Product Updates

1
Product Updates

• Peter Welsh
• Senior Vice President
• Director of Business Development
• Chicago

2
Agenda

• Merrill Lynch Product
• Self Directed Brokerage Account
• Roth 401(k)
• Plus 15 Enrollment Initiative
• Participant Education

3
Merrill Lynch Product

• 107 Investments vs. 92 Investments (ML Funds
  added)
• No Tiers, i.e. Open Architecture and no
  proprietary fund requirements
• 250,000 minimum first year deposits
• 4 Standard Commission Options
• SDBA - Not Available
• Sponsor Advice Not Available
• Service Level Standards
• Establishment of Link

4
Service Standards

• Transamerica Financial Life Insurance Company
  (TFLIC) will perform the services listed below
  within the established service standards. If
  TRS or the TPA, where applicable, does not meet
  the defined stated delivery service standard,
  TFLIC will credit to Client 10 of the total
  quarterly record keeping fee paid to Transamerica
  on the next invoice to be processed for each
  service standard failure that occurred during the
  previous quarter.

5
Service Standards - TRS

• Enrollment Transamerica will mail enrollment
  material within 10 business days after receipt of
  final data in Good Order.
• Conversion/Takeover Process Transamerica will
  complete the plan conversion within 10 business
  days after receipt of final data in Good Order.
• Participant Statements Participant statements
  will be mailed within 10 business days after the
  end of the calendar quarter or 10 calendar days
  after the receipt of data in Good Order.

6
Service Standards - TRS

• Payroll Contributions Transamerica will process
  payroll contributions submitted via the required
  medium (Website and request ACH within 1 business
  day of receipt of data in Good Order. Payroll
  contributions received via paper or diskette will
  be processed within 3 business days of receipt of
  data in Good Order.
• Benefit Distributions Distribution and loan
  checks will be mailed within 3 business days from
  the receipt of a distribution request that is
  determined by Transamerica to be in Good Order.

7
Service Standards - TPA

• Employer Contribution Illustrations
  Illustrations for allocation of Employer
  Contribution will be provided within 45 calendar
  days after receipt of final data in Good Order.
• Compliance Testing For calendar-year plans that
  return data by the pre-defined cut off date and
  the data is in Good Order, ADP and ACP test
  results will be provided by March 15 of each
  year. For all other compliance tests when data is
  provided in Good Order, such test results will
  be delivered within 45 calendar days after
  receipt of the last piece of data.
• 5500 Reporting A draft Form 5500 will be
  delivered within 6 months following the
  applicable plan year end, provided 5500 data is
  received in Good Order, within 45 calendar days
  following the plan year end for which the return
  is to be completed.

8
Good Order

• For the purpose of administering the above
  Service Standards, Good Order defined as
• Receipt of complete and accurate participant
  information on conversion or contribution files
  that reconcile and match dollar amounts remitted.
  For conversion files, complete and accurate
  records include loan summary reports that match
  and reconcile to loan repayments being remitted
• Receipt of complete and accurate forms, responses
  to requests for additional information or census
  data necessary and required in order for the
  TPA/Transamerica to perform disbursements,
  compliance testing or other services, including
  those services listed above.

9
Reporting and tracking

• TRS monthly report to ML
• TPA tracking
• 3 service level standards
• Online tracker
• Date level input
• Data in Good Order
• Completion
• Automatic jogger
• Email notification of missing date
• Email notification of approaching deadline
• Online messaging and plan highlighting

10
Self-Directed Brokerage Account

• TruSource will be new option effective 6/30/06
  replacing Harris Direct
• Allows multiple brokerage account consolidation
  options
• 3 Options
• Broker Managed
• Do-It-Yourself via Ameritrade
• Mutual Funds Only window TruSource will
  process
• Ability to hold unique assets Unregistered
  Securities, Life Insurance, Real Estate

11
Roth 401(k)

• CE Presentation Approved
• Promoting Roth 401(k) with Alliance Partners
• Promotional Brochures Completed
• Enrollment Materials modified and Certified
  Enrollers trained on Roth 401(k)

12
Plus 15 Enrollment Initiative

• Promotion to increase participation 15
• Focus on Participation Drivers and educational
  tools
• Keys
• Must have less than 75 participation
• 100 of eligible, non-participating must attend
  workshop
• No material decrease in benefits
• Must provide Participation Data at time of
  Takeover
• Must select a minimum of 4 recommended drivers
• Recommendations outlined in comprehensive
  analysis

13
Participant Education

• Enrollment and re-enrollment
• Seminars
• 401(k) Made Simple
• Investments Made Simple
• New Seminars
• Women and Investing
• Roth 401(k) Made Simple

14
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