Quarterly Participant Webinar Plus Preview of Plan Enhancements - PowerPoint PPT Presentation

WELCOME Quarterly Participant Webinar Plus Preview of Plan Enhancements AUGUST 08, 2017

WHAT WE’LL COVER TODAY Opening Remarks: Len Teitelbaum How Our Plan and the Markets Performed: David Baskin Preview of Plan Enhancements Extended Q&A 2

MARKET & PLAN PERFORMANCE UPDATE 3

2017 Q2 Key Themes • Global Stocks Continue to Perform Well – Best first half since 2003 – International markets continue to lead – Growth stocks outperform • Energy Declines Continue – US oil production increases – Slow decline in inventories – Energy stocks and MLP weakness • Continued Uncertainty Towards Trump Policy Implementation – Weaker US dollar – Relative US equity underperformance • Looking Forward – The market has priced in a low volatility environment for the foreseeable future • Past performance not indicative of future results 4

Asset Class Performance Comparison 2017 Description 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD Best Performing Core Core US MLP MLP EM REITs EM REITs EM EM MLP MLP EM REITs REITs MLP EM Emerging Market Stock Index Bonds Bonds Equities 47.9% 44.4% 55.8% 31.5% 34.0% 35.9% 39.4% 78.5% 35.9% 13.9% 18.2% 30.4% 2.5% 18.3% 18.4% 10.3% 5.2% 33.6% High US Core High REITs REITs REITs MLP EM EAFE EM MLP MLP REITs REITs REITs MLP EAFE Developed Market International Stock Index Yield Equities Bonds Yield 26.8% 12.8% 3.6% 41.6% 25.6% 13.5% 32.2% 12.4% 76.4% 28.5% 8.7% 17.8% 27.6% 13.8% -26.2% 12.6% 0.5% 17.1% Core Core High Core Core US US US MLP EAFE EAFE REITs MLP EAFE MLP EM EAFE EAFE US Large and Small Stock Index Bonds Bonds Yield Bonds Bonds Equities Equities Equities 0.2% 38.6% 20.2% 12.1% 27.6% 11.2% -36.8% 18.9% 17.3% 22.8% 11.6% 8.4% 58.2% 7.8% 6.0% 0.5% 12.7% 8.9% High High High US Core US US High US High High High Yield Bonds (Non-Investment Grade Bonds) Index REITs MLP EAFE EAFE MLP EAFE EM Yield Yield Yield Equities Bonds Equities Equities Yield Equities Yield Yield 36.8% 15.9% 26.3% 31.8% 4.8% -0.8% 11.2% -5.9% 5.3% -1.4% 6.1% 7.0% -37.3% 16.9% 5.0% 16.4% 7.4% 4.9% US US US US US High US High High High EM EM MLP REITs REITs REITs REITs REITs Real Estate Investment Trust Index Equities Equities Equities Equities Equities Yield Equities Yield Yield Yield -2.6% -6.2% 5.2% -38.0% 28.6% 2.5% 8.6% 2.7% -7.5% 31.1% 11.9% 15.7% 5.1% 15.1% 1.0% 15.8% 2.5% -4.5% Worst Performing US High High High US Core Core Core EAFE EAFE High Yield High Yield EAFE EAFE EAFE MLP EM EM Equities Yield Yield Yield Equities Bonds Bonds Bonds Diversified US Investment Grade Bond Index -14.2% -15.9% 29.0% 11.1% -43.4% 7.8% -12.1% 4.8% -2.2% -14.9% -11.5% 2.7% 11.9% 1.9% 28.3% -2.0% 2.7% 2.3% US Core Core Core Core Core Core Core EM EAFE REITs EM EM EM EAFE MLP EAFE MLP Equities Bonds Bonds Bonds Bonds Bonds Bonds Bonds Master Limited Partnerships (Pipelines) Index -30.8% -21.4% -16.8% -53.3% -18.4% -2.6% -4.9% -32.6% 1.0% -2.7% -21.5% 4.1% 4.3% 2.4% 4.3% 5.9% 6.5% 4.2% Source: Bloomberg 5

RPB Trailing 12-Month Tier I Investment Returns* July 1, 2016 through June 30, 2017 20.00% 19.01% 18.62% 18.00% 16.00% 14.00% 11.84% 12.00% 11.09% 10.00% 8.00% 6.00% 4.00% 2.32% 2.00% 1.16% 0.33% 0.04% 0.00% * As of June 30, 2017, net of investment management fee. **Barclays Global Aggregate January 1, 2013 through September 30, 2016, Barclays US Aggregate thereafter . 6

Trailing 12-Month Volatility – Lower is Less Risky July 1, 2016 through June 30, 2017 6.00% 5.22% 5.00% 4.63% 3.87% 4.00% 3.34% 3.00% 3.00% Standard Deviation 2.00% 1.74% 1.00% 0.00% Capital MSCI ACWI Appreciation 60% MSCI Income Fixed Income Appreciation IMI & Income ACWI Focused Fund Composite* Fund Fund IMI/40% Fixed Income Composite* *Barclays Global Aggregate January 1, 2013 through September 30, 2016, Barclays US Aggregate thereafter. 7

RPB Year-to-Date Tier II Investment Returns* January 1, 2017 through June 30, 2017 16.00% 14.71% 14.69%14.35% 14.13% 14.00% 12.00% 10.00% 9.33% 9.34% 8.00% 5.76% 5.75% 6.00% 3.67% 3.66% 4.00% 2.60% 2.66% 2.40% 2.27% 2.00% 1.09% 1.14% 0.16% 0.20% 0.00% *As of June 30, 2017, net of investment management fee . 8

RPB RETIREMENT PLAN EXCITING ENHANCEMENTS COMING 9

Upcoming Plan changes designed to give you: • More flexibility with tax planning • Expanded access to your 403(b) money • Investing aligned with Jewish values 10

ROTH 403(b) – Estimated Q1 2018 HOW IT WORKS • Make after-tax contributions to your retirement account ROTH 403 (b): • No income restrictions Contribution limits apply. • Employee contributions and earnings distributed tax-free, including to beneficiaries Distributions at 59 ½ or older and account held at least 5 years. IS THIS FOR ME? • Just starting out • 5+ years until retirement to accumulate tax-free savings • Tax bracket will stay the same or be higher when you retire • Ineligible for Roth IRA due to income limits • It’s all about tax planning! 11

LOANS – Estimated Q1 2018 HOW IT WORKS • Borrow money from your 403(b) accounts • $1,000 - $50,000 • Repay principal and interest to yourself • Attractive rates • Loan proceeds not taxed unless default IS THIS FOR ME? • Short-term financial need – no other low interest options • Down payment on a house (primary residence or other) • Help pay off high interest debt • Avoid 403(b) hardship withdrawal and tax penalty if under 59 ½ 12

Jewish Values Investing - Background Phased Implementation of JVI • – Manager Selection and Evaluation : RPB JVI questionnaire – Investment Screens : Eliminated tobacco and businesses operating in Sudan – Shareholder Activism : Vote proxies for 20% of total Tier 1 portfolio – Community Development : Invest 1.8% of assets in community development agency bonds that support US small businesses and affordable housing – Israel : Invest in Israeli bonds • Next Phase – Reform Jewish Values Investing Fund 13

Reform Jewish Values Investing Fund: Est. Q1 2018 • New equity fund constructed using Reform Movement values Reform Jewish Values Investments selected based on: • Investing Fund: – Criteria defined in URJ/CCAR platforms and ESG &I resolutions URJ / CCAR Encompasses Environmental, Social, Governance, – platforms & resolutions and Israel issues Separately Managed Account (SMA) that • tracks a selected benchmark • Cost-competitive fees with commercially available ESG funds 14

PARTICIPANT Q&A 15

THANK YOU TODAH RABBAH 16