Products

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• Products Services
• Barry Tobin Peter Sullivan
• May 8 - 10, 2002

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Agenda

• The Product Development Process
• The Director Series
• Signature Services/Alliance Services
• Partner Series
• Snap On Payroll
• Multiple Employer Plans
• The Plan Advisor Series
• Commisions/Comp Plus

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Phases of Product Development
Idea
Feasibility
Product Development
Implementation
Launch
Post Mortem
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• Transamerica Director Series I

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(No Transcript)
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What
makes
Transamerica
Director Series
different?
7
Will it take much of my time?
Guiding your plan Every step of the way.
Will my employees get it?
How good are your investments?
What makes this different?
Why Transamerica?
ERISA Expertise
What Transamerica Provides Your Plan
401(k)
Prototype plan
ADP/ACP testing
415/410(b), top-heavy testing
Investor education
404(c) compliance
EGTRRA guidance
Plan design assistance
Cross-tested/401(k) combo
Controlled group analysis
Social Security integration
Customized plan documents
On-site enrollment meetings
Diversified portfolio of funds
Maximize benefits for highly-compensated
employees and owners
State-of-the-Art plan record keeping
Nationwide team of ERISA consultants
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Will it take much of my time?
Guiding your plan Every step of the way.
Will my employees get it?
How good are your investments?
What makes this different?
Why Transamerica?
Retirement Plan Experts
Transamericas Plan Compliance Department

• Focused on client objectives
• Staff of experienced professionals, including 4
  ERISA specialists 9 compliance analysts
• Developed Transamericas proprietary prototype
  and volume submitter plan documents
• Plan solutions that eliminate/minimize IRS
  hassles
• Frequent interaction with IRS

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Will it take much of my time?
Guiding your plan Every step of the way.
Will my employees get it?
How good are your investments?
What makes this different?
Why Transamerica?
Services Provided
Consulting

• Discrimination testing, ADP, ACP, coverage and
  multiple use tests
• Top Heavy/Compensation Ratio testing
• 415 Limit testing
• Information regarding controlled groups
• Affiliated service groups

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Will it take much of my time?
Guiding your plan Every step of the way.
Will my employees get it?
How good are your investments?
What makes this different?
Why Transamerica?
Services Provided
Consulting

• Leased employee guidance
• Plan mergers acquisitions
• Plan to plan transfers spin-offs
• Cutting-edge plan design
• PEOs and MSOs

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Guiding your plan Every step of the way.
Will it take much of my time?
How good are your investments?
What makes this different?
Why Transamerica?
Will my employees get it?
Investment Advice
What is it?
Optional online feature Provided by Financial
Engines Advisor, L.L.C.
Whats in it for you?
Help to manage your fiduciary responsibility
Only available with Signature Services.
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Guiding your plan Every step of the way.
Will it take much of my time?
How good are your investments?
What makes this different?
Why Transamerica?
Will my employees get it?
Transamerica Plan PlusSM
Optional Self Directed Brokerage Account
Invest in stocks, bonds and mutual
funds1 Provided by Harrisdirect TM 2 Online
quotes, research, news, modeling features, and
educational materials
Only available with Signature Services. 1Stocks
and mutual funds are not insured by the FDIC,
NCUA or any regulatory agency are subject to
investment risk, including possible loss of
principle amount invested. 2Harrisdirect is a
division of Harris Investor Services LLC, a
registered broker dealer, member NASD and SIPC.
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Guiding your plan Every step of the way.
Will it take much of my time?
How good are your investments?
What makes this different?
Why Transamerica?
Will my employees get it?
Asset BridgeSM 1
What is it?
Convenient contract provision that helps reduce
the impact of surrender charges on a plan
conversion
Whats in it for you?
It makes transferring assets easier for you if
you will incur surrender charges from your
current investment provider
1Annuities with enhancements such as the Asset
Bridge feature generally have higher expenses
than those without enhancements, and the contract
owner(s) should consider expenses along with the
features to be sure the annuity meets their
financial needs and goals. In the event of
discontinuance during the first five years,
policies including the Asset Bridge feature will
be subject to related Discontinuance Charges.
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Guiding your plan Every step of the way.
Will it take much of my time?
How good are your investments?
What makes this different?
Why Transamerica?
Will my employees get it?
The Fund Mapping Advantage
Keep your investments working during a plan
conversion
Transfer assets to Transamerica investment funds
of your choice
Maintain investments in similar asset classes
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Will it take much of my time?
Guiding your plan Every step of the way.
Will my employees get it?
How good are your investments?
What makes this different?
Why Transamerica?
Top Notch.
Our Investment Managers

Note Contract form number TGP-439-194 is a group
annuity contract issued by Transamerica Life
Insurance and Annuity Company, Charlotte, NC, and
offered through Transamerica Retirement Services.
Form number may vary, and this product may not
be available in all jurisdictions. Not
available in New York.
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Will it take much of my time?
Guiding your plan Every step of the way.
Will my employees get it?
How good are your investments?
What makes this different?
Why Transamerica?
Potential Risk/Return Profile
For companies with plan assets between
30,000-74,999, plan sponsors can choose from
the following fund alternatives.
The above chart is a graphic illustration of
potential risk and return associated with
investments in different Investment Options (the
boxes represent asset classes and the
corresponding Investment Options are listed next
to them). These risk and return expectations may
not be realized over future time periods or
future economic or business cycles therefore,
they are not intended to be predictions of risk
and return. The Investment Options have been
assigned to various asset classes based solely on
Transamerica Retirement Services assessment of
their investment policies additionally, they may
not be representative of that particular asset
class in the future. Please refer to the
proposal for details regarding asset class
definitions.
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Will it take much of my time?
Guiding your plan Every step of the way.
Will my employees get it?
How good are your investments?
What makes this different?
Why Transamerica?
Potential Risk/Return Profile
The above chart is a graphic illustration of
potential risk and return associated with
investments in different Investment Options (the
boxes represent asset classes and the
corresponding Investment Options are listed next
to them). These risk and return expectations may
not be realized over future time periods or
future economic or business cycles therefore,
they are not intended to be predictions of risk
and return. The Investment Options have been
assigned to various asset classes based solely on
Transamerica Retirement Services assessment of
their investment policies additionally, they may
not be representative of that particular asset
class in the future. Please refer to the
proposal for details regarding asset class
definitions.
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Will it take much of my time?
Guiding your plan Every step of the way.
Will my employees get it?
How good are your investments?
What makes this different?
Why Transamerica?
Potential Risk/Return Profile
For companies with plan assets over 75,000, plan
sponsors can choose from the following fund
alternatives depending on first year deposits.
TI-Selected Funds
Transamerica-Selected Funds

• TI Calvert Social Investment Fund
• TI Franklin Biotechnology Discovery Fund
• TI Franklin Real Estate Securities Fund
• TI INVESCO Financial Services Fund
• TI INVESCO Leisure Fund
• TI INVESCO Technology Fund
• TI PBHG Technology Communications Fund

• TI AIM Small Cap Growth Fund
• TI Fidelity Advisor Small Cap Growth Fund
• TI Franklin Balance Sheet Investment Fund

• Transamerica Growth Opportunities Fund

• Transamerica International Equity Fund
• Transamerica Templeton Foreign Fund

• TI AIM International Equity Fund
• TI Dreyfus International Value Fund

• TI Janus Adviser Worldwide Fund
• TI Oppenheimer Global Fund

• TI AIM Constellation Fund
• TI Franklin Mid Cap Growth Fund
• TI INVESCO Dynamics Fund
• TI Janus Adviser Capital Appreciation Fund
• TI Janus Adviser Growth Fund

• Transamerica Aggressive Growth Fund
• Transamerica Equity Fund
• Transamerica Mid-Cap Growth Fund
• Transamerica Putnam Investors Fund
• Transamerica Putnam Vista Fund

• TI INVESCO Core Equity Fund
• TI MFS Growth with Income Fund
• TI MFS Capital Opportunities Fund

• Transamerica Core Equity Fund
• Transamerica Equity Index Fund
• Transamerica Growth Income Fund

The above chart is a graphic illustration of
potential risk and return associated with
investments in different Investment Options (the
boxes represent asset classes and the
corresponding Investment Options are listed next
to them). These risk and return expectations may
not be realized over future time periods or
future economic or business cycles therefore,
they are not intended to be predictions of risk
and return. The Investment Options have been
assigned to various asset classes based solely on
Transamerica Retirement Services assessment of
their investment policies additionally, they may
not be representative of that particular asset
class in the future. Please refer to the
proposal for details regarding asset class
definitions.
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Will it take much of my time?
Guiding your plan Every step of the way.
Will my employees get it?
How good are your investments?
What makes this different?
Why Transamerica?
Potential Risk/Return Profile
TI-Selected Funds
Transamerica-Selected Funds
Large/Mid Value Equity

• Transamerica Mid-Cap Value Fund
• Transamerica Value Income Fund

• TI AIM Basic Value Fund
• TI Fidelity Advisor Equity Income Fund
• TI Liberty Select Value Fund
• TI Mutual Qualified Fund
• TI Neuberger Berman Focus Fund

Hybrid

• TI Janus Adviser Balanced Fund

• Transamerica Balanced Fund
• Transamerica Short Horizon Fund
• Transamerica Short/Intermediate Horizon Fund
• Transamerica Intermediate Horizon Fund
• Transamerica Intermediate/Long Horizon Fund
• Transamerica Long Horizon Fund

Strategic Allocation Funds
High Yield Bond

• TI Oppenheimer Champion Income Fund

• Transamerica High Yield Opportunities Fund

Bond

• Transamerica Bond Fund
• Transamerica Core Bond Fund
• Transamerica Loomis Sayles Bond Fund
• Transamerica Strong Government Securities Fund

• TI Liberty Intermediate Bond Fund

Cash Equivalents

• Transamerica Cash Management Fund
• Transamerica Stable Value Fund

The above chart is a graphic illustration of
potential risk and return associated with
investments in different Investment Options (the
boxes represent asset classes and the
corresponding Investment Options are listed next
to them). These risk and return expectations may
not be realized over future time periods or
future economic or business cycles therefore,
they are not intended to be predictions of risk
and return. The Investment Options have been
assigned to various asset classes based solely on
Transamerica Retirement Services assessment of
their investment policies additionally, they may
not be representative of that particular asset
class in the future. Please refer to the
proposal for details regarding asset class
definitions.
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Director Series I Structure

• Three Tiers
• Tier 1 30,000 - 74,999 in total first year
  deposits
• Tier 2 75,000 - 499,999 in total first year
  deposits
• Tier 3 500,000 in total first year deposits
• Tier 1 replaces AssetBuilder
• Minimum size has increased from 10K weighted to
  30K in total first year deposits

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Director Series ITier 1

• Transamerica Selected Funds Only

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Director Series ITier 1
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Director Series ITier 2

• Chose as many TI-Selected Funds as Transamerica
  Selected Funds
• SAFs and Cash/SVF not applicable to selection
  process

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Director Series ITier 2
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Director Series ITier 3

• 2 x the number of TI Selected Funds as
  Transamerica Selected Funds
• SAFs and Cash/SVF dont count

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Director SeriesTier 3
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Administration Options
1 All Signature Services Fees illustrated apply
to participant-directed investments.
Employer-directed investments receive a 5
reduction in per-participant charges. 2 For
plans with less than 50 participants but with an
average participant balance of at least 7,500,
there will be a 10 decrease in the annual
per-participant charge.
3 A sample of fees provided by PENCO, Inc. as
of March 2001 is shown. Please note that these
fees are subject to change without notice.
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Administration Options
1 Investlink Network TPAs include Future Benefits
of America and Retirement Horizons, Inc. as of
5/15/01. 2 PENCO, Inc. fees are as of February
2001. Please note that these fees are subject to
change without notice. 3SEBs Inc. fees are as of
January 2001. Please note that these fees are
subject to change without notice.
Prospecting PROPOSAL Presentation Closing
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BROKER COMPENSATION Director Series I
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The Director Series I

• We offer nine different commission options plus a
  flexible trail option (up to 80 basis points on
  assets).

OPTION 1 OPTION 4 OPTION 7 Deposit-based (all
years) 0.50 1.00 1.00 Asset-based (all
years) 0.25 0.25 0.40 OPTION 2 OPTION
5 OPTION 8 Deposit-based (year 1) 1.00 1.50 2.00
Asset-based (years 2) 0.25 0.30 0.40 OPTIO
N 3 OPTION 6 OPTION 9 Deposit-based (years
1-5) 1.50 2.00 2.50 Asset-based (years
6) 0.20 0.25 0.35
The Plan group annuity (form number
TGP-439-194(99)) is issued by Transamerica Life
Insurance and Annuity Company. Form number may
vary by state and may not be available in all
states. Not available in New York.
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Comp- Plus

• 1000 case bonus for every 3rd plan sold in
  calendar year
• 250 for every 250,000 of first year deposits
• Comp Plus commissions are in addition to standard
  commissions

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Solid Relationships, Solid Results

• More Funds
• Lower Fees
• More Compensation
• Better Services

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Transamerica Partner Series ISM The Solid
Relationship Your Clients Deserve
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WHY RECORDKEEPING ONLY?

• The Partner Series is an un-bundled service
• Third Party Administrators (TPAs) to provide
  plan administration
• Fills demand for local, flexible
  administrative/consulting support
• Daily Valuation for TPAs

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Services for TPAs

• Dedicated TPA Services Support Staff
• TPA access to plan and Participant level report
  data via Internet
• TPA input council meeting
• ERISA hotline

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WHO DOES WHAT Home Office

• Handles all financial transactions
• Provides quarterly sponsor activity reports
  participation statements
• Provides toll-free VRU/operator opt out
• Maintains retirement plan website
• Manages TPA relationship - quarterly conference
  call

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WHO DOES WHAT Third Party Service Provider (TPA)

• Provides plan design consulting
• Provides legislative guidance to Plan Sponsor
• Performs all regulatory testing
• Approves all distributions loans
• Prepares 5500 Government returns

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WHO DOES WHAT Plan Administrator/Plan Sponsor

• Working with TPA, selects plan design
• Working with Rep, selects investment options
• Makes all plan contributions in a timely manner
• Review reports for accuracy

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Service Fees
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Plan Service Fees

• Underwriting Guidelines
• New 100,000 in annual first-year deposits
• Takeover 100,000 in weighted first-year
  deposits (minimum 50,000 annual plus 20 of
  takeover assets)

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Plan Service Fees (continued)

• Annual Recordkeeping
• 1-49 Participants 30 per Participant (20 per
  Participant with average of over 7,500 balance
  per Participant)
• 50-249 Participants 15 per Participant
• 250-499 Participants 13 per Participant
• 500 Participants 11 per Participant
• Minimum annual recordkeeping fee (before SFD)
  750

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Plan Service Fees (continued)

• Once assets reach 500,000, 250 for each
  250,000 of assets
• For a plan with less than 50 Participants but an
  average Participant balance of at least 7,500,
  there will be a 10 decrease in the annual per
  Participant charge

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Selecting a TPA

• Minimum of 500 plans under management
• Solid ERISA expertise/high caliber shop
• No adverse credit report
• Composition of client base
• Current relationship with TRS

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SNAP ON PAYROLL PRODUCT

• Designed for independent Payroll providers
• Co- Branding of Marketing Materials
• One Stop Solution

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Multiple Employer Plans
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Director Of Special Markets Kelly
Michel
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Multiple Employer Plan Advantage

• Economies of Scale
• Geared toward
• PEO Industry
• Association Industry
• Payroll Firms

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PEO Industry

• What is a Professional Employers Organization
  (PEO)?
• An organization that provides an integrated and
  cost effective approach to management/administrati
  on of the human resources and employer risk of
  its clients by contractually assuming substantial
  employer rights, responsibilities, and risk,
  through the establishment and maintenance of an
  employer relationship with the workers assigned
  to its clients

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PEO Industry

• NAPEO is recognized as national trade association
  for PEO Industry providing education, training,
  government relations and Code of Ethics to its
  members
• Small Business Advantages
• Monitoring and compliance with Labor regulations,
  workers rights and worksite safety, professional
  compliance, payroll, claims and risk management
• Government Advantages
• Consolidation of several small companies
  employment tax filings into one, accelerated
  professional preparation of reporting, extends
  benefits to more workers

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PEO Industry - Trends

• Federal Legislation Introduced Again
• H.R. 2807 S. 1305
• Designed to codify the rights of PEOs
• Introduced August 2, 2001
• Provides a new safe harbor for PEOs that elect to
  meet certain certification requirements
• Certified PEOs would be permitted to assume
  liability for employment taxes of worksite
  employees and to sponsor and offer retirement
  plans and other benefits to such workers

51
PEO Industry Trends

• More Federal Legislation Introduced by NAAS-
  National Association for Alternative Staffing
• HR 4099 The Employee Leasing Organization Act
  of 2002
• Among few other IRC Code Sections, looks to amend
  Section 7701 (Paragraph 20) to allow employee
  leasing organizations to sponsor healthcare and
  pension benefits

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PEO Industry Trends

• Among few other IRC Code Sections, looks to amend
  Section 7701 (Paragraph 20) to allow employee
  leasing organizations to sponsor healthcare and
  pension benefits

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Whats New? IRS Guidance!

• Revenue Ruling 2002-21
• Administrative Guidance according to existing law
• Absent of New Legislation
• Gives opportunity to prevent disqualification of
  existing single employer plans

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Revenue Procedure 2002-21

• Framework by which PEO may sponsor a Defined
  Contribution Plan
• Multiple Employer Plans
• Relief for PEOs who currently sponsor Single
  Employer Plans
• Conversion to Multiple Employer
• Termination of Single Employer
• Establishes Decision Date Compliance Date

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Revenue Procedure 2002-21

• Establishes Decision Date Compliance Date

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Conversion to MEP (effective 1/1/04)
STEPS
5. PEO MUST file for IRS Determination Letter on
MEP, and plan in Option III within 1 year of the
effective date of plan termination
3. CC notifies PEO of selected option. If CC
fails to timely notify PEO, default to Option
III, below
4. PEO implements CCs selected option by
12/31/03
2. PEO notifies CCs of their options by Decision
Date (5/2/03)
Option II - Transfer If CC has a plan, transfer
AL to CCs plan by 12/31/03
Option I - Adopt MEP CC adopts MEP by 1/1/04 (or
earlier if specified by PEO)
Option III - Spinoff Termination Spin off of
AL to separate plan then terminate that
plan by 12/31/03
CC must provide documentation to PEO that its
plan is qualified by date specified by PEO
If CC fails to adopt timely, contributions for
WEs cannot be made to MEP
Distribute assets as soon as feasible following
termination
If documentation provided, PEO MUST effect
transfer
Assets and Liabilities CCs plan is a
qualified plan if on or before the Compliance
Date (12/31/03), the plan had either (1) a GUST
favorable determination, notification or opinion
letter, or (2) had submitted an IRS request for a
GUST determination letter This plan may hold
assets of WEs of all CCs who elected Option III
or those CCs who failed to provide documentation
to PEO under Option II.
If no documentation Option III applies
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Termination of PEOs Plan by 12/31/03Assumes
Calendar Plan Year

• STEPS

Option I - Transfer If CC has a plan, transfer
AL to plan of CC by Compliance Date
(12/31/03). Same documentation requirements as
in Option II under Conversion to MEP to prove
qualified status of CCs plan
Default is Option II if CC fails to timely
notify PEO. PEO implements Option II by
Compliance Date (12/31/03)
Option II - Spinoff Termination Spin off AL
to separate plan then terminate that plan by
Compliance Date (12/31/03). Distribute assets
as soon as feasible following termination
Decision date is 120 days after the first day
of the first plan year beginning in 2003
Assets Liabilities Compliance Date is the
last day of the first plan year on and after
1/1/03.
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Transamerica Product that Fits

• Multiple Employer Plan
• Single Investment Contact
• Volume Submitter MEP Plan Document
• Less Expensive than custom document
• Extremely flexible plan design
• PEO expertise

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MEP Product

• Service Fees- FutureBenefits of America
• Install Fee 3000
• Annual PP Fee 33.00
• No loan fees
• No distribution fees
• Client Employer Minimum 250
• MEP Minimum Annual Fee 1000
• Fee includes distributions and loans

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TRS Advantage

• What Is the PEO Buying?
• A Strategic Business Partnership !
• Dedicated PEO Staff - Account Management
• Industry Knowledge and ERISA Expertise
• National Sales Team
• Internal Sales Support
• Dedicated PEO Service Team
• Enrollment Support
• Competitive Fee Structure

61
Questions?
62
THE ADVISOR SERIES I
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• Why Develop - The Advisor Series I
• Enhanced B/D Channel Access
• A Must for the Wire House Channel
• Doesnt contain the word Annuity
• Mutual Funds vs. Separate Accounts

64
Underwriting Minimums

• 1,000,000 in EXISTING Plan Assets
• Annual flow cannot be applied to meet the minimum
• Assets held outside Transamerica cannot be
  applied to minimum requirement
• Imposed by agreement and mutual fund prospectus
• Signature Service Model Only
• Diversified sends prospectus

65
Investment Options

• 16 Well Known Mutual Fund Families
• 67 Mutual Funds
• 9 Core Funds
• 6 Transamerica Premier Funds
• 3 Diversified Investors Funds
• 56 Selected Funds
• Comprehensive Coverage of the Risk/Reward
  Spectrum
• 17 Funds Maximum at Plan Level

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Fund Selection Restrictions

• Sponsors May Select up to 8 Core Funds
• Sponsors May Select up to As Many Selected
  Funds as Core Funds (excluding Money Market)
• Investment Vehicles Such as the Schwab PCRA
  Brokerage Account, Employer Stock, or Frozen
  Assets Count Towards the 8 Selected Funds
  Maximum
• Maximum of 17 Investment Options Per Plan
• All Plan Sponsors Must Select the Diversified
  Money Market Fund

67
Investments - Asset Categories

• Specialty Funds
• Small Company Equity
• International Equity
• Global Equity
• Large/Mid Growth Equity
• Large/Mid Blend Equity
• Large/Mid Value Equity
• Hybrid
• High Yield Bond
• Bond
• Cash Equivalents

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Product Service Fees

• Installation 1,500
• Annual Recordkeeping 2,950
• Passive Trustee Services NC
• Annual Per Participant 28
• Variable Asset Charge (VAC)
• Plan Assets Non-Index Funds Index Fund
• 0 - 3,000,000 0.10 0.40
• 3,000,000 0.00 0.30
• Additional charges can be found in the services
  agreement

69
BROKER COMPENSATION Advisor Series I
70
Advisor Series I Compensation

• Deposit Based (Year 1) All deposits Except
  Money Market Fund
• First 1,000,000 1.00
• Next 4,000,000 0.75
• Next 5,000,000 0.50
• Over 10,000,000 0.25
• Asset based (Years 2)
• Mutual Funds Assets 0.25
• Money Market Fund 0.15
• Plans with Outside Assets (SDBA and ER Stock)
• Asset based (All Years)
• Mutual Funds Assets 0.25
• Money Market Fund 0.15

71
Advisor Series I Compensation

• Compensation is Calculated Beginning from Date of
  First Deposit
• Other Compensation Is Not Available
• Comp Plus does not apply
• Big Kahuna program does not apply
• Preferred Producer Program does not apply

72
HOW CAN I EARN 1M AND HOW LONG WILL IT TAKE?
73
Building Your Business5-Year Revenue Forecast
Based on Commission Option 2Deposit Based (year
1) 1.0Asset-Based (years 2) 0.25
74
In Summary
We have the marketplace covered
Why? So you can grow your business with a
provider who is flexible, creative, and has your
business interests in mind.
75
Signature Service

• Fee Waivers
• Service Fee Discount
• Group Annuity Flexibility
• NAV down to 1M
• Special pricing availability

76
Alliance Services

• Fee Waivers
• Service Fee Discount
• Plan Compliance Creativity (NCP)
• 15 Big Name Fund Families

77
Partner Series

• Local Third-Party Expertise
• Service Fee Discount

78
Multiple Employer Plans

• One-Stop Shopping for multiple plan sales

Snap-on Payroll

• Customized literature to take advantage of local
  regional Payroll Company opportunities

79
Compensation
9 Attractive Options Plus a flexible asset
trail option
Comp Plus Make more money when you partner up
with TRS
80
Your Ultimate Retirement Services Provider
WE DO IT ALL
Thank you