Guide to SC ORP

The Optional Retirement Program (ORP or Plan) is a defined contribution plan for certain eligible employees of the state of South Carolina. The ORP offers an opportunity to help you save for retirement. Under a defined contribution plan the benefit at retirement is dependent on the amount contributed and the performance of the investments within a funding vehicle.

The Mutual Fund Select Portfolios (MFSP) refers to the mutual funds that are made available through MetLife and its affiliates (together, "MetLife") and is an approved funding vehicle for the South Carolina ORP. The MFSP investment platform is composed of a wide array of no-load and load-waived mutual funds from well-known fund families. There may also be a fixed saving option available. The ORP has selected 14 mutual funds from the MFSP.

You are eligible to participate in your Plan upon date of hire.

Employee contributions are made through payroll deduction. You must make pre-tax contributions of 6.50% of your eligible pay.

For employees with a Date of Membership after January 1, 1996, the calendar year 2008 compensation limit under IRS regulation 401(a)(17) is $230,000. Employees with a Date of Membership prior to that date must contribute on their total salary.

Catch-up contributions cannot be made to the Optional Retirement Program. You may be able to defer more of your income by purchasing another tax-deferred annuity contract or opening a 403(b) custodial account. To learn more about how you can defer taxes on more of your income, speak with your benefits administrator or your tax advisor.

One of the best features of the Plan is the Employer contribution. In addition to the 6.5% contribution you make to your plan, this year your Employer will contribute an amount equal to 5.0% of your pre-tax compensation.

"Vesting" refers to ownership of the money in your retirement account. Anything you contribute — including rollover or transfer contributions and any earnings on that money — is always 100% vested. You are 100% vested immediately on the value of your Employer's contributions.

If you have an existing qualified retirement plan account with a prior employer or a rollover IRA, you may transfer or rollover all or some of that account into your employer sponsored retirement plan on becoming a participant in the plan. By doing so, you avoid current income tax liability on the amount distributed. Moreover, your money can continue to accumulate on a tax-deferred basis.

You may choose from a range of funding options to direct your contributions. Your Plan offers 14 mutual funds to select from.

Mutual Fund Select Portfolios (MFSP) features a diversified selection of publicly available no-load or load-waived mutual funds from well-known fund managers covering a wide range of asset classes. MFSP offers the choice participants want along with the flexibility they need. MetLife Insurance Company of Connecticut also offers a Registered Fixed Account Option, called the Gold Track Select annuity contract, which provides a current interest rate.*

You may change your allocation among the funding options for your current account balance and your future contributions virtually anytime by visiting our web site at www.mlr.metlife.com or calling our toll-free number 1-800-543-2520.

*Interest rates will vary. The Gold Track Select variable annuity Registered Fixed Account Option provides current interest declared at MetLife Insurance Company of Connecticut's sole discretion. The result of all interest rates will never be less than 3 percent.

You can make unlimited transfers among the mutual funds. (Restrictions may apply. See the prospectus for details.)

Since your Plan is designed primarily to help you save for retirement, the IRS has placed restrictions on when money may be withdrawn from your account before you retire. You may withdraw money from your account under the following circumstances.

Retirement - In general, once you have reached age 59½, you may take distributions from your retirement account without a tax penalty.

Termination of Employment - You may receive all of your vested account value termination of employment. Additional requirements may apply.

Death - Any account balance that a participating employee has at death will be paid to his/her designated beneficiaries, as outlined in the Beneficiary Designation Form on file with your employer.

Your ORP Plan Document provides more details about making withdrawals from your Plan. To obtain a copy, contact your employer. Also, always consult your tax advisor or investment professional about the income tax consequences of any withdrawals.

Ordinary Federal Income taxes generally apply to withdrawals. Federal Income tax rules generally prohibit withdrawals prior to age 59½. Where these withdrawals are allowed, a 10% tax penalty may apply.

Hardship withdrawals are not permitted at this time.

Loans are not permitted at this time.

When you decide to receive income, usually when you retire, the ORP offers several choices (see limitations below):

• Lump sum payment.
• A series of monthly, quarterly, semiannual or annual payments under a systematic withdrawal program in an amount or percentage you select and that you may change or stop at any time. (Note that this is not a lifetime income annuity and you may outlive your account balance under this option.)
• A series of monthly, quarterly, semiannual or annual payments beginning at your required beginning date for the amount required under IRS minimum distribution regulations. (Note that this is not an income annuity arrangement and you may outlive your account balance under this option.)
• An irrevocable lifetime annuity payout that is guaranteed to pay for your lifetime or, if selected, for the joint lifetimes of you and another individual.
• An irrevocable annuity payout that makes payments for a guaranteed period you select, not to exceed your life expectancy.

Ordinary income taxes apply to withdrawals. Withdrawals before age 59½ are generally prohibited. Some exceptions apply.

Yes. An annual administrative fee of 25 basis points (0.25%) will apply to your State ORP assets. Each mutual fund has its own investment management fees and other expenses. The investor will pay the fees and expenses for any of the investment options selected. For more information regarding fees, please read each mutual fund prospectus carefully. You can also refer to the SCRS web site to see current fee information for each funding option, by vendor. Information is available in the ORP section of the site under "View investment product information provided by the four State ORP Providers."

Each quarter, you will receive a personal account statement with a detailed summary of all activity including: account transactions and history, ending account balance and vesting information. You may also access your account information virtually anytime directly over the phone or on the web by calling 1-800-543-2520 or logging onto www.mlr.metlife.com.

For more information regarding your Plan, please contact your employer. You may also contact the MetLife regional field office at 1-866-615-3212 ext. 1 to schedule an appointment with your MetLife Financial Services Representative.