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Roadways to Retirement

Roadways to Retirement. A superior new answer for your company retirement plan. Today’s A genda. Thank you for the opportunity to meet today Our goal today is to have a dialogue : Gain a solid understanding of your retirement program

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Roadways to Retirement

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  1. Roadways to Retirement A superior new answer for your company retirement plan

  2. Today’s 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 isn’t • 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

  3. XYZ Bank & Trust: Who we are • One of the State’s five largest banking institutions • Over 600 associates throughout our footprint region • Over $__ in deposits, $500 million in trust and fiduciary assets • Trust Division delivers a comprehensive array of fiduciary and investment services • Retirement plans: a major area of focus • Due to the complexities and costs of being in the retirement plan business, we opted to find a strategic partner

  4. Who is BPAS? Full-service retirement provider, servicing entire spectrum DC, DB and, nonqualified plans Nine offices, two time zones, national team of wholesalers Administering 2,300 DC plans 320,000 employees tracked 191,000 participants with a balance $6.0 billion in DC plan assets $13.5 in total under custody “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 2,200 employees in total. Profitable. Reliable. Heavily regulated. Retirement plan administration is our primary line of business.

  5. Our corporate structure

  6. An impressive array of household name clients Between our business in the 50 U.S. States and the Commonwealth of Puerto Rico

  7. 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 The Financial Partner The Platform BPAS

  8. Recordkeeping and Administration

  9. Simplifying life for the Employer(administrationversus 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 • Streamlined process for loans, 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 “You’d 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

  10. What the flow looks like for new contributions Plan sponsor logs onto CensusPro, reviews / approves ACH verification If approved by 3:30 PM EST, BPA initiates mutual fund purchases at that evening’s prices. If after 3:30 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 3 3 3 4 Plan Sponsor Plan Sponsor Plan Sponsor Plan Sponsor 1 Plan sponsor imports census file into CensusPro, submits to BPA The next morning, participants see trades reflected on website. BPA ‘ACH pulls’required funds from plan sponsor checkingaccount to settle prior day’s contributions. 2 2 5 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.

  11. Small benefits that make a big difference We adjudicate loans, hardships and distributions, dealing directly with participants We handle all age 70 ½ notices for the entire plan We prepare all required notices (safe harbor, QDIA, SMM, SAR, 408(b)(2), 404a-5, etc) No redemption fees (opposite way trade block used where needed) No blackout period for fund changes Plan sponsors can assist participants in a variety of ways (obtaining paperwork in website,transactional access, etc) We can reset PINs over the phone

  12. Our certified audit package – another big advantage BPAS acts as recordkeeper, clearing firm and directed trustee/custodian Since plan and trust are held on the same system (SunGard OmniPlus), all reports are consolidated and there are no plan-to-trust reconciliation issues Type II SSAE 16 audit report covers the plan and the trust Our certified audit package is delivered to your auditors through a secure, web-based link, including all documents needed for audit Certified trust statements, allocation reports, contributions, distributions, transactions, compliance tests, etc. When auditors have questions or need additional information, they call your BPAS Plan Consultant directly The bundled nature of our solution allows us to greatly simplify the audit process and reduce work for our clients (cost and time savings)

  13. A specialist at plan design 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

  14. Education Services and Resources

  15. Answering the Call on Participant Education • Trustee / Advisor conducts onsite meetings (semi-annually, quarterly, etc) • Initial year enrollments • Continuing education classes devoted to specific topics • 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 theirlevel – in a friendly, non-intimidating way.

  16. Various presentations we offer

  17. Enrollment kits and our online enrollment kit Enrollment kits EBN – the Online enrollment kit Full online enrollment

  18. The Market Dashboard (real-time market insights)

  19. Online library of planning calculators

  20. The MasteryPoint ™ Guidance Plus Suite

  21. The Financial Resource Center

  22. Investment Advice for Participants (optional service) Adviceware™ becomes 3(21) advisor to each participant Simplifies process of investing for retirement

  23. Technology Highlights

  24. Our participant website Welcome screen Statement on demand Account realignment Online enrollment screen

  25. 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 Integration with Mint.com Online beneficiary designations Additional features being rolled out soon

  26. Our plan sponsor website Welcome screen Log on as a participant The Resource Center – an online“file cabinet” of all data and reports Participant messaging

  27. 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 On Track reports (review retirement income adequacy of participants) Education and guidance suite Multimedia library Banner messaging at participant level Ongoing rollout of new enhancements

  28. The Annual Plan Review Report (APRR)

  29. Assisting participants through our 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: 8:30 AM – 6:30 PM EST • Email and voicemail available 24 / 365

  30. Investments and Trustee Services

  31. TrueOpen Architecture on Investments • Over 240 fund families currently traded across our platform (2,200+ funds in total) • No proprietary funds or “ratio requirements” • Able to select the strongest possible mix of investments for your plan since we are 100% revenue neutral • Full range of A, Advisor and R shares, plus “pure institutional” share classes • All funds trade no-load • Fees offset at the level of each fund –far superior to ERISA recapture methodology!

  32. 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

  33. = platform true up = revenue sharing How the platform charge works Typical platform charge on smaller plan: 35 basis points on mutual fund assets 35 basis points 10 bpcustodial fee 25 bpcustodial fee 35 bpcustodial fee AmericanGrowthFund ofAmericaR435 bps Buffalo Small CapStock 25 bps Dodge & CoxInternational 10 bps “Pure institutional” funds (Vanguard T. Rowe, 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.

  34. XYZ Bank & Trust as your Plan Trustee …Reducing your fiduciary risk through a formalized process.

  35. 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 -- Blackout period ends.PINsmailed to participant homes. File received from prior recordkeeper 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.

  36. 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 costsof 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

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