John Hancock Retirement Plan Services P.O. Box 600, Buffalo, NY 14201 Continued.. 408(b)(2)92251328928802 David Brock Plan Trustee THE TRUSTEES OF BEVEN & BROCK 401(K) PLAN 99 SOUTH LAKE AVE. SUITE 100 PASADENA, California , 91101 Jun/23/2012 Dear David Brock Information about your Contract as required by the disclosure requirements under ERISA §408(b)(2) John Hancock Life Insurance Company (USA) (John Hancock) is pleased to supply you with information about your Contract as required by the new disclosure requirements under Section 408(b)(2) of the Employee Retirement Income Security Act of 1974 (ERISA). This requirement was introduced by the Department Of Labor to help plan fiduciaries better understand the services and fees provided to their plan by their service providers. The attached report is intended for delivery to your Plan's Responsible Plan Fiduciary, which is defined in the regulation as the fiduciary who has the authority to cause your Plan to enter into the Group Annuity Contract with John Hancock. Please note that if you are not the Plan's Responsible Plan Fiduciary, we ask that you kindly forward this information to the individual who serves in that capacity. The report supplements the information contained in your Contract documents, and does not provide for any new fees or services under your Contract with John Hancock. For full details on the services, fees and compensation received by John Hancock in connection with your Plan's investment in the Contract, see the Contract documentation that had been previously provided to you as well as our Plan Sponsor website. Certain information is updated monthly and continuously available to registered users on the Plan Sponsor website on the Regulatory Disclosures page in the 408(b)(2) section (Updates to 408(b)(2) Disclosure Information). It is your obligation to periodically access the website and review the updated information at least monthly. In addition, you have a right to request a paper copy of the updated information shown on the website to be provided to you by calling your John Hancock representative. Other changes will be disclosed to you within the time period required by the regulation. In addition, investment information that you are required to provide to your eligible employees and beneficiaries with the right to direct investments of their accounts is contained in a separate document (Investment Comparative Chart). This document is continuously available on the same Regulatory Disclosure page under the 404a-5 section. The attached report only provides the required information as it relates to John Hancock. Thus, if your plan has retained other service providers who are also subject to this new disclosure requirement, you may want to ensure that you have received the required disclosures from these other service providers. In addition, if you have authorized fee
Transcript
John Hancock Retirement Plan ServicesP.O. Box 600, Buffalo, NY 14201
Continued..
408(b)(2)92251328928802
David Brock Plan Trustee THE TRUSTEES OF BEVEN & BROCK 401(K) PLAN 99 SOUTH LAKE AVE. SUITE 100PASADENA, California , 91101
Jun/23/2012
Dear David Brock
Information about your Contract as required by the disclosure requirements under ERISA §408(b)(2)
John Hancock Life Insurance Company (USA) (�John Hancock�) is pleased to supply you with information about yourContract as required by the new disclosure requirements under Section 408(b)(2) of the Employee Retirement IncomeSecurity Act of 1974 (ERISA). This requirement was introduced by the Department Of Labor to help plan fiduciariesbetter understand the services and fees provided to their plan by their service providers.
The attached report is intended for delivery to your Plan's Responsible Plan Fiduciary, which is defined in the regulationas the fiduciary who has the authority to cause your Plan to enter into the Group Annuity Contract with John Hancock.Please note that if you are not the Plan's Responsible Plan Fiduciary, we ask that you kindly forward this information tothe individual who serves in that capacity.
The report supplements the information contained in your Contract documents, and does not provide for any new feesor services under your Contract with John Hancock. For full details on the services, fees and compensation received byJohn Hancock in connection with your Plan's investment in the Contract, see the Contract documentation that hadbeen previously provided to you as well as our Plan Sponsor website.
Certain information is updated monthly and continuously available to registered users on the Plan Sponsor websiteon the Regulatory Disclosures page in the 408(b)(2) section (�Updates to 408(b)(2) Disclosure Information�). It is yourobligation to periodically access the website and review the updated information at least monthly. In addition, youhave a right to request a paper copy of the updated information shown on the website to be provided to you bycalling your John Hancock representative. Other changes will be disclosed to you within the time period required bythe regulation.
In addition, investment information that you are required to provide to your eligible employees and beneficiarieswith the right to direct investments of their accounts is contained in a separate document (�Investment ComparativeChart�). This document is continuously available on the same Regulatory Disclosure page under the 404a-5 section.The attached report only provides the required information as it relates to John Hancock. Thus, if your plan hasretained other service providers who are also subject to this new disclosure requirement, you may want to ensure thatyou have received the required disclosures from these other service providers. In addition, if you have authorized fee
payments to be made to these other service providers under your Contract, it is your responsibility to ensure that theongoing fee payments to be made by John Hancock to such parties do not give rise to prohibited transactions. If youbecome aware that any such payments should cease, you should notify us promptly in writing. If you do not do so, thefee payments will continue to be made, and John Hancock cannot be held responsible to the plan for them.
If you have any questions regarding the information provided in the attached report, contact your John Hancock ClientAccount Representative toll-free at 1-800-333-0963.
Sincerely,
Hilary QuosaiVice President, Client ServicesJohn Hancock Retirement Plan Services
Contract #: 92251As of Jun/25/2012
Page 1 of 3 John Hancock Life Insurance Company (U.S.A.) is herein referred to as "John Hancock". FOR USE WITH RESPONSIBLE PLAN FIDUCIARY. NOT FOR GENERAL PUBLIC USE.
ERISA §408(b)(2) Supplemental DisclosureN1
THE TRUSTEES OF BEVEN & BROCK 401(K) PLAN
Section 1: John Hancock Recordkeeping Services Available Under Contract
Our recordkeeping platform provides your plan with a broad range of services, as described below. John Hancock is not a fiduciary with respect to these servicesexcept as described in the Important Information section of this document.N1
1. SERVICES TO SUPPORT PLAN DESIGN
A well designed plan reflects the unique needs of your organization. Your Plan Consultant (TPA) works with you to ensure those needs are met, and theservices listed here are provided to assist you. Speak with your TPA to ensure your plan document permits these services.
• Automatic enrollment and contribution increaseservices
• Qualified Default Investment Alternatives
• Vesting and Eligibility Calculation services• Roth money type processing
• Hardship withdrawal processing
2. RETIREMENT READINESS
The following services are provided to help participants realize their retirement goal.
• Participant Website features, such as accountinformation, ability to perform transactions(loans, withdrawals, inter-account transfers), goaltracking, investment and allocation options
• Plan highlights information
3. INVESTMENT SELECTION AND MONITORING
The following services assist you and your advisor in selecting and monitoring investment choices for your plan.
• A broad range of investment options, includingasset allocation portfolios
• Fiduciary Standards WarrantyN2
• Educational resources• Ongoing investment platform selection and
monitoring• Investment Policy Statement resources
4. MANAGING ADMINISTRATION WITH DEDICATED SERVICE
John Hancock provides a dedicated service representative and a recordkeeping system that simplifies plan administration.
• Dedicated Client Account Representative
• Financial transaction management
• Integrated service approach with your TPA
• Toll-free phone and fax services
• Plan Sponsor Website features, such as contractdetails, plan information, plan highlights,employee census information, account balances,daily unit values, investment options, allocations,financial transactions, Message Center andEmployer Statements
• Electronic services, such as ACH set-up, payrollintegration, online loan and withdrawal optionsand online participant address managementservice
5. ERISA AND FIDUCIARY RESPONSIBILITY
We support your efforts in meeting your fiduciary responsibilities by providing the following.
• Fiduciary Handbook
• Schedule A report
• Audit Package and Schedule CN3 report
• Annual Contract ReviewN4
• Legislative and Regulatory communications
• Fiduciary Toolkit with compliance checklists
• Quarterly Contract statements
• FundCheck®, Fund Review and Scorecard
Contract #: 92251As of Jun/25/2012
Page 2 of 3 FOR USE WITH RESPONSIBLE PLAN FIDUCIARY. NOT FOR GENERAL PUBLIC USE.
Section 2: Summary of Estimated Cost of Recordkeeping
This Section provides a summary of compensation that John Hancock receives for Recordkeeping Services (described in Section 1) provided to your Plan. The revenuewe receive from all sources is part of an integrated pricing model.N5 No individual source of revenue should be considered in isolation with respect to any singleservice.
Contract effective date: May/12/2009 Contract assets (excluding PBA and cash account): $1,140,294.00 Number of participants: 41
Estimated Cost of RecordkeepingThe estimated cost of recordkeeping for this Contract, as of the date of this Summary equals A + B (see below):
The estimated cost of recordkeeping for this Contract, as of the date of this Summary equals + (see below): 0.75%
The totals estimated in A and B of this Section may vary based on the actual amount of assets held within the Contract, as well as the amount of transfer andrecurring contributions into the Contract, and the investment allocations under the Contract. Amounts shown are generally rounded to the nearest 100th of apercent.
A Estimated charges for John Hancock Recordkeeping Servicesdeducted from participant accounts or billed to plan sponsorN6 B Estimated Investment-related revenue to John Hancock for
Recordkeeping ServicesN15
The following amounts are deducted or billed to pay for RecordkeepingServices.N5
The following represents the average amounts received by John Hancockfor recordkeeping services. These amounts are deducted from the Funds'unit values, derived from the underlying funds' expense ratios, and/or arepaid by the underlying funds or their affiliates. Description Method of Payment Amount (%)N16
Average underlying fundRecordkeeping Expenses
Paid by fundN17 0.46
Average AdministrativeMaintenance Charge (AMC)
Deducted from FundUnit Value
0.14
Recordkeeping Portion of theSales and Service FeeN9
Deducted from FundUnit Value
0.15
Total John Hancock charges deducted or billed forRecordkeeping ServicesN13
0.00
Total Investment-related revenue to John Hancockfor Recordkeeping Services
0.75
N13 The total charges deducted from participant accounts or billed to plan sponsor forRecordkeeping Services do not include:
- Market Value Adjustments that apply to certain withdrawals from the GuaranteedInterest Accounts as described in your Contract
- Fees initiated by certain participant activities, as outlined in Section 4
- Charges applicable on early termination of the contract as outlined in Section 3
- Float incomeN14
- Minimum Asset ChargeN23, if applicable
- Details of the above adjustments and fees were previously provided to you in yourContract documents and on our websites
N15Estimates shown reflect investment allocations under your Contract as of the date ofthis report with expense ratio information as of the prior month-end.
N16The average is calculated based on the plan's investment allocations as of thedate of this document. Investments in Guaranteed Interest Accounts do not supportrecordkeeping costs.
N17 'Paid by fund' means paid by underlying fund or its affiliate.
Contract #: 92251As of Jun/25/2012
Page 3 of 3 FOR USE WITH RESPONSIBLE PLAN FIDUCIARY. NOT FOR GENERAL PUBLIC USE.
Section 3: Discontinuance/Withdrawal Charges
Based on our records, contract discontinuance and withdrawal charges do notapply.
Section 4: Participant-initiated Charges
Your Contract permits certain services to be elected by Plan participants, if your plan allows. If applicable, these charges are described in more detail in your Contractdocuments.
Detailed Participant Statement Fee �1, per participant, per detailed statement
Loan Recordkeeping Fee �2 per loan per month
G.I.F.L. Fee 0.35� per annum of funds invested in G.I.F.L. , monthly
Processing of Loan Request: $75
Processing of Termination Withdrawal: $40
Processing of Other Withdrawals: $50
Contract #: 92251As of Jun/25/2012
iFOR USE WITH RESPONSIBLE PLAN FIDUCIARY. NOT FOR GENERAL PUBLIC USE.
Appendix: Disclosure of Investment Information and John Hancock's Indirect Compensation
The following chart provides investment disclosure as required under ERISA section 408(b)(2), for each Fund offered under your Contract and also theindirect compensation received by John Hancock in connection with your Plan's investment in the Funds. The underlying fund recordkeeping expense, theAdministrative Maintenance Charge (AMC), and any applicable recordkeeping portion of the Sales and Service Fee (SSF), are used to calculate theweighted averages shown in Section 2B of this report. These amounts are used by John Hancock to offset the cost of the Recordkeeping services provided underyour Contract.
The following investment disclosure reflects, where applicable, the annual operating expenses and any ongoing expenses in addition to the annual operatingexpenses of any investment option where the return is not fixed, and the compensation charged directly against an investment that is not included in the annualoperating expenses of such investment options, such as redemption fees. The Expense Ratio (shown below) represents the total annual operating expenses forthe investment options made available by John Hancock under your Group Annuity Contract. It includes, but is not in addition to, the underlying fund's ExpenseRatio (FER) (which in itself includes the underlying fund recordkeeping expense), AMC and SSF, all or certain portions of which are received or retained by JohnHancock to offset the cost of the Recordkeeping Services described in Section 1 of this document. John Hancock's indirect compensation from the investmentoptions includes the Underlying fund Recordkeeping Expense paid by the Underlying fund to John Hancock, and the AMC and Sales and Service Fee deducted fromthe Fund's unit value.
The underlying fund Recordkeeping Expenses represent the sum of the 12b-1, STA, Shareholder Service and Other Fees, and any investment management feesreceived and retained by John Hancock to offset the cost of Recordkeeping Services. In general, these fees are paid to John Hancock pursuant to agreementsor arrangements between John Hancock and the underlying fund and/or their affiliates, whereby John Hancock provides, on behalf of the underlying fund,communications, statements, and reporting materials to plans and participants about the underlying funds in which the John Hancock sub-accounts invest,facilitates purchases and redemptions of shares of the underlying funds held in the sub-accounts in accordance with instructions of the Plans investing in the sub-accounts, and maintains records in relation thereto. John Hancock applies the fees received from the underlying funds and/or their affiliates towards the cost of theRecordkeeping Services provided under your Contract. John Hancock has entered into such agreement or arrangement with respect to each of the underlying fundsdescribed below.
Underlying mutual fund redemption fees are imposed by certain underlying mutual fund companies in an effort to reduce short-term trading; these fees arenot retained by John Hancock, but are remitted to the applicable underlying mutual funds.N20
Updates to information shown below are available on the Plan Sponsor website at www.jhpensions.com/er. If you haven't registered yourself as the Plan Trustee onthe Plan Sponsor website, we encourage you to do so. Simply contact your John Hancock Client Account Representative.
Summary of Investment Information and John Hancock's IndirectCompensationN15
Class of Funds: Class 8Number of Funds Selected: 42
FundCode
Fund Name Underlying fund
Information is current as of May/31/2012
Underlying fundFund Expense
Ratio (FER)Recordkeeping
Expense
AMC Sales andService
Fee (SSF)
ExpenseRatio [FER +AMC + SSF]
ASSET ALLOCATION - LIFECYCLE
LXJ Retirement Living at 2050 JHFII - Lifecycle 2050 Portfolio 1.01 0.53 0.10 0.75 1.86
LXI Retirement Living at 2045 JHFII - Lifecycle 2045 Portfolio 0.91 0.53 0.10 0.75 1.76
LXH Retirement Living at 2040 JHFII - Lifecycle 2040 Portfolio 0.91 0.53 0.10 0.75 1.76
LXG Retirement Living at 2035 JHFII - Lifecycle 2035 Portfolio 0.90 0.53 0.10 0.75 1.75
LXF Retirement Living at 2030 JHFII - Lifecycle 2030 Portfolio 0.90 0.53 0.10 0.75 1.75
LXE Retirement Living at 2025 JHFII - Lifecycle 2025 Portfolio 0.89 0.53 0.10 0.75 1.74
LXD Retirement Living at 2020 JHFII - Lifecycle 2020 Portfolio 0.88 0.53 0.10 0.75 1.73
LXC Retirement Living at 2015 JHFII - Lifecycle 2015 Portfolio 0.87 0.53 0.10 0.75 1.72
LXB Retirement Living at 2010 JHFII - Lifecycle 2010 Portfolio 0.86 0.53 0.10 0.75 1.71
ASSET ALLOCATION - LIFESTYLE
ALS Lifestyle Aggressive John Hancock Lifestyle Agg 1.00 0.52 0.10 0.75 1.85
N15Estimates shown reflect investment allocations under your Contract as of the date of this report with expense ratio information as of the prior month-end.
Contract #: 92251As of Jun/25/2012
ivFOR USE WITH RESPONSIBLE PLAN FIDUCIARY. NOT FOR GENERAL PUBLIC USE.
Important Information
N1Except as otherwise described in the OfferingMemorandum and Declaration of Trust of theJohn Hancock Stable Value Fund, and belowregarding separate accounts, none of the servicesprovided under the contract are performed byJohn Hancock, its affiliates, or employees as afiduciary (as that term is defined in the EmployeeRetirement Income Security Act) of the plan andits related trust. To the extent John Hancockmaintains a separate account(s) in which the planinvests, John Hancock is a limited fiduciary forthe exclusive purposes of holding plan assets inits separate account(s), voting proxies and actingonly in accordance with directions from trustee(s),participants and beneficiaries, as provided inthe contract documents. The Plan trustee(s)shall retain the authority and responsibilityfor reviewing the plan documents, ensuringcompliance with ERISA (for example, for theirinstructions, as well as for the instructions of theparticipants and beneficiaries), and instructingJohn Hancock accordingly. John Hancock will nothave any discretionary authority or responsibilityfor the management or control of the separateaccounts.
N2The John Hancock Fiduciary StandardsWarranty is offered solely by John Hancock,and no distributing firms share any liability withregard to it. The Warranty is available only todefined contribution plans as defined in section3(34) of ERISA and is subject to certain terms,conditions, and limitations. You should read theWarranty Certificate carefully and make sure youunderstand it. You should also note that, sincepast performance is not a guarantee of futureresults, we cannot warrant or guarantee that anyinvestment options we offer will yield any specificreturn, or even that it will yield a positive return.In addition, the Warranty covers the generalprudence of the investment options for long-term investing (such as retirement investing); itdoes not guarantee that any particular investmentoption is suited to the needs of any individual planparticipant and thus, does not cover any claims byany individual participant based on the needs of,or suitability for, such participant.
N3The Audit Package and Schedule C report areautomatically produced for Contracts meetingminimum life count.
N4The Annual Contract Review is availablefor Contracts meeting the minimum assetrequirement.
N5All compensation described in this section isintegral to the total compensation received byJohn Hancock for all of the Recordkeeping Servicesit provides. These include the services described inSection 1 of this document. No individual sourceof revenue should be considered in isolation withrespect to any single service.
If applicable, Base Annualized Asset, Participantand Market Value Equalizer charges are deductedfrom participant accounts on a pro rata basisunless specified otherwise in your Group AnnuityContract with John Hancock. These are includedin the estimated Recordkeeping Charges referredto in Section 2A of this document, and donot include the intermediary charges that youhave authorized to be paid to your plan serviceproviders. Refer to your contract documents fordetails.
Estimated underlying fund RecordkeepingExpenses, referred to in Section 2B are paid outof, or derived from, the Expense Ratio of theunderlying fund (referred to as "FER" in theAppendix).
Administrative Maintenance Charge (AMC) isdeducted from the unit value of the Sub-accounts(also referred to as "Funds") made available byJohn Hancock.
N6Estimates shown reflect the charges set outin your Contract with John Hancock applicableas of the date this report was generated. Unlessotherwise specified, charges for any plan year aredetermined in accordance with asset charge scalesset out in your Contract.
N9Sales and Service Fee, also known as SalesExpense Recovery Charge, represents the costof compensation agreed to between the plantrustee and a financial representative, and paidto the latter for services provided to the plan. Thecharge may also be used to pay for other planexpenses that are negotiated between the plantrustee and the plan's other service providersfor services provided to the plan. To the extent
that the charge can be used to offset the cost ofrecordkeeping services, it is incorporated as part ofthe estimated Recordkeeping Charges in Section2A or Recordkeeping Portion of the Sales andService Fee in Section 2B of this document.
N14In addition to the fees and charges describedin Section 2, John Hancock will receive and retainearnings (i.e., "float income") on funds received,or credited to your Contract, before they areinvested, allocated or applied in accordancewith the Plan's instructions; or funds transferredfrom your Contract and held in John Hancock'sgeneral account before actual disbursements aremade from the general account. See https://www.ps.jhancockpensions.com/assets/pdfs/PS15345GE.pdf for more details.
N15Estimates shown reflect investment allocationsunder your Contract as of the date of this reportwith expense ratio information as of the priormonth-end.
N20Important Redemption Fee Information: Somemutual fund companies apply redemption feesto qualified retirement plan accounts. Providersto retirement plans, including John Hancock, aretherefore responsible for applying these policies,and collecting and remitting these redemptionfees on behalf of the mutual fund companies inwhich their sub-accounts invest.
These redemption fees are applied to certain fundtransactions in an effort to reduce short-termtrading. Any redemption fees collected will bedeposited back into the mutual fund.
Refer to www.jhpensions.com/er for anupdated listing of those sub-accounts withredemption fees.
N23A Minimum Asset Charge may apply if theasset charges billed or deducted in the year areless than the minimum annual charge requiredunder your contract. If applicable, this charge willincrease the estimated charges to your Plan forJohn Hancock's Recordkeeping Services which, inturn, will increase your Plan's Estimated Cost ofRecordkeeping. Please refer to your contract fordetails about this charge.
Contract #: 92251As of Jun/25/2012
vFOR USE WITH RESPONSIBLE PLAN FIDUCIARY. NOT FOR GENERAL PUBLIC USE.
Group annuity contracts and recordkeeping agreements are issued by: John Hancock Life Insurance Company (U.S.A.), Boston, MA 02210 (not licensed in New York). John HancockInvestment Management Services, LLC, a registered investment adviser, provides investment information relating to the contracts.
NOT FDIC INSURED | MAY LOSE VALUE | NOT BANK GUARANTEED | NOT INSURED BY ANY GOVERNMENT AGENCY
The Investment Comparative Chart provides you with important investment information, including applicable fees, about the investment options available to you under your retirement plan’s group annuity contract with John Hancock. The information is provided in an easy to read format, allowing you to make comparisons of your investment options against a relevant broad-based index.
Note: The sample used is for illustrative purposes only and may not reflect all the investment options or all the applicable sections of the Investment Comparative Chart specific to your plan.
Variable Return Investments are investment options that have returns that vary according to the performance of each option’s underlying investments. These underlying investments could be comprised of stocks, bonds and/or money market instruments. More information about each investment option, such as objectives and risks, can be obtained by going to the Fund’s corresponding URL, which can be found under the Fund name.
21
1 2
3
4
5
6
3
The Average Annual Total Return represents annualized historical returns and can be used to evaluate and compare the historical performance of the investment options available under your plan. The annualized average return information is displayed annually for the relevant time periods, ending on the date of the most recently completed calendar year.
The Benchmark Return represents the average annual total return of the broad-based market index that is applicable to an investment option. This information is displayed annually for the relevant time periods, ending on the date of the most recently completed calendar year.
Equity Funds – the underlying funds of these investment options invest in equities, more commonly known as stocks. Equity Funds are often categorized by market capitalization (e.g. small-cap, mid-cap, large-cap), investment style (e.g. growth, value, blend) and geographical concentration that may include a focus on international, global or country/region specific investments.
Bond Funds – the underlying funds of these investment options invest primarily in bonds and other debt instruments. The exact type of debt the underlying fund invests in will depend on its focus, but investments may include government, corporate, municipal and convertible bonds, along with other debt securities.
Other Funds include investment options that are not exclusively categorized under the Equity or Bond Fund sections of the Investment Comparative Chart; they include investment options that span both types, such as balanced funds or asset allocation portfolios. This section also includes investment options that belong to specific categories, such as sector and index funds.
4
5
6
This document aims to help you understand the terms and information found in the Investment Comparative Chart.
J
J
7
L
L
9
K
K
8
Fixed Return Investments are investment options that provide a fixed or stated rate of return for a stated duration.
Guaranteed interest account (GIA) is a type of fixed return investment that accumulates interest for the duration of the specified term.
Term refers to the number of years until the GIA matures.
The Risk Categories column provides information about the general level of risk that may be associated with each investment option.
The Total Annual Operating Expenses, also commonly referred to as the Fund’s “Expense Ratio” is a measure of what it costs to operate an investment option. It includes such expenses as John Hancock’s administrative maintenance charge (AMC), sales and service fee, and the expenses of the underlying mutual fund. The operating expenses of each investment option are expressed as a percentage of its assets and as a dollar amount per every $1000 invested. Total fees payable depend on the dollar amount you have invested in each Fund and are reflected through a reduction in the Fund’s rate of return.
The Shareholder-type Fees column lists any additional fees that may be charged directly your investment and which are not already included the Total Annual Operating Expenses of the investment option (e.g. redemption fees).
This document is provided by John Hancock for informational purposes only. It is not intended to be, nor should it be construed as or be relied upon as tax, legal, financial or investment advice. Neither John Hancock nor any of its affiliates, representatives, employees, or agents provides tax, financial, investment or legal advice.
Both John Hancock Life Insurance Company (U.S.A.) and John Hancock Life Insurance Company of New York do business under certain instances using the John Hancock name. Group annuity contracts and recordkeeping agreements are issued by: John Hancock Life Insurance Company (U.S.A.), Boston, MA 02210 (not licensed in New York) and John Hancock Life Insurance Company of New York, Valhalla, NY 10595. Product features and availability may differ by state. John Hancock Investment Management Services, LLC, a registered investment adviser, provides investment information relating to the contracts
NOT FDIC INSURED | MAY LOSE VALUE | NOT BANK GUARANTEED | NOT INSURED BY ANY GOVERNMENT AGENCY
Investment Comparative ChartTHE TRUSTEES OF BEVEN & BROCK 401(K) PLAN
This document includes important information to help you compare the investment options available under your retirement plan. If you wouldlike to receive additional investment-related information on any of the investment options listed below, including more current performance
information, go to the Fund's corresponding website address (shown below) or to www.jhpensions.com. To obtain more information, or to receivea paper copy of the information available on the websites at no cost, contact David Brock at (626) 243-4142 and 99 SOUTH LAKE AVE., SUITE
100, PASADENA, CA, 91101
DOCUMENT SUMMARYThis document is divided into three parts. Part I consists of performance information for your retirement plan investment options and
illustrates how the investments have performed in the past. Part II outlines the fees and expenses applicable to each investment option. PartIII contains information about the Guaranteed Lifetime Income Options available under your retirement plan.
PART I Performance Information
The table below focuses on the performance of investment options that do not have a fixed or stated rate of return. The table shows how these options have performedover time and allows you to compare them with an appropriate benchmark for the same time periods. Past performance does not guarantee how the investment optionwill perform in the future. Your investment in these options could lose money. Information about each option's principal risks is available by accessing the websiteaddress associated with each Fund, as listed below.
The performance data presented represents past performance and current performance may be lower or higher than the performance quoted. An investment in asubaccount will fluctuate in value to reflect the value of the sub-account's underlying securities and, when redeemed, may be worth more or less than original cost. Formonth-end performance, participants please call 1-800-395-1113 or visit www.jhpensions.com.
The Average Annual Total Returns of the investment options available under your qualified plan represent the returns earned for the stated periods and are calculatedafter accounting for the Total Annual Operating Expenses, as shown in Part II of this document. Performance does not reflect any applicable contract-level or certainparticipant-level charges, fees for guaranteed benefits if elected by participant, or any redemption fees imposed by an underlying mutual fund company. These charges, ifincluded, would otherwise reduce the total return for a participant's account. Benchmark returns are shown for comparative purposes only. Benchmark returns representthe performance of market indices, which cannot be invested in directly. These returns are calculated without taking into account any investment fees and/or expenses.Hypothetical returns are shown in bold.
VARIABLE RETURN INVESTMENTS*
Average Annual Total Returnas of 12/31/2011
Benchmark† Returnas of 12/31/2011Name/Type of Option
RiskCategory
1 yr. 5 yr. 10 yr.Since
Inception 1 yr. 5 yr. 10 yr.Since
Inception
EQUITY FUNDS0.39� -2.63� 3.89� 8.46�
Columbia Equity Value Fund 7,86,98,100
Large Cap Valuewww.viewjhfunds.com/USA/C08/reva/index.html
High Quality Short Term Fixed Incomewww.viewjhfunds.com/USA/C08/gova/index.html
Income 1.47� 3.32% 2.71% 4.53% BarCap 1-5 Yr Government
0.07� 1.36� 1.85� 4.16�Money Market Fund 13,22,82,83,91,101
High Quality Short Term Fixed Incomewww.viewjhfunds.com/USA/C08/mmra/index.html
Conservative -1.05� 0.42% 0.77% 3.10% Citigroup U.S. Domestic 3 Mo TBill TR
Money Market Fund current 7-day yield is -1.07�. The current yield quotation more closely reflects the current earnings of the Money Market Fund as of the date this report wasprepared while the Annualized returns above refer to a specific past holding period reflecting the period covered by this report. Although the fund strives to maintain a positive yield,there is no guarantee the fund will be able to do so. An investment in the underlying Money Market fund is not insured or guaranteed by the Federal Deposit Insurance Corporationor any other government agency. The underlying fund seeks to preserve a value of �1.00 per share but it is possible to lose money by investing in the Money Market Fund thatinvests in the underlying fund.
Investment Options as of Jul/16/2012 Page 3 of 13
VARIABLE RETURN INVESTMENTS*
Average Annual Total Returnas of 12/31/2011
Benchmark† Returnas of 12/31/2011Name/Type of Option
RiskCategory
1 yr. 5 yr. 10 yr.Since
Inception 1 yr. 5 yr. 10 yr.Since
Inception
7.84� 6.50� 5.77� 7.39�PIMCO Total Return Fund 41,62
High Quality Intermediate Term Fixed Incomewww.viewjhfunds.com/USA/C08/trna/index.html
Income 2.86� 6.74% 5.47% 6.93% BarCap U.S. Aggregate Bond TR
5.64� 6.46� 7.15� N/ACapital World Bond Fund 13,37,61,65
Global Bondwww.viewjhfunds.com/USA/C08/cwba/index.html
Income 2.86� 4.62% 6.80% 6.17% Barcap Global Aggregate
This section shows fee and expense information for the investment options listed above. Below you will find the Total Annual Operating Expenses and Shareholder-typeFees (if applicable) as they relate to each investment option. Total Annual Operating Expenses are expenses that reduce the rate of return of the investment option. It isimportant to understand that the investment rate of return, as set out in the Performance Information section, is calculated net of the Total Annual Operating Expensesof the investment option. However, such returns do not take into account any applicable Shareholder-type fees, which are in addition to the Total Annual OperatingExpenses of the investment option.
The cumulative effect of fees and expenses can substantially reduce the growth of your retirement savings. Visit the Department of Labor's website for an exampleshowing the long-term effect of fees and expenses at www.dol.gov/ebsa/publications/401k_employee.html. Fees and expenses are only one of many factors to considerwhen you decide to invest in an option. You may also want to think about whether an investment in a particular option, along with your other investments, will help youachieve your financial goals.
FEES AND EXPENSESTotal Annual Operating Expenses
as of 06/30/2012Name/Type of Option RiskCategory
As a � Per �1000
Shareholder-Type Fees
EQUITY FUNDS
Columbia Equity Value Fund 7,86,98,100
Large Cap Valuewww.viewjhfunds.com/USA/C08/reva/index.html
Growth& Income
1.93� �19.30 N/A
Fundamental Investors 13,31,37,61,65
Large Cap Blendwww.viewjhfunds.com/USA/C08/afia/index.html
Growth 1.56� �15.60 N/A
The Investment Company of America 38,40,61,65
Large Cap Blendwww.viewjhfunds.com/USA/C08/icaa/index.html
Growth& Income
1.55� �15.50 N/A
Prudential Jennison 20/20 Focus Fund 3,8
Large Cap Growthwww.viewjhfunds.com/USA/C08/jtta/index.html
AggressiveGrowth
1.89� �18.90 N/A
Fidelity Contra FundLarge Cap Growthwww.viewjhfunds.com/USA/C08/cona/index.html
Growth 2.02� �20.20 N/A
Value Fund 13,22,77,91,106
Mid Cap Valuewww.viewjhfunds.com/USA/C08/vlfa/index.html
Growth 1.58� �15.80 N/A
JP Morgan Mid Cap Value Fund 12,32,71
Mid Cap Valuewww.viewjhfunds.com/USA/C08/mida/index.html
Growth 1.91� �19.10 N/A
SSgA Mid Cap Growth Index Fund 4,13,54
Mid Cap Growthwww.viewjhfunds.com/USA/C08/ssga/index.html
AggressiveGrowth
1.40� �14.00 N/A
Small Cap Value Fund 13,22,23,53,91
Small Cap Valuewww.viewjhfunds.com/USA/C08/smva/index.html
Growth 2.08� �20.80 N/A
Small Company Value Fund 13,73
Small Cap Blendwww.viewjhfunds.com/USA/C08/smfa/index.html
Growth 2.08� �20.80 N/A
Invesco Small Cap Growth Fund 17,18,44,57,67
Small Cap Growthwww.viewjhfunds.com/USA/C08/scoa/index.html
AggressiveGrowth
2.02� �20.20 N/A
Investment Options as of Jul/16/2012 Page 6 of 13
FEES AND EXPENSESTotal Annual Operating Expenses
as of 06/30/2012Name/Type of Option RiskCategory
As a � Per �1000
Shareholder-Type Fees
DFA Emerging Markets Value FundInternational/Global Valuewww.viewjhfunds.com/USA/C08/dema/index.html
High Quality Short Term Fixed Incomewww.viewjhfunds.com/USA/C08/gova/index.html
Income 1.45� �14.50 N/A
Money Market Fund 13,22,82,83,91,101
High Quality Short Term Fixed Incomewww.viewjhfunds.com/USA/C08/mmra/index.html
Conservative 1.30� �13.00 N/A
Money Market Fund current 7-day yield is -1.07�. The current yield quotation more closely reflects the current earnings of the Money Market Fund as of the date this report wasprepared while the Annualized returns above refer to a specific past holding period reflecting the period covered by this report. Although the fund strives to maintain a positiveyield, there is no guarantee the fund will be able to do so. An investment in the underlying Money Market fund is not insured or guaranteed by the Federal Deposit InsuranceCorporation or any other government agency. The underlying fund seeks to preserve a value of �1.00 per share but it is possible to lose money by investing in the Money MarketFund that invests in the underlying fund.
PIMCO Total Return Fund 41,62
High Quality Intermediate Term Fixed Incomewww.viewjhfunds.com/USA/C08/trna/index.html
Income 1.71� �17.10 N/A
Capital World Bond Fund 13,37,61,65
Global Bondwww.viewjhfunds.com/USA/C08/cwba/index.html
Lifestyle Fund - Growth Portfolio - G.I.F.L. 13,68,101
Guaranteed Income Featurewww.viewjhfunds.com/USA/C08/ggla/index.html
GuaranteedIncomeFeature
1.82� �18.20 N/A
Investment Options as of Jul/16/2012 Page 8 of 13
FEES AND EXPENSESTotal Annual Operating Expenses
as of 06/30/2012Name/Type of Option RiskCategory
As a � Per �1000
Shareholder-Type Fees
Lifestyle Fund - Balanced Portfolio - G.I.F.L. 13,68,101
Guaranteed Income Featurewww.viewjhfunds.com/USA/C08/gbla/index.html
GuaranteedIncomeFeature
1.75� �17.50 N/A
Lifestyle Fund - Moderate Portfolio - G.I.F.L. 13,68,101
Guaranteed Income Featurewww.viewjhfunds.com/USA/C08/gmla/index.html
GuaranteedIncomeFeature
1.74� �17.40 N/A
Lifestyle Fund - Conservative Portfolio - G.I.F.L. 13,68,101
Guaranteed Income Featurewww.viewjhfunds.com/USA/C08/gcla/index.html
GuaranteedIncomeFeature
1.67� �16.70 N/A
PART III Guaranteed Lifetime Income OptionsThis section focuses on the Guaranteed Lifetime Income Option available under your retirement plan. This option offers a guaranteed withdrawal benefit that allows youto withdraw a guaranteed annual amount at regular intervals, usually beginning when you retire and continuing for your entire life, or over the lives of you and yourspouse. Guarantees of the option are subject to John Hancock's long-term financial strength and claims-paying abilities.
Guaranteed Lifetime Income Options
Name Objectives/Goals Benefits/Features Restrictions/Fees
Guaranteed Income for Life provides a guaranteedwithdrawal benefit. Investment options with thisfeature are listed above. Applicable funds end withG.I.F.L. To learn more about this option, go to:https://www.jhancockpensions.com/assets/pdfs/P14322-GE_GIFL.pdf
Allows you to withdraw aguaranteed annual amount forlife based on the amount of yourBenefit Base‡, and the form ofoption you select (e.g. single lifeoption, or spousal option). Forexample a participant who retiresat age 65 with a Benefit Baseof �100,000 and who elects thesingle life option, will have anannual Lifetime Income Amount+
(LIA) of �5000 (5� of the BenefitBase), that they may withdraweach year over their lifetime.
You retain control over youraccount balance, which staysinvested in the market, until themarket value of your account isreduced to zero. If the accountbalance is reduced to zero, theLIA will be paid by the insurancecompany. If you die before theaccount is reduced to zero, theremaining account balance is paidto your designated beneficiary. Aspousal option is also available,which allows the withdrawalbenefits to extend to cover the lifeof both you and your spouse, at areduced LIA.
Plan participants must be at least age 59 1/2 andhave contributions in the specified asset allocationportfolios with the Guaranteed Income for Lifeoption elected for at least five (5) years before theyare allowed to establish a Lifetime Income Amountand become eligible to begin making guaranteedwithdrawals.
You can transfer money into or out of thisinvestment option, take loans or hardshipwithdrawals, and otherwise have control overyour investment the same as you would for otherinvestment options available under the plan.Withdrawals in excess of the guaranteed lifetimeincome amount will reduce future guaranteedminimum withdrawal benefits proportionately.Once withdrawals of the guaranteed amount havecommenced, any withdrawals taken in excess ofthe LIA will reduce the Benefit Base and hencethe future guaranteed withdrawal amount. Theguarantees provided are contingent on the plan'strustee's election to continue maintaining its groupannuity contract with John Hancock or the electionof a participant to rollover his or her benefits toa recipient rollover vehicle available from JohnHancock upon termination of participation in theplan.
Participants invested in this option pay a feeof 0.35 percent in addition to the fees for theunderlying investments as described more fully inthe Variable Return Investments table, in Part II.
A spousal option is available. The LIA based onthis option will be lower than the LIA based on theparticipant's life only.
There is a maximum Benefit Base restriction appliedto this option.
If, for any reason, your company's contract withJohn Hancock is terminated, you may either be
Investment Options as of Jul/16/2012 Page 9 of 13
Guaranteed Lifetime Income Options
Name Objectives/Goals Benefits/Features Restrictions/Fees
eligible to receive a refund of the option fees paidup to three years or rollover to an eligible JohnHancock IRA.
If your company terminates the Guaranteed Incomefor Life option, you are entitled to the market valueof your investments in the option. The BenefitBase and LIA will be reduced to zero as of thetermination date, unless you are eligible to receivedistributions under your plan, in which case youmay roll over the market value of your investments(and, if applicable, the Vested Benefit Base and LIA)to an available eligible John Hancock vehicle.
If you choose to cancel the Guaranteed Income forLife option, you are entitled to the market valueof your investments in this feature. The BenefitBase and LIA will be reduced to zero as of thetermination date.
Should you change your job and leave GuaranteedIncome for Life, and you are eligible to receivedistributions, you may roll over the market valueof your account (and, if applicable, the VestedBenefit Base and LIA) to an eligible John Hancockinvestment vehicle and maintain your guarantee.
Please visit www.ps.jhancockpensions.com/assets/pdfs/SPARK_Glossary.pdf for a glossary of investment terms relevant to the investmentoptions under this plan.
Investment Options as of Jul/16/2012 Page 10 of 13
IMPORTANT NOTES
*Your company's qualified retirement plan offers participants the opportunity tocontribute to investment options available under a group annuity contract with JohnHancock Life Insurance Company (U.S.A.) (John Hancock USA). These investmentoptions may be sub-accounts (pooled funds) investing directly in underlying mutualfunds, or they may be Guaranteed Interest Accounts.
The placement of investment options within style boxes and according to potential risk/return shows John Hancock USA's assessment of those options relative to one anotherand should not be used to compare these investment options with other investmentoptions available outside John Hancock USA.
†Index Performance: Index performance shown is for a broad-based securities marketindex. Indices are unmanaged and cannot be invested in directly. Index returns wereprepared using Morningstar, Inc. software and data. The performance of an Index doesnot include any portfolio or insurance-related charges. If these charges were reflected,performance would be lower. Past performance is not a guarantee of future results.
‡Benefit Base is the sum of all contributions and transfers to the option, reduced bywithdrawals, transfers and loans before retirement. It is completely independent of theactual market value of your investments in this option; it has no cash value and cannotbe withdrawn. Market value is the amount your investments are worth if cashed out ata particular point in time and it changes as the market goes up and down.
+Lifetime Income Amount (LIA) is the amount that you can withdraw every year inretirement regardless of market conditions -- guaranteed. It is available to you whenyou are eligible to retire and have set the LIA.
3This sub-account was introduced November 7, 2008.
4This sub-account was introduced May 7, 2010.
7This sub-account was introduced May 2, 2008.
8The underlying fund changed its name effective on or about May 10, 2010.Performance shown for periods prior to that date reflect the results under its formername. The name of this sub-account changed effective on or about May 10, 2010 tomore accurately reflect the name of the underlying fund.
9Account balance reported may include assets transferred from another Fund, whichwas permanently closed on or about April 30, 2007. Contact your John Hancockrepresentative for more information.
12This sub-account was introduced April 27, 2001.
13For internally-managed Funds advised and sub-advised exclusively by John HancockUSA's affiliates, the total fees John Hancock USA and its affiliates receive from theseFunds may be higher than those advised or sub-advised exclusively by unaffiliatedmutual fund companies. These fees can come from the Fund or trust's Rule 12b-1,sub-transfer agency, management, AMC or other fees, and may vary from Fundto Fund. Except for certain asset allocation portfolios (i.e., the Lifecycle Portfolios,Lifestyle Portfolios, Core Portfolios and the Guaranteed Income Feature Portfolios),John Hancock USA uses the revenue received from 12b-1, sub-transfer agency, andmanagement fees to determine the AMC for that Fund, such that the sum of 12b-1,sub transfer agency, management fees and AMC received by John Hancock USA equals0.50�.
14The underlying fund concentrates its investments in a sector of the market. Aportfolio of this type may be riskier or more volatile in price than one that invests inmore market sectors.
15Account balance reported for this Fund may include assets transferred from anotherFund, which will be permanently closed on or about April 26, 2010. Consult your JohnHancock representative for more information.
17This sub-account previously invested in a different underlying portfolio. It beganinvesting in the current underlying portfolio effective May 5, 2003. Performance shownfor periods prior to that date is based on the performance of the current underlyingportfolio.
18The underlying fund's manager or subadviser changed its name from Invesco AIMCapital Management to Invesco Advisers, Inc. on or about May 10, 2010. Contact yourJohn Hancock representative for more information.
22The underlying fund changed its name effective on or about May 9, 2011.Performance shown for periods prior to that date reflect the results under its formername.
23Account balance reported may include assets transferred from another Fund, whichwas permanently closed on or about October 29, 2007. Consult your John Hancockrepresentative for more information.
29This sub-account was introduced August 21, 2000.
31Account balance reported may include assets transferred from another Fund, whichwas permanently closed on or about April 27, 2009. Contact your John Hancockrepresentative for more information.
32This sub-account previously invested in a different underlying portfolio. It beganinvesting in the current underlying portfolio effective June 1, 2009. Performance shownfor periods prior to that date is based on the performance of the current underlyingportfolio. The name of this sub-account changed effective on or about June 1, 2009 tomore accurately reflect the name of the underlying fund.
37This sub-account was introduced July 25, 2008.
38This sub-account was introduced May 2, 2003.
40This sub-account previously invested in a different share class of the same underlyingportfolio. It began investing in the current share class effective on or about July 28,2008. Performance shown for periods prior to that date is based on the performance ofthe current share class.
41Account balance reported may include assets transferred from another Fund, whichwas permanently closed on or about October 27, 2008. Contact your John Hancockrepresentative for more information.
44The underlying fund's manager or subadviser changed its name from AIMInvestments, Inc. to Invesco AIM Capital Management on or about November 10,2008. Contact your John Hancock representative for more information.
46The name of this sub-account changed effective on or about August 2, 2010.
47Account balance reported may include assets transferred from another sub-accountwhich was permanently closed between April 22, 2005 and May 7, 2005.
48Account balance reported may include assets transferred from another Fund, whichwas permanently closed on or about October 25, 2010. Please contact your JohnHancock representative for more information.
53This sub-account was introduced on or about May 6, 2005.
54Account balance reported may include assets transferred from another Fund, whichwas permanently closed on or about April 18, 2011. Please contact your John Hancockrepresentative for more information.
57Account balance reported may include assets transferred from another Fund, whichwas permanently closed on or about October 26, 2009. Contact your John Hancockrepresentative for more information.
61This sub-account previously invested in a different share class of the same underlyingportfolio. It began investing in the current share class effective on or about November9, 2009. Performance shown for periods prior to that date is based on the performanceof the current share class.
62Account balance reported may include assets transferred from another Fund whichwas permanently closed between April 25, 2003 and May 5, 2003.
65This sub-account previously invested in a different share class of the same underlyingportfolio. It began investing in the current share class effective on or about June 1,2009. Performance shown for periods prior to that date is based on the performance ofthe current share class.
67The underlying fund changed its name effective on or about November 8, 2010.Performance shown for periods prior to that date reflect the results under its formername. The name of this sub-account changed effective on or about November 8, 2010to more accurately reflect the name of the underlying fund.
Investment Options as of Jul/16/2012 Page 11 of 13
68This sub-account previously invested in another underlying portfolio. It beganinvesting in the current underlying portfolio effective October 14, 2005. Performanceshown for periods prior to that date is based on the performance of the currentunderlying portfolio. Performance shown for all periods has been adjusted to reflect thecurrent sub-account charge and would be lower if it reflected the sub-account chargethat was in effect prior to October 14, 2005, which was .20� higher than the currentsub-account charge.
71Only available under certain limited circumstances. Consult your John Hancockrepresentative for more information.
73This sub-account previously invested in a different underlying portfolio. It beganinvesting in the current underlying portfolio effective October 14, 2005.
76None of the Index Funds nor the underlying portfolios are sponsored, endorsed,managed, advised, sold or promoted by any of the respective companies that sponsorthe broad-based securities market index, and these companies make no representationregarding the advisability of investing in the Index Fund. Indexes are unmanaged andcannot be invested in directly. Since the underlying portfolios are not actively managed,the Funds will generally reflect the performance of their indexes even in markets whenthe indexes do not perform well.
77The underlying fund changed its sub-advisor on November 8, 2010 from Van KampenInvestments to Invesco Advisers, Inc.
82Account balance reported may include assets transferred from another Fund, whichwas permanently closed on or about October 30, 2006. Contact your John Hancockrepresentative for more information.
83This investment option is deemed a "Competing" investment option with the JohnHancock Stable Value Fund and may not be available. An investment in this portfolio isnot insured or guaranteed by The Federal Deposit Insurance Corporation or any othergovernment agency. Although the underlying portfolio seeks to preserve the value ofan investment, it is possible to lose money by investing in this portfolio.
85Account balance reported may include assets transferred from another Fund, whichwas permanently closed on or about April 22, 2006. Contact your John Hancockrepresentative for more information.
86The underlying fund's manager or subadviser changed its name from RiverSourceInvestments to Columbia Management Investment Advisers, LLC., on or aboutNovember 8, 2010. Contact your John Hancock representative for more information.
91The underlying John Hancock Variable Insurance Trust portfolio is not a retail mutualfund and is only available under variable annuity contracts, variable life policiesor through participation in tax qualified retirement plans. Although the portfolios'investment adviser or sub-advisers may manage retail mutual funds with similar namesand investment objectives, no representation is made, and no assurance is given, thatany portfolio's investment results will be comparable to the investment results of anyother fund, including other funds with the same investment adviser or sub-adviser. Pastperformance is no guarantee of future results.
97This sub-account was introduced May 6, 2011.
98This sub-account previously invested in a different share class of the same underlyingportfolio. It began investing in the current share class effective on or about May 9,2011. Performance shown for periods prior to that date is based on the performance ofthe current share class.
100The underlying fund changed its name effective on or about May 9, 2011.Performance shown for periods prior to that date reflect the results under its formername. The name of this sub-account changed effective on or about May 9, 2011 tomore accurately reflect the name of the underlying fund.
101The underlying fund changed its sub-advisor on December 15, 2010 from MFCGlobal Investment Management (U.S.A.) Limited to John Hancock Asset Management,a division of Manulife Asset Management (North America) Limited.
106Account balance reported may include assets transferred from another Fund, whichwas permanently closed on or about April 23, 2012. Please contact your John Hancockrepresentative for more information.
Risks Applicable to All Funds
Credit and Counterparty Risk
A fund is subject to the risk that the issuer or guarantor of a fixed-income security orother obligation, the counterparty to a derivatives contract or repurchase agreement, orthe borrower of a fund's securities will be unable or unwilling to make timely principal,interest, or settlement payments, or otherwise to honor its obligations.
Issuer RiskAn issuer of a security purchased by a fund may perform poorly, and, therefore,the value of its stocks and bonds may decline. Poor performance may be caused bypoor management decisions, competitive pressures, breakthroughs in technology,reliance on suppliers, labor problems or shortages, corporate restructurings, fraudulentdisclosures, or other factors.
Liquidity RiskA fund is exposed to liquidity risk when trading volume, lack of a market maker,or legal restrictions impair the fund's ability to sell particular securities or closederivative positions at an advantageous price. Funds with investment strategies thatinvolve securities of companies with smaller market capitalizations, foreign securities,derivatives, or securities with substantial market and/or credit risk tend to have thegreatest exposure to liquidity risk.
Manager RiskThe performance of a fund that is actively managed will reflect in part the ability ofthe manager to make investment decisions that are suited to achieving the fund'sinvestment objective. Depending on the manager's investment decisions, a fund maynot reach its investment objective or it could underperform its peers or lose money.
Market RiskThe value of a fund's securities may go down in response to overall stock or bondmarket movements. Markets tend to move in cycles, with periods of rising prices andperiods of falling prices. Stocks tend to go up and down in value more than bonds. Ifthe fund's investments are concentrated in certain sectors, its performance could beworse than the overall market.
Merger and Replacement Transition RiskIn the case of Fund mergers and replacements, the affected Funds that are beingmerged or replaced may implement the redemption of your interest by payment in cashor by distributing assets in kind. In either case, the redemption of your interest by theaffected Fund, as well as the investment of the redemption proceeds by the "new"Fund, may result in transaction costs to the Funds because the affected Funds may findit necessary to sell securities and the "new" Funds will find it necessary to invest theredemption proceeds. Also, the redemption and reinvestment processes, including anytransition period that may be involved in completing such mergers and replacements,could be subject to market gains or losses, including those from currency exchangerates. The transaction costs and potential market gains or losses could have an impacton the value of your investment in the affected Fund and in the "new" Fund, andsuch market gains or losses could also have an impact on the value of any existinginvestment that you or other investors may have in the "new" Fund. Although therecan be no assurances that all risks can be eliminated, John Hancock will use its bestefforts to manage and minimize such risks and costs.
Where the redemption of your interest is implemented through a distribution of assetsin kind, the effective date of the merger or replacement may vary from the target datedue to the transition period, commencing either before or after the target date, that isrequired to liquidate or transition the assets for investment in the "new" Fund.
Additional Risks Applicable to Certain Funds
Commodity RiskCommodity investments involve the risk of volatile market price fluctuations ofcommodities resulting from fluctuating demand, supply disruption, speculation andother factors.
Currency RiskFunds that invest directly in foreign currencies and in securities that trade in, or receiverevenues in, foreign currencies are subject to the risk that those currencies will declinein value relative to the currency being hedged.
Derivatives RiskA fund's use of certain derivative instruments (such as options, futures and swaps)could produce disproportionate gains or losses. Derivatives are generally consideredmore risky than direct investments and, in a down market, could become harder tovalue or sell at a fair price.
Equity Securities RiskStock markets are volatile, and the price of equity securities such as common andpreferred stocks (and their equivalents) will fluctuate. The value of equity securities
Investment Options as of Jul/16/2012 Page 12 of 13
purchased by the fund could decline if the financial condition of the companies inwhich the fund invests decline or if overall market and economic conditions deteriorate.
Exchange Traded Funds (�ETF�s) RiskExchange Traded Funds are a type of investment company bought and sold on asecurities exchange. An ETF often represents a fixed portfolio of securities designed totrack a particular market index. The risks of owning an ETF generally reflect the risks ofowning the underlying securities the ETF is designed to track.
Fixed-Income Securities RiskFixed-income securities or bonds are subject to credit risk and interest rate risk. Thecredit rating of bonds in the fund could be downgraded or the issuer of a bond coulddefault on its obligations. In general, lower-rated fixed-income securities involve morecredit risk. When interest rates rise, bond prices generally fall.
Foreign Securities RiskForeign securities involve special risks, including potentially unfavorable currencyexchange rates, limited government regulation (including less stringent investorprotection and disclosure standards) and exposure to possible economic, politicaland social instability. To the extent the fund invests in emerging market countries, it'sforeign securities risk will be higher.
Fund of Funds RiskA fund of funds invests in a number of underlying funds. A fund of fund's ability toachieve its investment objective will depend largely on the ability of its investmentmanager to select the appropriate mix of underlying funds and on the underlying fundsability to meet their investment objectives. A fund of funds is subject to the same risksas the underlying funds in which it invests. Each fund of funds bears its own expensesand indirectly bears its proportionate share of expenses of the underlying funds inwhich it invests.
Growth Stock RiskBecause growth securities typically do not make dividend payments to shareholders,investment returns are based on capital appreciation, making returns dependent onmarket increases and decreases. The market prices of growth stocks are highly sensitiveto future earnings expectations. Growth stocks may therefore be more volatile thannon-growth stocks.
High Yield Securities RiskFixed-income securities that are not investment grade are commonly referred to as highyield securities or "junk bonds." These securities offer a potentially higher yield thanother, higher rated securities, but they carry a greater degree of risk and are consideredspeculative by the major credit rating agencies
Index Management RiskCertain factors may cause the fund to track its Index less closely. For example, themanager may select securities that are not fully representative of the Index, and thefund's transaction expenses, and the size and timing of its cash flows, may result in thefund's performance being different than that of its Index.
Initial Public Offerings (�IPO�) RiskThe fund is subject to the risks associated with purchases of shares issued in IPOs bycompanies that have little operating history as public companies. The market for IPOissuers has been volatile and share prices of certain newly-public companies havefluctuated in significant amounts over short periods of time.
Interest Rate RiskFixed-income securities are affected by changes in interest rates. When interest ratesdecline, the market value of fixed-income securities generally will increase. Conversely,when interest rates rise, the market value of fixed-income securities will generallydecrease. The longer the remaining maturity of instruments held by the fund, the moresensitive the fund is to interest rate risk.
Large Cap RiskThe fund's strategy of investing in large cap stocks carries the risk that in certainmarkets large cap stocks will underperform small cap or mid cap stocks.
Leverage RiskThe fund may engage in transactions, including the use of synthetic instruments andderivatives, which may give rise to a form of leverage. Leverage may cause the fundto be more volatile than if the fund had not been leveraged because leverage canexaggerate the effect of any increase or decrease in the value of securities held by thefund.
Lifestyle Portfolio Risk
A Lifestyle Portfolio ("Fund") is a "fund of funds" which invests in a number ofunderlying funds. The Fund's ability to achieve its investment objective will dependlargely on the ability of the subadviser to select the appropriate mix of underlyingfunds and on the underlying funds' ability to meet their investment objectives. Therecan be no assurance that either a Fund or the underlying funds will achieve theirinvestment objectives. A Fund is subject to the same risks as the underlying funds inwhich it invests, which include the following risks. Stocks can decline due to market,regulatory or economic developments. Investing in foreign securities is subject tocertain risks not associated with domestic investing such as currency fluctuations andchanges in political and economic conditions. The securities of small capitalizationcompanies are subject to higher volatility than larger, more established companies.High Yield bonds are subject to additional risks such as the increased risk of default(not applicable to Lifestyle Aggressive Portfolio). For a more complete description ofthese risks, please review the underlying fund's prospectus, which is available uponrequest. Diversification does not ensure against loss.
A Lifecycle Portfolio ("Fund") is a "fund of funds" which invests in a number ofunderlying funds. The Fund's ability to achieve its investment objective will dependlargely on the ability of the subadviser to select the appropriate mix of underlying fundsand on the underlying funds' ability to meet their investment objectives. There can beno assurance that either a Fund or the underlying funds will achieve their investmentobjectives. A Fund is subject to the same risks as the underlying funds in which itinvests. Each Fund invests in underlying funds which invest in fixed-income securities(including in some cases high yield securities) and equity securities, including foreignsecurities and engage in Hedging and Other Strategic Transactions. To the extent theFund invests in these securities directly or engages in Hedging and Other StrategicTransactions, the Fund will be subject to the same risks. As a Fund's asset mix becomesmore conservative, the fund becomes more susceptible to risks associated with fixed-income securities. For a more complete description of these risks, please review theunderlying fund's prospectus, which is available upon request.
Each Lifecycle Portfolio has an associated target date based on the expected year inwhich participants in the portfolio plan to retire and no longer make contributions. Theinvestment strategy of these Portfolios are designed to become more conservative overtime as the Portfolio approaches and passes the target retirement date. The principalvalue of an investment in these Portfolios is not guaranteed at any time, including at orafter the target date.
Mid Cap Stock RiskInvestments in mid-cap companies are subject to more erratic price movements thaninvestments in larger, more established companies. In particular, mid-sized companiesmay pose greater risk due to narrow product lines, limited financial resources, lessdepth in management or a limited trading market for their securities.
Mortgage-Backed and Asset-Backed Securities RiskWhen interest rates fall, homeowners are more likely to prepay their mortgage loans.An increased rate of prepayments on the fund's mortgage-backed securities will resultin an unforeseen loss of interest income to the fund as the fund may be required toreinvest assets at a lower interest rate. Asset-backed securities include interests inpools of debt securities, commercial or consumer loans, or their receivables. The valueof these securities depends on many factors, including changes in interest rates, theavailability of information concerning the pool and its structure, the credit quality of theunderlying assets, the market's perception of the servicer of the pool, and any creditenhancement provided. In addition, asset-backed securities have prepayment riskssimilar to mortgage-backed securities.
Non-Diversification RiskA fund that is non-diversified may invest a high percentage of its assets in thesecurities of a small number of issuers. This approach may result in more volatileperformance relative to more diversified funds. The less diversified a fund's holdingsare, the more a specific security's poor performance is likely to affect the fund'sperformance.
Sector RiskWhen a fund's investments are concentrated in a particular industry or sector of theeconomy (e.g., real estate, technology, financial services), they are not as diversifiedas the investments of most mutual funds and are far less diversified than the broadsecurities markets. Funds concentrating in a particular industry sector tend to be morevolatile than other mutual funds, and the values of their investments tend to go up anddown more rapidly. A fund that invests in a particular industry or sector is particularlysusceptible to the impact of market, economic, regulatory and other factors affectingthan industry or sector.
Short Sale Risk
Investment Options as of Jul/16/2012 Page 13 of 13
The fund may sell a security that it does not own. A fund will lose money if the priceof the security which it has sold short increases between the time of the short sale andthe date when the fund acquires the security sold short.
Small Cap Stock RiskThe fund's investments in smaller companies are subject to more erratic pricemovements than investments in larger, more established companies. Small capcompanies may be developing or marketing new products or services for whichmarkets are not yet and may never become established. Although small, unseasonedcompanies may offer greater opportunities for capital growth than larger, moreestablished companies, they also involve greater risks and should be consideredspeculative.
Small/Mid Cap Stock RiskThe fund's investments in small-cap and mid-cap companies are subject to moreerratic price movements than investments in larger, more established companies. Inparticular, mid-sized companies may pose greater risk due to narrow product lines,limited financial resources, less depth in management or a limited trading market fortheir securities. Similarly, small cap companies may be developing or marketing newproducts or services for which markets are not yet and may never become established.While small, unseasoned companies may offer greater opportunities for capital growththan larger, more established companies, they also involve greater risks and should beconsidered speculative.
Target Allocation RiskFrom time to time, one or more of the underlying funds may experience relatively largeredemptions or investments due to reallocations or re-balancings of the assets of aportfolio, which could affect the performance of the underlying funds and, therefore,the performance of the fund.
Turnover RiskActive and frequent trading of fund securities results in a high fund turnover rate.Funds with high turnover rates often have higher transaction costs, which are paid bythe fund, that may have an adverse impact on fund performance, and may generateshort-term capital gains on which taxes may be imposed.
U.S. Government Securities RiskU.S. government securities do not involve the degree of credit risk associated withinvestments in lower quality fixed-income securities. As a result, the yields availablefrom U.S. government securities are generally lower than the yields available frommany other fixed-income securities. These securities, like other fixed-income securities,are subject to interest rate risk.
Value Stock RiskThe fund's investments in value stocks carry the risk that the market will not recognizea security's intrinsic value for a long time or that a stock believed to be undervaluedmay actually be appropriately priced.
To obtain group annuity investment option Fund sheets and prospectuses for each sub-account's underlying investment vehicle call 1-800-395-1113 These documentscontain complete details on investment objectives, risks, fees, charges and expenses as well as other information about the underlying investment vehicle, whichshould be carefully considered. Please read these documents carefully prior to investing.
Both John Hancock Life Insurance Company (U.S.A.) and John Hancock Life Insurance Company of New York do business under certain instances using the John Hancock Retirement PlanServices name. Group annuity contracts and recordkeeping agreements are issued by: John Hancock Life Insurance Company (U.S.A.), Boston, MA 02210 (not licensed in New York) andJohn Hancock Life Insurance Company of New York, Valhalla, NY 10595. Product features and availability may differ by state. John Hancock Investment Management Services, LLC, aregistered investment adviser, provides investment information relating to the contracts.
NOT FDIC INSURED | MAY LOSE VALUE | NOT BANK GUARANTEED | NOT INSURED BY ANY GOVERNMENT AGENCY
John Hancock Lifecycle PortfoliosRetirement Living
Retirement planning based on your age and retirement dateYour qualified retirement plan offers a range of different investment options, including a series of asset allocation portfolios referred to as Retirement Living Portfolios, sub-advised by John Hancock Asset Management.
John Hancock’s Retirement Living Portfolios are a suite of Lifecycle asset allocation portfolios designed to take you through retirement. They are primarily invested in actively managed funds and are managed to retain the potential for investment growth with the objective of supporting your need for income in your retirement years. So when you reach your retirement, you can remain invested in the same Portfolio and draw income in your retirement years.
How Retirement Living Portfolios work
Retirement Living Portfolios, a Lifecycle asset allocation option, are designed to take you through retirement.
The asset mix of each Portfolio is based on a target date. This is the expected year in which participants in a Portfolio plan to retire and no longe r make contributions. Our team of asset allocation professionals adjusts each Portfolio’s make-up over time to ensure a noticeable and steady shift from equities to fixed income in the years leading to retirement.
As each Portfolio ‘glides’ over time, its asset mix is adjusted. Looking at the image below:
n Portfolios with target dates further in the future are invested more aggressively and have a significant exposure to equities.
n As the Portfolio ‘glides’ towards and through the retirement date, the investment mix gradually becomes more conservative, although it still has significant exposure to equities.
n The Portfolio’s most conservative point – 25% equity and 75% fixed income – occurs 20 years after retirement. Note that allocations may vary as a result of market swings or cash allocations held during unusual market or economic conditions.
AssumptionsIn developing the glide path, it was assumed that participants would make ongoing contributions during the years leading up to retirement, and stop making those contributions when the target date is reached. In retirement, it was assumed that participants would start making withdrawals of 4.7% of accumulated wealth, indexed to 2.5% inflation plus 130 bps of fees, for a period of 30 years.
Fixed income Equity Range of allocation varianceTarget allocation ≠
5%
95%
5%
95%
5%
95%
5%
95%
8%
92%
15%
85%26%
74%38%
62%
48%
52%
75%
25%
Retirement D
ate
^
^ A Lifecycle Portfolio is subject to the same risks as the underlying funds in which it invests, which include the following risks. Stocks can decline due to market, regulatory or economic development. Investing in foreign securities is subject to certain risks not associated with domestic investing, such as currency fluctuations and changes in political and economic conditions. The securities of small capitalization companies are subject to higher volatility than those of larger, more established companies. For additional information on these and other risk considerations, please see the prospectus for the sub-accounts’ underlying mutual fund portfolio.
To obtain group annuity investment option Fund sheets and prospectuses for each sub-account’s underlying investment vehicle call 1-800-395-1113 These documents contain complete details on investment objectives, risks, fees, charges and expenses as well as other information about the underlying investment vehicle, which should be carefully considered. Please read these documents carefully prior to investing.
Both John Hancock Life Insurance Company (U.S.A.) and John Hancock Life Insurance Company of New York do business under certain instances using the John Hancock name. Group annuity contracts and recordkeeping agreements are issued by: John Hancock Life Insurance Company (U.S.A.), Boston, MA 02210 (not licensed in New York) and John Hancock Life Insurance Company of New York, Valhalla, NY 10595. Product features and availability may differ by state. John Hancock Investment Management Services, LLC, a registered investment adviser, provides investment information relating to the contracts.
NOT FDIC INSURED | MAY LOSE VALUE | NOT BANK GUARANTEED | NOT INSURED BY ANY GOVERNMENT AGENCY
Retirement Living Portfolios may be for you if you want:n One-step diversification
n A team of asset allocation professionals that rebalance and reallocate each Portfolio
n An asset allocation strategy that aims to retain growth potential by maintaining exposure to equities, giving you the opportunity to keep your assets in the same Portfolio and draw income in retirement
n To periodically review your investments.
If you think Retirement Living Portfolios may be for you, select the Portfolio that best matches your current age and desired retirement age. For example, Joe is 35 years old. He wants to retire at age 65. Looking at the chart below, he selects the 2040 Portfolio, which is the year in which he intends to retire and stop making contributions to his retirement account.
Important Considerations
When making investment decisions, it’s also important to carefully consider your personal circumstances, current savings, monthly earnings and retirement lifestyle goals and risk profile. The principal value of your investment in any of our Retirement Living Portfolios, as well as your potential rate of return, are not guaranteed at any time, including at or after the target retirement date. Also, neither asset allocation nor diversification ensures a profit or protection against a loss. These Portfolios can suffer losses at any time (including near, at, or after the target retirement date), and there is no guarantee that any of them will provide adequate income at and through your retirement.
Glossary of terms:
• Asset allocation: the process that allocates the fund’s holdings among general asset classes: equity, fixed income and cash.
• Asset mix: the combination of types of investment products or asset classes that make up a lifecycle fund’s underlying portfolio.
• Glide path: illustrates the change over time in a lifecycle fund’s asset mix from a focus on growth to a focus on income.
• Lifecycle (Target Date) fund: a fund that automatically resets the asset mix (stocks, bonds, cash equivalents) in its portfolio to reflect the target date. The glide path shows how the asset mix changes over time.
