Monitoring and Making Changes to Your Investments
Because your investment objectives and financial needs change over time, it is important that you have the flexibility and tools to review your account activity and modify your investment periodically.
Fund Transfers and Exchanges
You may log onto NetBenefits℠ at www.401k.com or contact Fidelity's RSP Service Center by calling 877-PGE-401K (877-743-4015) to transfer (exchange) money you have accumulated in the Plan among the various Tier 1 and Tier 2 investment fund options offered through the Plan, as well as into the Self-Directed Account (if you have previously established a Fidelity BrokerageLink account). Prior to initiating an exchange, it is recommended that you carefully review the relevant investment fund descriptions to understand the investment fund characteristics and any restrictions on the frequency of exchanges.
Although matching employer contributions are automatically invested in the PG&E Corporation Stock Fund, you may reallocate matching employer contributions and accumulated earnings thereon to another investment fund or funds at any time once they have been credited to your account, subject to the prohibition against insider trading (see "PG&E Corporation Stock Fund Exchanges" for more information).
You are not allowed to make more than one exchange into or out of the funds listed below within the specified restriction period:
Fund
Restriction Period
RSP Emerging Markets Enhanced Index Fund
30 day restriction
RSP International Stock Index Fund
30 day restriction
RSP World Stock Index Fund
30 day restriction
Exchanges among the investment funds may be made on a daily basis, in increments of at least 1% of the value of the source investment fund. Exchanges completed before 4 p.m. Eastern time are effective and valued at the close of the NYSE that day. Exchanges completed after the close of the NYSE, normally 4 p.m. Eastern time, or on non-business days, will receive the next available closing price. The amount you are transferring will be credited to your new investment fund choice at the unit (or share value) closing price.
Fund Transfers and Exchanges Involving Self-Directed Account Investments
You cannot make direct exchanges of fund balances invested in any of the funds offered in Tiers 1 and 2 of the Plan to mutual funds available through the Self-Directed Account. Fund balances exchanged from any of the Tier 1 or Tier 2 Core Funds to the Self-Directed Account are deposited as cash into a cash reserve account in the Self-Directed Account. These cash reserve assets can then be used, at your direction, to purchase mutual funds available through the Self-Directed Account. Any fees associated with such transactions are paid from the cash reserve account. Participants wishing to reinvest assets held in the Self-Directed Account into the RSP Tier 1 and Tier 2 Core Funds can only make direct exchanges from a Self-Directed Account cash reserve account to the RSP Money Market Fund. Once such assets are exchanged into the RSP Money Market Fund, they can be exchanged into the other funds available under Tiers 1 and Tier 2, subject to the restrictions discussed above.
Most exchanges between Tier 1 and Tier 2 Core Funds and mutual funds within the Self-Directed Account require a three (3) business day settlement period. You must speak to a BrokerageLink representative to exchange from you must first liquidate mutual fund holdings within BrokerageLink, which settle to the Self-Directed Account cash reserves. You must call Fidelity back after each settlement to transfer funds from the Self-Directed Account cash reserve account back to the RSP Money Market Fund. Any trade-related expenses (commissions or other fees) and realized loss or gain will be borne by your Self-Directed Account.
Fidelity will liquidate and transfer assets out of the Self-Directed Account to the extent necessary to correct certain problems, including, for example, assets that have been deposited in the Self-Directed Account via an unauthorized channel. An "unauthorized channel" means in any manner other than through a payroll deduction or the exchange of one Plan investment for another. In the event of a correction, Fidelity will look to the Self-Directed Account's cash reserve account first. If that account does not contain sufficient assets, Fidelity will place sell trade orders with respect to your Self-Directed Account investments. Securities will be sold (liquidated) on a last in-first out basis, and be limited to the number of shares necessary to correct the problem.
Fidelity will transfer assets into the Self-Directed Account to the extent necessary to correct certain problems, including, for example, a negative balance in the Self-Directed Account's cash reserve account due to an unsecured debit or overdraft, or assets that have been withdrawn from the Self-Directed Account via an unauthorized channel. An "unauthorized channel" means in any manner other than through the Plan's recordkeeping system. In the event of an unauthorized channel withdrawal, Fidelity will contact you and request that the withdrawn assets be returned to Fidelity. Upon return, those assets will be re-deposited into the Self-Directed Account's cash reserve account. In the event of an unsecured debit or overdraft, Fidelity will look first to your investments in Tiers 1 and 2. If Tiers 1 and 2 do not contain sufficient assets, Fidelity will place sell trade orders with respect to your Self-Directed Account investments.
Securities will be sold (liquidated) on a last in-first out basis, and be limited to the number of shares necessary to correct the problem.
There may be restrictions or trading fees on some funds in the Self-Directed Account. You will need to contact Fidelity's RSP Service Center by calling 877-PGE-401K (877-743-4015) for more information on restrictions.
With respect to exchanges into the Self-Directed Account, if a request is confirmed before the close of the market (generally 4 p.m. Eastern time on non-holiday weekdays), 100% of the exchanged amount will be available for trading on the next business day. However, if the exchange is initiated through a BrokerageLink representative (i.e., not through NetBenefits℠), 90% of the assets will be immediately available to trade through a BrokerageLink representative.
PG&E Corporation Stock Fund Exchanges
Trades into or out of the PG&E Corporation Stock Fund are permitted. However, if your are aware of "inside" information (i.e., information that would be important to an investor, but which has not yet been made public), you are prohibited by federal securities laws and PG&E Corporation policy from trading in the PG&E Corporation Stock Fund until the information has been publicly disseminated.
Executive officers of PG&E Corporation and members of the Board of Directors of PG&E Corporation are subject to additional restrictions with respect to transactions involving the PG&E Corporation Stock Fund in order to ensure compliance with section 16 of the Securities Exchange Act of 1934.
Fidelity will process requests to sell PG&E Corporation Stock Fund units for exchanges, withdrawals, distributions, and loans provided that there are enough short-term investments in the Fund for liquidity. In the unusual event that there are not enough short-term investments for liquidity, requests to sell units will be suspended. As long as the PG&E Corporation Stock Fund remains open and participants have not cancelled the transaction, their requests to sell units will be processed, generally on a first-in-first-out basis, as liquidity is restored in the Fund. Loans and withdrawals will be given priority over exchanges. If a transaction involves a suspended sale of PG&E Corporation Stock Fund units, the entire transaction will be suspended, including the corresponding purchase transaction. Participants will receive the net asset value on the processing date.
Participants who have requested transactions requiring the sale of PG&E Corporation Stock Fund units will need to check their account the following business day to determine whether their request has been processed.
Investment and Advisory Services
If you need professional advice on how to invest contributions to the Plan, you should seek assistance from a financial consultant or tax advisor. You may also obtain investment advisory assistance through the services provided by Financial Engines and Fidelity.
These services are provided for informational and educational purposes only. Keep in mind that investing involves risk. The value of your investment will fluctuate over time and you may gain or lose money. Always consider carefully the investment objectives, risk, charges, and expenses of any investment option before investing.