introducing the new sfdcp target date funds and sfdcp website

Introducing New TARGET DATE FUNDS to theSan Francisco 457(b) Deferred Compensation Plan.SNAPSHOT OF THEINVESTMENT CHANGESEffective April 27, 2012, all participant assets invested inthe SFDCP Long Term, Mid Term, and Near Term Portfolioswill transfer to the new Target Date Funds based upon eachparticipant’s current age and projected retirement year(assuming a normal retirement age of 62).These changes will take place automatically after the NewYork Stock Exchange closes on April 27, 2012 (generally1:00 p.m. Pacific Time).In order for this change to occur, there will be a ”blackoutperiod” from 1:00 p.m. Pacific Time on Friday, April 27,2012 to approximately 9:00 a.m. on Monday, April30, 2012. During this time, participants may not entertransactions. A blackout period is a standard practice thatoccurs when a plan adds or eliminates funds. Please note:Account balances will remain fully invested while this changeis taking place.SPOTLIGHT ON THE NEWSFDCP TARGET DATE FUNDSEstablishing the appropriate allocation of stocks and bondsin a retirement account is an important component to helpingparticipants reach their savings goals. However, monitoring andadjusting allocations over time can be challenging. Target DateFunds simplify the process and leave the continuing work ofmonitoring and adjusting allocations to investment professionals.PICTURE ONE SIMPLE CHOICEThe new Target Date Funds—developed specifically for SFDCPparticipants—offer a simple, diversified investment strategy. Eachfund is a portfolio comprised of underlying stock and bond fundsstrategically mixed for participants with approximate retirementdates of 2015, 2020, 2025, 2030, 2035, 2040, 2045,2050 or 2055. The mix of stocks and bonds in each TargetDate Fund is diversified across asset classes, multiple managersand investment styles.Your lens to the future 1

MANAGING INVESTMENT RISKRisk management is another important factor when saving forretirement. Generally, stocks tend to earn higher returns thanbonds over the long term. However, stock values tend to bemore volatile over the short term and, thus, stocks are riskier.Younger participants can typically assume more risk—becausemarket downturns can potentially be offset with years of futuresavings and potential growth. 2But as participants get closer to retirement, the more it makessense to focus on preserving savings by shifting out of riskierstocks to less risky investments, such as bonds.The SFDCP Target Date Funds automatically manage this processfor participants. The funds gradually reduce stock holdings andincrease bond holdings over time. When the target year in thefund name arrives, the investment mix is fixed at 35% stocks and65% bonds.A SNAPSHOT OF HOW IT WORKSHere is an example of how an SFDCPTarget Date Fund will change over time.For a participant who is 32 years old and hopes to retire in the year 2040at age 62, the Target Date Fund closest to that estimated retirement date isthe SFDCP Target Date 2040 Fund.The illustration below shows that early on, the fund allocation is moreaggressive and intended to grow participant assets. However, as theparticipant gets closer to retirement, the 2040 Fund will gradually shift to amore conservative allocation, intended to preserve participant assets. In theyear 2040 the account balance will shift into the SFDCP Retirement Fund,which has a 35% stock and 65% bond allocation.32 years old AGGRESSIVE TO CONSERVATIVE62 years old10%90%bonds 10%stocks 90%39.5%60.5%bonds 36.5%stocks 63.5%52.5% 47.5%bondsstocks65%bonds 60%stocks 40%SFDCP TARGET35% bonDATE 2040 FUNDbondsstoBONDS stocksSTOCKS30 yearsto retirement15 yearsto retirement10 yearsto retirementYear of retirement andongoing thereafterPercentages are subject to change based on the determinations of the SFDCP´s investment adviser. Great-West Retirement Services ® isnot responsible for the composition of the SFDCP Target Date Funds.The SFDCP Target Date Funds automatically reallocate the investment mix. Still, participants should monitor the growth of theirretirement savings to make sure they are on track to meeting their retirement savings goals. Investments are subject to the volatility ofthe financial markets, including equity and fixed income investments in the United States and abroad. The principal value of a TargetDate Fund is not guaranteed at any time, including at the target date. Many other factors, including the rate of contributions fromparticipants’ paychecks, can impact successful retirement savings outcomes. It is important to plan wisely.2 Past performance is not a guarantee or prediction of future results.2 Your lens to the future

A VIEW OF THE NEWSFDCP TARGET DATE FUNDSWith the new SFDCP Target Date Funds,participants make one choice: the Target DateFund closest to their projected retirement year.For example, a participant who expects to retire in the year 2021would probably choose to invest in the Target Date 2020 Fund.SFDCPRETIREMENT FUNDSFDCP TARGETDATE 2015 FUNDbonds 60%stocks 40%35% 38.5%65% 61.5%SFDCP TARGETDATE 2020 FUNDbonds 60%stocks 40%52.5% 47.5%SFDCP TARGETDATE 2025 FUNDbondsstocks39.5%60.5%SFDCP TARGETDATE 2030 FUNDbonds 36.5%stocks 63.5%23%77%bondsstocksbonds 10% bonds 10% bonds 10% bonds 10%10% stocks 10% 90% stocks 10% 90% stocks 10% 90% stocks 10% 90%bonds 1stocks90% 90% 90% 90% 90%SFDCP TARGETDATE 2035 FUNDSFDCP TARGETDATE 2040 FUNDSFDCP TARGETDATE 2045 FUNDSFDCP TARGETDATE 2050 FUNDSFDCP TARGETDATE 2055 FUNDSFDCP TARGET DATE FUNDSBONDSSTOCKSbonds bondsstocks stocksIf a participant’s estimated retirement year falls betweentwo Target Date Funds—e.g., a participant plans to retire in2018—a choice may not be clear. If the participant choosesthe Target Date 2020 Fund, that fund will generally havea more aggressive investment allocation at that time than aTarget Date Fund with an earlier date, such as the TargetDate 2015 Fund.Target Date Funds are designed for the “typical investor” witha moderate risk level who is on track to saving enough to retirewithin a year or two of a specific target year. Each participant’sneeds and circumstances should be considered before selectingan SFDCP Target Date Fund or any other investment strategy.Please consider the investment objectives, risks, fees and expenses carefully before investing. For this and other important information,you may obtain disclosure documents, mutual fund prospectuses for the underlying funds, the annuity contract and the annuity’s underlyingfunds and/or disclosure documents from your registered representative or the Plan website. For prospectuses related to investments inyour Self-Directed Brokerage (SDB) account, contact TD Ameritrade, Inc. at (866) 766-4015. Read them carefully before investing.www.sfdcp.org (888) SFDCP4U (888-733-2748)3

MOVING FROM LIFESTYLE PORTFOLIOSTO SFDCP TARGET DATE FUNDSAfter the financial markets close on April 27, 2012, all of theparticipants’ investments in the three SFDCP Lifestyle Portfolios willautomatically transfer to an SFDCP Target Date Fund based on eachparticipant’s current age and projected retirement year (assumingretirement at age 62).Note: Contributions made on or after April 30, 2012, will also be investedin the same Target Date Fund.The chart below details how the appropriate Target Date Fund will beselected for participants currently invested in the Lifestyle Portfolios.PARTICIPANT ISBORN BETWEEN…PARTICIPANT’SAGE IS BETWEEN…PARTICIPANT’S PROJECTEDRETIREMENT YEAR IS BETWEEN…THE SFDCP TARGET DATE FUND IS…1991 or later 21 or younger 2053 and beyond SFDCP 2055 Fund1986 - 1990 22 to 26 2048 - 2052 SFDCP 2050 Fund1981 - 1985 27 to 31 2043 - 2047 SFDCP 2045 Fund1976 - 1980 32 to 36 2038 - 2042 SFDCP 2040 Fund1971 - 1975 37 to 41 2033 - 2037 SFDCP 2035 Fund1966 - 1970 42 to 46 2028 - 2032 SFDCP 2030 Fund1961 - 1965 47 to 51 2023 - 2027 SFDCP 2025 Fund1956 - 1960 52 to 56 2018 - 2022 SFDCP 2020 Fund1951 - 1955 57 to 61 2013 - 2017 SFDCP 2015 Fund1950 or earlier 62 or older 2012 and earlier SFDCP Retirement Fund4 Your lens to the future

A NEW FOCUS ON INVESTMENT OPTIONSFOR RETIREMENT SAVINGSParticipants may currently be invested in one or more of the threeLifestyle Portfolios. As detailed on the previous page, any assetsinvested in the Lifestyle Portfolios on April 27, 2012 will transferto a Target Date Fund based on the participant’s current age andprojected retirement year (assuming retirement at age 62).If a participant invests in more than one Lifestyle Portfolio, theassets in all of his or her Lifestyle Portfolios will be transferred toone Target Date Fund.Along with the investments in the Lifestyle Portfolios, someparticipants may have allocations to other Plan investmentoptions. If a participant has an asset allocation that includesboth the Lifestyle Portfolios and other Plan investment options,only the assets allocated to the Lifestyle Portfolios will betransferred to the Target Date Funds. Allocations to other Planinvestment options will not be modified in any way and willremain invested in the original options.Here are two examples that illustrate how this transfer will work.Example 1: Single Lifestyle Portfolio InvestmentParticipant is 27 years oldExpects to retire in 2047Currently 100% invested in the Long Term Portfolio100% of assets will transfer to SFDCP Target Date 2045 Fund100% 100%Example 2: Multiple Fund InvestmentsParticipant is 45 years oldExpects to retire in 2029Currently invested in the Lifestyle Mid Term and Near TermPortfolios and Stable Value PortfolioLifestyle Mid Term and Near Term Portfolios will transfer to theSFDCP Target Date 2030 FundAll assets in the Stable Value Portfolio will remain invested inthe Stable Value PortfoliobondsbondsstocksstocksLIFESTYLE LONG TERM PORTFOLIOSFDCP TARGET DATE 2045 FUND 70%10% 10%20%90%bs70% LIFESTYLE MID TERM PORTFOLIO20% LIFESTYLE NEAR TERM PORTFOLIO10% STABLE VALUE PORTFOLIO90% SFDCP TARGETDATE 2030 FUND10% STABLE VALUEPORTFOLIOwww.sfdcp.org (888) SFDCP4U (888-733-2748)5

FREQUENTLY ASKED QUESTIONSWhat do the SFDCP Target Date Funds invest in?The SFDCP Target Date Fund fact sheet includes information aboutthe stock and bond funds held by each Target Date Fund. Visit thewebsite at www.sfdcp.org to download a copy of the fact sheet.If participants currently invest in the SFDCPLifestyle Portfolios, what will happen to theirmoney on April 27, 2012?Assets in the Lifestyle Portfolios will migrate to the SFDCPTarget Date Funds after financial markets close on April 27,2012. If participants are currently invested in one or more ofthe Lifestyle Portfolios, their investment will be transferred to anage-appropriate Target Date Fund based on their projectedretirement year at age 62. See page 4 for more information.What if a participant wants to invest in a differentTarget Date Fund?After the Target Date Funds are added to the SFDCP, participantsmay transfer money from one fund to another and/or change theway future contributions are invested by visiting www.sfdcp.orgor by calling KeyTalk ® at (888) SFDCP4U (888-733-2748). 3Can participants transfer money from a LifestylePortfolio to a core fund before April 27, 2012?Yes. Participants may transfer money from one fund toanother and/or change the way future contributions areinvested by visiting www.sfdcp.org or by calling KeyTalk. 3What if a participant’s estimated retirement datefalls between two Target Date Fund years?If a participant’s estimated retirement date falls between twoTarget Date Fund years—for example, 2023—a choice maynot be clear. In general, a Target Date Fund with a later date inthe fund name, such as the Target Date 2025 Fund, will havea higher allocation to stocks than a Target Date Fund with anearlier year, such as the Target Date 2020 Fund.If participants are currently invested in core funds,will their investments automatically transfer toa Target Date Fund?No, investments will not transfer automatically from core funds (i.e.,all fund options other than Lifestyle Portfolios) to a Target Date Fund.Participants who decide to invest in a Target Date Fund may transfersome or all of their current balance and/or change the way futurecontributions are invested by visiting www.sfdcp.org or by callingKeyTalk anytime after 9:00 a.m. Pacific Time on April 30, 2012. 33 Access to KeyTalk and the website may be limited or unavailable during periods ofpeak demand, market volatility, systems upgrades/maintenance or other reasons.Transfer requests made via the website or KeyTalk received on business daysprior to close of the New York Stock Exchange (1:00 p.m. Pacific Time or earlieron some holidays or other special circumstances) will be initiated at the close ofbusiness the same day the request was received. The actual effective date of yourtransaction may vary depending on the investment option selected.The Target Date 2035 Fund and those with latertarget dates all invest 90% in stock funds and 10%in bond funds. What’s the difference between them?Although these funds all start with the same 90% allocationto underlying stock funds, the date at which each fund startsshifting toward a higher allocation to bond funds (therebyreducing the allocation of stock funds) will vary. The TargetDate 2035 Fund will begin increasing the allocationof bonds sooner than the Target Date 2055 Fund.What happens when a Target Date Fund reachesits target retirement year?By the end of the fund’s target retirement year (for example,2020), the Target Date Fund will be “retired” and participants’assets will be transferred to the Retirement Fund. This RetirementFund maintains a 35% investment in stock funds to provide anopportunity for continued growth, and a 65% allocation to bondsto manage risk and provide for interest income. Generally,this approach will better support retirement income needs.What happens if participants keep workingpast their target retirement date?When a Target Date Fund reaches its target year, the assets willtransfer to the Retirement Fund even if the participant continuesto work beyond that year. Assets will remain in the RetirementFund until the participant decides to transfer to another optionor begins taking money out to meet retirement income needs.Where can participants find information onthe annual fees for the Target Date Funds?Participants can review the fees for the funds on theinvestment overview page and in the SFDCP Target DateFund Portfolio Summary available at www.sfdcp.org.Who administers the Target Date Funds?The Target Date Funds are administered by the Retirement Board,SFDCP staff and its investment consultants. The Retirement Board,SFDCP staff and investment consultants designed the initialallocations and will oversee the ongoing allocation of TargetDate Funds as the allocations gradually shift to become moreconservative over time. The underlying portfolios are managedby the same professionals who manage the core funds.Why don’t the new SFDCP Target Date Fundshave a performance track record?The Target Date Funds are new investment options built specificallyfor the SFDCP. Because they are new, they do not have ahistorical performance track record. As they build a performancetrack record, performance will be available for review on theinvestment performance document at www.sfdcp.org.6 Your lens to the future

THE NEW SFDCP WEBSITE: WHERE YOUR RETIREMENT PICTURE GOES DIGITALThe newly redesigned SFDCP website (www.sfdcp.org) includes arange of upgrades and enhancements designed to make the siteeasier to use. The new site makes it:Easier to find information – The site‘s tile-based designstreamlines access to the most popular tools and information.Easier to learn – The new site makes it easier to bean informed investor. It provides a calculator to show howretirement contributions affect a paycheck, as well as quickonline courses on investment fundamentals.Easier to take action – When a participant decides totake action, such as changing an investment mix, the new sitemakes it easy to turn those decisions into actions.PRE-LOGIN HOME PAGEPOST-LOGIN HOME PAGEBecause each participant’s retirement picture isunique, the new site provides a personalizedaccount view and suggests steps that can betaken to reach retirement income goals.At a Glance – Each time participants log on, theyimmediately see the current progress toward their savingsgoal—how much has been saved, the rate of return, andthe amount of the last contribution.Suggested Links – Each visited page featuressuggested links for next steps that the participant mightconsider, based on the content of the page.The new website debuts on April 27, 2012.www.sfdcp.org (888) SFDCP4U (888-733-2748)7

IMPORTANT DATES TO REMEMBERAPRIL 27, 2012 – APRIL 30, 2012Blackout PeriodSFDCP accounts will close at 1:00 p.m. Pacific Time until approximately 9:00 a.m.Pacific Time on April 30, 2012. No transactions will be allowed until the end of theblackout period.10 new Target Date Funds will be added.The new and improved SFDCP website at www.sfdcp.org will open.APRIL 27, 2012Fund MappingThrough a process called “mapping,” current balances and future contributions in theSFDCP Lifestyle Portfolios will be mapped to the age-appropriate SFDCP Target Date Fundbased on an estimated retirement age of 62.APRIL 30, 2012All Account Activities Open(After 9:00 a.m. Pacific Time)SFDCP accounts will be available for all account activities. All existing accountbalances will be verified and reconciled.The www.sfdcp.org website and KeyTalk, the automated voice response system,will be fully operational for all transactions.New SFDCP Target Date Funds will open for investment.JULY 2012First Statement with NewTarget Date FundsIn July 2012, participants will receive their June 30, 2012 quarterly statements showingthe new Target Date Funds and account balance allocation. This statement will includethe fund transfers to the new Target Date Funds on April 27, 2012, as well as any otheraccount activity that may have been initiated.WHAT ARE THE NEXT STEPS?We encourage participants to stay informed by:Calling the SFDCP local San Francisco Regional Office at (415) 671-7800 or toll-free at(877) 457-9321 for answers to specific questions or to schedule an individual meeting.Reviewing the additional information available on the website:Fund fact sheet for the SFDCP Target Date Funds.Scheduling or attending a group educational meeting.8 Your lens to the future

GROUP MEETINGSLearn more about the Target Date Funds and the new website by attending any of the scheduled meetings listed below.Registration is not required.Meeting times may change, so check the website at www.sfdcp.org or call Great-West Retirement Services ® at(877) 457-9321 for the latest schedule.Interested in scheduling a group meeting for your department? Call Great-West at (877) 457-9321.DATE TIME LOCATIONMONDAY, APRIL 2, 2012WEDNESDAY, APRIL 4, 2012THURSDAY, APRIL 5, 2012TUESDAY, APRIL 10, 2012WEDNESDAY, APRIL 11, 2012THURSDAY, APRIL 12, 2012MONDAY, APRIL 16, 2012TUESDAY, APRIL 17, 2012WEDNESDAY, APRIL 18, 2012THURSDAY, APRIL 19, 2012FRIDAY, APRIL 20, 2012TUESDAY, APRIL 24, 2012WEDNESDAY, APRIL 25, 2012THURSDAY, APRIL 26, 2012THURSDAY, APRIL 26, 20129:30 A.M., 11:00 A.M.AND 2:00 P.M.9:30 A.M., 11:00 A.M.AND 2:00 P.M.9:30 A.M., 11:00 A.M.,2:00 P.M. AND 4:00 P.M.9:30 A.M., 11:00 A.M.,5:00 P.M. AND 6:30 P.M.9:00 A.M., 11:00 A.M.AND 2:00 P.M.9:30 A.M., 11:00 A.M.AND 2:00 P.M.10:30 A.M., 1:00 P.M.AND 2:30 P.M.9:00 A.M., 11:00 A.M.AND 2:00 P.M.9:00 A.M., 11:00 A.M.,2:00 P.M. AND 4:00 P.M.2:00 P.M. AND 4:00 P.M.9:30 A.M., 11:00 A.M.AND 2:00 P.M.11:00 A.M., 1:30 P.M.AND 3:30 P.M.9:00 A.M., 11:00 A.M.,2:00 P.M. AND 4:00 P.M.9:00 A.M., 11:00 A.M.,2:00 P.M. AND 4:00 P.M.9:30 A.M., 11:00 A.M.,2:00 P.M. AND 4:00 P.M.HALL OF JUSTICE850 BRYANT, 6TH FLOOR CONFERENCE ROOMMAIN LIBRARY100 LARKIN STREET, KORET AUDITORIUMSAN FRANCISCO EMPLOYEES’ RETIREMENT SYSTEM30 VAN NESS, SUITE 3000, BOARD ROOMMAIN LIBRARY100 LARKIN STREET, KORET AUDITORIUMFIRE COMMISSION ROOM698 2ND STREETHALL OF JUSTICE850 BRYANT, 6TH FLOOR CONFERENCE ROOMMAIN LIBRARY100 LARKIN STREET, KORET AUDITORIUMFIRE COMMISSION ROOM698 2ND STREETPUBLIC HEALTH BUILDING101 GROVE, ROOM 300PUBLIC HEALTH BUILDING101 GROVE, ROOM 300HALL OF JUSTICE850 BRYANT, 6TH FLOOR CONFERENCE ROOMFIRE COMMISSION ROOM698 2ND STREETPUBLIC HEALTH BUILDING101 GROVE, ROOM 300PUBLIC HEALTH BUILDING101 GROVE, ROOM 300SAN FRANCISCO EMPLOYEES’ RETIREMENT SYSTEM30 VAN NESS, SUITE 3000, SFERS PRESENTATION ROOMwww.sfdcp.org (888) SFDCP4U (888-733-2748)9

Core securities, when offered, are offered through GWFS Equities, Inc. and/or other broker dealers. GWFS Equities, Inc. is a whollyowned subsidiary of Great-West Life & Annuity Insurance Company.Great-West Retirement Services ® refers to products and services provided by Great-West Life & Annuity Insurance Company, FASCore, LLC (FASCore Administrators,LLC in California) and their subsidiaries and affiliates. Great-West Retirement Services ® and KeyTalk ® are registered trademarks of Great-West Life & Annuity InsuranceCompany. ©2012 Great-West Life & Annuity Insurance Company. All rights reserved. Not intended for Plans whose situs is in New York.Form# CB1108TDF_DM (3/12) PT141441Your lens to the future