation form (Form CO-783). To get this form, contact your financial services organization. Please keep in mind that you must fill out a separate form for each organization you utilize.
If you would like to change your contribution rate for 2004, contact your financial services organization (FSO) for instructions.
We're Going Online!
Beginning in 2004, Getting There will be available exclusively on the Office of the State Comptroller website at www.osc.ct.gov. This is the final printed issue of Getting There you will receive.
Monitoring Your Contributions
You should monitor your contributions so that you don't go over the annual contribution limit. If you are approaching the limit, contact your FSO for information on how to stop your contributions. For example, if you are paid biweekly and contribute $550 per pay period to the plan in 2003, you will have contributed $11,550 to the plan by your 21st payroll deduction ($550 x 21 pay periods = $11,550). Your next contribution of $550 would put you over the current limit of $12,000, so you would need to stop payroll deductions before making that contribution.
If you stop your payroll deductions before the end of 2003, your contributions will not start again automatically in 2004. If you would like to resume contributing to the plan in 2004, you must submit a new Form CO-783 for each financial services organization of your choice. While your financial services organization can help you determine how much you would like to contribute to the plan, you are responsible for ensuring that your contribution amount does not exceed the annual IRS limit.
Catch-Up Contributions Reminder
Remember, if you are eligible, special catch-up contributions are available. Special age 50 catch-up contributions are only available if you are not making regular catch-up contributions. (Regular catch-up contributions may be made during the three years before your normal retirement date.)
New Hartford Funds
Effective September 23, 2003, The Hartford replaced 11 investment options. The eliminated options are closed to incoming transfers and payroll contributions. If you have contributions directed to these closed funds, as of September 23 they were mapped according to the chart below.
If you currently have an existing balance in one of the closed funds, you may transfer your balance to another investment option. Any balances remaining in closed funds on January 5, 2004, will be mapped automatically according to the chart below.
|
This Closed Investment Option... |
Is Mapped to this New Investment Option |
|---|---|
|
Hartford International Opportunities |
Templeton Foreign |
| Janus Worldwide | Oppenheimer Global |
| Hartford Small Co. (Y) | AIM Small Cap Growth |
| Hartford Mid Cap (Y) | Hartford Mid Cap HLS |
| American Century Value | Lord Abbett Mid-Cap Value |
| Janus Twenty | Janus Adviser Capital Appreciation |
| Hartford Stock HLS | Hartford Index HLS |
|
American Century Income & Growth |
Hartford Index HLS |
|
Fidelity Adviser Growth Opportunity |
MFS Value |
|
Hartford Dividend & Growth (Y) |
MFS Value |
|
Hartford Total Return Bond Fund (Y) |
PIMCO Total Return |
For more information about these changes, please contact The Hartford directly. ING Financial Advisers, LLC and Phoenix Investment Partners continue to offer their existing investment funds.
Investment Fund Performance & Operating Fees
For the Period Ending September 30, 2003
You may invest your contributions with any one of the plan's three financial services organizations: The Hartford, ING Financial Advisers, LLC (member SIPC), and Phoenix Investment Partners.
The following charts will help you evaluate your investment choices. They show the historical rates of return for each financial services organization's available investment options and the various operating fees that may be assessed against these options for the period ending September 30, 2003.
The rates of return columns are "net of expenses" and reflect the actual returns that would be applied to your account. This means that they already exclude the operating fees a financial services organization may charge you for managing, investing or marketing a particular investment option. Operating expenses appear in separate columns.
Results are historical and not intended to portray future performance. Current performance may be less than figures shown.
Please note that investment benchmarks may differ from the benchmarks provided in the funds' prospectuses.
About Your Fund Choices
When comparing two similarly styled mutual funds, be sure to:
| THE HARTFORD | |||||||
|---|---|---|---|---|---|---|---|
| Return on Investments (net of expenses) | Operating Expenses | ||||||
| Last Quarter | Rates of Return | ||||||
| Level of Risk |
Investment Options | 7/1/03-9/30/03 | 1 Year | Annualized 5 Years* |
Management Fees |
Other Expenses |
Total Expenses |
| High | American Century Ultra | 2.21% | 18.32% | 0.33% | 0.99% | 0.70% | 1.69% |
| Janus Advisor Capital Appreciation | 1.07 | 8.91 | 5.20 | 0.65 | 1.23 | 1.88 | |
| Russell 1000 Growth Index | 3.91 | 25.92 | - 2.46 | ||||
| Templeton Foreign | 9.04 | 21.68 | 7.32 | 0.61 | 1.25 | 1.86 | |
| MS EAFE Index | 8.18 | 26.54 | 0.87 | ||||
| AIM Small Cap Growth | 7.37 | 30.57 | 13.00 | 0.71 | 1.32 | 2.03 | |
| Russell 2000 Growth Index | 10.47 | 41.72 | 2.75 | ||||
| Hartford Small Cap Value HLS | 7.24 | 30.52 | 15.30 | 0.87 | 0.75 | 1.62 | |
| Russell 2000 Value Index | 7.72 | 31.66 | 10.84 | ||||
| Oppenheimer Global | 9.46 | 24.85 | 9.93 | 0.67 | 1.26 | 1.93 | |
| MS World Index | 4.94 | 26.02 | 0.78 | ||||
| Lord Abbett Midcap Value | 4.38 | 17.58 | 12.87 | 0.54 | 1.47 | 2.01 | |
| Russell Midcap Value Index | 5.94 | 28.30 | 8.42 | ||||
| MFS Value | 1.78 | 14.98 | 5.36 | 0.60 | 1.35 | 1.95 | |
| Russell 1000 Value Index | 2.06 | 24.37 | 4.00 | ||||
| Hartford Capital Appreciation HLS | 5.06 | 29.49 | 10.98 | 0.64 | 0.75 | 1.39 | |
| Calvert Social Investment Equity | 1.76 | 22.70 | 9.98 | 0.70 | 1.29 | 1.99 | |
| Hartford Index HLS | 2.34 | 23.01 | - 0.16 | 0.40 | 0.74 | 1.14 | |
| S&P 500 Index | 2.65 | 24.38 | 1.00 | ||||
| Hartford Midcap HLS | 3.57 | 30.00 | 18.75 | 0.68 | 0.74 | 1.42 | |
| Russell Midcap Growth Index | 7.16 | 38.89 | 4.49 | ||||
| Medium | Janus Adviser Balanced I | 0.29 | 8.05 | 6.31 | 0.65 | 1.22 | 1.87 |
| Hartford Advisers HLS | 1.11 | 14.93 | 1.44 | 0.63 | 0.74 | 1.37 | |
| 50% S&P 500 + 50% LBAGG Index | 1.29 | 14.93 | 4.24 | ||||
| Low | PIMCO Total Return | - 0.47 | 6.10 | 5.99 | 0.25 | 1.35 | 1.60 |
| LB Aggregate Bond Index | - 0.15 | 5.41 | 6.63 | ||||
| General Account 1 | N/A | N/A | N/A | None | None | None | |
* The "Annualized 5 Years" rates of return listed in the August 2003 newsletter were incorrect. For correct returns, refer to the online August 2003 newsletter.
1 The Declared Rate is credited through the close of the calendar year on contributions received during the designated quarter. The rate for the fourth quarter 2003 is 4.15%. For contributions received prior to January 1, 2003, the Declared Rate is 4.15%. Rates quoted are effective annual yields.
| ING FINANCIAL advisers, LLC | |||||||
|---|---|---|---|---|---|---|---|
| Return on Investments (net of expenses) | Operating Expenses | ||||||
| Last Quarter | Rates of Return | ||||||
|
Level of Risk |
Investment Options | 7/1/03-9/30/03 | 1 Year |
Annualized 5 Years |
Management Fees |
Other Expenses |
Total Expenses |
| High | Janus Aspen Series Aggressive Growth Portfolio | 4.46% | 23.57% | 1.08% | 0.65% | 0.82% | 1.47% |
| Russell Mid Cap Growth Index | 7.16 | 38.89 | 4.49 | ||||
| Janus Aspen Series Worldwide Growth Portfolio | 2.76 | 12.89 | 0.43 | 0.65 | 0.85 | 1.50 | |
| MSCI World Index | 4.94 | 26.02 | 0.78 | ||||
| ING Salomon Brothers Aggressive Growth Portfolio | 2.83 | 27.28 | - 4.25 | 0.69 | 0.93 | 1.62 | |
| Russell 3000 Growth Index | 4.37 | 26.94 | - 2.09 | ||||
| ING JPMorgan Fleming International Portfolio | 5.13 | 14.74 | - 1.25 | 0.80 | 1.00 | 1.80 | |
| MS EAFE Index | 8.18 | 26.54 | 0.87 | ||||
| Pioneer Mid Cap Value VCT Portfolio | 5.48 | 28.18 | 10.17 | 0.65 | 0.95 | 1.60 | |
| Russell Mid Cap Value Index | 5.94 | 28.30 | 8.42 | ||||
| ING VP Index Plus LargeCap Portfolio | 1.89 | 20.99 | 0.29 | 0.35 | 0.90 | 1.25 | |
| ING VP Value Opportunity Portfolio | 0.85 | 13.48 | 4.20 | 0.60 | 0.92 | 1.52 | |
| Fidelity® VIP Contrafund® Portfolio | 4.96 | 15.86 | 4.78 | 0.58 | 0.90 | 1.48 | |
| S&P 500 Index | 2.65 | 24.38 | 1.00 | ||||
| ING VP Small Company Portfolio | 8.54 | 25.64 | 9.21 | 0.75 | 0.92 | 1.67 | |
| Russell 2000 Index | 9.08 | 36.50 | 7.46 | ||||
| Janus Aspen Series Growth Portfolio | 4.08 | 17.91 | - 0.55 | 0.65 | 0.82 | 1.47 | |
| Russell 1000 Growth Index | 3.91 | 25.92 | - 2.46 | ||||
| Medium | Fidelity® VIP Equity-Income Portfolio | 2.69 | 23.62 | 2.83 | 0.48 | 0.89 | 1.37 |
| Russell 3000 Value Index | 2.47 | 24.89 | 4.45 | ||||
| ING VP Balanced Portfolio, Inc. | 0.79 | 15.29 | 3.14 | 0.50 | 0.90 | 1.40 | |
| Calvert Social Balanced Portfolio | 2.00 | 15.86 | 1.29 | 0.70 | 1.01 | 1.71 | |
| 60% S&P 500 + 40% LBAGG Index | 1.57 | 16.83 | 3.66 | ||||
| Janus Aspen Series Balanced Portfolio | 0.21 | 8.18 | 6.39 | 0.65 | 0.82 | 1.47 | |
| 50% S&P 500 + 50% LBAGG Index | 1.29 | 14.93 | 4.24 | ||||
| Low | ING VP Bond Portfolio | - 0.27 | 6.31 | 5.57 | 0.40 | 0.89 | 1.29 |
| LB Aggregate Bond Index | - 0.15 | 5.41 | 6.63 | ||||
| ING VP Money Market Portfolio | - 0.06 | 0.21 | 2.95 | 0.25 | 0.89 | 1.14 | |
| 91 Day Treasury Bills | 0.24 | 1.11 | 3.45 | ||||
| ING Fixed Account-457/401 2 | N/A | N/A | N/A | 0.00 | 0.00 | 0.00 | |
2 The Declared Rate as of October, 2003 is 4.5%, expressed as an annual effective yield, and is guaranteed not to drop below 4.5% through December 31, 2003.
| PHOENIX INVESTMENT PARTNERS | |||||||
|---|---|---|---|---|---|---|---|
| Return on Investments (net of expenses) | Operating Expenses | ||||||
| Last Quarter | Rates of Return | ||||||
| Level of Risk | Investment Options | 7/1/03-9/30/03 | 1 Year | Annualized 5 Years |
Management Fees |
Other Expenses |
Total Expenses |
| High | Phoenix-Aberdeen Worldwide Opportunities A | 5.18% | 20.50% | 0.25% | 0.75% | 0.81% | 1.56% |
| MS World Index | 4.94 | 26.02 | 0.78 | ||||
| Phoenix-Seneca Mid-Cap Edge A | 2.18 | 18.69 | 5.82 | 0.80 | 0.66 | 1.46 | |
| Russell Mid Cap Growth Index | 7.16 | 38.89 | 4.49 | ||||
| Phoenix-Engemann Small-Mid Cap Growth A | 13.07 | 61.55 | 7.02 | 0.92 | 0.87 | 1.79 | |
| Russell 2000 Growth Index | 10.47 | 41.72 | 2.75 | ||||
| Phoenix-Hollister Small Cap Value A | 6.84 | 28.31 | 14.82 | 0.90 | 0.74 | 1.64 | |
| Russell 2000 Value Index | 7.72 | 31.66 | 10.84 | ||||
| Phoenix-Aberdeen International A | 7.24 | 21.84 | - 2.48 | 0.75 | 1.15 | 1.90 | |
| MS EAFE Index | 8.18 | 26.54 | 0.87 | ||||
| Phoenix-Oakhurst Growth & Income A | 2.43 | 22.18 | 1.61 | 0.75 | 0.60 | 1.35 | |
| Phoenix-Kayne Rising Dividends A | 2.09 | 17.68 | N/A | 0.75 | 0.54 | 1.29 | |
| S&P 500 Index | 2.65 | 24.38 | 1.00 | ||||
| Phoenix-Engemann Capital Growth A | 4.66 | 22.37 | - 6.28 | 0.69 | 0.60 | 1.29 | |
| Phoenix-Seneca Growth A | 4.35 | 20.02 | 0.50 | 0.70 | 0.68 | 1.38 | |
| Russell 1000 Growth Index | 3.91 | 25.92 | - 2.46 | ||||
| Phoenix-Hollister Value Equity A | 2.43 | 17.22 | 5.90 | 0.75 | 0.74 | 1.49 | |
| Russell 1000 Value Index | 2.06 | 24.37 | 4.00 | ||||
| Medium | Phoenix-Oakhurst Managed Assets A | 2.03 | 15.91 | 1.82 | 1.00 | 0.61 | 1.61 |
| Phoenix-Engemann Balanced Return A | 2.61 | 16.15 | 1.92 | 0.75 | 0.70 | 1.45 | |
| 60% S&P Index + 40% LBAGG Index | 1.57 | 16.83 | 3.66 | ||||
| Low | Phoenix-Goodwin Multi-Sector Short Term Bond A | 0.93 | 9.93 | 7.75 | 0.55 | 0.68 | 1.23 |
| LB Intermediate Aggregate Index | 0.18 | 4.96 | 6.67 | ||||
| Phoenix-Duff & Phelps Core Bond A | - 0.53 | 3.89 | 4.01 | 0.45 | 0.70 | 1.15 | |
| LB Aggregate Bond Index | - 0.15 | 5.41 | 6.63 | ||||
| Phoenix-Goodwin Money Market A | 0.20 | 1.05 | 3.39 | 0.40 | 0.44 | 0.84 | |
IMPORTANT NOTE: The information presented in this newsletter is not intended as investment advice. Its purpose is to help you understand the investment choices available through the State of Connecticut's Deferred Compensation Plan. Your financial strategy and investment choices are entirely your own and should reflect your personal needs and circumstances.
State of Connecticut personnel, including the Human Resources Department staff, cannot provide investment advice. For more information, you may want to consult with a professional financial advisor.
The investment information is current as of September 30, 2003.