OHIO DEFERRED COMPENSATION

877-644-6457 Ohio457.org Fourth Quarter 2019

A publication of the Ohio Deferred Compensation Board

Preparing today to live comfortably in retirement tomorrow is not a game, but it helps to have a long-term game plan.

Keep your eye on the ballWhen the goal seems so far off, it can be easy to first consider shorter-term needs such as paying off loans or saving for your children’s education.

These may be worthwhile goals, but consider that, when you delay saving for retirement, you miss out on the benefits of compounding interest during those years and that the power of compounding increases over the long term. Even small amounts can add up to significant accumulated earnings by the time you retire.

Account Executives are Registered Representatives of Nationwide Investment Services Corporation, member FINRA.

To get started on your game plan, ask to speak with an Account Executive when you call our Service Center.

Give us a call at 877-644-6457

Visit our website at Ohio457.org

To win, you need a game planPlan for risksRetirement can put greater stress on your money. Will you be prepared for:

• Out-of-pocket health-care costs• Caring for family members• Unexpected expenses• Out-living your savings• Inflation

Prepare to win The best teams have a coach who understands the game and can help players envision success. Your Ohio DC Account Executive can help you consider the risks to your retirement budget and how to prioritize retirement saving while addressing financial concerns. Account Executives will work with you to put together a long-term game plan designed to help you be prepared.

Employers RecognizedThe Ohio Deferred Compensation Board of Trustees formally recognized the following employers' achievements in improved retirement education, enrollment, and savings among their employees.

We appreciate the extra effort these organizations put forward to make sure Ohio’s public employees are ready for retirement.

Crooksville Exempted Village School DistrictClark County (recognized in two categories)City of Washington Court HouseCity of KetteringPainesville TownshipMetro Regional Transit AuthorityLorain County Educational Service CenterThe Graham SchoolToledo Area Regional Transit Authority

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Message from the Executive Director...For the past 16 years, it has been a special privilege to serve as Executive Director for the Ohio DC Program and to work with the Board and staff to fulfill our mission to guide participants along the path to retirement income security. My time has come to join many of you who have already retired, as I will be retiring at the end of March. A search for a new Executive Director is underway.

A great team effort has made Ohio DC one of the most successful 457 plans in the nation. I want to acknowledge the leadership over the years of current and past Board members as well as the hard work, dedication, and professionalism of the Ohio DC staff; Nationwide, our long-time customer service provider; and other partners. They have all contributed to providing you with a more secure retirement.

Finally, I want to thank all of you who have placed your trust and your retirement savings with Ohio DC. Have a happy and healthy New Year!

Keith OverlyExecutive Director

Plan Document AmendmentsThe Ohio DC Board recently approved several amendments to our Plan Document. These amendments were developed and approved by Ohio DC staff and the Attorney General’s special counsel. These changes help clarify and simplify the document for you and your employer and will be effective March 1, 2020:

• Roth contributions are subject to an agreement with the employer to allow such contributions.

• Current practice is documented regarding the timing of distributions for a trust or estate upon the death of the participant.

• Time for participants to report incorrect transactions on their statements is shortened from 180 to 90 days.

• Various sections were reworded to accommodate possible changes to the required minimum distribution (RMD) regulations as proposed by draft Federal legislation.

• Several other sections are amended and generalized to accommodate future potential changes in Federal regulations.

This newsletter serves as notice of the Plan Document changes. A Plan Document is available at Ohio457.org.

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Required Minimum Distribution

The SECURE Act has increased the initial Required Minimum Distribution (RMD) age from 70½ to 72, beginning January 1, 2020 for participants born after June 30, 1949. We are working to update our system to reflect these changes. Depending on your birthdate, the IRS may require you to take an RMD from your Ohio DC account(s) during 2020. Call the Service Center if you have questions.

Deferral Limits

The Internal Revenue Service recently announced an increase to the annual contribution limits for 2020. Each year, the IRS sets limits on the amount of wages that you can contribute. These limits are tied to inflation statistics and are recalculated each fall for the following calendar year.

 2020 Contribution Limits

Regular $19,500Age 50+ $26,000Catch-Up $39,000

Tax Time

If you took a withdrawal or rollover from your Ohio DC account during 2019, you will receive a Form 1099-R from Ohio DC. These forms are scheduled to be mailed the last week of January.

Call the Service Center at 877-644-6457 if you have not received your Form 1099-R by February 13.

Annual Statements

Your Annual Statement, mailed at the beginning of February, gives you an update on your progress toward meeting your retirement income goal. Be sure to review your Annual Statement and take action. You might increase your deferrals, rebalance your investments, sign up for the SMarT Plan, update your beneficiaries, or change your contact information.

PLOP

The Partial Lump Sum Option Payment, or PLOP, is an option that allows you to receive a lump-sum benefit payment, along with a reduced monthly retirement allowance, from your public pension plan. It is usually taxable unless it is rolled over into a qualified plan or IRA. You can rollover a PLOP tax-free to Ohio DC. Contact us for more information.

Saver’s Tax Credit

Do you qualify for a Saver’s Credit? You might be eligible for a Federal tax credit just by contributing to yourOhio DC account.

The Saver’s Credit rewards low- and moderate-income taxpayers, who meet certain qualifications, for saving for retirement. Learn more about the Saver’s Credit at Ohio457.org.

Holiday Schedule—The Service Center and exchange processing will be affected by the New York Stock Exchange holiday schedule. Exchanges received on holidays will be processed as of the market close of the next business day.

Visit "Contact Us" at Ohio457.org for the 2020 Holiday Schedule.

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Ohio Deferred Compensation Service Center257 East Town Street, Suite 457Columbus, Ohio 43215-4626

Walk-in hours: 8 a.m.–4:30 p.m., Monday–Friday

Phone hours: 8 a.m.–5:30 p.m., Monday–Friday

877-644-6457

Ohio457@Nationwide.com

Ohio457.org

Ohio Deferred Compensation

The Ohio Deferred Compensation Program is a supplemental retirement benefit plan regulated by Section 457 of the Internal Revenue Code.

Ohio DC Board of Trustees

Elected Julie Albers, Vice ChairCounty EmployeesRandy DespositoNon-teaching College/University EmployeesChristopher MabeState EmployeesCinthia SledzMiscellaneous EmployeesTimothy SteitzRetired GroupKen ThomasMunicipal EmployeesSteve Toth, ChairRetired Group

Keith OverlyExecutive Director

AppointedHarold Charles ElliottInvestment ExpertLance OsborneInvestment ExpertJames TillingInvestment Expert

This newsletter is printed on recycled paper.

StatutoryMatthew M. DamschroderDirector, Department ofAdministrative ServicesRichard BrownHouse of RepresentativesJay HottingerSenate

Roth 457 OptionWe will soon be contacting employers about offering the Roth 457 option. A Roth option lets you make contributions that are not tax deductible, but provides tax-free distributions, after certain conditions are met.* The Roth 457 option will only be available to employees of organizations that choose to offer it. Look for more information in your April Focus newsletter.

* Earnings from a Roth account are not taxable if the distribution is made after five consecutive tax years sincethe first Roth contribution was made AND the distribution is made after age 59½ or because of death or disability.

Traditional Pre-Tax Option and Roth After-Tax Option ComparisonFeature Traditional 457 Roth 457

Payroll Deduction Yes Yes

Taxation Before tax; reduces current income tax; taxes are deferred until distribution

After tax; pay current income tax now; qualified distributions are free from Federal and State tax*

2020 Contribution Limits $19,500 (total limit includes both traditional and Roth contributions)

$19,500 (total limit includes both traditional and Roth contributions)

2020 Annual Age 50-Plus Limits $26,000 (total limit includes both traditional and Roth contributions)

$26,000 (total limit includes both traditional and Roth contributions)

Income Limits None None

Rollover May be rolled over to another pre-tax plan or to a traditional pre-tax IRA

May be rolled over to another Roth plan or Roth IRA

Traditional pre-tax accounts can't be converted to Roth accounts at this time.

Roth IRA rollovers are not permitted to a Roth 457 option based on current IRS regulations.

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Ohio Deferred CompensationInvestment Performance Report—As of December 31, 2019

The results shown represent past performance and should not be considered a representation of future performance or experience. Past performance cannot guarantee future results. Current investment results may be lower or higher than quoted in this report. The principal value and investment return of an investment will fluctuate so that an investor's units/shares, when redeemed, may be worth more or less than their original cost. Performance data current to the most recent month-end may be obtained by visiting Ohio457.org. Although data is gathered from investment providers, the Program cannot guarantee completeness and accuracy. Please see other important disclosures at the end of this report. Consider the investment objectives, risks, charges, and expenses carefully before investing by consulting your prospectuses, which contain this and other information. Prospectuses are available by calling 877-644-6457 or visiting Ohio457.org. Read the prospectus carefully before investing. Inception 4th Average Annual Returns ExpenseFund Name (Manager or Ticker Symbol) Date Quarter 1 Year 3 Year 5 Year 10 Year Ratio(1)

Ohio DC LifePath Portfolios (BlackRock)(2)

LifePath Retirement(3) 8/15/2017 3.59% 15.67% 7.21% 5.30% 6.22% 0.06%

LifePath 2025(3) 8/15/2017 4.83% 18.62% 8.80% 6.40% 7.58% 0.06%

LifePath 2030(3) 8/15/2017 5.89% 20.80% 9.75% 7.04% 8.16% 0.06%

LifePath 2035(3) 8/15/2017 6.88% 22.88% 10.65% 7.63% 8.67% 0.06%

LifePath 2040(3) 8/15/2017 7.79% 24.75% 11.44% 8.14% 9.12% 0.06%

LifePath 2045(3) 8/15/2017 8.40% 26.06% 11.92% 8.45% 9.45% 0.06%

LifePath 2050(3) 8/15/2017 8.67% 26.64% 12.10% 8.55% 9.67% 0.06%

LifePath 2055(3) 8/15/2017 8.69% 26.69% 12.10% 8.55% 10.31%(4) 0.06%

LifePath 2060(3) 8/15/2017 8.69% 26.68% 12.08% 8.55% 8.30%(4) 0.06% International Stock FundsTempleton Foreign (FTFGX)(5) (6) 5/1/2013 9.20% 13.04% 4.29% 3.48% 4.44% 0.69%

Vanguard International Growth (VWILX)(5) 8/31/2001 14.29% 31.49% 18.07% 10.76% 8.84% 0.32%

Vanguard Total International Stock Index (VTPSX)(5) (6) 11/30/2010 9.05% 21.56% 9.90% 5.89% 5.05% 0.07%

Small-Cap Stock FundsOhio DC Small-Cap Growth (Westfield, Fiera)(2) 6/2/2017 12.93% 39.57% 13.60%(4) n/a n/a 0.71%

Ohio DC Small-Cap Value (Westwood)(2) 6/2/2017 5.72% 27.47% 7.32%(4) n/a n/a 0.58%

Vanguard Small-Cap Index (VSCPX)(5) (6) 12/17/2010 8.15% 27.40% 10.34% 8.91% 12.83% 0.03%

Mid-Cap Stock FundsVanguard Capital Opportunity (VHCAX)(5) 11/12/2001 12.97% 27.27% 16.56% 12.46% 14.21% 0.36%

Large-Cap Stock FundsDodge & Cox Stock (DODGX)(5) 1/4/1965 10.09% 24.81% 11.13% 9.71% 12.60% 0.52%

Fidelity Contrafund Commingled Pool(2) 1/17/2014 10.53% 31.17% 19.65% 13.54% 12.94%(4) 0.35%

Fidelity Growth Company Commingled Pool(2) 12/13/2013 14.83% 39.10% 22.56% 16.26% 16.73%(4) 0.35%

Ohio DC Large-Cap Growth (T. Rowe Price)(2) 8/1/2014 10.23% 29.39% 22.84% 16.01% 16.01%(4) 0.35%

Vanguard Institutional Index (VIIIX)(5) 7/7/1997 9.07% 31.49% 15.25% 11.69% 13.55% 0.02%

Bond Funds Ohio DC Intermediate Bond (TCW)(2) 1/30/2015 0.18% 8.99% 4.22% 2.70%(4) n/a 0.25%

Vanguard Total Bond Market Index (VBMPX)(5)(6) 2/5/2010 0.03% 8.73% 4.03% 3.02% 3.70% 0.03%

Stable ValueOhio DC Stable Value Option (Multiple Managers)(2) 1/1/1994 0.66% 2.63% 2.36% 2.32% 2.55% 0.27% Annualized Crediting Rates: 4th Quarter 2019—2.65% 1st Quarter 2020—2.55%

(1) Investment performance has been reduced for expense ratios. These expense ratios may vary from period to period. Expense ratios do not include administrative fees or rebates of fee reimbursements. See "Administrative Fees and Rebates" for more information.

(2) These options are not publicly traded mutual funds and do not have a ticker symbol or prospectus. Additional information regarding the manager(s) and investment strategy can be found in the fund profile at Ohio457.org. The value of the securities held by the SVO will fluctuate. The SVO focuses on principal preservation and a stable rate of return.

(3) Returns shown are of the respective LifePath Index N series. Returns for periods prior to the inception of the N series are those of the respective LifePath Index F series.(4) Average annual return since inception date. (5) These options are publicly traded mutual funds, and they have a ticker symbol and prospectus. (6) Returns include performance of a different share class achieved prior to the inception of the current share classes. Returns were not recalculated to reflect the fees of the prior

share class.

Account Executives are registered representatives of Nationwide Investment Services Corporation, member FINRA.

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LifePath Portfolios—Each LifePath Portfolio is based on a target year (when you expect to begin using your money). Portfolios are designed to provide diversification and asset allocation across several types of investments and asset classes, primarily by investing in underlying funds. LifePath Portfolios are designed for people who plan to begin withdrawing funds during or near a specific year. Like other funds, LifePath Portfolios are subject to market risk and loss. Loss of principal can occur at any time, including before, at, or after the target year. There is no guarantee that LifePath Portfolios will provide enough income for retirement.

International Stock Funds—International funds involve risks not associated with investing solely in the United States, such as currency fluctuation, differences in accounting standards, and the limited availability of information. Over the long term, an investor should be willing to accept a high level of risk resulting from potentially higher market volatility.

Small-Cap Stock Funds—Small-cap funds contain stocks from companies with less than $2 billion in capitalization, including many start-up companies. Small companies can grow much faster than big companies, but small company stocks tend to be more volatile than the stocks of larger companies. Over the long term, an investor should be willing to accept a high level of risk resulting from potentially higher market volatility.

Mid-Cap Stock Funds—Mid-cap funds contain stocks from companies with market values between $2 billion and $10 billion, and often include companies that are well established and growing. Over the long term, an investor should be willing to accept a moderate to high level of risk resulting from potentially higher market volatility.

Large-Cap Stock Funds—Large-cap funds contain stocks from companies with market values of more than $10 billion, and they include blue-chip and Fortune 500 companies. They are typically more mature, diversified companies with many products and services. Over the long term, an investor should be willing to accept a moderate to high level of risk resulting from potentially higher market volatility.

Bond Funds—Bonds are loans or debt instruments issued by governments or corporations that need to raise money. Bond funds have the same interest rate, inflation, and credit risks associated with the underlying bonds owned by the fund. Bonds are generally a more conservative form of investment than stocks, and usually provide a more steady flow of income. Typically, bonds have a lower long-term total return than stocks.

Stable Value—These options own short to intermediate term, high-quality securities. Investors who seek safety of principal as well as a competitive rate of return compared to money market funds may invest in these options. The Ohio DC Stable Value Option returns are shown net of fees for investment management, custody, and principal protection. A fund profile can be obtained for the Ohio DC Stable Value Option by calling 877-644-6457 or at Ohio457.org.

Investment Performance Report Notes

Investment PerformanceAll reported returns assume reinvestment of capital gains and dividends and reflect the fund's expense ratio, but not the deduction of the administrative fee or reinvestment of rebates.

Administrative Fees and RebatesAdministrative FeesAn annual administrative fee of 0.0014 or 0.14% is charged to each participant. Administrative fees will be charged each quarter and are based on the total of a participant’s account balance(s). Administrative fees will be waived if the total of a participant’s account balance(s) is below $5,000. Administrative fees will be capped at $55 per quarter, per participant.

Rebates of Fee ReimbursementsThe Dodge & Cox Stock fund has an annual administrative fee reimbursement of 0.10% included in its expense ratio. Ohio DC will rebate the fee reimbursement quarterly to the participant accounts invested in this option.

Investment decisions should not be made based on fee reimbursements. Before investing in a fund, carefully consider its objectives, risks, and charges and expenses. This information and other important facts can be found in the prospectus or fund profile at Ohio457.org. Read them carefully before investing.

NRM-3831OH.55 12/2019