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     Investment Funds

The Plan is intended to give you an opportunity to exercise control over the investment of the assets in your account. All amounts credited to your account under the Pension Plan will be invested at your direction in one or more investment funds provided by the Plan.

Each investment fund is different and has its own specific investment objective. It is up to you to decide in which of the investment funds you want to invest and how much of your Plan contributions and assets you want to invest in each one. The choice of how to invest is entirely up to you. You should review the available investment information carefully before you choose the investment fund or funds in which to invest the contributions made to the Plan on your behalf.

However, if you do not select an investment option for contributions to your account, any contributions made to your account are invested in the age appropriate Target Date Fund, which is the Plan’s default investment option.

Remember — BBT may add, eliminate, or otherwise change the investment funds offered under this Plan at any time. However, if it does so, participants will be notified of any change, and these fund options will be listed in your quarterly statements and in your online account.

Before investing in any investment fund, you should carefully consider the investment objectives and risks for that investment fund. In addition, you should from time to time review the earnings performance of the investment fund or funds you have selected. Information on the earnings performance of all available investment funds is available in your online account at www.brethrenpension.org.

Fund Choices

The Plan currently has 34 investment funds that are intended to help participants meet their financial goals for retirement. You may choose a different fund or combination of funds for both accumulations and new contributions. The performance of the fund or funds in which your accumulations and new contributions are allocated will directly affect the value of your account.

The following is a list of the fund options. A more detailed description of each fund is included in the Investment Offerings Brochure located on the BBT website at www.cobbt.org.

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Your Investment Strategy

Each of the BBT investment funds has advantages and disadvantages for you, depending on many personal factors, such as your age, the number of years until retirement, other investments or assets you possess beyond the Plan, and your ability to assume risk. You need to examine each investment fund in light of your individual concerns and investment goals. Fund selection is the responsibility of each participant. Questions about investment choices should be directed to a professional financial planner, or you may consider engaging with the Edelman Financial Engines services offered through your Brethren Pension Plan account.

Fund Management

BBT is responsible for the management of the investment funds. All funds are managed in accordance with BBT’s Investment Guidelines. If you are unsure which fund or funds are most appropriate for you, consult a professional financial planner, or consider engaging with the Edelman Financial Engines services offered through your Brethren Pension Plan account.

While BBT supervises the management of the Plan’s investment funds, investments are chosen and purchased by professional fund managers who have extensive experience managing retirement plan assets. The funds are comprised of separate accounts, with each account seeking a different investment objective, which allows for diversification. Overall performance objectives and the Brethren Values Investing socially responsible investment guidelines established by BBT in accordance with Church of the Brethren Annual Conference directives, guide the management of most Plan assets.

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Edelman Financial Engines services available through your Brethren Pension Plan account.

Units

The value of each fund is based on units. Units are similar to mutual fund shares and show the overall performance of each fund, including the effects of market fluctuations, earnings from interest and dividends, and expenses.

A change in the unit value changes the value of your Pension Plan account. These unit value changes are calculated on a daily basis.

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Investment Choice Procedure 

This section describes the procedures for making an election to invest contributions made on your behalf to the Plan. Note: You may allocate the investment of new incoming contributions differently from the way you allocate the investment of your accumulated contributions already in your Plan Account.

Investment of Incoming Contributions

All incoming contributions are invested in one or more of the investment funds, which you may designate in any combination of whole percentages. There is no minimum dollar amount that must be contributed to any fund, as long as you invest at least 1 percent of your contributions in each fund you select.

To select investment funds for incoming contributions, you must make your selections online at www.brethrenpension.org or by calling us at 866-723-0001.

If you do not select an investment option for contributions to your account, any contributions made to your account are invested in the age appropriate Target Date Fund, which is the Plan’s default investment option.

When employer and employee contributions are sent to the Pension Plan office —

• These contributions are deposited into the investment funds you selected and in the designated proportion.

• A deposit is converted to units at the unit value established on the first business day following receipt of the payment.

Investment of Accumulated Contributions

Accumulated contributions (accumulations) are contributions made to the Plan along with any earnings and/or losses on those contributions. All participants have two choices about how to manage their accumulated contributions —

• Leave the accumulations as originally allocated. • Reallocate the accumulations to one or more funds in any proportion.

Changing Funds/Allocations

There are no fees to change funds or allocations. To select different funds or change investment proportions or percentages for future contributions or accumulations, log into your account at www.brethrenpension.org. You can also request the changes by calling Northwest Plan Services at 866-723-0001. Your conversation will be recorded for accuracy, and you will receive a confirmation notice of the request.

Transfers and changes in fund selection for future contributions are effective the first business day following the request.

Although you are permitted to transfer all or a portion of your account among the investment funds offered by BBT, you cannot transfer any amounts out of a BBT investment fund to another investment fund not offered by BBT.

How to Choose Among Investment Funds

The investment funds you choose may depend on how you answer three questions:

1.How long will the money be invested? (What is your investment time horizon?)

2.How tolerant are you in seeing your account value decline in times when the markets have their inevitable pullbacks? (How tolerant are you of risk?)

3.How much money do you think you will need for retirement? (What is your investment goal?)

The answers to these questions can vary widely. The right investment choice for another person may not be the right choice for you. For example, if your investment time horizon is short (meaning that you will retire soon), or you are feeling a great deal of stress as a result of market value fluctuations, you may want to consider more conservative investment funds. However, if your investment goals (in terms of income needed in retirement) are high, and you are not planning to retire for a long time, you may want to invest more aggressively.

The choice of fund allocation is important, and you may want to consult a financial adviser to determine an appropriate asset allocation for your Plan investments. You may consider engaging with the Edelman Financial Engines services offered through your Brethren Pension Plan account.

Joining the Plan

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Plan Facts

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Glossary

Building financial security

Bettering the world

Together

Brethren Benefit Trust provides retirement benefits, health and welfare benefits, asset management, and financial advocacy to pastors, employees, and members of the greater Church of the Brethren community.

Since it began as the Pension Board in 1943, BBT has been called to serve its members and clients, and we are thankful for that opportunity.