Metropolitan Water District of Southern California (MWD) 401(k) Retirement Plan Features and Highlights

Read these highlights to learn more about your Plan. If there are any discrepancies between this document and the Plan Document, the Plan Document will govern.

About the 401(k) PlanA 401(k) plan is a retirement savings plan designed to allow eligible employees to supplement any existing retirement and pension bene�ts by saving and investing before-tax dollars through a voluntary salary contribution. Contributions and any earnings on contributions are tax-deferred until money is withdrawn.

Eligibility RequirementsAll employees of MWD, after attaining 1,044 consecutive hours of service, you are eligible to participate in the 401(k) Plan.

EnrollmentYou may enroll by completing an enrollment form and returning it to Metropolitan HR Bene�ts Unit.

CompensationCompensation is considered to mean the total of all cash compensation payable by the District during the Savings Plan Year to or for the bene�t of an Employee in return for services and any deemed compensation under Section 414(u)(7) of the Code.

2015 Contribution Limits WCombined maximum limit of 100% of your compensation or $18,000, whichever is less for all retirement contributions. WParticipants turning age 50 or older in 2015 may contribute an additional $6,000.

Employer ContributionsYour employer matches 100% of your contribution up to the �rst 4.5% of included compensation.

Vesting ScheduleVesting refers to the percentage of your account you are entitled to receive upon the occurrence of distributable events. Your contributions, your employer’s matching contributions and any earnings are always 100% vested (including rollovers from previous employers).

Investment OptionsA wide array of core investment options are available through your Plan. Each option is explained in further detail in your Plan’s fund fact sheets at www.tiaa-cref.org/mwd.

In addition to the core investment options, a self-directed brokerage account is available.1 The brokerage account allows you to select from numerous investment options outside the core fund lineup for additional fees. The brokerage account is intended for knowledgeable investors who acknowledge and understand the risks associated with the investments contained in the brokerage account.

Deferrals, Transfers and Allocation ChangesTo make changes to your account, go to www.tiaa-cref.org/mwd and log in to your account. Once in your account, you can move all or a portion of your existing balances among investment options (subject to Plan rules) and change how your payroll contributions are invested.

RolloversOnly Plan approved balances from an eligible governmental 457(b), 401(k), 403(b) or 401(a) plan or an Individual Retirement Account (IRA) may be rolled over to the Plan.

1 The Brokerage Account option is available to participants who maintain both a legitimate U.S. residential address and a legitimate U.S. mailing address. Certain securities may not be suitable for all investors. Securities are subject to investment risk, including possible loss of the principal amount invested.

WithdrawalsQualifying distribution events are as follows:

WRetirement WPermanent disability W Financial hardship (as de�ned by the Internal Revenue Code and your Plan’s provisions) WSeverance of employment (as de�ned by the Internal Revenue Code provisions) WAttainment of age 59½ WDeath (your bene�ciary receives your bene�ts) W Transfer to purchase service credit

Ordinary income tax will apply to each distribution. Distributions received prior to age 59½ may also be assessed a 10% early withdrawal federal tax penalty. Refer to your Summary Plan Description for more information about distributions.

Plan FeesRecordkeeping or Administrative Fees: The annual administrative expense is 0.06% of your total account balance, including self-directed brokerage balances. This equates to a $6 annual fee for every $10,000 you have invested in the Plans. The 0.06% expense includes both a TIAA-CREF fee of 0.045% and a Metropolitan plan fee of 0.015% and is used to provide services to the Plans.

Distribution Fees:There are no Plan distribution fees.

Investment Option Fees:Each investment option has an investment management fee that varies by investment option. These fees are deducted by each investment option’s management company before the daily price or performance is calculated. Fees pay for trading of securities within the investment options and other management expenses.

Some funds may impose redemption or other non-recurring fees on certain transfers, redemptions or exchanges. Multi-asset class funds such as the Vanguard Target Retirement date funds, are generally subject to a fund operating expense at the fund level, as well as fund operating expenses of each underlying fund in which they invest. For more information, please refer to the fund prospectus. Vanguard Target Retirement date funds are subject to the risks of the underlying funds. All mutual funds are subject to market and other risk factors.

If you open a brokerage account, you will be charged a commission on all transactions and other account-related fees in accordance with the TIAA-CREF Commission and Fee Schedule. Please review the TIAA-CREF Brokerage Account Customer Agreement using the following link: www.tiaa-cref.org/public/pdf/forms/SDA_Customer_Account_Agreement.pdf. The Agreement contains important information about the Brokerage Account as well as the TIAA-CREF Commission and Fee Schedule. Other fees and expenses that apply to a continued investment in the funds are described in the fund’s current prospectus.

LoansYour Plan allows you to borrow the lesser of $50,000 or 50% of your total vested account balance. There are two types of loans that are available, General Purpose Loan and Primary Residence Loan. The minimum loan amount is $1,000 and you have up to �ve years to repay your general purpose loan—up to 15 years if the money is used to purchase your primary residence. There is a $75 origination fee for a general purpose loan and a $125 origination fee for a primary residence loan. Additionally, an administrative fee of $20 per year/per loan will be assessed at the end of the calendar year if there is a loan balance. You may have two outstanding loans per plan at a time.

How Can I Get More Information? Visit the website at www.tiaa-cref.org/mwd or call 800 842-2252, Monday to Friday, 5 a.m. to 7 p.m., or Saturday, 6 a.m. to 3 p.m. (PT). The website provides information regarding your Plan, as well as �nancial education information, �nancial calculators and other tools to help you manage your account.

409022-581401 (09/15)

C26611

Investment, insurance and annuity products are not FDIC insured, are not bank guaranteed, are not bank deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value.

You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877 518-9161 or go to www.tiaa-cref.org/mwd for current prospectuses that contain this and other information. Please read the prospectuses carefully before investing.TIAA-CREF Individual & Institutional Services, LLC, Teachers Personal Investors Services, Inc., and Nuveen Securities, LLC, Members FINRA and SIPC, distribute securities products. Brokerage Services are provided by TIAA-CREF Brokerage Services, a division of TIAA-CREF Individual & Institutional Services, LLC, Member FINRA/SIPC.©2015 Teachers Insurance and Annuity Association of America-College Retirement Equities Fund (TIAA-CREF), 730 Third Avenue, New York, NY 10017