Roadways to Retirement

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Roadways to Retirement
ABC Advisors, Inc.
A superior new answer for your company retirement
plan
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Todays Agenda

• Thank you for the opportunity to meet today
• Our goal today is to have a dialogue
• Gain a solid understanding of your retirement
  program
• Understand your key objectives and needs what is
  working, what isnt
• Our retirement program offers an intriguing value
  proposition (people, technology and services)
• We hope to demonstrate this today while answering
  any questions you may have

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Understanding your plan

• Type of plan
• Total assets, number of participants
• Who is current provider?
• A summary of plan design
• Your overall observations (what is working well,
  what isnt)
• Current investment menu
• Who directs plan investments
• How is payroll handled?

• How has participant education been handled?
• Summary of current fee configuration
• Results of recent non-discrimination tests?
• Any unique aspects of plan design?
• Any desired design changes?
• Any special needs or concerns?
• Focus areas for future enhancement

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ABC Advisors Who we are

• Advisory practice servicing diverse array of
  clients
• Dual focus
• Helping plan sponsors with their retirement plan
  needs
• Helping plan participants with personal financial
  planning (entering plan, assistance during
  wealth accumulation phase, retirement planning
  and rollovers)
• Registered Representatives under SEC / FINRA
• Registered Investment Advisor under SEC
  regulation
• Due to the complexities and costs of being in
  the retirement plan business, we opted to find a
  strategic partner

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Introducing BPAS Our retirement plan partner

• Full-service retirement provider, servicing
  entire spectrum DC, DB and, nonqualified plans
• Eight offices, two time zones
• Administering 1,900 DC plans
• 270,000 employees tracked
• 188,000 participants with a balance
• 4.6 billion in DC plan assets
• In-sourcing. BPAS acts as recordkeeper,
  agent-to-trustee and NSCC member, all in one firm
  this is extremely unique within the industry.
• Wholly owned subsidiary of a NYSE-traded company
  (NYSE CBU), which has 2,100 employees in total.
• Profitable. Reliable. Committed to the retirement
  plan business.

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Household name clients of BPAS (across U.S. and
P.R.)

• ADM Corporation
• American Academy of Actuaries
• Bausch Lomb
• Black Decker
• Boston College
• Braun Corporation
• Burger King Corporation
• Chilis Restaurants
• Church's Chicken
• CNA Insurance
• Coca Cola
• ConAgra
• DaimlerChrysler Financial Services
• Direct T.V.
• First Security Mortgage

• General Electric Corporation
• Golub Corp. (Price Chopper supermarkets)
• Gunstock Mountain
• Heineken, Inc.
• Helen Keller National Center
• International Food Network
• Kelly Services
• KFC / Taco Bell / Pizza Hut of P.R.
• Kinney Drugs USA
• Levitt Homes
• Lexmark Corporation
• Marriott Corporation
• McDonald's Corporation
• Nestle Corporation

• Oracle
• Pacific Life Insurance
• Pall Corp.
• Pay and Save, Inc.
• SAP
• Sephora
• St. Jude Medical Center
• Stony Brook University
• Suzuki
• Syracuse University
• The Doug Flutie Foundation
• Twentieth Century Fox
• Unilever
• Verizon
• Waste Management

Between our business in the 50 U.S. states plus
Puerto Rico, our client base includes divisions
or subsidiaries of the above companies and
organizations. Public information via Form 5500
filings.
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A strategic combination of local and national
resources
Persistent participant education program
Simplifying life for Human Resources
Accessibility for one-on-one participant needs
Robust participant and plan sponsor websites
(technology)
Helping plan sponsor meetits fiduciary
obligations
Strength in compliance and technical matters
Investment Policy Statement, ERISA 404(c)
assistance
Flexible universe of no-load mutual funds, with
SDBA option
Maintaining fund menu,meeting with RP Committee
Transparent processing of daily transactions
Responsive, proactive service (a relationship)
Responsive, proactive service (a relationship)
The Relationship ABC Advisors
The Platform BPAS
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• Recordkeeping and Administration

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True open architecture on investments a distinct
advantage

• Over 210 fund families currently traded across
  our platform (2,100 funds in total)
• No proprietary funds no mapping or ratio
  requirements
• No variable annuities or separate accounts all
  funds are transparent, known quantity
  investments (no load, same day / late day
  trading)
• Full range of funds and share classes
• All revenue sharing is offset against
  theplatform charge for each fund
• This eliminates any conflicts of interest in the
  fund review, fund monitoring and participant
  education process (a key focus of proposed fee
  disclosure regulations)
• A huge advantage versus asset gatherer
  retirement programs

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A major focus Simplifying life for the Plan
Sponsor(administration versus recordkeeping)

• We track all employees on our system (not just
  those with a balance)
• We process census files for a variety of edits
  before notifying employer of amount to be funded
• Eligibility determination by source standard
  service
• Online enrollment, deferral rate changes
• Vesting updates real time
• HR outsourcing for loans, hardships,
  distributions
• Greatly reduced workload for compliance testing
  and Form 5500 process
• Certified audit package (big advantage for larger
  plans)
• Interacting with HR through Action Items
  in plan sponsor website

Youd be amazed how many errors are found in a
typical payroll system. The BPA approach to
administration provides a vital check and
balance tocatch many possible errors before
they are traded into your Plan. This additional
audit is a major advantage of BPA versus other
providers we have worked with.- Recent comment
from plan sponsor client
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What the flow looks like for new contributions
Plan sponsor logs onto CensusPro, reviews /
approves ACH verification
If approved by 330 PM EST, BPA initiates
mutual fund purchases at that evenings prices.
If after 330 PM EST, purchasesmade on next
business day.
Plan sponsor logs onto CensusPro, reviews /
approves ACH verification
Plan sponsor logs onto CensusPro, reviews /
approves ACH verification
Plan sponsor logs onto CensusPro, reviews /
approves ACH verification
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Plan Sponsor
Plan Sponsor
Plan Sponsor
Plan Sponsor
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Plan sponsor imports census file into
CensusPro, submits to BPA
The next morning, participants see trades
reflected on website. BPA ACH pullsrequired
funds from plan sponsor checkingaccount to
settle prior days contributions.
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BPA reviews file for numerous edit checks, sends
email to plan sponsor instructing them to log
onto CensusProand review ACHverification, which
includes corrections we made to data
Note for plan sponsors who prefer, authorization
canbe given to have BPA automatically trade new
contribution if there are no edits on ACH
verification.
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Plan design services
Safe harbor designs
Entry dates
Hours requirements
QNEC and QMACs
Vesting
True-ups
Roth, catch-up contributions
New comparability Allocations
We help you navigate ERISA and its complexities,
helping you make informed plan design decisions.
In-service distributions
Automatic enrollment
Compensation definitions
Handling of forfeitures
Age-weighted allocations
Last day rules
Loan provisions
QDIA options
Distribution options
Deferral rate changes
Age or service-weighted allocations
Social Security integration
Contribution limits
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• Education Services and Resources

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What can you expect for participant education?

• ABC Advisors conducts regular, onsite meetings
  (semi-annually, quarterly, etc)
• Initial year enrollments
• Continuing education classes devoted to specific
  topics
• Accessibility during the year
• Quarterly statements and newsletters
• Education and guidance delivered via participant
  website
• Enrollment booklets, workbooks, slide rules and
  other printed pieces
• Customizable education pieces for various needs
• Collaborating with HR to deliver the message,
  using a variety of media

Communicating with your employees on their level
in a friendly, unintimidating way.
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Various presentations we deliver
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Enrollment kits and our online enrollment kit

• Enrollment kits
• EBN the Online enrollment kit
• Full online enrollment

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The Market Dashboard (real-time market insights)
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Online library of planning calculators
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The MasteryPoint Guidance Plus Suite
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• Technology Highlights

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Strong commitment to technology

• Bilingual voice response unit, participant
  website, and sponsor website (English and
  Spanish)
• Personalized rates of return (statements,
  website)
• Automatic rebalancing
• Automated loan and distribution processes
• Online fact sheets and prospectuses
• Quarterly statement archive (e-delivery)
• All participant forms, SPD, confirms, and
  newsletter posted online
• Self-directed brokerage account option
• Robust plan sponsor workstation

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Our participant website
Welcome screen
Statement on demand
Account realignment
Online enrollment screen
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Various capabilities of participant website

• Account breakdown by fund, source
• Statement on demand with dynamic date ranges
• Transaction research, export to Excel
• Fund-to-fund transfers
• Account rebalance
• Automatic rebalancing
• Online enrollment, deferral rate changes,
  auto-escalation
• Loan modeling and request
• Loan, hardship, distribution paperwork

• Personalized rate of return
• Fund research library
• Online fact sheets, prospectuses, performance
  history
• Education and guidance suite
• Multimedia library
• Secure email with CSR team
• Archive of past statements and newsletters
• Required notices
• Site maps
• More features coming in 2012

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Our plan sponsor website
Welcome screen
Log on as a participant
The Resource Center an onlinefile cabinet of
all data and reports
Participant messaging
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Various capabilities of plan sponsor website

• Account breakdown by fund, source
• Statement on demand with dynamic date ranges
  (plan level)
• Transaction research, export to Excel
• Drill down as a participant
• Transactional access (enabled or disabled)
• Resource Center (vast library of tools and
  reports)
• Action Items
• Annual Plan Reports
• Quarterly Plan Reports
• Utilization Reports

• Complete data table on employee population
  through .CSV files
• Research status of transactions (loans,
  hardships, distributions, etc)
• View login, transaction history by participant
• Fund research library
• Online fact sheets, prospectuses, performance
  history
• Education and guidance suite
• Multimedia library
• Banner messaging at participant level
• Ongoing rollout of new enhancements

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The Annual Plan Review Report (APRR) prepared for
your plan annually
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Assisting participants through the BPAS Call
Center
CSR Team Manager

• instant management reports
• real-time reporting of
• incoming call volume
• number of calls on hold
• average hold time
• call abandonment rate
• individual CSR performance
• can add additional CSRs to queue at any
  time based on volume
• ideal system for managing, training
  individual CSRs

CSR
CSR
CSR
CSR
CSR
CSR
CSR
CSR

• All calls recorded and archived
• Next available routing across multiple offices
• If queue exists, approximate hold time is
  provided
• Option to hang up, receive immediate callback
  when next CSR becomes available
• Translator line covers approximately 100
  additional languages
• Current team hours 800 AM 630 PM EST
• Email and voicemail available 24 / 365

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• Investments and Trustee Services

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Whether it pertains to proprietary funds or
alliance partner funds, why is level compensation
so critical in a provider??
It is impossible for a provider to be objective
when it is compensated like this
Revenue from proprietary funds or from outside
funds offered on the platform (basis points)
This incurable conflict of interest will
impact ? funds available in the program ?
fund monitoring, recommendations over time ?
participant education and advisory services
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True open architecture on investments a distinct
advantage

• Over 220 fund families currently traded across
  our platform (2,100 funds in total)
• No proprietary funds no mapping or ratio
  requirements
• No variable annuities or separate accounts all
  funds are transparent, known quantity
  investments (no load, same day / late day
  trading)
• Full range of funds and share classes
• All revenue sharing is offset against
  theplatform charge for each fund
• This eliminates any conflicts of interest in the
  fund review, fund monitoring and participant
  education process (a key focus of proposed fee
  disclosure regulations)
• A huge advantage versus asset gatherer
  retirement programs

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Commitment from ABC Advisors
Education meetings Annual or semi-annual education meetings onsite at your company locations at times and locations convenient to you.
Accessibility to individual participants Can schedule onsite at your office or assist participants via phone.
Investment Policy Statement We help plan sponsors put an Investment Policy Statement in place and keep it up to date over time.
Meeting with Retirement Plan Committee Formal annual meetings with your Retirement Plan Committee, covering the plan and making important decisions.
Assistance with ERISA 404(c ) We provide a 404(c) checklist and help you build a formal compliance program.
Maintaining integrity of investment menu We review your fund menu over time and provide monitoring reports, maintaining the integrity of your investment menu.
Legal status We generally serve as 3(21) Advisor / as a Registered Representative (non-fiduciary)
Participant communications Targeted mailings and other assistance in response to key trends (participation rates, deferral rates, default funds, etc).
Overall theme We are your relationship manager and local point of contact responsible for and accountable to your business.
Reducing your fiduciary risk through a
formalized process.
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How the platform charge works
Our Platform Charge 35 basis points on mutual
fund assets, offset by any forms of revenue
sharing
35 basis points
10 bpcustodial fee
25 bpcustodial fee
35 bpcustodial fee
AmericanFundsNewPersp.R435 bps
Buffalo Small CapStock 25 bps
FederatedCapitalApprec. (I) 10 bps
Pure institutional funds (Vanguard,Signal
Shares, etc)
Any custodial fee is applied as a level monthly
charge against holdings in the fund. For example,
if a 25 basis point custodial fee is required, it
would be charged as 2.08 basis points / month
from that fund, or 2.08 / month for a
participant with 10,000 invested. This fee is
does not appear on quarterly participant
statements (it is netted from earnings), but
would be found in the activity history area of
the participant website.
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How we convert plans to our services
Enrollment / education meetings, Forms returned
(or online enrollment)
Plan Profile Form and enrollment booklet order
form submitted. Fund selections made.
Fund mapover process / re-registration of
shares (typically 1-2 business days)
Plan is live!

2 months prior 1 month prior
Month 1
-- Our Conversion Team manages conversion
process, coordinating with all parties to
minimize work for the plan sponsor --
File received from prior recordkeeper
Blackout period ends.PINsmailed to participant
homes.
New provider memoand blackout notice given to
employees
Begin processing employee contributions per
investment elections
This illustration depicts the typical sequence of
events in a conversion where a fund mapover
process is used. Actual circumstances of each
plan conversion will drive the ultimate outcome,
including the timeliness and accuracy of data
received from the prior recordkeeper.
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Closing thoughts / Next steps

• Thank you for your time today
• Possible follow up items
• Our formal proposal
• Comparison of your current funds versus top funds
  on our platform
• Vendor cost comparison matrix (to help you
  compare the total costs of various bidders)
• Mini RFP of administrative services (to help you
  compare the services offered by various bidders)
• References, meeting a Plan Consultant via phone,
  etc.
• Please let us know what additional questions you
  may have