V E RY FA L L C H I L D R E N A N D T H E I R PA R E N T S C A N B E S E E N

at a local park playing and watching football. Undistracted by rain,sleet, mud, and screaming parents, the players battle back and forth,

trying to get the ball to the goal.With the financial markets in upheaval, it may be tempting to run for

cover and stop investing for the future. But like the football players, it isimportant to keep focused on your goals: 1) saving money for the future,2) reducing taxes, and 3) long-term investing for greater growth potential.

4th Quarter 2008

A n i n f o r m a t i o n a l b u l l e t i n p u b l i s h e d q u a r t e r l y f o r m e m b e r s o f t h e U t a h R e t i r e m e n t S y s t e m s

,, Utah Retirement Systems 401(k), 457, and IRAs

U T A H

R E T I R E M E N T

S Y S T E M S

Salt Lake City Office401(k), 457, and IRAs

560 East 200 South

Suite 200

Salt Lake City, Utah 84102

Phone 801-366-7720

800-688-401k

Fax 801-366-7445

800-753-7445

Southern UtahBranch Office

165 North 100 East #9

St. George, Utah 84770

435-673-6300

800-950-4877

www.urs.org

Keep Your Eye On the Goal

E

Core Funds Asset Allocation StrategiesIncome Fund

Short Horizon (conservative)Bond FundLarge Cap Stock Value Fund Balanced Fund (moderate)Large Cap Stock Index FundLarge Cap Stock Growth Fund Medium Horizon (moderate)International Fund Long Horizon (aggressive)Small Cap Stock Fund

Continued on back.

Conservative

Aggressive

Dollar Cost AveragingAn important concept in the investment

world is called dollar cost averaging. This con-cept marries the process of consistently settingaside money with taking the guess work andemotion out of investing.

The first step is to establish a pattern ofsaving a portion of your income every paydayinto a tax-favored plan. The 457 and 401(k)plans allow you to avoid paying taxes now, andthe Roth IRA allows you to avoid paying taxesin the future. Which plan you use depends onwhether you think your tax rate is higher nowor will be higher during your retirement years.Regardless of which plan you choose, your goalshould be to establish the discipline of savingmoney.

The second step is to set up your investmentstrategy. Your asset allocation mix should reflectyour investment time frame (long term vs. short

term) and your appetite for risk. Remember,a declining market can be a good thing fora long-term investor. No one has ever gottenwealthy buying into the stock markets wheninvestments are expensive. In fact, the long-term investor should be investing more money,not less, during a cycle of declining markets!

Suitable Asset Allocation

Investment principles revolve around thetrade-off between risk and reward. Sometimeswe want the reward side of the equation butforget about the risk. The current marketdecline has been a sharp reminder that it isimportant for us to periodically review ourasset allocation strategy and make sure it isappropriate for our personal circumstances.If you have time on your side, regularlydepositing money into an aggressive mixof stock funds can eventually return large

Combined EmployeePlan Employee Employer Total Catch-up Restrictions

401(k)/ $16,500 $49,000 $49,000 $5,500 Must be coordinated with403(b) Age 50+ other 401(k) & 403(b) plans

457 $16,500 $16,500 $16,500 $5,500 Must be coordinatedAge 50+ with other 457 plans.

$16,500 Special catch-up withinSpecial 3 years of retirement.Catch-up

IRAs Year Limit Age 50+ Catch-up Deadline For Contributions

2008 $5,000 $1,000 April 15, 2009**2009 $5,000 $1,000 April 15, 2010**

*Contributions to each plan are also limited to 100% of compensation.**Prior year contributions must be made directly to Utah Retirement Systems by the member.

IRS Contribution Limits for 2009

URS Savings Plans Quarterly Bulletin4th Quarter 2008

2009StockMarketHolidays

The New York StockExchange will be closed onthe following days duringthe 2009 calendar year:

New Year’s DayJanuary 1

Martin LutherKing, Jr. Day

January 19

Washington’sBirthday/

Presidents’ DayFebruary 16

Good FridayApril 10

Memorial DayMay 25

Independence DayJuly 3 (observed)

Labor DaySeptember 7

Thanksgiving DayNovember 26*

ChristmasDecember 25*

*The NYSE Trading Floorwill close early on

Friday, November 27, 2009(the day after Thanksgiving);

and Thursday,December 24, 2009.

Transfers between investmentoptions cannot be made on

market holidays. This and otherinformation about the New YorkStock Exchange can be found at

www.nyse.com

T HE CONTRIBUTION LIMITSfor 2009 have been anounced; some

changed and some remained at last year’slevels. The 401(k) and 457 personal deferralamounts have increased from 2008, whichmeans you may defer up to $16,500 intoeach of these plans. The catch-up amount alsoincreased to $5,500. This means, people age50 or older can contribute $22,000 during2009. Remember, these limits are for eachplan; therefore, a participant age 50 or oldermay personally contribute a combined total of$44,000 to both the 401(k) and 457 plans.

The combined 401(k) limit, for employernon-elective (or matching) contributions andemployee elective deferrals, has increased to$49,000.* These limits are typically onlyreached when someone retires and contributesunused annual or sick leave into his/her plan.Please note: for participants who have a 403(b)plan (also known as tax sheltered annuity (TSA)accounts — for education employees), any con-

tributions to 403(b) accounts must be includedwith 401(k) contributions when figuring maxi-mum contribution limits.

The individual retirement account (IRA)limits remain the same for 2009 at $5,000 forall IRAs combined. The age 50+ catch-upamount remains at $1,000. So, someone age50 or older can contribute $6,000 to his/herIRA. If someone has multiple IRAs, such asa Roth and traditional, or multiple accountswith several financial institutions, the limitis $5,000 for all IRAs combined ($6,000 ifover age 50).

Important tax tips to remember: IRA con-tributions for the 2008 tax year may be madedirectly to a URS Roth or traditional IRA upto April 15, 2009. Traditional IRA contribu-tions may also be tax deductible, dependingon your modified adjusted gross income(MAGI). See a tax advisor or IRS Publication590, Individual Retirement Arrangements, foradditional information.

rewards. However, if you have limited time(or resources) to wait out a market decline, aconservative approach may be more appropri-ate. The chart on the front shows the URScore investment options, ranked by risk.

Don’t Stop Saving

It’s alarming when an individual stopssaving money because he or she is frightenedby a falling stock market. If the market makes

you uncomfortable, you can invest in moreconservative funds. However, each year makeit a habit to review your investments and re-evaluate whether you can be more aggressive(for higher potential returns) or if you shouldbe more conservative (for safety of principal).Our asset allocation strategies (see chart onfront) can help if you want a diversified port-folio that’s rebalanced periodically.

Keep Your Eye On the Goal (cont.)

T