Louisiana KeynotesLouisiana Public Employees Deferred Compensation Plan | Volume 20 Number 18 | Fall 2010

Questions?

Visit:

www.louisianadcp.com4

Call:

Baton Rouge Office

(225) 926-8082

or

KeyTalk®

(800) 701-82554

Things You Need to KnowWelcome to Things You Need to Know, the new feature that is here to help you learn things about saving and planning that are crucial to your success. This issue’s topic is:

STAY IN THE PLANDid you know that when you are no longer a public employee you don’t have to move your account? It can stay right where it is and you can continue to use the services like website, phone numbers and educational representatives for as long as you like.

In fact, there might be some real financial reasons to consider leaving your account with the Plan. If you move your assets to a brokerage account, you could pay new, possibly higher fees and commissions. By leaving your account with the Plan, you will continue to enjoy the low fees and staff of people who are here to help you.

Are you considering moving your account? If so, call the Baton Rouge office at (225) 926-8082 to discuss this Plan’s fees and services. It is important to compare all of your options. After all, it’s your money, and you worked hard for it!

Enhancements to the Plan in November

The Profile Funds—Conservative, Moderate and Aggressive—will be replaced by BlackRock LifePath® Target Date Funds on November 22, 2010. For more information on the new investment options, read this newsletter and see the accompanying letter in this statement.

National Save for Retirement Week

This year, National Save for Retirement Week (NS4RW) is October 18 - 22. Have a Great-West Retirement Services® (Great-West) Account Executive review your Louisiana Public Employees Deferred Compensation Account. Visit the website at www.save4retirement.net for more information or contact the Baton Rouge office at (225) 926-8082 or (800) 937-7604 and ask for an Account Executive. Representatives of GWFS Equities, Inc. are not registered investment advisers, and cannot offer financial, legal or tax advice. Please consult with your financial planner, attorney and/or tax adviser as needed.

Phone number changeIf you live outside of the Baton Rouge area, please be advised that effective March 31, 2011, we will

be discontinuing the toll-free number (800) 345-4699. You may continue to call our office — toll free by dialing (800) 937-7604.

Contributions Participants are responsible for monitoring their contributions and limits. Under normal circumstances, the limits are $16,500 for a participant under 50 years of age and $22,000 for a participant 50 or more years of age. Call the Baton Rouge office at (225) 926-8082 to review the amount you have contributed year-to-date or to make changes to your deferral amount.

If you are a State of Louisiana employee

The August 13, 2010, payroll contribution to Deferred Compensation was entered one business day later than usual. Account adjustments were made to all affected participants. If you have questions, please contact your Account Executive for more information.

1. What is a target date retirement fund? Target date funds1 are diversified2 investment options containing stocks and bonds that change their asset allocation over time to become more conservative as you near retirement. They are designed to provide an age-appropriate mix of long-term appreciation and capital preservation and are adjusted based on the number of years left until the fund’s target date. The funds provide a professionally allocated mix from your first days in the Plan all the way through retirement. This slow transition of the fund’s asset allocation from more aggressive markets to more conservative markets is often referred to as a fund’s “glide path.”

2. Why should I consider investing in a target date fund? Researching and selecting investments can be one of the most challenging parts of retirement planning. It’s important to find the right mix of investments that can help you balance risk and potential return. What makes the process even more challenging is that the mix of investments that’s right for you today may not be right five, 10 or 20 years down the road. Now your Plan has an investment solution that can help: the new BlackRock LifePath® target date funds. The new target date funds in

your Plan are professionally managed by people with the knowledge and experience to navigate the complex world of investing. These people, called fund managers, rebalance these diversified funds periodically to ensure they maintain their objective based on your estimated retirement date.3

Selecting a LifePath portfolio also helps you avoid common investment pitfalls:

• Buying high and selling low

• Chasing funds with impressive short-term performance

• Over-allocating to stable value or other low risk assets early in the retirement savings process

• Failing to adjust the allocation as retirement gets closer or as market conditions change

The BlackRock LifePath funds are designed so that you can invest in a fund whose target date is close to your expected retirement year. Each LifePath portfolio’s investment strategy is based on a unique time horizon and an appropriate level of risk for that time frame. The portfolio can invest in any or all of six major asset classes to help ensure that the fund is properly diversified. To understand diversification, think about the age-old adage: “Don’t put all your eggs in one basket.”

Continued on back

Target Date Investments: Frequently Asked Questions

1 Target Date Funds are subject to the risks associated with the underlying investments depending on their asset allocation and target year. Please consult a fund’s prospectus and fund data sheets for more information.

2 Diversification of an investment portfolio does not ensure a profit and does not protect against loss in declining markets.3 Rebalancing of an investment portfolio does not ensure a profit and does not protect against loss in declining markets.4 Access to KeyTalk and the website may be limited or unavailable during periods of peak demand, market volatility,

systems upgrades/maintenance or other reasons.

Core securities (except those offered through the self-directed brokerage option), when offered, are offered through GWFS Equities, Inc., a wholly owned 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 and its subsidiaries and affiliates. Not intended for Plan Sponsors whose situs is in New York. Great-West Retirement Services®, KeyTalk®, and the Partnership Logo® and its design elements are registered trademarks of Great-West Life & Annuity Insurance Company. Brokerage services provided by TD AMERITRADE, Division of TD AMERITRADE Inc., member FINRA/SIPC. TD AMERITRADE is a trademark jointly owned by TD AMERITRADE IP Company, Inc. and The Toronto-Dominion Bank. (C)2010 TD AMERITRADE IP Company, Inc. All rights reserved. Used with permission. Additional information can be obtained by calling (866) 766-4015. TD AMERITRADE and GWFS Equities, Inc. are separate and unaffiliated. ©2010 Great-West Life & Annuity Insurance Company. All rights reserved. Form# CB1029N (09/10) PT112122

Each LifePath allocation evolves as it approaches the target year. In the early years, when investors may have small balances and seek to maximize returns, the fund’s asset allocation is largely focused in capital growth asset classes.

As the portfolio gets closer to the target year, the fund gradually moves from holding more equities to holding more fixed income assets to help protect the accumulated value of the account. When each LifePath Fund reaches its target year and thus its most conservative investment mix, it will then be blended into the Target Date Retirement Fund. This fund, which focuses on maintaining value and producing income, is designed specifically for people very near or in retirement, with a mix of approximately one-third in stocks and two-thirds in bonds and money market instruments.

It is important to note that while some “near dated funds” (such as the LifePath 2015 Fund and the LifePath Retirement Fund) will have much less invested in stocks than the “far dated funds” (like the 2055 Fund), they will still contain meaningful exposure to potentially volatile equity investments in order to provide for some level of capital appreciation throughout retirement and to help manage the risk of outliving your retirement savings. The date in a Target Date Fund represents an approximate date when an investor would expect to start withdrawing their money or when an investor expects to retire. The principal value of the funds is not guaranteed at any time, including the target date.

3. Should I invest in more than one target date fund? No. Each target date fund is designed around a specific time frame and is considered well-diversified. Because each fund is fully diversified, there are no additional diversification benefits to be gained by combining multiple target date funds.

4. Should I invest in both a target date fund and other investment options offered through my Plan? Probably not. The target date funds are designed to be a complete solution. If you choose other investment options in addition to a target date fund, you will impact the overall asset allocation of your account, which could lead to unintended consequences (such as being overweight in a particular asset class).

5. How do I decide which LifePath Fund is appropriate for me? Selecting a LifePath Fund is easy. Each one has a year in its name—just pick the fund closest to when you might retire AND start withdrawing your savings. For example, if you think you’ll retire around 2019, you might select the LifePath 2020 Fund. It’s that easy.

6. Why are the Profile funds being eliminated? The Deferred Compensation Commission strives to provide members with quality, low-cost options and services and continually looks to enhance the Plan. Many studies have shown that Plan participants make an initial investment selection and then rarely change that choice. The LifePath target date funds help participants overcome this inertia by automatically shifting the investment mix over the course of a participant’s career. Risk-based funds such as the Profile funds do not do this. The LifePath portfolios will offer a more simplified solution for maintaining an appropriately diversified portfolio throughout one’s career, and at a lower cost than the current Profile funds.

7. What happens if I already own a Profile fund? The Profile funds will be eliminated on November 22, 2010, and if you hold a Profile fund on that date, it will be automatically mapped to the appropriate LifePath Fund based on your date of birth and an expected retirement age of 65.

You are encouraged to review your investment choices to make sure that the new target date portfolios are right for you. Please refer to the Plan’s website at www.louisianadcp.com for more information on the available options in the Plan.

8. What is a default fund option? A default fund is the investment you are “automatically” invested in if you take NO action upon enrollment and do NOT personally select your investments. The default option is intended to be a “Qualified Default Investment Alternative” (QDIA) as defined under the Employee Retirement Income Security Act of 1974 (“ERISA”). The State of Louisiana Deferred Compensation Commission, having taken advice from the Plan’s investment consultant, has selected a default option for new participants joining the Plan that complies with the Department of Labor’s guidance on QDIAs. The Department of Labor regulation provides that the default option be appropriate as a single investment capable of meeting a worker’s long-term retirement savings needs.

9. What is the NEW default fund? The new LifePath target date funds will be the new default investment in your fund lineup, which means that new participants who do not elect a fund option will be automatically invested in a BlackRock LifePath target date fund based on their date of birth. In the future, participants enrolling for the first time who do not make an investment election will be put into the appropriate target date fund.

10. What if I did not select my investments and I was defaulted to the Managed Account? Will my investment be automatically changed? Your funds will remain invested in the Managed Account until you direct otherwise. You may transfer amounts invested in a default fund to other investment options at any time and without incurring financial penalty. However, the value of your account at the time of transfer is based on current market value and is subject to any gains or losses.

11. What is the difference between the new target date funds and the funds that are being replaced, the Profile funds? Target date funds are a diversified mix of investments that will change over time. The time horizon reflects each fund’s underlying investment strategy, and the funds are managed with a goal of being more conservative over time based on the participant’s age. Profile funds are a diversified mix of investments that will NOT change over time. The allocation to equities (stocks) will not decrease over time as participants get closer to retirement.

12. How do I know if I am in a Profile fund that is being automatically mapped? The names of the funds are Conservative Profile, Moderate Profile and Aggressive Profile. You may check your quarterly statement, call KeyTalk at (800) 701-8255, or view your account online at www.louisianadcp.com.4

Please consider the

investment objectives,

risks, fees and expenses

carefully before investing.

For this and other

important information,

you may obtain

prospectuses for mutual

funds, any applicable

annuity contract and

the annuity’s underlying

funds and/or disclosure

documents from your

registered representative.

For prospectuses related

to investments in your

Self-Directed Brokerage

(SDB) account, contact

TD AMERITRADE at

(866) 766-4015. Read

them carefully before

investing.

Target Date Investments FAQ (continued from page 1)