ERISA 404 Retirement Plan and Investment Information

Transcription

1 TRUEBLUE, INC. 401(K) PLAN ERISA 404 Retirement Plan and Investment Information 08/10/2012 Contract/Plan ID Number This document uses these defined words and phrases: Plan means TRUEBLUE, INC. 401(K) PLAN. Plan Fiduciary means the individual(s) holding authority over the operation and administration of the Plan and its retirement funds. The Plan Sponsor is typically the Plan Fiduciary. Contact the Plan Administrator for further details. Plan Sponsor means TRUEBLUE, INC. You means the Plan participant or beneficiary. Plan Administrator is a Plan Fiduciary that has authority over operation and administration of the Plan. You should contact the Plan Administrator if you have any questions about the investment options under the Plan or if you would like paper copies of additional investment information that is available online at principal.com. The Plan Administrator is: TRUEBLUE, INC A ST TACOMA, WA Information about ERISA Section 404(c) The Employee Retirement Income Security Act (ERISA) provides rules about the investment of retirement funds. The Plan Sponsor chose to qualify the Plan as an ERISA 404(c) plan and intends to comply with ERISA Section 404(c) requirements by providing information for you to make informed investment decisions and by letting you: Direct the investment of individual retirement accounts Choose from at least three diverse investment options Change investment choices at least quarterly This means the Plan Fiduciary should not be liable for any investment losses that result from a participant's investment control. How does this affect you? The Plan Fiduciary makes certain investment options available under the Plan. You decide which of those options works best for you according to your age and circumstances. This means that you are responsible for directing the investment in the account the Plan holds for your benefit (your account). Directing or Transferring Between Investment Options Please note if the Plan includes employer securities, further trading restrictions may apply if you are subject to your company's insider trading policy. You can direct or transfer retirement funds between the different investment options at least quarterly. The Plan may allow for more frequent transfers. You are allowed to direct a maximum 25% of Elective Deferral, Employee Nondeductible, Employer Match in M, Employer Match in K, Employer Discretionary, Employer Qual Nonelective, Rollover, Employer Other, and Elective Deferral Catch Up into the True Blue, Inc. Common Stock. To transfer retirement funds, you can call the automated phone system of the Principal Financial Group at or log in to your account at principal.com. A description of the exercise of voting, tender and similar rights for an investment alternative and any restrictions on these rights is located in the relevant plan document or trustee powers section of the trust agreement. Contact the Plan Administrator to obtain the plan document or the trust agreement, if applicable. Fees and Expenses TRUEBLUE, INC is paying a portion of the Plan administrative expenses. The remaining Plan administrative expenses of 0.67 percent apply to each participant's account balance. One twelfth of this annual amount will be charged on a monthly basis. The dollar amount of the expense can be found by logging in to the secure website at principal.com and on participant statements. Plan administrative expenses typically include items such as recordkeeping, participant website access, participant statements, Plan compliance services and financial professional services Plan Information - Page 1 of 2

2 From time to time, Plan expenses may be incurred in the course of normal Plan operation for Plan services such as legal, auditing, third-party administration, consulting, investment advice to the Plan, etc. If allowed by the Plan document, the Plan Fiduciary may direct that these expenses be paid by the Plan. If such expenses are charged to participant accounts, the dollar amount of such expenses will be disclosed on the secure principal.com website and on participant statements (if applicable) for the quarter in which they are paid. The following participant-level services have additional fees. These participant transaction fees will be charged to your account balance for the services you elect to use. Participant transaction fees for the Plan include: Full Flexibility Option fee: $60.00 Installment fee: $60.00 Loan Maintenance fee for new loans: $10.50 per quarter Loan Setup fee: $40.00 Please see the Investment Option Summary for fees and expenses that may be charged against your account based on investment-level transactions. A charge of 0.05 cents per share applies when employer securities are traded and is paid directly to the stock broker. In addition, the Securities and Exchange Commission collects a minimal fee per each trade. Please see SEC.gov for more details regarding the fee. These charges will be reflected in the share price used in the transaction and will not be reflected as a dollar amount. The Plan Administrator can provide the following additional information, upon request: Copies of prospectuses (or any short-form or summary prospectuses) for the investment options Copies of any financial statements or reports, such as statements of additional information and shareholder reports, and of any other similar materials relating to the Plan's designated investment options A statement of the value of a share or unit of each designated investment option and the date of the valuation A list of the assets comprising the portfolio of each investment option which constitute Plan assets and the value of each asset (or the proportion of the investment which it comprises) To help you make informed investment choices and for more information about the investment options available to you, including investment objectives, performance and fees, please review the enclosed materials or visit principal.com. Plan Information - Page 2 of

3 Contract/Plan ID Number Investment Option Summary As of 06/30/2012 This document provides important information to help you compare the investment options available to you under the retirement plan. Investment results shown represent historical performance and do not guarantee future results. Investment returns and principal values fluctuate with changes in interest rates and other market conditions so the value, when redeemed, may be worth more or less than original costs. Current performance may be lower or higher than the performance data shown. For additional information on the investment options, including most recent month-end performance, log in to the Principal Financial Group website at principal.com or call our automated phone system at Additional information available online includes, if applicable, the name of the investment option's issuer; the investment option's objectives or goals; the investment option's principal strategies, including a general description of the types of assets held by the investment option; the portfolio turnover rate; and the investment option's performance data and fee and expense information. In situations where the net and gross total investment expense figures are different, the mutual fund or the underlying fund in which a Separate Account invests has waived/capped a portion of its management fees through the date displayed in the waiver expiration date or contractual cap expiration date column. Differences may also be shown due to the fund family choosing to pay certain expenses that would normally be payable by the fund. Returns displayed are based on total investment expense net. Fees and expenses are only one of several factors that participants and beneficiaries should consider when making investment decisions. Some or all of the Plan administrative expenses are paid from the total investment expense of one or more of the Plan's investment options. The cumulative effect of fees and expenses can substantially reduce the growth of a participant's or beneficiary's retirement account. Participants and beneficiaries can visit the Employee Benefit Security Administration's website for an example demonstrating the long-term effect of fees and expenses. For a glossary of terms to assist you in understanding the designated investment options, log in to your account at principal.com. Asset Class: Short-Term Fixed Income This asset class is generally composed of short-term, fixed-income investment options that are largely liquid and are designed to not lose much value. These investment options may include stable value, money market, short-term bond, and guaranteed interest accounts. They are considered to be among the least risky forms of investment options. However, they typically have a lower rate of return than equities or longer-term fixed income investment options over long periods of time. Depending on the objectives of the investment options, they may experience price fluctuations and may lose value. Investment Category: Stable Value Inv Manager or Sub-Advisor : Morley Financial Services, Inc Principal Stable Value Fund (as of 06/30/2012 quarter end) (as of 12/31/2011 year end) /1997 Barclays Capital 1-3 Yr Government Index Description: The objective of the Fund is to provide a low-risk, moderate-yield investment. The Fund is managed to earn a consistent level of return, while providing for preservation of capital, high credit quality and liquidity to pay plan benefits. Composition (% of Assets) as of 06/30/2012 Fees & Expenses # of Transfers Allowed/Time Period Cash U.S. Bonds Total Inv Exp Net % Other 5.94 Contractual Cap Expiration Date Waiver Expiration Date Total Inv Exp Gross % 0.86 Total Inv Exp Gross Per $1,000 Invested $ Investment Option Summary - Page 1 of 13

4 Investment Option Summary As of 06/30/2012 Contract/Plan ID Number Asset Class: Fixed Income This asset class is generally composed of investment options that invest in bonds, or debt of a company or government entity (including U.S. and Non- U.S.). It may also include real estate investment options that directly own property. These investment options typically carry more risk than short-term fixed income investment options (including, for real estate investment options, liquidity risk), but less overall risk than equities. All investment options in this category have the potential to lose value. Investment Category: Intermediate-Term Bond Inv Manager or Sub-Advisor : PIMCO PIMCO Total Return Instl Fund 16,19 (as of 06/30/2012 quarter end) (as of 12/31/2011 year end) /1987 Barclays Capital U.S. Government/Credit 5-10 Year Index Description: The investment seeks maximum total return, consistent with preservation of capital and prudent investment management. The fund normally invests at least 65% of its total assets in a diversified portfolio of Fixed Income Instruments of varying maturities, which may be represented by forwards or derivatives such as options, futures contracts, or swap agreements. It invests primarily in investment-grade debt securities, but may invest up to 10% of total assets in high-yield securities ("junk bonds"). The fund may invest up to 15% of its total assets in securities and instruments that are economically tied to emerging market countries. Cash Non-U.S. Bonds Total Inv Exp Net % Convertibles 0.01 Preferred 0.43 Contractual Cap Expiration Date U.S. Bonds Other 0.98 Waiver Expiration Date Total Inv Exp Gross % 0.46 Total Inv Exp Gross Per $1,000 Invested $4.60 Vanguard Intermediate-Term Bond Index Signal Fund 2,16,19,37,F (as of 06/30/2012 quarter end) (as of 12/31/2011 year end) /2007 Barclays Capital U.S. Government/Credit 5-10 Year Index Description: The investment seeks to track the performance of a market-weighted bond index with an intermediate-term dollar-weighted average maturity. The fund employs an indexing investment approach designed to track the performance of the Barclays Capital U.S Year Government/Credit Bond Index. It invests by sampling the index, meaning that it holds a range of securities that, in the aggregate, approximates the full index in terms of key risk factors and other characteristics. The fund invests at least 80% of assets in bonds held in the index. It maintains a dollar-weighted average maturity consistent with that of the index, ranging between 5 and 10 years. Cash 0.52 Non-U.S. Bonds Total Inv Exp Net % /30 day period Preferred 0.08 U.S. Bonds Contractual Cap Expiration Date Waiver Expiration Date Total Inv Exp Gross % 0.11 Total Inv Exp Gross Per $1,000 Invested $1.10 Investment Option Summary - Page 2 of

5 Contract/Plan ID Number Investment Option Summary As of 06/30/2012 Asset Class: Balanced/Asset Allocation This asset class is generally composed of a combination of fixed income and equity investment options. These investment options may include balanced, asset allocation, target-date, and target-risk investment options. Although typically lower risk than investment options that invest solely in equities, all investment options in this category have the potential to lose value. Investment Category: Moderate Allocation Inv Manager or Sub-Advisor : Capital Research and Mgmt Co American Funds American Balanced R4 Fund 14,15,19,37,G (as of 06/30/2012 quarter end) (as of 12/31/2011 year end) /2002 Morningstar Moderately Aggressive Target Risk Index Description: The investment seeks conservation of capital, current income and long-term growth of capital and income. The fund invests in a broad range of securities, including common stocks and investment-grade bonds. It also invests in securities issued and guaranteed by the U.S. government and by federal agencies and instrumentalities. Normally, the fund maintains at least 50% of the value of its assets in common stocks and at least 25% of the value of its assets in debt securities, including money market securities. Although the fund focuses on investments in medium to larger capitalization companies, its investments are not limited to a particular capitalization size. Cash 1.80 U.S. Stocks Total Inv Exp Net % /30 day period Non-U.S. Stocks 6.99 Non-U.S. Bonds 2.35 Contractual Cap Expiration Date Preferred 0.03 U.S. Bonds Waiver Expiration Date Other 1.05 Total Inv Exp Gross % 0.65 Investment Category: Retirement Income Total Inv Exp Gross Per $1,000 Invested $6.50 Vanguard Target Retirement Income Inv Fund 14,15,17,19,F (as of 06/30/2012 quarter end) (as of 12/31/2011 year end) /2003 Morningstar Lifetime Moderate Income Index Description: The investment seeks current income and some capital appreciation. The fund invests in other Vanguard mutual funds according to an asset allocation strategy designed for investors currently in retirement. At any given time, its asset allocation may be affected by a variety of factors, such as whether the underlying funds are accepting additional investments. Cash 7.85 U.S. Stocks Total Inv Exp Net % /30 day period Non-U.S. Stocks 8.79 Non-U.S. Bonds 3.98 Contractual Cap Expiration Date Preferred 0.06 U.S. Bonds Waiver Expiration Date Other 0.51 Total Inv Exp Gross % 0.17 Investment Category: Target Date Total Inv Exp Gross Per $1,000 Invested $1.70 Vanguard Target Retirement 2010 Inv Fund 14,15,17,19,F (as of 06/30/2012 quarter end) (as of 12/31/2011 year end) /2006 Morningstar Lifetime Moderate 2010 Index Description: The investment seeks to provide capital appreciation and current income consistent with its current asset allocation. The fund primarily invests in other Vanguard mutual funds according to an asset allocation strategy designed for investors planning to retire and leave the work force in or within a few years of 2010 (the target year). Its asset allocation will become more conservative over time, meaning that the percentage of assets allocated to stocks will decrease while the percentage of assets allocated to bonds and other fixed income investments will increase. Cash 3.92 U.S. Stocks Total Inv Exp Net % /30 day period Non-U.S. Stocks Non-U.S. Bonds 3.65 Contractual Cap Expiration Date Preferred 0.06 U.S. Bonds Waiver Expiration Date Other 0.59 Total Inv Exp Gross % 0.17 Total Inv Exp Gross Per $1,000 Invested $ Investment Option Summary - Page 3 of 13

6 Investment Option Summary As of 06/30/2012 Contract/Plan ID Number Asset Class: Balanced/Asset Allocation This asset class is generally composed of a combination of fixed income and equity investment options. These investment options may include balanced, asset allocation, target-date, and target-risk investment options. Although typically lower risk than investment options that invest solely in equities, all investment options in this category have the potential to lose value. Investment Category: Target Date Vanguard Target Retirement 2020 Inv Fund 14,15,17,19,F (as of 06/30/2012 quarter end) (as of 12/31/2011 year end) /2006 Morningstar Lifetime Moderate 2020 Index Description: The investment seeks to provide capital appreciation and current income consistent with its current asset allocation. The fund primarily invests in other Vanguard mutual funds according to an asset allocation strategy designed for investors planning to retire and leave the work force in or within a few years of 2020 (the target year). Its asset allocation will become more conservative over time, meaning that the percentage of assets allocated to stocks will decrease while the percentage of assets allocated to bonds and other fixed income investments will increase. Cash 2.52 U.S. Stocks Total Inv Exp Net % /30 day period Non-U.S. Stocks Non-U.S. Bonds 3.11 Contractual Cap Expiration Date Preferred 0.07 U.S. Bonds Waiver Expiration Date Other 0.68 Total Inv Exp Gross % 0.17 Investment Category: Target Date Total Inv Exp Gross Per $1,000 Invested $1.70 Vanguard Target Retirement 2030 Inv Fund 14,15,17,19,F (as of 06/30/2012 quarter end) (as of 12/31/2011 year end) /2006 Morningstar Lifetime Moderate 2030 Index Description: The investment seeks to provide capital appreciation and current income consistent with its current asset allocation. The fund primarily invests in other Vanguard mutual funds according to an asset allocation strategy designed for investors planning to retire and leave the work force in or within a few years of 2030 (the target year). Its asset allocation will become more conservative over time, meaning that the percentage of assets allocated to stocks will decrease while the percentage of assets allocated to bonds and other fixed income investments will increase. Cash 1.70 U.S. Stocks Total Inv Exp Net % /30 day period Non-U.S. Stocks Non-U.S. Bonds 1.79 Contractual Cap Expiration Date Preferred 0.06 U.S. Bonds Waiver Expiration Date Other 0.67 Total Inv Exp Gross % 0.18 Investment Category: Target Date Total Inv Exp Gross Per $1,000 Invested $1.80 Vanguard Target Retirement 2040 Inv Fund 14,15,17,19,F (as of 06/30/2012 quarter end) (as of 12/31/2011 year end) /2006 Morningstar Lifetime Moderate 2040 Index Description: The investment seeks to provide capital appreciation and current income consistent with its current asset allocation. The fund primarily invests in other Vanguard mutual funds according to an asset allocation strategy designed for investors planning to retire and leave the work force in or within a few years of 2040 (the target year). Its asset allocation will become more conservative over time, meaning that the percentage of assets allocated to stocks will decrease while the percentage of assets allocated to bonds and other fixed income investments will increase. Cash 1.17 U.S. Stocks Total Inv Exp Net % /30 day period Non-U.S. Stocks Non-U.S. Bonds 0.90 Contractual Cap Expiration Date Preferred 0.06 U.S. Bonds 8.59 Waiver Expiration Date Other 0.67 Total Inv Exp Gross % 0.19 Total Inv Exp Gross Per $1,000 Invested $1.90 Investment Option Summary - Page 4 of

7 Contract/Plan ID Number Investment Option Summary As of 06/30/2012 Asset Class: Balanced/Asset Allocation This asset class is generally composed of a combination of fixed income and equity investment options. These investment options may include balanced, asset allocation, target-date, and target-risk investment options. Although typically lower risk than investment options that invest solely in equities, all investment options in this category have the potential to lose value. Investment Category: Target Date Vanguard Target Retirement 2050 Inv Fund 14,15,17,19,F (as of 06/30/2012 quarter end) (as of 12/31/2011 year end) /2006 Morningstar Lifetime Moderate 2050 Index Description: The investment seeks to provide capital appreciation and current income consistent with its current asset allocation. The fund primarily invests in other Vanguard mutual funds according to an asset allocation strategy designed for investors planning to retire and leave the work force in or within a few years of 2050 (the target year). Its asset allocation will become more conservative over time, meaning that the percentage of assets allocated to stocks will decrease while the percentage of assets allocated to bonds and other fixed income investments will increase. Cash 1.15 U.S. Stocks Total Inv Exp Net % /30 day period Non-U.S. Stocks Non-U.S. Bonds 0.89 Contractual Cap Expiration Date Preferred 0.06 U.S. Bonds 8.46 Waiver Expiration Date Other 0.68 Total Inv Exp Gross % 0.19 Investment Category: Target Date Total Inv Exp Gross Per $1,000 Invested $1.90 Vanguard Target Retirement 2060 Inv Fund F (as of 06/30/2012 quarter end) (as of 12/31/2011 year end) /2012 Morningstar Lifetime Moderate 2050 Index Description: The investment seeks to provide capital appreciation and current income consistent with its current asset allocation. The fund invests in other Vanguard mutual funds according to an asset allocation strategy designed for investors planning to retire and leave the work force in or within a few years of 2060 (the target year). Its asset allocation will become more conservative over time, meaning that the percentage of assets allocated to stocks will decrease while the percentage of assets allocated to bonds and other fixed income investments will increase. Cash 1.20 U.S. Stocks Total Inv Exp Net % /30 day period Non-U.S. Stocks Non-U.S. Bonds 0.72 Contractual Cap Expiration Date Preferred 0.06 U.S. Bonds 8.33 Waiver Expiration Date Other 1.21 Total Inv Exp Gross % 0.18 Total Inv Exp Gross Per $1,000 Invested $ Investment Option Summary - Page 5 of 13

8 Investment Option Summary As of 06/30/2012 Contract/Plan ID Number Asset Class: Large U.S. Equity This asset class is generally composed of investment options that invest in stocks, or shares of ownership in large, well-established, U.S. companies. These investment options typically carry more risk than fixed income investment options but have the potential for higher returns over longer time periods. They may be an appropriate choice for long-term investors who are seeking the potential for growth. All investment options in this category have the potential to lose value. Investment Category: Large Value Vanguard Windsor II Inv Fund F (as of 06/30/2012 quarter end) (as of 12/31/2011 year end) /1985 Russell 1000 Value Index Description: The investment seeks long-term capital appreciation and income. The fund invests mainly in large- and mid-capitalization companies whose stocks are considered by an advisor to be undervalued. Undervalued stocks are generally those that are out of favor with investors and that the advisor feels are trading at prices that are below average in relation to measures such as earnings and book value. These stocks often have above-average dividend yields. It uses multiple investment advisors. Cash 2.46 U.S. Stocks Total Inv Exp Net % /30 day period Non-U.S. Stocks 6.87 Contractual Cap Expiration Date Investment Category: Large Blend Waiver Expiration Date Total Inv Exp Gross % 0.35 Total Inv Exp Gross Per $1,000 Invested $3.50 Vanguard 500 Index Signal Fund 2,37,F (as of 06/30/2012 quarter end) (as of 12/31/2011 year end) /2006 Russell 1000 Index Description: The investment seeks to track the performance of a benchmark index that measures the investment return of large-capitalization stocks. The fund employs an indexing investment approach designed to track the performance of the Standard & Poor's 500 Index, a widely recognized benchmark of U.S. stock market performance that is dominated by the stocks of large U.S. companies. It attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index. Cash 0.46 U.S. Stocks Total Inv Exp Net % /30 day period Non-U.S. Stocks 0.10 U.S. Bonds 0.01 Contractual Cap Expiration Date Investment Category: Large Growth Waiver Expiration Date Inv Manager or Sub-Advisor : Capital Research and Mgmt Co Total Inv Exp Gross % 0.05 Total Inv Exp Gross Per $1,000 Invested $0.50 American Funds Growth Fund of America R4 Fund 37,G (as of 06/30/2012 quarter end) (as of 12/31/2011 year end) /2002 Russell 1000 Growth Index Description: The investment seeks capital growth. The fund invests primarily in common stocks and seeks to invest in companies that appear to offer superior opportunities for growth of capital. It may invest a portion of its assets in securities of issuers domiciled outside the U.S. The investment adviser uses a system of multiple portfolio counselors in managing the fund's assets. Cash 4.82 U.S. Stocks Total Inv Exp Net % /30 day period Non-U.S. Stocks U.S. Bonds 0.38 Contractual Cap Expiration Date Other 2.64 Waiver Expiration Date Total Inv Exp Gross % 0.68 Total Inv Exp Gross Per $1,000 Invested $6.80 Investment Option Summary - Page 6 of

9 Contract/Plan ID Number Investment Option Summary As of 06/30/2012 Asset Class: Small/Mid U.S. Equity This asset class is generally composed of investment options that invest in stocks, or shares of ownership in small- to medium-sized U.S. companies. These investment options typically carry more risk than larger U.S. equity investment options but have the potential for higher returns. They may be an appropriate choice for long-term investors who are seeking the potential for growth. All investment options in this category have the potential to lose value. Investment Category: Mid Cap Value Inv Manager or Sub-Advisor : Janus Perkins Mid Cap Value T Fund 1,E (as of 06/30/2012 quarter end) (as of 12/31/2011 year end) /1998 Russell Midcap Value Index Description: The investment seeks capital appreciation. The fund primarily invests in the common stocks of mid-sized companies whose stock prices the portfolio managers believe to be undervalued. It invests, under normal circumstances, at least 80% of its net assets in equity securities of companies whose market capitalization falls, at the time of purchase, within the 12-month average of the capitalization range of the Russell Midcap(R) Value Index. The fund may also invest in foreign equity and debt securities, which may include investments in emerging markets. Cash 9.25 U.S. Stocks Total Inv Exp Net % /90 day period Non-U.S. Stocks 8.12 Contractual Cap Expiration Date Investment Category: Mid Cap Blend Waiver Expiration Date Total Inv Exp Gross % 1.00 Total Inv Exp Gross Per $1,000 Invested $10.00 Vanguard Mid Cap Index Signal Fund 1,2,37,F (as of 06/30/2012 quarter end) (as of 12/31/2011 year end) /2007 Standard & Poor's 400 MidCap Stock Index Description: The investment seeks to track the performance of a benchmark index that measures the investment return of mid-capitalization stocks. The fund employs an indexing investment approach designed to track the performance of the MSCI US Mid Cap 450 Index, a broadly diversified index of stocks of mid-size U.S. companies. It attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index. Cash 0.39 U.S. Stocks Total Inv Exp Net % /30 day period Non-U.S. Stocks 1.90 Contractual Cap Expiration Date Investment Category: Mid Cap Growth Inv Manager or Sub-Advisor : Prudential Investments, LLC Waiver Expiration Date Total Inv Exp Gross % 0.10 Total Inv Exp Gross Per $1,000 Invested $1.00 Prudential Jennison Mid Cap Growth A Fund 1,E (as of 06/30/2012 quarter end) (as of 12/31/2011 year end) /1996 Russell Midcap Growth Index Description: The investment seeks long-term capital appreciation. The fund normally invests at least 80% of assets in equity and equity-related securities of medium-sized companies with the potential for above-average growth. Composition (% of Assets) as of 05/31/2012 Fees & Expenses # of Transfers Allowed/Time Period Cash 4.69 U.S. Stocks Total Inv Exp Net % /90 day period Non-U.S. Stocks 4.90 Contractual Cap Expiration Date Waiver Expiration Date Total Inv Exp Gross % 1.09 Total Inv Exp Gross Per $1,000 Invested $ Investment Option Summary - Page 7 of 13

10 Investment Option Summary As of 06/30/2012 Contract/Plan ID Number Asset Class: Small/Mid U.S. Equity This asset class is generally composed of investment options that invest in stocks, or shares of ownership in small- to medium-sized U.S. companies. These investment options typically carry more risk than larger U.S. equity investment options but have the potential for higher returns. They may be an appropriate choice for long-term investors who are seeking the potential for growth. All investment options in this category have the potential to lose value. Investment Category: Small Blend Inv Manager or Sub-Advisor : Royce & Associates, LLC Royce Pennsylvania Mutual Investment Fund 1 (as of 06/30/2012 quarter end) (as of 12/31/2011 year end) /1962 Russell 2000 Index Description: The investment seeks long-term growth of capital. The fund invests at least 65% of its net assets in the equity securities of small-cap and micro-cap companies (those with market capitalizations up to $2.5 billion). It may invest up to 25% of its net assets in foreign securities. The fund generally invests in companies that Royce believes have excellent business strengths, high internal rates of return and low leverage. It may sell securities to, among other things, secure gains, limit losses, redeploy assets into what Royce deems to be more promising opportunities and/or manage cash levels in the fund's portfolio. Cash 3.11 U.S. Stocks Total Inv Exp Net % Non-U.S. Stocks 6.26 Non-U.S. Bonds 0.01 Contractual Cap Expiration Date Preferred 0.01 U.S. Bonds 0.01 Waiver Expiration Date Other 0.32 Total Inv Exp Gross % 0.91 Total Inv Exp Gross Per $1,000 Invested $9.10 Vanguard SmallCap Index Signal Fund 1,2,37,F (as of 06/30/2012 quarter end) (as of 12/31/2011 year end) /2006 Russell 2000 Index Description: The investment seeks to track the performance of a benchmark index that measures the investment return of small-capitalization stocks. The fund employs an indexing investment approach designed to track the performance of the MSCI US Small Cap 1750 Index, a broadly diversified index of stocks of smaller U.S. companies. It attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index. Cash 0.68 U.S. Stocks Total Inv Exp Net % /30 day period Non-U.S. Stocks 1.47 Preferred 0.01 Contractual Cap Expiration Date U.S. Bonds 0.03 Waiver Expiration Date Total Inv Exp Gross % 0.16 Total Inv Exp Gross Per $1,000 Invested $1.60 Investment Option Summary - Page 8 of

11 Contract/Plan ID Number Investment Option Summary As of 06/30/2012 Asset Class: International Equity This asset class is composed of investment options that invest in stocks, or shares of ownership in companies with their principal place of business or office outside the United States. These investment options often carry more risk than U.S. equity investment options but may have the potential for higher returns. They may be an appropriate choice for long-term investors who are seeking the potential for growth. All investment options in this category have the potential to lose value. Investment Category: Foreign Large Blend Inv Manager or Sub-Advisor : Capital Research and Mgmt Co American Funds EuroPacific Growth R4 Fund 4,37,G (as of 06/30/2012 quarter end) (as of 12/31/2011 year end) /2002 MSCI ACWI Ex USA Index Description: The investment seeks long-term growth of capital. The fund invests primarily in common stocks of issuers in Europe and the Pacific Basin that the investment adviser believes have the potential for growth. Growth stocks are stocks that the investment adviser believes have the potential for above-average capital appreciation. It normally invests at least 80% of net assets in securities of issuers in Europe and the Pacific Basin. The fund may invest a portion of its assets in common stocks and other securities of companies in countries with developing economies and/or markets. Cash 7.97 U.S. Stocks 0.09 Total Inv Exp Net % /30 day period Non-U.S. Stocks Preferred 0.03 Contractual Cap Expiration Date U.S. Bonds 0.25 Other 2.27 Waiver Expiration Date Total Inv Exp Gross % 0.85 Total Inv Exp Gross Per $1,000 Invested $8.50 Vanguard Total Intl Stock Index Signal Fund 4,37,F (as of 06/30/2012 quarter end) (as of 12/31/2011 year end) /2010 MSCI ACWI Ex USA Index Description: The investment seeks to track the performance of a benchmark index that measures the investment return of stocks issued by companies located in developed and emerging markets, excluding the United States. The fund employs a "passive management"-or indexing-investment approach designed to track the performance of the MSCI All Country World ex USA Investable Market Index, a free-float-adjusted market capitalization index designed to measure equity market performance of companies located in developed and emerging markets, excluding the United States. The index includes more than 6,400 stocks of companies located in 44 countries. Cash 0.56 U.S. Stocks 0.23 Total Inv Exp Net % /30 day period Non-U.S. Stocks Preferred 0.19 Contractual Cap Expiration Date U.S. Bonds 0.01 Other 3.68 Waiver Expiration Date Total Inv Exp Gross % 0.18 Total Inv Exp Gross Per $1,000 Invested $ Investment Option Summary - Page 9 of 13

12 Investment Option Summary As of 06/30/2012 Contract/Plan ID Number Asset Class: Employer Security This investment type includes the company stock that is held in trust for your benefit. This stock is public and readily traded in the public marketplace. There are risks and rewards associated with company stock. The returns can be a higher rate of return than other asset classes but do have the potential to lose value. The risks can be greater because returns are dependent on a single stock and a number of reasons, such as economic factors, the market or the company s performance, could result in a pronounced fluctuation in the stock price in a given period. Investment Category: Inv Manager or Sub-Advisor : True Blue, Inc. Common Stock 10,T (as of 06/30/2012 quarter end) (as of 12/31/2011 year end) /1995 Standard & Poor's 500 Index Description: Trueblue, Inc. is a provider of temporary blue-collar staffing. It provides a wide range of specialized blue-collar staffing services. Composition (% of Assets) as of Fees & Expenses # of Transfers Allowed/Time Period Total Inv Exp Net % Contractual Cap Expiration Date Waiver Expiration Date Total Inv Exp Gross % 0.00 Total Inv Exp Gross Per $1,000 Invested $0.00 Investors should carefully consider a mutual fund s investment objectives, risks, charges, and expenses prior to investing. A prospectus, or summary prospectus if available, containing this and other information can be obtained by contacting a financial professional, visiting principal.com, or calling Read the prospectus carefully before investing. The value of the investment options will fluctuate so that when redeemed, shares or units may be worth more or less than the original cost. An investment's past performance is not necessarily an indication of how the investment will perform in the future. Since inception benchmark returns are displayed on the Investment Option Summary for investments that are less than 10 years old. The benchmark reflecting the Since Inception return is the Morningstar Category index. For some Sub-Advised investment options, two benchmarks will be displayed on the Investment Option Summary and the secondary index reflecting the Since Inception Return is the Morningstar Category index. These results are for the investment options available through your Plan Sponsor's retirement plan, and may be different from the results for other retirement plans. Past performance is not a guarantee of future results. Principal values and investment returns will fluctuate so that values upon redemption may be worth more or less than original costs. Total returns illustrated are net of investment expenses and management fees. Returns shown for periods of less than one year are not annualized. All returns displayed here are after net Total Investment Expense of the investment option. For a Mutual Fund investment option, Total Investment Expense gross equals the sum of (a) the total fund operating expenses plus (b) if the mutual fund invests in other mutual funds, the weighted-average management fee of those other mutual funds, as listed in the most recent prospectus. The actual Total Investment Expense may change if the mutual fund investment option's allocation of assets to other mutual funds changes. Any operating expenses of a mutual fund or underlying mutual fund that are part of net Total Investment Expense are obtained from the mutual fund's most recent prospectus. The operating expenses shown as part of net Total Investment Expense include voluntary expense limits and fee credit Morningstar, Inc. All Rights Reserved. Part of the mutual fund data contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. This report includes investment options that contain information from a variety of sources. Morningstar generally provides holdings information, operations data, and rankings or statistics proprietary to Morningstar. Morningstar is also the source of information on certain mutual funds. Insurance products and plan administrative services are provided by Principal Life Insurance Company. Securities are offered through Princor Financial Services Corporation, , member SIPC, and/or independent broker/dealers. Securities sold by a Princor Registered Representative are offered through Princor. Princor and Principal Life are members of the Principal Financial Group, Des Moines, IA Since inception returns are only shown for funds/accounts in existence for less than 10 years. Investment Option Summary - Page 10 of

13 Contract/Plan ID Number Investment Option Summary As of 06/30/ Small-cap and mid-cap investment options are subject to more fluctuation in value and may have additional risks than other investment options with stocks of larger, more stable companies. 2 Each index based investment option is invested in the stocks or bonds of the index it tracks. Performance of indexes reflects the unmanaged results for the market segment the selected stocks or bonds represent. There is no assurance an index based investment option will match the performance of the index tracked. 3 This Separate Account invests solely in the Institutional class shares of the Principal Funds. All voting rights associated with ownership of shares in the mutual fund are the rights of the Separate Account, not of contract holders investing in the Separate Account. For further information on the underlying mutual fund, see the prospectus of the fund. 4 International and global investment options are subject to additional risk due to fluctuating exchange rates, foreign accounting and financial policies, and other economic and political environments. 5 Real estate investment options are subject to some risks inherent in real estate and Real Estate Investment Trusts, such as risks associated with general and local economic conditions. 6 S&P 500 is a trademark of The McGraw-Hill Companies, Inc., and has been licensed for use by Principal Life Insurance Company and Principal Management Corporation. The product is not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard & Poor's makes no representation regarding the advisability of investing in the product. 7 S&P SmallCap 600 is a trademark of The McGraw-Hill Companies, Inc. and has been licensed for use by Principal Life Insurance Company and Principal Management Corporation. The product is not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard & Poor's makes no representation regarding the advisability of investing in the product. 8 S&P MidCap 400 is a trademark of The McGraw-Hill Companies, Inc. and has been licensed for use by Principal Life Insurance Company and Principal Management Corporation. The product is not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard & Poor's makes no representation regarding the advisability of investing in the Product. 9 This investment option is closed to new investors. 10 This investment option is not a pooled investment. It may experience greater volatility and should not be directly compared to investment options that have a more diversified investment mix. 11 These calculated returns reflect the historical performance of the oldest share class of the fund, adjusted to reflect a portion of the fees and expenses of this share class. For time periods prior to inception date of the fund, predecessor performance is reflected. Please see the fund's prospectus for more information on specific expenses, and the fund's most recent shareholder report for actual date of first sale. Expenses are deducted from income earned by the fund. As a result, dividends and investment results will differ for each share class. 12 This Separate Account invests solely in the Institutional class shares of the Principal Funds. All voting rights associated with ownership of shares in the mutual fund are the rights of the Separate Account, not of contract holders investing in the Separate Account. For further information on the underlying mutual fund, see the prospectus of the fund. 13 From March 1, 2006, to December 31, 2007, Bank of New York served as a sub-advisor for managing the cash portion of this investment option. 14 Equity investment options involve greater risk, including heightened volatility, than fixed-income investment options. Fixed-income investment options are subject to interest rate risk, and their value will decline as interest rates rise. 15 Asset allocation does not guarantee a profit or protect against a loss. Investing in real estate, small-cap, international, and high-yield investment options involves additional risks. 16 Fixed-income investment options are subject to interest rate risk, and their value will decline as interest rates rise. Neither the principal of bond investment options nor their yields are guaranteed by the U.S. government. 17 This fund indirectly bears its pro rata share of the management fees incurred by the underlying funds in which it invests. The operating expenses of the underlying mutual funds are part of total investment expense. Performance results reflect the application of these expenses. 18 Effective March 31, 2007, references to Fidelity Management & Research as investment advisor were replaced with Fidelity (Pyramis Global Adv). This is a name change only and does not affect the management, objective, or strategy of this investment option. 19 Fixed-income and asset allocation investment options that invest in mortgage securities are subject to increased risk due to real estate exposure. 20 Effective July 15, 2008, Westwood Management Corp. was added as an additional sub-advisor. Performance results displayed reflect all sub-advisors managing this portfolio during the time periods displayed. 21 Effective October 31, 2008, this portfolio is sub-advised by Jacobs Levy. From June 30, 2006, to October 30, 2008, the portfolio was sub-advised by Neuberger Berman and Jacobs Levy. The portfolio has had various sub-advisors since its inception. Performance results displayed reflect all sub-advisors managing this portfolio during the time periods displayed. 22 Effective January 21, 2009, this portfolio is sub-advised by Columbus Circle Investors. Prior to January 21, 2009, the portfolio was sub-advised by Mazama Capital Management and Columbus Circle Investors. The portfolio has had various sub-advisors since its inception. Performance results displayed reflect all sub-advisors managing this portfolio during the time periods displayed. 23 This investment option maintains a voluntary waiver which is reflected in the value displayed for Total Investment Expense - Net. This waiver may be discontinued at any time Investment Option Summary - Page 11 of 13

14 Investment Option Summary As of 06/30/2012 Contract/Plan ID Number Effective April 1, 2009, this portfolio is sub-advised by Jacobs Levy. Prior to April 1, 2009, the portfolio was sub-advised by MacKay Shields and Jacobs Levy. The portfolio has had various sub-advisors since its inception. Performance results displayed reflect all sub-advisors managing this portfolio during the time periods displayed. 25 Effective May 1, 2009, Jacobs Levy was added as an additional sub-advisor. Performance results displayed reflect all sub-advisors managing this portfolio during the time periods displayed. 26 Effective May 1, 2009, LA Capital was added as an additional sub-advisor. Performance results displayed reflect all sub-advisors managing this portfolio during the time periods displayed. 27 Effective May 1, 2009, the Principal MidCap Value II investment option merged into the Principal MidCap Value I investment option. 28 Effective May 1, 2009, the Principal MidCap Growth II investment option merged into the Principal MidCap Growth III investment option. 29 Effective May 1, 2009, the Principal SmallCap Growth III investment option merged into the Principal SmallCap Growth I investment option. 30 This Separate Account invests solely in the Institutional class share of a mutual fund (Fund) from Principal Funds, Inc. The manager of the Fund, Principal Management Corporation, invests between 10% and 40% of the Fund's assets in common stocks in an attempt to match or exceed the performance of the Fund's benchmark index for performance. 31 Asset allocation does not guarantee a profit or protect against a loss. Investing in real estate, small-cap, international, and high-yield investment options involves additional risks. Additionally there is no guarantee this investment option will provide adequate income at or through retirement. 32 Effective January 11, 2010, Schroders was added as an additional sub-advisor. Performance results displayed reflect all sub-advisors managing this portfolio during the time periods displayed. 33 References to AIM have been replaced with Invesco. 34 The Investment Advisor will display "Multiple Sub-Advisors" for certain target-date, target-risk and specialty investment options where the assets are directed by the Investment Manager to multiple underlying investment options. These underlying investment options may use multiple sub-advisors who are responsible for the day-to-day management responsibilities. 35 Effective September 20, 2010, Brown Advisory was added as an additional sub-advisor. Effective May 1, 2009, Columbus Circle Investors was added as an additional sub-advisor. Performance results displayed reflect all sub-advisors managing this portfolio during the time periods displayed. 36 Effective November 12, 2010, the SmallCap Value I investment option will merge into the SmallCap Value II investment option. 37 For Mutual Fund Network investment options, returns for all time periods, except the Since Inception time frame, may include the historical performance of the oldest share class of the fund, adjusted to reflect a portion of the fees and expenses of this share class. Since Inception returns display the actual return of this share class and do not reflect the adjusted returns of the oldest share class. Please see the fund's prospectus for more information on specific expenses, and the fund's most recent shareholder report for actual date of first sale. Expenses are deducted from income earned by the fund. As a result, dividends and investment results will differ for each share class. 38 Effective October 14, 2011, the International Growth investment option will merge into the Diversified International investment option. 39 This Separate Account invests directly in the Institutional class shares of a Principal LifeTime Fund. The mutual fund operating expenses for each Principal LifeTime Fund are reflected in the Total Investment Expense of the Separate Accounts well as the operating expenses of the underlying funds in which the Principal LifeTime Fund invests. Based on the asset allocation of the Principal LifeTime Funds as in the prospectus dated February 29, 2012, the weighted average operating expenses of the underlying funds are: Principal LifeTime Strategic Income, 0.58%; Principal LifeTime 2010, 0.65%; Principal LifeTime 2015, 0.67%; Principal LifeTime 2020, 0.70%; Principal LifeTime 2025, 0.71%; Principal LifeTime 2030, 0.72%; Principal LifeTime 2035, 0.73%; Principal LifeTime 2040, 0.74%; Principal LifeTime 2045, 0.75%; Principal LifeTime 2050, 0.75%; Principal LifeTime 2055, 0.75%. For further information on all mutual fund expenses, see the prospectus of the underlying Principal LifeTime Fund. All voting rights associated with ownership of shares in the mutual fund are the rights of the Separate Account, not of contract holders investing in the Separate Account. 40 Derivatives may increase volatility, cause the liquidation of portfolios positions when not advantageous to do so and produce disproportionate losses. E F G T Investment option limits the number of transfers allowed into the investment option. All participant investment transfers and non-scheduled rebalancing activity are counted toward the number of transfers allowed. When the number of allowed transfers into the investment option is met, no additional investment transfers into the investment option will be allowed until the holding period elapses. Contributions into the investment option are not impacted. Investment option limits transfer activity. Once the number of allowed transfers is met, participants are not allowed to transfer back into an investment option which they have transferred out of until the holding period elapses. All participant investment transfers and non-scheduled rebalancing activity are counted toward the number of transfers allowed. Contributions into the investment option are not impacted. Participants may still transfer out to different investment options or to money market or Guaranteed options. Investment option limits transfer activity. Once the number of allowed transfers is met, participants are not allowed to transfer amounts valued at the threshold amount or more back into the investment option which they have transferred out of until the holding period elapses. All participant investment transfers and non-scheduled rebalancing activity valued at the threshold amount or more are counted toward the number of transfers allowed. Contributions into the investment option are not impacted. Participant transfers made for less than the threshold amount do not count and are not limited. The since inception return is calculated based on the date when the stock first started pricing on an exchange, as reported to us by Morningstar, Inc. Investment Option Summary - Page 12 of