Plan review. for Mesa Developmental Services. Plan G /31/2013 AUL RETIREMENT SERVICES AMERICAN UNITED LIFE INSURANCE COMPANY

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1 AUL RETIREMENT SERVICES Plan review for Mesa Developmental Services Plan G /31/213 Client Svcs Regional Manager Ty Berry OneAmerica 811 E Prentice Ave #825 Englewood, CO Products and financial services provided by a ONEAMERICA company AMERICAN UNITED LIFE INSURANCE COMPAN

2 Plan review table of contents for plan G62262 Accomplishments...3 Plan review... 4 Investment review... 5 Fee disclosures...26 Plan overview... 3 Compliance update Fiduciary checklist...39 Action plan Our promise ou are the steward of your benefits package and we understand the importance of that undertaking. American United Life Insurance Company (AUL) aspires to help you deliver a high-quality retirement plan to your employees. This customized plan review document highlights many important plan details such as elections, participation and investments. We hope you ll find it a useful tool as you look to plan for the future. We appreciate your business, value our relationship and will continue to deliver on our promises.

3 Accomplishments Accomplishments Trust a leader Here s what AUL offers as your retirement plan provider Retirement industry leadership More than 5 years experience in the retirement business More than 9,7 active retirement plans as of September 3, 211 The 212 DCP/Boston Research Group Plan Sponsor Satisfaction and Loyalty Survey for Plan Assets under $5 million awarded AUL with Platinum ratings in: Overall satisfaction with Provider and Relationship Manager Plan Manager s flexibility Telephone Reps ability to resolve participant issues Three categories of Education Services: o Fulfills fiduciary responsibility o Helping employees understand the principles of investing o Makes employees more competent and confident 135-year heritage of financial strength $17.4 Billion in retirement services assets as of December 31, 212 A+ (Superior) is the second highest of 16 possible ratings, according to A.M. Best as of May 1, 212. (AUL, State Life, & PML) AA- (Very strong) is the fourth highest of 21 possible ratings, according to Standard & Poor s as of August, 15, 212. (AUL & State Life) Commitment to Service 26 regional offices across the country provide local sales and service support Corporate office consultants provide day-to-day plan support Extensive library of participant materials provide ongoing motivation and education Quality investment portfolio No proprietary investment requirements More than 3 investment options from well-known fund companies Peer Analysis and Review Report (PARR) provides ongoing quarterly investment review Full fee transparency and disclosure Customer loyalty that speaks for itself Average tenure of our retirement plan customers as of December 31, 212: 13.9 years for plans over $1 million 12.8 years for $5 $1 million plans 11.5 years for $1 $5 million plans 17.6 years for plans under $1 million All group variable annuity contracts are issued by American United Life Insurance Company (AUL), One American Square, Indianapolis, IN , Registered group variable annuity contracts are distributed by OneAmerica Securities, Inc., Member FINRA, SIPC, a Registered Investment Advisor, 433 N. Capitol Ave., Indianapolis, IN 4624,

4 Plan review Plan review Key plan facts and goal setting for Mesa Developmental Services The plan review for Mesa Developmental Services will address a range of responsibilities associated with your qualified plan. Our approach is grounded in a deep understanding of the retirement industry, strategic goals, behavior, performance and technology and is focused on producing measurable business results. Key plan facts Plan G62262 became effective on 3/1/1982 Plan assets as of 1/31/213 are $3,73,28.32 Currently plan G62262 offers 42 investments to 516 plan participants Goal setting discussion Business/industry updates: Retirement plan updates: Plan review meeting goals: 4

5 Investment review Investment review Plan level investment portfolio by asset class Large Cap Value TIAA-CREF LgCap Val Indx R TRowePrice Eqty Inc Ins Large Cap Blend AmerFds Fdamental Invs R4 State St Eqty 5 Indx Adm TIAA-CREF Social Choice Eqty R Large Cap Growth Prudential Jenn 2/2 Focus Z TIAA-CREF LgCapGrth Indx R Mid Cap Value GoldmanSachs MidCap Val Inst Mid Cap Blend Columbia MidCap Indx A Mid Cap Growth Prudential Jenn Midcap Grth Z Small Cap Value Small Cap Blend GoldmanSachs SmCapVal Inst Small Cap Growth Invesco SmCap Grth A continues on next page 5

6 Investment review Fix Int/Stable Value/Cash AUL Stable Value Account Short-Term Bonds Intermediate-Term Bonds AmerCent Ginnie Mae A AmerCent Infl-Adj Bond A PIMCO Total Return Adm High ield Bonds Balanced Janus Asp Balanced S Russell LP Balanced R1 Russell LP Consv R1 Russell LP Grth Strat R1 Russell LP Mod R1 Foreign Stocks AmerFds EuroPac Grth R4 TIAA-CREF Intl Eqty Indx R Templeton Foreign A World Stocks BlackRock Global Alloc I Russell L.P. EqtyGrthStrat R1 Specialty AmerCent RealEstate Inv Columbia Seligman Com & Info Z GoldmanSachs Tollkeeper Inst Prudential Jenn Health Sci Z Russell Commodity Strategies S Russell Global RealEstateSec S Managed Asset Allocation AmerCent One Choice 215 Inv AmerCent One Choice 22 Inv AmerCent One Choice 225 Inv AmerCent One Choice 23 Inv AmerCent One Choice 235 Inv AmerCent One Choice 24 Inv AmerCent One Choice 245 Inv AmerCent One Choice 25 Inv AmerCent One Choice 255 Inv AmerCent One Choice Inc Inv 6

7 Investment review Rate of return by investment from 11/1/212 to 1/31/213 Investment options Investment type Rate of return 1, 3 Assets Fix Int/Stable Value/Cash AUL Stable Value Account Fixed Int/Stable Val.57% $216, Intermediate-Term Bonds AmerCent Ginnie Mae A Int Government Bond.69% $28,27.49 AmerCent Infl-Adj Bond A Inflation Protected B -7.8% $71, PIMCO Total Return Adm Int Term Bond -2.18% $44,745.8 Balanced Janus Asp Balanced S Balanced 16.96% $279,88.54 Russell LP Balanced R1 Balanced 12.2% $1,845,183.9 Russell LP Consv R1 Balanced N/A $. Russell LP Grth Strat R1 Balanced 16.9% $28,729.8 Russell LP Mod R1 Balanced N/A $. Large-Cap Stocks TIAA-CREF LgCap Val Indx R Large Cap Value 25.2% $71,44.69 TRowePrice Eqty Inc Ins Large Cap Value 26.88% $15,49.54 AmerFds Fdamental Invs R4 Large Cap Blend 24.8% $3,8.17 State St Eqty 5 Indx Adm Large Cap Blend 26.19% $25, TIAA-CREF Social Choice Eqty R Large Cap Blend N/A $. Prudential Jenn 2/2 Focus Z Large Cap Growth 26.55% $5,524.1 TIAA-CREF LgCapGrth Indx R Large Cap Growth 27.3% $458, Mid-Cap Stocks GoldmanSachs MidCap Val Inst Mid Cap Value 28.21% $45, Columbia MidCap Indx A Mid Cap Blend 25.94% $2, Prudential Jenn Midcap Grth Z Mid Cap Growth 26.81% $94, Small-Cap Stocks GoldmanSachs SmCapVal Inst Small Cap Blend 34.76% $62,.1 Invesco SmCap Grth A Small Cap Growth 36.37% $68, Rate of return at investment level is calculated based on contributions made to a specific investment. 2. Plan level rate of return is calculated based on contributions made to all investments within the plan. 3. Performance is calculated using the Modified Dietz Rate of Return method. The Modified Dietz Rate of Return method is a time-weighted approach supported by the Association for Investment Management and Research (AIMR). continues on next page 7

8 Investment review Investment options Investment type Rate of return 1, 3 Assets Foreign Stocks Templeton Foreign A Foreign Value 33.51% $12,91.39 AmerFds EuroPac Grth R4 Foreign Blend 21.7% $15, TIAA-CREF Intl Eqty Indx R Foreign Blend 23.91% $316.3 World Stocks BlackRock Global Alloc I World Allocation 13.12% $37, Russell L.P. EqtyGrthStrat R1 World Stock N/A $. Specialty AmerCent RealEstate Inv Specialty 7.27% $13, Columbia Seligman Com & Info Z Specialty 18.42% $1, GoldmanSachs Tollkeeper Inst Specialty 26.27% $11, Prudential Jenn Health Sci Z Specialty 41.58% $188,38.2 Russell Commodity Strategies S Specialty -7.46% $19.84 Russell Global RealEstateSec S Specialty 1.18% $27, Managed Asset Allocation AmerCent One Choice 215 Inv Mgd Asset Allocation N/A $. AmerCent One Choice 22 Inv Mgd Asset Allocation N/A $. AmerCent One Choice 225 Inv Mgd Asset Allocation 11.52% $. AmerCent One Choice 23 Inv Mgd Asset Allocation N/A $. AmerCent One Choice 235 Inv Mgd Asset Allocation N/A $. AmerCent One Choice 24 Inv Mgd Asset Allocation N/A $. AmerCent One Choice 245 Inv Mgd Asset Allocation N/A $. AmerCent One Choice 25 Inv Mgd Asset Allocation N/A $. AmerCent One Choice 255 Inv Mgd Asset Allocation N/A $. AmerCent One Choice Inc Inv Mgd Asset Allocation N/A $. Plan level rate of return 2 and asset total 15.83% $3,73, Rate of return at investment level is calculated based on contributions made to a specific investment. 2. Plan level rate of return is calculated based on contributions made to all investments within the plan. 3. Performance is calculated using the Modified Dietz Rate of Return method. The Modified Dietz Rate of Return method is a time-weighted approach supported by the Association for Investment Management and Research (AIMR). 8

9 Investment review Variable products are sold by prospectus. Both the product prospectus and underlying fund prospectuses can be obtained from your investment professional or by writing to OneAmerica Securities, Inc., 433 N. Capitol Ave., Indianapolis, IN 4624, Before investing, carefully consider the fund's investment objectives, risks, charges and expenses. The product prospectus and underlying fund prospectus contain this and other important information. Read the prospectuses carefully before investing. Returns are historical and past performance does not guarantee future results. Current performance may be lower or higher than the performance quoted. The investment return and principal value of the investment accounts will fluctuate, thus a participant's units may be worth more or less than their original cost when redeemed. Annualized total return figures shown are net of the ordinary operating expenses for each fund, but may not reflect a deduction for any contract related charges and fees such as mortality & expense risk charges, administrative expenses, premium tax charges, maintenance fees or other expenses that might be incurred under a group variable annuity contract. If included in these total return figures, any such charges would lower the performance shown. For a complete description of the charges, expenses or fees that apply to your contract, please contact your Employer or Plan Administrator. For a more complete description of the performance calculation and other important information, write to OneAmerica Securities, Inc., 433 N. Capitol Ave., Indianapolis, IN 4624, The performance reported includes an asset charge of 1.25% on an annualized basis. A Variable Investment Plus (VIP) Credit Factor is applied to your account at month-end to produce additional earnings which reduces the net asset charge. The VIP credit factor applied to your account was.55%. With the VIP credit factor, the net asset charge applied to your account was.7%. The performance does not reflect the deduction of withdrawal charges or a pro rata portion of any administrative fee. Based on the type of contract, administrative fees may range from $ - $5. per quarter. Annualized investment option performance as of 1/31/213 Investment options Intermediate-Term Bonds Investment type Expense ratio earto-date 1 year 3 years 5 years 1 years or inception Inv Option inception AmerCent Ginnie Mae A Int Government Bond /23/1985 AmerCent Infl-Adj Bond A Inflation Protected B /15/1998 PIMCO Total Return Adm Int Term Bond /8/1994 Balanced Janus Asp Balanced S Balanced /31/1999 Russell LP Balanced R1 Balanced /5/26 Russell LP Consv R1 Balanced /28/26 Russell LP Grth Strat R1 Balanced /18/26 Russell LP Mod R1 Balanced /2/26 Large-Cap Stocks TIAA-CREF LgCap Val Indx R Large Cap Value /1/22 TRowePrice Eqty Inc Ins Large Cap Value /31/1994 continues on next page 9

10 Investment review Expense earto-date 1 years or Inv Option Investment options Investment type ratio 1 year 3 years 5 years inception inception AmerFds Fdamental Invs R4 Large Cap Blend /25/22 State St Eqty 5 Indx Adm Large Cap Blend /27/1992 TIAA-CREF Social Choice Eqty R Large Cap Blend /1/22 Prudential Jenn 2/2 Focus Z Large Cap Growth /1/1998 TIAA-CREF LgCapGrth Indx R Large Cap Growth /1/22 Mid-Cap Stocks GoldmanSachs MidCap Val Inst Mid Cap Value /1/1995 Columbia MidCap Indx A Mid Cap Blend /2/2 Prudential Jenn Midcap Grth Z Mid Cap Growth /31/1996 Small-Cap Stocks GoldmanSachs SmCapVal Inst Small Cap Blend /15/1997 Invesco SmCap Grth A Small Cap Growth /18/1995 Foreign Stocks Templeton Foreign A Foreign Value /5/1982 AmerFds EuroPac Grth R4 Foreign Blend /7/22 TIAA-CREF Intl Eqty Indx R Foreign Blend /1/22 World Stocks BlackRock Global Alloc I World Allocation /27/1998 Russell L.P. EqtyGrthStrat R1 World Stock /18/26 Specialty AmerCent RealEstate Inv Specialty /21/1995 Columbia Seligman Com & Info Z Specialty N/A /27/21 GoldmanSachs Tollkeeper Inst Specialty /1/1999 Prudential Jenn Health Sci Z Specialty /3/1999 Russell Commodity Strategies S Specialty N/A N/A N/A 7/1/21 Russell Global RealEstateSec S Specialty /28/1989 Managed Asset Allocation AmerCent One Choice 215 Inv Mgd Asset Allocation /31/24 AmerCent One Choice 22 Inv Mgd Asset Allocation /3/28 AmerCent One Choice 225 Inv Mgd Asset Allocation /31/24 AmerCent One Choice 23 Inv Mgd Asset Allocation /3/28 AmerCent One Choice 235 Inv Mgd Asset Allocation /31/24 AmerCent One Choice 24 Inv Mgd Asset Allocation /3/28 AmerCent One Choice 245 Inv Mgd Asset Allocation /31/24 AmerCent One Choice 25 Inv Mgd Asset Allocation /3/28 AmerCent One Choice 255 Inv Mgd Asset Allocation N/A N/A /1/211 AmerCent One Choice Inc Inv Mgd Asset Allocation /31/24 1

11 Investment review Standardized Average Annual Returns are reported on a calendar quarter basis. The performance data is based on the date the investment account was first offered through the AUL American Unit Trust. These performance results show the percentage change on an annualized basis for each period with dividends, capital gains and income reinvested. The returns reflect the reduction of all recurring expenses. Standardized investment option performance as of 9/3/213 Investment options Intermediate-Term Bonds Investment type Expense ratio earto-date 1 year 3 years 5 years 1 years or inception AUL inception AmerCent Ginnie Mae A Int Government Bond /1/23 AmerCent Infl-Adj Bond A Inflation Protected B /1/24 PIMCO Total Return Adm Int Term Bond /24/27 Balanced Janus Asp Balanced S Balanced N/A N/A /28/21 Russell LP Balanced R1 Balanced N/A /17/28 Russell LP Consv R1 Balanced N/A /17/28 Russell LP Grth Strat R1 Balanced N/A /17/28 Russell LP Mod R1 Balanced N/A /17/28 Large-Cap Stocks TIAA-CREF LgCap Val Indx R Large Cap Value N/A /17/29 TRowePrice Eqty Inc Ins Large Cap Value /28/1995 AmerFds Fdamental Invs R4 Large Cap Blend /23/26 State St Eqty 5 Indx Adm Large Cap Blend /1/1993 TIAA-CREF Social Choice Eqty R Large Cap Blend N/A /17/29 Prudential Jenn 2/2 Focus Z Large Cap Growth N/A /27/21 TIAA-CREF LgCapGrth Indx R Large Cap Growth N/A /17/29 Mid-Cap Stocks GoldmanSachs MidCap Val Inst Mid Cap Value /23/26 Columbia MidCap Indx A Mid Cap Blend /13/27 Prudential Jenn Midcap Grth Z Mid Cap Growth N/A /17/29 Small-Cap Stocks GoldmanSachs SmCapVal Inst Small Cap Blend /23/26 Invesco SmCap Grth A Small Cap Growth /1/22 Foreign Stocks Templeton Foreign A Foreign Value /24/27 AmerFds EuroPac Grth R4 Foreign Blend /23/26 TIAA-CREF Intl Eqty Indx R Foreign Blend N/A /17/29 continues on next page 11

12 Investment review Investment options World Stocks Investment type Expense ratio earto-date 1 year 3 years 5 years 1 years or inception AUL inception BlackRock Global Alloc I World Allocation N/A /1/29 Russell L.P. EqtyGrthStrat R1 World Stock N/A /17/28 Specialty AmerCent RealEstate Inv Specialty /24/27 Columbia Seligman Com & Info Z Specialty N/A N/A /2/211 GoldmanSachs Tollkeeper Inst Specialty /23/26 Prudential Jenn Health Sci Z Specialty N/A /17/29 Russell Commodity Strategies S Specialty N/A N/A /2/211 Russell Global RealEstateSec S Specialty N/A /17/28 Managed Asset Allocation AmerCent One Choice 215 Inv Mgd Asset Allocation N/A /1/29 AmerCent One Choice 22 Inv Mgd Asset Allocation N/A 1.3 5/1/29 AmerCent One Choice 225 Inv Mgd Asset Allocation N/A /1/29 AmerCent One Choice 23 Inv Mgd Asset Allocation N/A /1/29 AmerCent One Choice 235 Inv Mgd Asset Allocation N/A /1/29 AmerCent One Choice 24 Inv Mgd Asset Allocation N/A /1/29 AmerCent One Choice 245 Inv Mgd Asset Allocation N/A /1/29 AmerCent One Choice 25 Inv Mgd Asset Allocation N/A /1/29 AmerCent One Choice 255 Inv Mgd Asset Allocation N/A N/A /1/211 AmerCent One Choice Inc Inv Mgd Asset Allocation N/A 9. 5/1/29 12

13 Investment review Information for your investment options Any performance reported before AUL first offered an investment account is hypothetical and was calculated by adjusting the underlying fund's performance by current applicable contract charges. Unit values given in this statement are based on net asset values provided by the funds and are not independently verified by AUL. If AUL receives inaccurate information, the unit value may be affected accordingly. If an error is subsequently discovered by any fund and reported to AUL, a participant's account will be recalculated to reflect the correct fund value, provided that the error was material under federal securities laws. Asset Class and Investment Option Specific Disclosures Bond funds have the same interest rate, inflation and credit risks associated with the individual securities owned by the fund. The use of asset allocation does not guarantee returns or insulate you from potential losses and diversification does not assure a profit and does not guarantee against loss in a declining market. Micro-, Small- and Mid-Cap company stocks are more volatile than large company stocks. There are additional risks associated with international investing, such as currency fluctuations, economic and political factors, etc. not associated with investing exclusively in the U.S. Sector funds may experience greater short-term price volatility than more diversified equity funds, and are most suitable for the aggressive portion of an investment portfolio. Target Date Funds are designed for people who plan to retire and begin taking withdrawals during or near a specific year. These funds use a strategy that reallocates equity exposure to a higher percentage of fixed investments; the funds will shift assets from equities to fixed-income investments over time. As a result, the funds become more conservative over time as you approach retirement. It's important to remember that no strategy can assure a profit or prevent a loss in a declining market and the principal value of the Target Date Funds is not guaranteed at any time, including the target date. Target Date Funds are designed to provide diversification and asset allocation across several types of investments and asset classes, primarily by investing in underlying funds. Therefore, in addition to the expenses of the Target Date Funds, an investor is indirectly paying a proportionate share of the applicable fees and expenses of the underlying funds. The principal amounts invested into these funds are not guaranteed at any point and may lose value. Investors cannot invest directly in any index. Investments that focus on real estate investing are sensitive to economic and business cycles, changing demographic patterns and government actions. AUL Specific Disclosures The use of diversification and asset allocation as part of an overall investment strategy does not assure a profit, or protect against loss in a declining market. continues on next page 13

14 Investment review Registered group variable annuity contracts issued by American United Life Insurance Company (AUL) are distributed by OneAmerica Securities, Inc., Member FINRA, SIPC, a Registered Investment Advisor, 433 N. Capitol Ave., Indianapolis, IN 4624, Qualified retirement plans from AUL are funded by an AUL group variable annuity contract. While a participant in an annuity contract may benefit from additional investment and annuity related benefits under the annuity contract, any tax deferral is provided by the plan and not the annuity contract. Participants invest in AUL separate accounts, which in turn invest in underlying funds. Plan participants own units of an AUL separate account, not shares of any underlying fund. If the Plan permits and the participant invests in assets not specifically reported on the quarterly statements provided by AUL, the participant will receive more than one statement detailing the investments in the plan within a reasonable amount of time after the end of each quarter. Examples of these types of assets include self-directed brokerage accounts, real estate, life insurance, or assets with another vendor. AUL receives revenue from the investment management companies that provide the underlying investments. This revenue can be in the form of 12-b(1) fees, Sub T-A Fees, Shareholder Service Fees or other types of fees. This revenue offsets AUL's expense related to the services it provides under and in connection with the group annuity contract(s) that serves as the funding vehicle(s) for a retirement plan. If the AUL administrative services agreements so provides, AUL will credit a portion of its revenue to an account that can be used to pay Plan administrative expenses. 14

15 Investment review Plan asset level percentage by age range as of 1/31/213 The importance of asset allocation Asset allocation is a key driver of account performance. The time horizon for investing is a key component of asset allocation. The information below addresses both. Total asset percentage by age range Percentage by age range 1% Ages % Ages % Ages % Ages % Ages 6+ 15

16 Investment review Plan asset level by investment and age range as of 1/31/213 Investment options Investment type Fix Int/Stable Value/Cash Total plan % AUL Stable Value Account Fixed Int/Stable Val.%.% 11.39%.81% 11.11% 5.84% Intermediate-Term Bonds AmerCent Ginnie Mae A Int Government Bond.%.%.% 1.56%.11%.76% AmerCent Infl-Adj Bond A Inflation Protected B.66%.%.% 4.19%.% 1.93% PIMCO Total Return Adm Int Term Bond 1.14%.%.% 1.35% 1.21% 1.21% Balanced Janus Asp Balanced S Balanced.%.%.% 12.68% 4.73% 7.56% Russell LP Balanced R1 Balanced 63.85% 98.51% 79.93% 44.75% 4.55% 49.81% Russell LP Consv R1 Balanced.%.%.%.%.%.% Russell LP Grth Strat R1 Balanced 1.38%.%.% 1.64%.%.78% Russell LP Mod R1 Balanced.%.%.%.%.%.% Large-Cap Stocks TIAA-CREF LgCap Val Indx R Large Cap Value.%.%.%.93% 4.11% 1.93% TRowePrice Eqty Inc Ins Large Cap Value.65%.13%.69%.65%.5%.42% AmerFds Fdamental Invs R4 Large Cap Blend.%.6%.%.15%.3%.8% State St Eqty 5 Indx Adm Large Cap Blend.%.25%.% 1.23%.34%.7% TIAA-CREF Social Choice Eqty R Large Cap Blend.%.%.%.%.%.% Prudential Jenn 2/2 Focus Z Large Cap Growth.%.6%.%.32%.%.15% TIAA-CREF LgCapGrth Indx R Large Cap Growth.49%.9%.% 15.67% 14.16% 12.39% Mid-Cap Stocks GoldmanSachs MidCap Val Inst Mid Cap Value 8.44%.22% 2.88% 1.6%.3% 1.23% Columbia MidCap Indx A Mid Cap Blend.%.6%.%.67%.69%.57% Prudential Jenn Midcap Grth Z Mid Cap Growth.%.%.% 2.96% 3.29% 2.56% Small-Cap Stocks GoldmanSachs SmCapVal Inst Small Cap Blend 7.52%.21% 2.31% 1.55% 1.54% 1.67% Invesco SmCap Grth A Small Cap Growth.71%.6%.42%.42% 4.34% 1.84% Foreign Stocks Templeton Foreign A Foreign Value.%.4%.%.%.89%.33% AmerFds EuroPac Grth R4 Foreign Blend.%.5%.9%.53%.42%.41% TIAA-CREF Intl Eqty Indx R Foreign Blend.48%.%.%.%.%.1% World Stocks BlackRock Global Alloc I World Allocation.%.%.%.12% 2.64% 1.2% Russell L.P. EqtyGrthStrat R1 World Stock.%.%.%.%.%.% continues on next page 16

17 Investment review Investment options Investment type Specialty Total plan % AmerCent RealEstate Inv Specialty 3.78%.11% 1.21%.36%.1%.38% Columbia Seligman Com & Info Z Specialty 1.19%.8% 1.8%.29%.1%.29% GoldmanSachs Tollkeeper Inst Specialty.%.3%.%.33%.43%.31% Prudential Jenn Health Sci Z Specialty.49%.3%.% 4.58% 8.14% 5.9% Russell Commodity Strategies S Specialty.%.1%.%.%.%.% Russell Global RealEstateSec S Specialty.22%.%.%.66% 1.17%.73% Managed Asset Allocation AmerCent One Choice 215 Inv Mgd Asset Allocation.%.%.%.%.%.% AmerCent One Choice 22 Inv Mgd Asset Allocation.%.%.%.%.%.% AmerCent One Choice 225 Inv Mgd Asset Allocation.%.%.%.%.%.% AmerCent One Choice 23 Inv Mgd Asset Allocation.%.%.%.%.%.% AmerCent One Choice 235 Inv Mgd Asset Allocation.%.%.%.%.%.% AmerCent One Choice 24 Inv Mgd Asset Allocation.%.%.%.%.%.% AmerCent One Choice 245 Inv Mgd Asset Allocation.%.%.%.%.%.% AmerCent One Choice 25 Inv Mgd Asset Allocation.%.%.%.%.%.% AmerCent One Choice 255 Inv Mgd Asset Allocation.%.%.%.%.%.% AmerCent One Choice Inc Inv Mgd Asset Allocation.%.%.%.%.%.% 1.% 1.% 1.% 1.% 1.% 1.% 17

18 Investment review Number of investments for active participants by participant age range Active participant percentage Percentage of participants utilizing the number of investments shown Number of investments Age ranges of participants Number of investments Total Plan total Number of active participants with a balance in age range

19 Investment review Number of investments for terminated participants by participant age range Terminated participant percentage Percentage of participants utilizing the number of investments shown Number of investments Age ranges of participants Number of investments Total Plan total Number of terminated participants with a balance in age range

20 Investment review Future contribution elections Percentage of participants in age range as of 1/31/213 Investment options Investment type Fix Int/Stable Value/Cash Total plan % AUL Stable Value Account Fixed Int/Stable Val % % 4% 4% 26% 17% Intermediate-Term Bonds AmerCent Ginnie Mae A Int Government Bond % % % 5% 3% 3% AmerCent Infl-Adj Bond A Inflation Protected B 3% % % 2% 2% 2% PIMCO Total Return Adm Int Term Bond % % % 5% 2% 2% Balanced Janus Asp Balanced S Balanced % % % 11% 5% 6% Russell LP Balanced R1 Balanced 34% % 2% 2% 18% 19% Russell LP Consv R1 Balanced % % % % % % Russell LP Grth Strat R1 Balanced 1% % % 6% % 2% Russell LP Mod R1 Balanced % % % % % % Large-Cap Stocks TIAA-CREF LgCap Val Indx R Large Cap Value % % % 5% 1% 2% TRowePrice Eqty Inc Ins Large Cap Value 2% 7% 11% 1% 2% 3% AmerFds Fdamental Invs R4 Large Cap Blend % 3% % 1% 2% 1% State St Eqty 5 Indx Adm Large Cap Blend % 34% % 4% 1% 4% TIAA-CREF Social Choice Eqty R Large Cap Blend % % % % % % Prudential Jenn 2/2 Focus Z Large Cap Growth % 3% % 2% % 1% TIAA-CREF LgCapGrth Indx R Large Cap Growth 3% 5% % 1% 8% 7% Mid-Cap Stocks GoldmanSachs MidCap Val Inst Mid Cap Value 15% 11% 7% 3% 1% 4% Columbia MidCap Indx A Mid Cap Blend % 3% % 3% 2% 2% Prudential Jenn Midcap Grth Z Mid Cap Growth % % % 1% 3% 2% Small-Cap Stocks GoldmanSachs SmCapVal Inst Small Cap Blend 15% 13% 7% 3% 6% 6% Invesco SmCap Grth A Small Cap Growth 5% 5% 2% 2% 6% 4% Foreign Stocks Templeton Foreign A Foreign Value % 2% % % % % AmerFds EuroPac Grth R4 Foreign Blend % 3% 1% 2% 2% 3% TIAA-CREF Intl Eqty Indx R Foreign Blend 3% % % 1% % 1% continues on next page 2

21 Investment review Investment options Investment type World Stocks BlackRock Global Alloc I World Allocation % % % % 2% 1% Russell L.P. EqtyGrthStrat R1 World Stock % % % % % % Specialty AmerCent RealEstate Inv Specialty 5% 6% 3% 1% % 1% Columbia Seligman Com & Info Z Specialty % % % % % % GoldmanSachs Tollkeeper Inst Specialty % 2% % 1% % 1% Prudential Jenn Health Sci Z Specialty 3% 2% % 4% 7% 5% Russell Commodity Strategies S Specialty % 1% % % % % Russell Global RealEstateSec S Specialty 2% % % 3% 1% 1% Managed Asset Allocation AmerCent One Choice 215 Inv Mgd Asset Allocation % % % % % % AmerCent One Choice 22 Inv Mgd Asset Allocation % % % % % % AmerCent One Choice 225 Inv Mgd Asset Allocation % % % % % % AmerCent One Choice 23 Inv Mgd Asset Allocation % % % % % % AmerCent One Choice 235 Inv Mgd Asset Allocation % % % % % % AmerCent One Choice 24 Inv Mgd Asset Allocation % % % % % % AmerCent One Choice 245 Inv Mgd Asset Allocation % % % % % % AmerCent One Choice 25 Inv Mgd Asset Allocation % % % % % % AmerCent One Choice 255 Inv Mgd Asset Allocation % % % % % % AmerCent One Choice Inc Inv Mgd Asset Allocation % % % % % % Number of active participants in age range Total plan % Plan total 21

22 Investment review Future contribution elections Percentage of participants in asset class as of 1/31/213 Elections by asset class, ages Percentage by age range 3% Intermediate-Term Bonds 44% Balanced 5% Large-Cap Stocks 15% Mid-Cap Stocks 2% Small-Cap Stocks 3% Foreign Stocks 1% Specialty Elections by asset class, ages 3-39 Percentage by age range 52% Large-Cap Stocks 14% Mid-Cap Stocks 18% Small-Cap Stocks 5% Foreign Stocks 11% Specialty Elections by asset class, ages 4-49 Percentage by age range 4% Fix Int/Stable Value/Cash 2% Balanced 11% Large-Cap Stocks 7% Mid-Cap Stocks 9% Small-Cap Stocks 1% Foreign Stocks 3% Specialty continues on next page 22

23 Investment review Elections by asset class, ages 5-59 Percentage by age range 4% Fix Int/Stable Value/Cash 12% Intermediate-Term Bonds 37% Balanced 23% Large-Cap Stocks 7% Mid-Cap Stocks 5% Small-Cap Stocks 3% Foreign Stocks 9% Specialty Elections by asset class, ages 6+ Percentage by age range 26% Fix Int/Stable Value/Cash 7% Intermediate-Term Bonds 23% Balanced 14% Large-Cap Stocks 6% Mid-Cap Stocks 12% Small-Cap Stocks 2% Foreign Stocks 2% World Stocks 8% Specialty 23

24 Investment review Contributions by source for the 12-month period ending 1/31/213 Contribution percentage by source Percentage by source 66% 43(B) TDA VOLUNTAR 33% ER MATCH REG 1% 457 DCP EMPLOER Contribution total by source Source Total 43(B) TDA VOLUNTAR $214, ER MATCH REG $17, DCP EMPLOER $2,18.76 Total contributions for all sources $324,

25 Investment review Contributions by asset class for the 12-month period ending 1/31/213 Contribution percentage by asset class Percentage per asset class 6% Fix Int/Stable Value/Cash 3% Intermediate-Term Bonds 56% Balanced 14% Large-Cap Stocks 6% Mid-Cap Stocks 5% Small-Cap Stocks 1% Foreign Stocks 1% World Stocks 8% Specialty % Managed Asset Allocation 25

26 Fee disclosures Fee disclosures Fees Information you should know Explanation of fees Water bottles are clear so that you can see what you are about to drink. our retirement plan should be equally transparent. It s important to see and understand the costs associated with your retirement plan. We offer a variety of value-added services to reduce your administrative burden and provide both you and your participants with an efficient and pleasant experience. At AUL, we believe in full disclosure when it comes to fees. Fees allow us to provide: Advisors and consultants Recordkeeping Call center Statements Web Voice response Plan document, compliance and support 55 reporting Testing Investments PARR (Peer Analysis and Review Report) Education Enrollment Employee education materials Seminars Plan fees Annual administration $. Testing/Form 55 $. Manual processing $. Participant fees One time loan fee $75. Annual maintenance fee per loan $24. Fee per distribution $4. Please refer to the Services Agreement and Fee Disclosure document for additional fees that may apply. 26

27 Fee disclosures Annual expense review by investment option Investment options Fix Int/Stable Value/Cash Investment type Account balance as of 1/31/213 Fund management annual expense ratio percentage Variable average annual net asset charge percentage Total fund management and asset charge expense percentage AUL Stable Value Account Fixed Int/Stable Val $216, %.%.% Intermediate-Term Bonds AmerCent Ginnie Mae A Int Government Bond $28, %.7% 1.51% AmerCent Infl-Adj Bond A Inflation Protected B $71, %.7% 1.43% PIMCO Total Return Adm Int Term Bond $44, %.7% 1.41% Balanced Janus Asp Balanced S Balanced $279, %.7% 1.55% Russell LP Balanced R1 Balanced $1,845, %.7% 1.7% Russell LP Consv R1 Balanced $..8%.7% 1.5% Russell LP Grth Strat R1 Balanced $28, %.7% 1.77% Russell LP Mod R1 Balanced $..89%.7% 1.59% Large-Cap Stocks TIAA-CREF LgCap Val Indx R Large Cap Value $71, %.7% 1.2% TRowePrice Eqty Inc Ins Large Cap Value $15, %.7% 1.55% AmerFds Fdamental Invs R4 Large Cap Blend $3, %.7% 1.36% State St Eqty 5 Indx Adm Large Cap Blend $25, %.7%.94% TIAA-CREF Social Choice Eqty R Large Cap Blend $..43%.7% 1.13% Prudential Jenn 2/2 Focus Z Large Cap Growth $5, %.7% 1.59% TIAA-CREF LgCapGrth Indx R Large Cap Growth $458, %.7% 1.2% Mid-Cap Stocks GoldmanSachs MidCap Val Inst Mid Cap Value $45, %.7% 1.45% Columbia MidCap Indx A Mid Cap Blend $2, %.7% 1.16% Prudential Jenn Midcap Grth Z Mid Cap Growth $94, %.7% 1.46% Small-Cap Stocks GoldmanSachs SmCapVal Inst Small Cap Blend $62,.1.96%.7% 1.66% continues on next page 27

28 Fee disclosures Fund management Variable average annual net asset charge Total fund management and asset charge expense percentage Investment options Investment type Account balance as of 1/31/213 annual expense ratio percentage percentage Invesco SmCap Grth A Small Cap Growth $68, %.7% 1.93% Foreign Stocks Templeton Foreign A Foreign Value $12, %.7% 1.91% AmerFds EuroPac Grth R4 Foreign Blend $15, %.7% 1.55% TIAA-CREF Intl Eqty Indx R Foreign Blend $ %.7% 1.3% World Stocks BlackRock Global Alloc I World Allocation $37, %.7% 1.58% Russell L.P. EqtyGrthStrat R1 World Stock $. 1.13%.7% 1.83% Specialty AmerCent RealEstate Inv Specialty $13, %.7% 1.85% Columbia Seligman Com & Info Z Specialty $1, %.7% 1.8% GoldmanSachs Tollkeeper Inst Specialty $11, %.7% 1.8% Prudential Jenn Health Sci Z Specialty $188, %.7% 1.63% Russell Commodity Strategies S Specialty $ %.7% 2.3% Russell Global RealEstateSec S Specialty $27, %.7% 1.8% Managed Asset Allocation AmerCent One Choice 215 Inv Mgd Asset Allocation $..8%.7% 1.5% AmerCent One Choice 22 Inv Mgd Asset Allocation $..83%.7% 1.53% AmerCent One Choice 225 Inv Mgd Asset Allocation $..86%.7% 1.56% AmerCent One Choice 23 Inv Mgd Asset Allocation $..88%.7% 1.58% AmerCent One Choice 235 Inv Mgd Asset Allocation $..91%.7% 1.61% AmerCent One Choice 24 Inv Mgd Asset Allocation $..95%.7% 1.65% AmerCent One Choice 245 Inv Mgd Asset Allocation $..98%.7% 1.68% AmerCent One Choice 25 Inv Mgd Asset Allocation $. 1.%.7% 1.7% AmerCent One Choice 255 Inv Mgd Asset Allocation $. 1.1%.7% 1.71% continues on next page 28

29 Fee disclosures Fund management Variable average annual net asset charge Total fund management and asset charge expense percentage Investment options Investment type Account balance as of 1/31/213 annual expense ratio percentage percentage AmerCent One Choice Inc Inv Mgd Asset Allocation $..77%.7% 1.47% Total account balance $3,73,28.32 Weighted average.79%.65% 1.51% Investment options are grouped into asset categories, as identified by Morningstar Associates, LLC. Fund expense ratios were derived using the Morningstar DataLab software. The fund expense data quoted is net of all expenses of the investment option and fund, if applicable. Some AUL products have other charges at the contract and/or participant level. These charges include the mortality and expense risk charge, withdrawal charges, administrative charges, and charges for premium tax, if applicable. The fund expense ratio data reported does not reflect these additional charges. Refer to the Variable Average Annual Net Asset Charge. Above expenses are not applicable to amounts allocated to the Fixed Account. AUL qualified plans are funded with group variable annuity contracts. While a contract/owner may benefit from tax deferral under a qualified plan without the use of a variable annuity contract, variable annuities may provide additional investment flexibility and annuity-related benefits to individual contract owners. 29

30 Plan overview Plan overview Plan participation rate Participation as of 1/31/213 Employees Total employees Total 516 Active/eligible participants Contributing participants Total participation Participation rate 5% 12% 17% 25% 37% 18% Comparison data Industry average participation rate 77% Source: Profit Sharing/41(k) Council of America 54th Annual Survey Suggestions to increase participation Plan design Employee communications Other methods Safe harbor Paycheck illustrations Employee advocates Automatic enrollment Employee meetings Management incentives Automatic default One-on-one advice Train the trainer sessions Add/increase match Targeted campaigns Offer financial planner access 3

31 Plan overview Average account balance by age range for active participants as of 1/31/213 Account information Average account balance $311.1 Number of participants 3-39 $1, $4, $15, $12, Total $6, Average account balance (Comparison) $2, $8, $15, $6, Average account balance $1, $4, $5, $2, $ Age ranges of active participants $ Plan G62262 Industry Average Comparison data Industry average account balance $6,329 Source: Employee Benefits Research Institute 41(k) plan asset allocation, account balances and loan activity in 21 published December

32 Plan overview Average account balance by age range for terminated participants as of 1/31/213 Account information Average account balance $4,353.8 Number of participants 3-39 $3, $2, $7, $36,23.64 Total $18, Average account balance (Terminated participants Plan G62262) $4, $3, Average account balance $2, $1, $ Age ranges of terminated participants 32

33 Plan overview Vesting Schedules and service requirements Vesting schedule 1 ear 1.% Sources: ER MATCH REG,43(B) TDA EMPLOER,457 DCP EMPLOER Vesting schedule for matching contributions (Comparison data) Immediate full vesting 37.3% 2 year cliff vesting 5.5% 3 year cliff vesting 11.3% 3 year graduated vesting 4 year graduated vesting 5 year graduated vesting 6 year graduated vesting 3.8% 1.8% 19.7% 16.7% Other 4.% Source: Profit Sharing/41(k) Council of America 54th Annual Survey Vesting schedule for profit sharing contributions (Comparison data) Immediate full vesting 23.3% 2 year cliff vesting 4.6% 3 year cliff vesting 15.9% 5 year cliff vesting 1.2% 3 year graduated vesting 4 year graduated vesting 5 year graduated vesting 6 year graduated vesting 7 year graduated vesting 3.4% 1.9% 21.4% 27.2%.5% Other.7% Source: Profit Sharing/41(k) Council of America 54th Annual Survey 33

34 Plan overview Loans Facts, allowances and provisions Loan facts about your plan Number of outstanding loans at one time allowed by your plan Percentage of participants that have loans outstanding Number of loans currently outstanding Percentage of plan assets borrowed Types of loans permitted 1 6% 9 1% Any Reason Loan facts (Comparison data) Percentage of plans offering loan provisions 87.3% Percentage of plans that allow multiple loans 47.2% Percentage of participants who have loans 23.8% Average loan amount per borrower $8,619 Percentage of plan assets loaned 2.4% Percentage of plans offering hardship withdrawal 84.8% Source: Profit Sharing/41(k) Council of America 54th Annual Survey Percentage of all plan types with loan provisions (Comparison data) Percentage per plan type 87.3% Loans permitted 1.1% Loans not permitted, but under consideration 11.6% Loans not permitted and not under consideration Source: Profit Sharing/41(k) Council of America 54th Annual Survey Plans allowing more than one loan at a time (Comparison data) Percentage per number of loans 74.2% Two Loans 15.1% Three Loans 2.% Four Loans 4.% Five Loans 4.7% Six or more Loans Source: Profit Sharing/41(k) Council of America 54th Annual Survey 34

35 Plan overview Technology summary from 11/1/212 to 1/31/213 esponsor Web site New hires entered 1 eenrollments 1 Participant status changes 23 Personal data changes 7 Loans calculated 1 Loan requests submitted Account Services Web site Logins 759 eenrollments 16 Deferral changes 5 Address changes 7 Balance inquiries 879 Auto rebalances Dollar transfers 2 Percent transfers 5 Dollar cost averaging transfers Investment election changes 8 Reviewed investment performance 3 Loans calculated 23 Loan requests submitted 4 Interactive voice response system Calls received 14 Investment transfers Reviewed current investment elections 1 Investment election changes Reviewed unit values Used speech recognition 31 Spanish-speaking callers 35

36 Compliance update Compliance update Compliance update This section summarizes recent developments arising from the passage of a new law with retirement plan implications, a proposed overhaul of the savings plan model, and IRS guidance on required notice for plan underfunding, all of which may impact your plan administration both this year and next. For details regarding the material summarized below, or any questions on how your plans may be affected, please contact your AUL Retirement Services Representative. I. DOL Enforcement of Failure to Remit Employee Contributions The Department of Labor is taking a much more aggressive position with regard to audits of employee contributory plans with regard to the timing of when the employee contributions are remitted to the plan custodian. On October 2, 212, the Secretary of Labor filed an action in the United States District Court of Arizona alleging, among other violations, that the company, as the plan sponsor, administrator and fiduciary, as well as certain individual officers and owners of the company violated ERISA by failing to remit employee contributions within three (3) days from the date the contributions could reasonably be segregated from the company s assets. The DOL sought to require the company, and its co-owners, to restore to the plan any losses, including lost-opportunity costs, remove the company as plan administrator, fiduciary and trustee, and permanently prohibit the owners from serving as a fiduciary or service provider to any ERISA-covered employee benefit plan. Recent audit experience has shown that in some cases, the DOL expects the plan sponsor to remit employee contributions to the plan custodian on the same day the contributions are withheld from payroll. With advances in electronic transmissions, this position by the DOL is becoming more and more prevalent especially with mid-large employers. The DOL is taking a much more restrictive stance during audit with respect to the timely remittance of employee contributions. Plan sponsors are advised against relying on the current regulatory language allowing for the segregation of employee contributions no later than the 15th business day of the month following the month in which the contributions are received. Such reliance seriously jeopardizes the plan sponsor in light of today s technological advances. Planning Tip: This case serves as a reminder of the importance for plan sponsors to ensure that employee contributions to its plan are very timely remitted to the plan custodian for deposit. This is supported by experience with recent audits by the DOL in which violations have been found for delays of one to two days. Periodic checks with your plan custodian to ensure the contributions are being received timely is highly recommended. continues on next page 36

37 Compliance update II. IRS To Cease Letter-Forwarding Services The Internal Revenue Service announced recently that it will discontinue the practice of providing letter-forwarding services at the request of companies, individuals or other organizations that control plan assets that may be owed to missing plan participants. The IRS, since 1994, has made available to plan sponsors letter-forwarding services in an effort to help sponsors locate missing participants entitled to benefits under a plan. The IRS will now limit such letter-forwarding services to specified humane purposes ones in which a person is seeking to find a missing person to convey a message of urgent or compelling nature. The IRS makes clear it will not forward letters for purposes of aiding sponsors of qualified retirement plans, or qualified termination administers of abandoned plans attempting to locate missing plan participants. According to the IRS, this letter-forwarding service is no longer required due to the availability of alternative missing person locator resources, including the internet. The change also affects sponsors and administrators who are searching for plan participants or beneficiaries in order to correct plan failures that require payment under the IRS voluntary correction program. Planning Tip: Plan sponsors continue to have a duty to locate missing participants entitled to benefits under a plan. In fulfilling this duty, sponsors may no longer rely on the IRS to aide in locating missing plan participants; but must turn to other available sources such as private address location services, the Department of Labor search methods listed in its Field Assistance Bulletin 24-2, or the internet. III. IRS Issues Guidance On Funding-Based Limits Notice Requirements The IRS, in Notice ( Notice ), issued guidance with respect to notice requirements under ERISA Section 11(j) that require plan administrators of single-employer defined benefit plans to provide written notice within thirty days after a plan becomes subject to various benefit limitations described in Section 436 of the Internal Revenue Code. The Notice provides guidance in the form of questions and answers on topics such as the timing requirements for the notice, an explanation of how the notice requirements interact with the notice requirement under Section 24(h) of ERISA, who must provide the notice, what information must be included in the notice, and the acceptable method of distributing the notice. A sample notice is provided by the IRS. The Notice will become effective 9 days after its publication in the Internal Revenue Bulletin, which is expected soon. In the meantime, plan administrators may rely on this Notice or apply a reasonable interpretation of Section 11(j). Planning Tip: Plan sponsors are advised to review this Notice to ensure compliance with the notice requirements issued by the IRS in the event its pension plan becomes subject to the funding limitations described in Section 436 of the Code. If applicable, sponsors should consider relying on the Notice and continues on next page 37

38 Compliance update using the sample IRS notice in fulfilling the notice requirements of Section 436. This publication was written by Richard Ciambrone of Ice Miller LLP, is intended for general information purposes only and does not and is not intended to constitute legal advice. The reader must consult with legal counsel to determine how laws or decisions discussed herein apply to the reader s specific circumstances. 38

39 Fiduciary checklist Fiduciary checklist Staying organized A fiduciary checklist The following are ideas that fiduciaries may want to consider in fulfilling their fiduciary responsibilities. Plan sponsors should consult their ERISA attorney, service provider, advisor or consultant for further guidance. Identification of Fiduciaries and administration due diligence: Identify and designate ERISA Fiduciaries Work with legal counsel to help Fiduciaries understand their responsibilities Select committee members Investment Committee Charter executed Appoint/confirm a trustee Confirm the trust agreement correctly reflects Fiduciary roles of the plan committees and the plan sponsor Annual meeting Conduct at least an annual meeting with the retirement committee and/or plan Fiduciaries Record and distribute meeting minutes to the committee and/or plan Fiduciaries Plan investments and education: Adopt an Investment Policy Statement Consider ERISA section 44(c) compliance Confirm that all requirements under Section 44(c) are being met if the plan intends to comply with ERISA Review the plan s investment lineup Maintain a broad, well diversified plan with different risk and return characteristics Document the review of the evaluation and replacement of poorly performing investment options, which should be performed at least annually Be sure to follow the frequency set in the plan s written Investment Policy Statement Ensure QDIA investment characteristics and objectives are met and documented continues on next page 39

40 Fiduciary checklist Provide investment education (and advice, if applicable) Review the selection of any third party providers and regularly review their performance Educational meetings and/or communications Provide financial, investment and retirement information to participants Provide ongoing communication and education to participants on topics such as: Investments Benefits to starting early Retirement tools available Nearing retirement Personal finance Plan administration and operation: Timely remittance of employee contributions and loan repayments Follow the process for remitting contributions and loan repayments to the provider and investing them in a timely manner Review of outside providers/experts Carefully review credentials, fees and scope of services and perform periodic reviews Document meeting minutes, including all discussions and decisions that are made Review and update the plan document for required legislative provisions Determine if changes are necessary to improve the plan Review fees charged to the plan to make certain they are reasonable and may be properly paid by the plan Gather all necessary materials needed for decision making and document all due diligence efforts in the review What services do the fees cover? One-time fees Recordkeeping Investments Administration continues on next page 4

41 Fiduciary checklist Trustee Individual fees to participants Miscellaneous fees Carry Fiduciary liability insurance on all fiduciaries Proof of fidelity bond Amount of coverage: $ Documentation/due diligence best practices: Create a fiduciary due diligence file: Document all procedures and decisions and maintain all documents in this file, which should include the following: IRS-approved plan document (including determination letter) Summary Plan Descriptions (SPDs), Summary of Material Modifications (SMMs), and Summary Annual Reports (SARs) should be disclosed to participants within specified time frames and filed Adoption agreement Plan amendments Board resolutions Investment Policy Statement (IPS) Monitoring reports Discrimination test results Signed Form 55s Compliance documentation Plan communications to employees Third party service provider documents Plan procedures and meeting minutes Keeping it on file Fiduciaries should follow a well-defined procedure for fulfilling their fiduciary responsibilities and keep a well-documented due diligence file. This file can include all the information and documentation listed in this checklist. Review employee compensation amounts for plan purposes Review the plan document and confirm that the correct compensation amounts are being submitted to the service provider Participant due diligence Participant eligibility: Be sure the plan covers employees who are eligible to participate in the plan and confirm the plan s definition of eligible employee is consistent with the way the plan is administered Confirm all applicable notices are distributed to participants by the required deadlines, such as automatic contributions, safe harbor, QDIA, etc. continues on next page 41

42 Fiduciary checklist Participant communication and education Create a calendar outlining the materials sent to participants and the date sent Samples of materials sent Meeting sign-in sheets Note: All group variable annuity contracts are issued by American United Life Insurance Company (AUL), One American Square, Indianapolis, IN , Registered group variable annuity contracts are distributed by OneAmerica Securities, Inc., Member FINRA, SIPC, a Registered Investment Advisor, 433 N. Capitol Ave., Indianapolis, IN 4624, Other considerations for your plan: 42

43 Action plan Action plan Action plan for Mesa Developmental Services Past Period Accomplishments: Based on our initial discussion about today s goals and our subsequent full plan review, the action plan will be created and monitored. Quarter 1: Quarter 2: Quarter 3: Quarter 4: 43

44 Action plan PLANREV Plan review signatures for Mesa Developmental Services The below individuals were present at the Mesa Developmental Services plan review. Signature Title Date Signature Title Date Signature Title Date Signature Title Date Signature Title Date 44

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46 our future. Our goal. About OneAmerica OneAmerica Financial Partners, Inc., headquartered in Indianapolis, Ind., has companies that can trace their solid foundations back more than 135 years in the financial services marketplace. OneAmerica s nationwide network of companies offers a variety of products to serve the financial needs of their policyholders and other customers. These products include retirement plan products and services; individual life insurance, annuities, longterm care solutions and employee benefit plan products. The goal of OneAmerica is to blend the strengths of each company to achieve greater collective results. The products of the OneAmerica companies are distributed through a nationwide network of employees, agents, brokers and other distribution sources that are committed to increasing value to policyholders by helping them prepare to meet their financial goals. About AUL Retirement Services American United Life Insurance Company (AUL) is the founding member of OneAmerica and offers a wide range of products and services for retirement plans of individuals and employers. As a leader in the retirement services industry, AUL provides local service through a national network of experienced professionals focusing on the 41(k), 43(b) and 457 markets. American United Life Insurance Company a OneAmerica company One American Square, P.O. Box 368 Indianapolis, IN (317) OneAmerica Financial Partners, Inc. All rights reserved. OneAmerica and the OneAmerica banner are all registered trademarks of OneAmerica Financial Partners, Inc. R /15/213