The Principal Title Page

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The Principal Retirement Network for Union
Members Presents.
Exelon
Three Steps to Retirement
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About The Principal Financial Group

• Experience
• Established in 1879 (Bankers Life)
• Over 18 million customers
• Over 282 billion in assets under management
• Expertise
• Retirement planning
• Investment management
• Health, life, and disability insurance

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Your Exelon Retirement Benefits
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Your Pension Benefits For those hired prior to
January 1, 2009 under the Defined Benefit Plan

• Normal Retirement Pension
• Early Retirement Pension
• Disability Pension
• Vested Deferred Pension

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Exelon Normal Retirement Pension

• Eligibility
• Age 65 (Normal Retirement Date) and 5 years of
  service or
• Age 57 and 10 years of service (no reductions)
• Benefit Amount 3 Factors
• Total earnings through December 25, 1994 (if
  applicable)
• Your highest average annual pay (3 years)
• Your years of credited service

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Credit for Service Through December 25, 1994
1.25 TIMES Pensionable Earnings Then in Effect
(through 12/25/1994) MINUS Accrued Portion of
Social Security Offset Then in Effect (a
supplement for retirement to age 65 with full
eligibility)
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Exelon Normal Retirement Pension Formula
Credit for service through December 25,
1994 PLUS 1.62 of your highest average annual
pay (after 2001 no OT, Bonus in salary
calculation) TIMES Years of Credited Service (up
to 40 years)
EQUALS
Your Yearly Normal Retirement Pension
Average of your base pay during your 3
consecutive highest paid years
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Exelon Early Retirement Pension

• Eligibility
• Age 50 and
• 10 Years of Service
• Benefit Amount
• Same formula as Normal Retirement Pension
• Same Pension options as Normal Retirement
• Reductions apply if payments start before age 57
  (3 / year)

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Early Supplemental Payments

• Eligibility
• Age 50 And 10 Years of Service
• Will get supplement
• Benefit
• Provides additional income until age 65
• Equal to approximately 80 of your estimated age
  65 Social Security benefit, based on Exelon
  earnings
• Reduces monthly pension by supplemental payment
  factor
• Ranges from 2.5 to 41 reduction
• Ages 50 - 65

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Disability Pension

• Eligibility
• Age 45 and any years of service
• Under age 45 and 10 years of service
• Benefit Amount
• Calculated the same way as Early Retirement with
  2 differences
• If under age 55 then age 55 is used for reduction
  factor
• If under age 45 your benefit will be at least 25
  of highest average annual pay

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Exelon Vested Deferred Pension

• Eligibility
• Not early retirement eligible (less than 10 yrs
  svc)
• Benefit Amount
• Receive benefit at age 60 Not Before
• Same formula as Normal Retirement Pension
• Same income options
• No supplement

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Pension Income Options

• Automatic Form
• Single Single Life Pension
• Married 50 or 75 Joint and Survivor Annuity
  with pop-up provision (reduced by marital
  pension factor table)
• Optional Forms
• Family Pension 50 of regular pension to
  children under age 21 at your death Payments
  cease at age 21
• Surviving Dependents Pension 50 of regular
  pension to disabled children at your death.
• Spouse pre-deceases retiree after retirement
  begins Monthly benefit is returned to single
  vs. survivor benefit.

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• Exelon Pension Plan for new bargaining unit
  employees
• Eligibility Completed Probationary period
• New hire after Jan 1, 2009
• 3 year cliff vesting 0-0-0--100
• Benefit
• Percentage Age
• 4.5 Up to age 24
• 5.0 25-29
• 6.0 30-34
• 7.0 35-39
• 8.0 40-44
• 9.0 45-49
• 10.0 50 and greater
• Interest Credit (equally blended rate based on
  prior years return of the SP 500 and U.S.
  30-Year Treasury Yield) No less than 4
• 2006 blended rate 10.35
• Income options
• Lump Sum or standard plan options

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Employee Savings Investment Plan

• Employee Contribution
• Contribute from 1 to 50 of pay
• May contribute up to 17,000 per year (pre or
  post-tax)
• 26 investment options
• Employer Matching Contributions
• Matches 100 up to 5 of pay for pretax or post
  tax (Roth).
• Your Contributions are always 100 vested
• Withdrawals
• A variety of in-service withdrawals are available
• Seek advice before making an in-service
  withdrawal
• Not always in your best interest

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Retiree Benefits

• Life Insurance
• Eligibility
• Age 50 and retirement eligible
• Benefit
• 1 X annual base pay in effect at separation
• Reduced at 65 by 10 each year until the greater
  of 30 or 20,000
• Retiree Medical 90/10 PPO Beginning 2011
• Age 55 and 10 years of service, EE pays 20 of
  premium since 04.
• Age 65 Medicare (with 10 years of service
  Exelon supplemental insurance)

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2 Concerns at Retirement
1. How to make the most of your Pension Plan
One of the biggest challenges many of you will
face is deciding which pension payout options to
choose
A. Single Life B. Survivor Benefits
-50 or 75
2. Maintain your Life Insurance benefits after
age 65
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Solution

• Good News- You dont have to make a decision today

However, the sooner to start to plan, the more
options youll have available at retirement
Goal
1. To help you maximize your Employers Pension
Plan 2. Provide a source of income for your
surviving spouse
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How it Works

If spouse pre-deceases you, your beneficiaries
can also receive a federal tax-free benefit
Provide a lump-sum or guaranteed stream of income
for surviving spouse
or
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Basic Investment Strategiesto Maximize
Retirement Income
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Historically, Markets RecoverAfter Sharp
Downturns

• The trailing 12-month returns were sorted from
  worst to best. Adjacent 12-month periods were not
  considered. As result, the 12 months ended
  February 2009 had the lowest return in the data
  set, so the 12-month periods that overlapped with
  February 2009 were not considered.
• The trailing 12-month returns are compounded
  total monthly returns for the SP 500 as reported
  by Wilshire Compass. The 5- and 10-year returns
  are annualized total returns. Investors cannot
  invest directly in an index.
• This chart demonstrates historical results.
  There is no guarantee of future positive returns
  after a prolonged stock market downturn.

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A Common Investor
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Diversify Your Portfolio

• Diversification is the process of spreading your
  investments across a
• number of different types of assets (stocks,
  bonds, real estate, etc.) to
• spread risk and protect against market volatility.

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Advantages to Contributing Now
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401K The Real Cost of Saving
Non-Contributor
Contributor
1,923.08 Bi-Weekly Pay 0.00 0
Contribution 1,923.08 Before Taxes
-384.62 Taxes 1,538.45 Take Home
Pay Retirement ACCOUNT 0.00
Contribution 0.00 Company Match 0.00
Bi-weekly Total
1,923.08 Bi-Weekly Pay 115.38
6 Contribution 1,807.70 Before Taxes
- 361.54 Taxes 1,446.16 Take Home
Pay lt92.29gt Difference Retirement
ACCOUNT 115.38 Contribution 96.15
Exelon Match 5 211.53 Bi-Weekly Total
Illustration based on 50,000 annual salary
Taxes paid are based on an employee in the 20
tax bracket.
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Whats Next?

• One-on-one consultation
• Retirement planning assistance
• Set realistic retirement and financial goals
• Develop a personalized financial strategy
• Establish long-term relationships guide you to
  a comfortable retirement
• Answer your questions in person

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A goal without a plan is just a wish.
Antoine de Saint-Exupery
Thank You!