Get Real With Your Retirement

Transcription

1 Get Real With Your Retirement A Guide To Enrolling In Your Retirement Plan Messiah College Defined Contribution Retirement Plan

2 x Time To Dream If you re living the American Dream or simply living in America it s a given that you have competing financial priorities. Maybe you re saving for a new home, season tickets or a European vacation. Perhaps you re losing sleep wondering how you re going to cover your child s college tuition and your aging parents care at the same time. Or maybe you re too busy worrying about the garden-variety expenses of everyday living. Any time more than one issue is competing for your attention, there s typically a loser; in the battle of financial goals, it s often retirement. Losing this battle could mean less financial resources to rely on during what may be three or more decades in retirement. Consider this booklet to be one resource to help you reach your retirement goal. Its purpose is to motivate you to develop a clear vision of what your retirement will be, as well as a savings and investment plan that will fit into your life right now. What Can You Do To Prepare For Your Life After Working? You can get real about your retirement needs, hopes and dreams. To get you started down this path, here are a few questions to inspire you. To get started now, enroll: Online ( By phone ( ) With the forms in this booklet Where will you be? What will you be doing? Will you continue to work doing something you love? How much savings will you need? Your answers will define your retirement. As you think about how and where you ll be spending your life after work, it makes sense to pause and think about retirement as a whole. What does this word mean to you? It likely means something different to you than it does to your friend, co-worker, neighbor or brother. But while you all have different visions, you just might agree that before any of your retirement dreams can become reality, planning and saving must come first. Planning Transforms Dreams Into Reality As you make your way through the booklet, keep the following things foremost in mind: Your retirement dreams (your answers from above) How starting to save early can help, but just starting is most important The plan you set in motion today can help you reach your retirement goal

3 Pre-Tax Savings Your contribution will be deducted on a pre-tax basis before taxes are withheld which will reduce your income taxes and reduce the out-of-pocket cost of contributing to the plan. In addition, certain people may qualify for tax credits that will further reduce the out-of-pocket cost of saving. The table below can help you estimate how much money will come out of your paycheck before taxes compared to the amount you are actually contributing to your retirement account. The figures are based on the 2011 federal tax rate: single filer, withholding one, no state tax. Your actual dollar amounts may vary. 1. Find your approximate weekly gross pay across the top. 2. Find the percentage you intend to contribute along the left edge. 3. The top (black) number shows your contribution amount, and the bottom (blue) number shows the amount by which your paycheck is actually reduced. The difference represents your tax withholding savings. The highlighted areas of the chart illustrate the saving scenario for someone making $800 a week and contributing 9 percent to her retirement account. She contributed $72, but her paycheck was only reduced by $57. The $25 difference represents her tax withholding savings. Contribution Percentage Tax Savings Calculator For Pre-tax Contributions 1 Gross Weekly Salary $400 $500 $600 $700 $800 $900 $1,000 $1,500 $2,000 4% % % % % % Anne, age 60; Roger, age 64 to Europe a retirement date TN_EdSet_NAE.pdf % % % Amounts saved in the plan are taxable upon withdrawal. Enroll now!

4 Pick Your Approach With any luck, the talk about tax savings has motivated you to take action about your retirement. As you begin to plan, the two most important decisions you will face are: How much do I need to save? How will I invest it? Few of us feel adequately prepared by our education or life experience to make these important decisions. The good news is that your plan is working with The Standard to offer options that will simplify the process of making these decisions. Simply choose one of these three different approaches Managed, Guided or Independent to receive the amount of assistance you need to make these important decisions and move closer to reaching your retirement goals. Managed may be a good choice if you: Need help to regularly and realistically evaluate your situation Need professional advice to determine how much to save and how to manage your investments Want automatic adjustments to your savings rate and investment mix over time or as life events occur Want to improve the accuracy of your plan by providing additional financial information about you and your spouse/partner Managed: Do It All For Me Managed takes away the headache of overseeing your retirement account. If you choose Managed, The Standard will manage both sides of the equation: your savings rate and investment allocation. You will receive professional retirement and investment planning services designed to help you identify your future retirement income needs and develop a real plan to meet your goals. With Managed, we: Get to know you and your retirement income goals Tailor a comprehensive Savings Plan Strategy to help you reach your goals Create a personalized Investment Plan Strategy based on your individual needs (risk tolerance, retirement date, and other considerations) Help you get started Invest and professionally manage your portfolio through StanCorp Investment Advisers, Inc., a registered investment advisor Keep you on track through automatic adjustments to your savings rate, investment mix and rebalancing of your portfolio Help plan for the transition into retirement We ll use the information you provide to help you determine your current status and estimate your needs for tomorrow. If your circumstances change or if you have questions, you can always call one of our professional investment advisor representatives between 5 a.m. and 5 p.m. Pacific Standard Time (8 a.m. and 8 p.m. Eastern Standard Time) STN_EdSet _Approach_MM.pdf 2 Your investment portfolio will be professionally managed, automatically rebalanced according to your investment directives, and assessed on an ongoing basis. Standard Retirement Services, Inc.

5 Guided: Guide Me Through The Process Guided takes the mystery out of fund selection for your retirement plan account. You will have all the information and tools you need to navigate the entire decision-making process. By following a simple, step-by-step process, you will be able to answer the question How should I invest my money? With Guided, we: Provide tools to help you reach your retirement income goals -- a calculator to determine whether you are on track to reach your retirement goals -- a calculator to determine how much to save -- a quiz (on the following page or online at Offer pre-mixed investment portfolios that provide a diversified investment portfolio for your tolerance for risk and timeline until retirement Offer automatic rebalancing of your portfolio Guided may be a good choice if you: Prefer to evaluate your situation annually using available tools Want to set and manage your savings rate Want to use pre-mixed investment portfolios to manage your own investments Need a little help managing your investments Want your account to be automatically rebalanced Your quiz score is an important piece to the Guided process. The score will help identify which pre-mixed portfolio will provide you with a diversified investment strategy that is appropriate for your circumstances. You can then set investment directives and transfer assets to be consistent with the chosen portfolio. The quiz takes about 10 minutes and should be taken annually; if results change, you will have the opportunity to adjust investment portfolios in line with your new score. Independent: I ll Do It All Myself If you prefer doing your own research when it comes to your retirement planning, Independent is for you. You can maintain personal control over your retirement account using the quality investment options in your plan. You can still rely on The Standard for educational and online planning tools that help you navigate the investing landscape. You will have all the same benefits of Guided, but with a difference. Rather than select one of the pre-mixed portfolios, you will have access to a diversified selection of investment options to help you implement your own unique investment strategy. Ready To Sign Up Now? Independent may be a good choice if you: Prefer to evaluate your situation annually using available tools Want to set and manage your savings rate Prefer to do your own investment research Want to rebalance your portfolio yourself as needed Want to increase your savings rate yourself as needed Regardless of which approach you take Managed, Guided or Independent the Time to Enroll section has all the instructions you need to sign up. STN_EdSet _Approach_MM.pdf Enroll now!

6 Find Your Investment Style Take the quiz to determine which pre-mixed portfolio is appropriate for you. After each question, circle the letter that best describes you. Then add up the points and match the total with the investor profile on the next page. Please note that this profiling tool is only a guide; for advice specifi c to your situation, you will want to consider other factors, such as your retirement savings, tax considerations and investing time frame. You should contact your investment professional or tax advisor for personalized advice. Investor Profile Quiz 1. When do you expect to tap into your retirement account? Points a. Less than fi ve years 0 b. Between fi ve and 10 years 20 c. Between 10 and 15 years 30 d. More than 15 years What do you expect to happen to your pay (salary) in the next five years? a Score: I expect my pay to increase much faster than Points infl ation (due to promotions, new job, etc.). 12 b. I expect my pay to increase slightly faster than infl ation. 10 c. I expect my pay to just keep up with infl ation. 5 d. I expect my pay to decrease (due to retirement, part-time work, depressed industry, etc.) How do you feel about investing for retirement? a I am seeking maximum stability, Score: Points even if returns are low. 0 b. I can tolerate a small amount of fl uctuation in my investment account, and I am seeking consistent returns. 4 c. I am middle-of-the-road, prefer both growth potential and consistency of returns and can tolerate a fair amount of market movement in exchange for attractive long-term returns. 8 d. I am willing to assume a relatively high level of volatility for potentially greater returns. 12 e I am seeking maximum long-term growth, even if it means wide swings in my account value. 15 Score: 4. How much risk are you willing to take in order to potentially increase your investment return? a. I am willing to take a lot of risk Points with all of my retirement account. 15 b. I am willing to take a lot of risk with some of my retirement account. 12 c. I am willing to take a little risk with all of my retirement account. 8 d. I am willing to take a little risk with some of my retirement account. 4 e. I am unwilling to take on more risk. 0 Score: 5. If the stock market went down 15 percent, what would you do? Points a. Sell all of my stock funds immediately and put the money in something more stable. 0 b. Transfer some of my stock funds into less aggressive investments. 2 c. Do nothing and wait for it to come back. 4 d. Buy more: increase my stock investments while prices are low. 8 Score: 6. If you received several statements in a row with negative returns and realized that your account had lost 20 percent, what would you do? a. Sell all of my stock funds immediately and Points put the money in something more stable. 0 b. Transfer some of my stock funds into less aggressive investments. 3 c. Do nothing and wait for it to come back. 6 d. Buy more: Increase my holdings in stock funds while prices are low. 10 Score: Enter your total score: 4 Standard Retirement Services, Inc.

7 Use Your Quiz Results To Select A Portfolio Your asset allocation is an important part of your investing strategy. The following pre-mixed portfolios show how you may want to diversify your investments. Match your score from the Investor Profile Quiz to help determine which portfolio is appropriate for you. If you need more information, you may wish to contact a personal financial advisor. Guided Portfolios Conservative (Score: Less than 40) Moderately Conservative (Score: 41-53) Moderate (Score: 54-66) Moderately Aggressive (Score: 67-79) Aggressive (Score: 80 and above) Cash Equivalents 30% Cash Equivalents 20% Cash Equivalents 10% Cash Equivalents 0% Cash Equivalents 0% Bonds 50% Bonds 40% Bonds 30% Bonds 20% Bonds 0% Lg Cap Stocks 13% Lg Cap Stocks 26% Lg Cap Stocks 39% Lg Cap Stocks 52% Lg Cap Stocks 65% Sm/Mid Cap 4% Sm/Mid Cap 8% Sm/Mid Cap 12% Sm/Mid Cap 16% Sm/Mid Cap 20% Int l Stocks 3% Int l Stocks 6% Int l Stocks 9% Int l Stocks 12% Int l Stocks 15% Less Risk/Less Potential Return Higher Risk/Higher Potential Return You should carefully consider the investment objectives, risks, charges and expenses of the investment options offered under the retirement plan before investing. Smallcompany (small cap) investing involves specific risks not necessarily encountered in large-company investing, such as increased volatility. Funds that invest in bonds are subject to certain risks, including interest-rate risk, credit risk and inflation risk. As interest rates rise, the prices of bonds fall. International investing involves certain risks, such as currency fluctuations, economic instability and political developments. These risks may be accentuated in emerging markets. Your plan may be funded by a mutual fund trust or a group annuity contract. Both are suitable for long-term investing, including saving for retirement. While annuities generally provide tax-deferred treatment of earnings, the group annuity contract does not provide any additional tax-deferred treatment beyond the treatment provided by your retirement plan. We ll Rebalance For You The Standard can rebalance your portfolio to ensure it stays in line with your original wishes. On the Investing Form, you can indicate how frequently you d like your portfolio rebalanced: quarterly, semiannually or annually. STN_EdSet _GuidedPorts.pdf Enroll now!

8 Time To Enroll Take Action Today! Take an important step toward making tomorrow financially secure and join your retirement savings plan today. Take advantage of your employer s plan, which offers a rewarding way to invest for your retirement. The amount you invest now might make the difference between having financial security in retirement and just getting by. It s easy to enroll in your employer s plan. These enrollment materials have all of the forms you need and information on the investment choices offered by the plan. Please read all of the materials you receive carefully before making any decision about how to invest your money. If you have any questions about the plan, be sure to contact your plan administrator. To complete the enrollment process, return the forms to the designated person or department. Once received, your contributions will be deposited in your retirement account beginning with the first contribution following your date of participation. How To Sign Up For Managed Action Item 1: Do not Action Item 2: How To Sign Up For Guided Or Independent Action Item 1: Determine how you want to save Action Item 2: Action Item 3: Do not Action Item 4: How to Enroll - Contrib - Managed.pdf Standard Retirement Services, Inc.

9 Mainspring Managed Savings Form Messiah College Defined Contribution Retirement Plan # By completing this form, I am signing up for Mainspring Managed. I understand StanCorp Investment Advisers, Inc. will develop a Savings and Investment Plan designed just for me. They will also work with me on an ongoing basis to update my plan as my personal circumstances change. I also understand that the monthly fee for Mainspring Managed services will be deducted directly from my account and that the total amount charged depends on my account balance. This fee is waived for 90 days following your initial enrollment in the service. Account Balance Fee $0.00 to $5, $0.00 $5, to $10, $5.00 $10, and up $10.00 Social Security Number Last Name First Name Mailing Address City State Zip Date of Birth (mm/dd/yy) Date of Hire (mm/dd/yy) Expected Retirement Age (default 59) Phone Number Address HOW MUCH DO YOU WANT TO SAVE? The smallest amount you can contribute is 1% of your compensation. The most you can save during 2013 is $17,500 ($23,000 if you are age 50 or older). This amount includes both pre-tax and after-tax Roth contributions. Other plan or legal limits may also apply. I elect to contribute as pre-tax contributions: % I elect to contribute as after-tax Roth contributions: % MY RISK TOLERANCE Select one of the three options below regarding your risk tolerance. (If you do not complete this question, we will assume you are a middle-of-the-road investor.) StanCorp Investment Advisers is available to assist you with more detailed planning. We encourage you to complete the Mainspring Managed Supplemental Information Form located in the enrollment booklet so we can provide you with guidance that is tailored to your needs. I am seeking maximum stability even if returns are low. I am a middle-of-the-road investor and prefer both growth potential and consistency of returns. I am seeking maximum long-term growth, even if it means wide swings in my account value. AUTHORIZATION I authorize my employer and the plan administrator to deduct from my earnings the amounts determined by the percentage(s) designated above and to forward such amounts to the Plan. I authorize annual increases to my savings amount. I also direct my employer and the plan administrator to implement any other instructions I have provided on this form. I have read the Disclosure Statement and Mainspring Managed Agreement in the following sections and, by signing here, I agree to be bound by their terms. The employer, trustees and any others concerned with the administration of the plan are entitled to rely on these instructions; each shall be fully protected in taking or omitting any action under any provisions of the plan in reliance on this information. Participant Signature Date (3/08)

10 DISCLOSURE STATEMENT You must notify The Standard within 15 days of receipt of your quarterly account statement if you think an error has occurred, or if you requested and confirmed an investment transfer or directive change that was not completed during the period covered by the statement. You may give notice by contacting a customer service representative at or by ing savings@standard.com. Unless you give such notice, The Standard will not be liable for any resulting loss to your account. In any case, The Standard will not be liable if circumstances beyond its control prevent the transaction, or if its liability is otherwise limited by regulation or agreement. MAINSPRING MANAGED AGREEMENT This Agreement is between you, a participant in a retirement plan, and StanCorp Investment Advisers, Inc. ( us or we ), for a specific advisory service called Mainspring Managed. Access to Mainspring Managed is provided to you by the sponsor of your retirement plan. Termination of the agreement between the plan sponsor and StanCorp Investment Advisers will end your access to the Mainspring Managed service. While this Agreement is in effect, StanCorp Investment Advisers will: 1. Assist in establishing, reviewing and updating your investment goals. 2. Assist in selecting and monitoring the investment funds in your portfolio. 3. Determine, review and change the allocation of assets in your investment account through the use of an asset allocation model and periodically rebalance your account to your target allocation. 4. Provide telephone access to an investment advisor representative to address specific changes to your personal and financial circumstances and how they may affect your investment account. 5. Monitor, report and assess your investment results on no less than a quarterly basis. You may be charged a monthly fee during the time this agreement remains in effect; please refer to the first paragraph on the front of this form for fee information. This Agreement will remain in effect until you opt out of the Mainspring Managed service by calling our Advisory Service Center, by withdrawing your entire vested account balance from the plan or by other means that we make available to you. The Agreement will terminate if your entire account is transferred to your beneficiary or to an alternative payee pursuant to a qualified domestic relations order. In addition, you or we may terminate the Agreement at any time after providing written notice to the other party. You may revoke this Agreement within 10 days of its effective date without being charged a fee. The Mainspring Managed service will be available to you only while the agreement between your plan sponsor and StanCorp Investment Advisers is in effect. If your employer ceases to offer the Mainspring Managed service, your participation in it will cease and this Agreement will terminate. You acknowledge and understand that StanCorp Investment Advisers will have discretion to supervise, manage and direct the assets in your investment account and any subsequent additions to the investment account. While this Agreement is in effect, StanCorp Investment Advisers will have authority to adjust your contribution amount, and invest, reinvest, exchange and trade the assets in your investment account among the investments selected by the plan s trustees or other fiduciary, all without prior consultation with you, as we deem appropriate. You will receive notice prior to any adjustment of your contribution amount so that you may instruct StanCorp Investment Advisers or its agent not to make that change. You understand that your savings and investment strategy will be based on the personal information you provide, data we have available about your retirement savings and assumptions about future economic results and mortality determined by StanCorp Investment Advisors. If you have assets with another provider that are included on your quarterly statement, we will assume those assets are invested in a portfolio of assets with risk and return characteristics similar to that of your managed portfolio. Further, you acknowledge that this service is intended as a long-term investment program and that the value of your portfolio will fluctuate. We cannot guarantee the profitability of your portfolio. Past performance is no guarantee of future results. You agree that StanCorp Investment Advisers will have no liability for any advice given to you based on inaccurate personal information provided by you or your plan sponsor to us on any information form or by telephone or electronic medium. You also agree that StanCorp Investment Advisers will not be liable for any tax which may result from a securities transaction effected or omitted under this Agreement. We agree not to assign this Agreement within the meaning of the Investment Advisers Act of 1940 as amended without your prior written consent. You acknowledge receipt of our Disclosure Statement, Part II of the Form ADV, as amended to date, or a separate brochure which contains the Part II information. This Agreement constitutes the only agreement between you and StanCorp Investment Advisers with respect to the provision of Mainspring Managed services. Please return this signed document to: Standard Retirement Services, Inc. New Business, P9A 1100 SW Sixth Avenue Portland, Oregon The Standard is the marketing name for StanCorp Financial Group, Inc. and its subsidiaries. StanCorp Equities, Inc., member FINRA, distributes group annuity contracts issued by Standard Insurance Company and may provide other brokerage services. Third-party administrative services are provided by Standard Retirement Services, Inc. Investment advisory services are provided by StanCorp Investment Advisers, Inc., a registered investment advisor. StanCorp Equities, Inc., Standard Insurance Company, Standard Retirement Services, Inc., and StanCorp Investment Advisers, Inc. are subsidiaries of StanCorp Financial Group, Inc. and all are Oregon corporations (3/08)

11 Mainspring Supplemental Information Form Messiah College Defined Contribution Retirement Plan # StanCorp Investment Advisers, Inc. will provide a more detailed Savings and Investment Plan if you provide additional information. Please complete this form, which is confidential and is not shared with your employer. If you have questions about how to complete this form, contact the Advisory Service Center at SECTION 1: YOUR INFORMATION Social Security Number Last Name First Name Date of Birth SECTION 2: SCOPE OF RECOMMENDATION Check either Yes or No. If you select Yes, you must complete Section 3. If you do not complete Section 3, we cannot include information about your spouse/partner in our recommendations. Yes, I want to include information about my spouse/partner. The recommendations from StanCorp Investment Advisers, Inc. will address the goal of providing a retirement income that will support both me and my spouse/partner. I understand that if I don t provide the following information about my spouse/partner, StanCorp Investment Advisers cannot include my spouse/partner in its planning. No, I do not want to include information about my spouse/partner. I understand that the recommendations from StanCorp Investment Advisers will focus on providing a retirement income that will support only myself. Please continue to Section 4. Do NOT complete Section 3. SECTION 3: INFORMATION ABOUT YOUR SPOUSE/PARTNER (Complete if you answered "Yes" in Section 2) 1. Are you planning to tap into your retirement savings as of your retirement date, or your spouse/ Self partner s retirement date? Spouse/Partner 2. Spouse/Partner s Date of Birth (If not provided, we are unable to use your spouse/partner s retirement date.) 3. Spouse/Partner s Expected Retirement Age (We will assume age 65 if no response is provided.) / / 4. Spouse/Partner s Current Annual Salary (We will assume $0 if no response is provided.) $ 5. Spouse/Partner s Retirement Plan - 401(k) a. Current Pre-Tax Account Balance (include only your spouse/partner s pre-tax 401(k) balance) $ b. Current Roth Account Balance (include only your spouse/partner s Roth 401(k) balance) $ c. Approximate percent of salary your spouse/partner contributes each year (pre-tax) % d. Approximate percent of salary your spouse/partner contributes each year (Roth) % e. Employer Match (Please indicate a single percentage for your spouse/partner s match. For example, if your spouse/partner s plan provides a match of 50% on the first 4% of salary, you would indicate a match of 2% (4% multiplied by 50%)). % f. What percent of the current account balance is invested in stocks or stock funds? (If not Less than 30% provided, we will assume a response of Between 30%-70%. ) Between 30%-70% Greater than 70% Please place in supplied envelope or return signed document to: Standard Retirement Services, Inc SW Sixth Avenue, P9A Portland, Oregon Fax: Continued on back (3/08) 9

12 SECTION 4: OTHER RETIREMENT INCOME (Combined totals for you and your spouse/partner) Outside Tax-Deferred Savings (Excluding Current Employer 401(k) Balance) Please provide information about any tax-deferred savings you or your spouse/partner have set aside for retirement. Do not include savings that will be used for other expenses such as college tuition. Examples include: Retirement plan assets from another employer (If you included your spouse/partner s retirement 401(k) balance in Section 3, do not add it again here.) Traditional (pre-tax) Individual Retirement Accounts (IRAs) Annuities a. Current combined account balance $ b. Approximate combined amount you and your spouse/partner contribute each year $ c. Do you and your spouse/partner plan to increase your contribution as your salary increases? (We will assume no if no response is provided.) Yes No d. Percent of the current account balance invested in stocks or stock funds? Less than 30% (We will assume Between 30%-70% if no response provided.) 30%-70% Greater than 70% Outside Roth IRA and Roth 401(k) Savings Please provide information about any Roth IRA savings you or your spouse/partner have set aside for retirement. a. Current combined account balance $ b. Approximate combined amount you and your spouse/partner contribute each year $ c. Do you and your spouse/partner plan to increase your contribution as your salary increases? (We will assume no if no response is provided.) Yes No d. Percent of the current account balance invested in stocks or stock funds? Less than 30% (We will assume Between 30%-70% if no response provided.) 30%-70% Greater than 70% Outside Non-Tax-Deferred Savings Please provide information about any non-tax-deferred savings you and your spouse/partner have set aside for retirement. Examples include: Bank Account Certificates of Deposit Mutual Funds not part of a retirement plan Stocks and Bonds not part of a retirement plan Brokerage Accounts a. Current combined account balance $ b. Approximate combined amount you and your spouse/partner contribute each year $ c. Do you and your spouse/partner plan to increase your contribution as your salary increases? (We will assume no if no response is provided.) Yes No d. Percent of the current account balance invested in stocks or stock funds? Less than 30% (We will assume Between 30%-70% if no response provided.) 30%-70% Greater than 70% Pension Plan Income If you expect to have income from a defined benefit pension plan during retirement, enter the monthly benefit here. Enter amounts for you and your spouse/partner payable at your individual expected retirement dates. You may receive a statement from your Plan Administrator periodically that contains this information. Don t forget to include any benefits payable from companies from which you ve terminated employment. Social Security Income This certifies that all of the above information is accurate. I understand that I am responsible for contacting the Advisory Service Center at to update my personal information on a regular basis. Signature Date Self $ (per month) Partner $ (per month) Include Social Security Income in retirement planning assumptions? (We will assume "Yes" if no response is provided.) Yes No SECTION 5: EMPLOYEE CERTIFICATION Printed Name Social Security Number (3/08)

13 StanCorp Investment Advisers, Inc SW Sixth Avenue Portland, OR tel fax This brochure is the StanCorp Investment Advisers, Inc., plain English disclosure brochure. If you have any questions about the contents of this brochure, please call The information in this brochure has not been approved or verified by the United States Securities and Exchange Commission or by any state securities authority. Additional information about StanCorp Investment Advisers, Inc., is also available on the SEC s website at Material Changes On July 28, 2010, the United State Securities and Exchange Commission ( SEC ) published Amendments to Form ADV which impacts the disclosure document that we provide to clients. This Brochure dated March 31, 2011 is a new document prepared according to new SEC requirements and is materially different as compared to our previous brochure. In the future, this section of the Brochure will address only material changes since our last delivery or posting on the SEC s public website. Table of Contents Advisory Business Fees and Compensation Performance Based Fees Types of Clients Methods of Analysis, Strategies and Risk of Loss Disciplinary Information Other Financial Industry Activities and Affiliations Code of Ethics Brokerage Practices Review of Accounts Client Referrals and other Compensation Custody Investment Discretion Voting Client Securities Financial Information Advisory Business StanCorp Investment Advisers is a wholly owned subsidiary of StanCorp Financial Group, Inc. (StanCorp). StanCorp is also the holding company for Standard Insurance Company; Standard Life Insurance Company of New York; Standard Retirement Services, Inc.; StanCorp Mortgage Investors, LLC, a commercial loan underwriter; StanCorp Real Estate, LLC, a real estate investment and property management company and StanCorp Equities, Inc., a limited broker-dealer. All of these entities are marketed under the name, The Standard. StanCorp Investment Advisers, Inc., joined the family of subsidiaries under the StanCorp Financial Group umbrella in May StanCorp Investment Advisers, Inc., provides investment management services to clients with a variety of investment goals. Our largest client is Standard Insurance Company, for whom we manage more than $6 billion of investment-grade, fixed-income securities. The portfolio may include other investment vehicles as necessary to meet the investment objectives of Standard Insurance Company. We also manage third-party investment manager relationships for The Standard. In addition, we offer investment consulting services to the retirement plan clients of Standard Insurance Company and Standard Retirement Services, Inc. These services include: fund selection and monitoring for group variable annuity separate accounts, and the Standard Retirement Services, Inc. Net Asset Value (NAV) platform. development and maintenance of model fund portfolios for defined contribution plans. fund portfolio construction for defined benefit plans. assistance in selecting funds for specific retirement plan menus and portfolios. quarterly monitoring reports reflecting the performance of funds offered to The Standard s retirement plan clients. participant level advice through the Mainspring Managed service. We provide investment advice to the Reliance Advisory Portfolio Collective Trusts, a series of 15 collective trusts owned by Reliance Trust. These collective trusts invest in unaffiliated mutual funds representing a broad range of asset categories. There are 10 fully diversified portfolios and five style-based portfolios each representing the large-cap, small- and mid-cap, fixed income, short-term fixed income and international equity categories respectively. The Reliance Advisory Portfolio Collective Trusts are available only to clients of Standard Retirement Services, Inc. Our private client service offers fee-only financial planning and investment management using mutual funds, stocks and bonds. Clients work directly with an investment counselor to assess their financial situations, set objectives and determine the most appropriate investment approach for each individual. Investment portfolios are tailored to meet the needs of the specific client. Clients may place restrictions on the investments made in their accounts. Total assets managed at Dec. 31, 2010, were $17.2 billion. Of that, $8.1 billion was managed on a discretionary basis, and $9.1 billion was managed on a non-discretionary basis for retirement plan clients. Fees and Compensation Our fee schedule for individual accounts managed primarily using mutual funds is 1.00 percent for assets up to $1 million, 0.50 percent for assets between $1 million and $5 million and 0.25 percent for assets greater than $5 million (3/08) 11

14 Our fee schedule for individual accounts utilizing our active management strategies with mutual funds is 1.00 percent for assets up to $1 million, 0.85 percent for assets from $1 to $3 million, 0.75 percent for assets from $3 to $5 million and 0.50 percent for assets greater than $5 million. Our fee schedule for individual accounts utilizing one of our equity strategies is 1.25 percent for assets up to $1 million, 1.10 percent for assets from $1 million to $3 million, 1.0 percent for assets from $3 million to $5 million and 0.75 percent for assets greater than $5 million. Financial planning only engagements generally have a minimum fee of $2,500. Standard Insurance Company and Standard Retirement Services, Inc., pay a fixed retainer to StanCorp Investment Advisers, Inc., for services provided to all of the retirement plan clients of The Standard. In addition, retirement plan clients pay Standard Retirement Services, Inc., an asset based fee. In some cases, clients pay additional fees to the custodian. Participants enrolled in the Mainspring Managed service may pay Standard Retirement Services, Inc., a per participant fee. Fees are negotiable. Retainer and hourly fees are negotiated at the time of engagement. Asset-based and retainer fees are charged quarterly for services rendered in the previous quarter. Hourly fees are charged within 30 days of the provision of services. Clients may terminate their contracts at any time. The client will be billed from the beginning of the quarter to the termination date. Portfolios that include mutual funds have a layered fee structure. In addition to the management fees paid to StanCorp Investment Advisers, Inc., the mutual funds expenses are netted out of the value of the mutual funds. Individual clients may incur transaction charges from their custodian whenever transactions are placed for their accounts. Please see the Brokerage Practices section of this brochure. Clients may choose to have their StanCorp Investment Advisers, Inc., fees deducted from their custody account or they may choose to pay their fees directly. StanCorp Investment Advisers, Inc., may recommend mutual funds that are no-load or those having a 12b-1 fee. In no case does StanCorp Investment Advisers, Inc., receive compensation from mutual fund companies. If a 12b-1 fee is paid, in the case of retirement plans, it is returned to the plan sponsor as a reduction of their Standard Retirement Services, Inc., asset based fee. For private clients, the 12b-1 fee may be retained by the custodian in lieu of transaction fees. StanCorp Equities, Inc., an affiliated broker dealer, does not process transactions. In some cases, it serves as a pass-through for 12b-1 fees for retirement plan clients of Standard Retirement Services, Inc. Clients purchase investments StanCorp Investment Advisers, Inc., recommends through unaffiliated custodians or through the Standard Insurance group variable insurance contract. Performance Based Fees We do not offer performance based fee schedules. Types of Clients StanCorp Investment Advisers, Inc., provides fixed income portfolio management services to our sister subsidiaries. In addition, we provide investment consulting services to the retirement plan clients of Standard Retirement Services, Inc., and Standard Insurance Company as well as some retirement plan clients not administered by our sister subsidiaries. We are the investment adviser to the participants in the Mainspring Managed service offered by Standard Retirement Services, Inc., and the Reliance Trust collective trust portfolios utilized in that service. Our private client service offers financial planning and investment management to individual investors. We also offer services to endowments and other organizations. We require a minimum asset balance of $250,000 for our private client financial planning and investment management service. Methods of Analysis, Investment Strategies and Risk of Loss The fixed income portfolio for The Standard is designed to meet asset liability management requirements of the various insurance product lines offered. Investments for this portfolio include U.S. government, municipal and corporate bonds, commercial paper and other short-term investments and options on the S&P 500 index to hedge specific exposure created by The Standard s equity index annuity product. Retirement plan clients invest primarily in mutual funds, collective trusts and group variable insurance contracts. Investments are selected and retained based on their long-run adherence to specific performance and portfolio criteria. Portfolios are constructed based on mean return and variance analysis. For private clients, we primarily invest in mutual funds, but where appropriate, include stocks and bonds. These investments are used to populate allocations that are expected to produce returns and risk consistent with the client s long-run objectives and risk tolerance. Mutual funds are selected and retained based on their long-run adherence to specific performance and portfolio criteria. Our fixed-income and equity selections are based on fundamental and quantitative analysis. Some clients participate in a collared portfolio strategy where options on the clients investment securities are purchased and sold in order to create a fully- or partially-funded floor on the portfolios performance. In addition, some clients participate in a strategy where covered call options are written in their portfolios to generate additional income. All investments present some risk of loss that clients should be prepared to bear. Stocks have greater return potential but are more volatile than other investment types. Mutual funds may focus on certain sectors that may involve a greater degree of risk than other funds that provide broader diversification. In addition to the normal risks associated with equity investing, investments in smaller and mid-cap companies and narrowly focused investments typically exhibit higher volatility and are less readily marketable than investments in larger companies or more diversified strategies. Similarly, international investing involves certain risks, such as currency fluctuations, economic instability, and political developments. These risks may be accentuated in emerging markets. Real estate investment trusts are subject to special risks, such as tax law changes, and general economic conditions that may affect the value of the underlying real estate assets. Bonds are subject to certain risks including interest-rate risk, credit risk and inflation risk. As interest rates rise, the prices of bonds fall. Derivatives are subject to a number of risks, such as liquidity, interest rate, market, credit and management risk. We rely on a variety of sources of information including but not limited to electronic and print data services, financial publications, credit rating agencies, company regulatory financial filings and press releases. Our mutual fund selections are based on quantitative and qualitative analysis of data provided by various data services and the fund families and investment management firms (3/08)

15 Disciplinary Information We have no disciplinary actions to disclose. Other Financial Industry Activities and Affiliations StanCorp Investment Advisers, Inc., is one of six subsidiaries that are part of StanCorp Financial Group, Inc. (StanCorp). StanCorp is also the holding company for Standard Insurance Company; Standard Life Insurance Company of New York; Standard Retirement Services, Inc.; StanCorp Mortgage Investors, LLC, a commercial loan underwriter; StanCorp Real Estate, LLC, a real estate investment and property management company and StanCorp Equities, Inc., a limited broker-dealer. All of these entities are marketed under the name, The Standard. The senior management team members of StanCorp Investment Advisers, Inc., are also officers of one or more of the sister subsidiaries and may be engaged in the business of those subsidiaries in addition to the responsibilities they have to StanCorp Investment Advisers, Inc. Julie Grandstaff, CFA, vice president of StanCorp Investment Advisers, Inc., is also the president of StanCorp Equities. StanCorp Equities, Inc., facilitates services to retirement plan clients of Standard Retirement Services, Inc., and Standard Insurance Company. Neither StanCorp Equities, Inc., nor Standard Insurance Company provides advice or service to the private clients of StanCorp Investment Advisers, Inc. Clients of StanCorp Investment Advisers, Inc., may also be clients of Standard Insurance Company, Standard Retirement Services, Inc., StanCorp Mortgage Investors or StanCorp Equities, Inc. StanCorp Investment Advisers, Inc. recommends the use of a stable value product issued by Standard Insurance Company to retirement plan clients of Standard Insurance Company and Standard Retirement Services, Inc. StanCorp Investment Advisers, Inc., receives only the fixed retainer fee from these companies, and does not receive additional compensation when recommending this investment option. Code of Ethics StanCorp Investment Advisers, Inc., maintains a code of ethics that governs the actions of personnel in their dealings with clients. The code covers personal trading, gifts and gratuities and the protection of client information. Any client or prospective client may request a copy of our code of ethics at any time. StanCorp Investment Advisers, Inc., recommends the use of a stable value product issued by Standard Insurance Company to retirement plan clients of Standard Insurance Company and Standard Retirement Services, Inc. In order to overcome the potential conflict of interest this presents, this investment option is evaluated in the same manner as other, non-affiliated, options in this category. In addition, StanCorp Investment Advisers, Inc., receives only the fixed retainer fee from these companies and does not receive additional compensation when recommending this investment option. From time to time, StanCorp Investment Advisers, Inc., staff members may purchase the same securities that are recommended to clients. This could present a potential conflict of interest by encouraging staff members to act on their own behalf before the clients. In order to overcome this conflict, employee transactions are executed in the same block trades as client transactions, with employees receiving pro-rata allocations in the same manner as clients. In addition, employee transactions are monitored to detect inappropriate trading activity. Brokerage Practices StanCorp Investment Advisers, Inc., where applicable, has the discretion to determine the broker and/or institution with which trades are executed, the specific securities that are purchased and the size of transactions without prior client consent, within client established guidelines. Transactions for the Standard Insurance Company portfolio are executed on a competitive basis when possible. If there is not more than one bid or offer, the transactions will be evaluated relative to a matrix of issuers with similar quality and maturity. Transaction size and issuer concentration are governed by the Standard Insurance Company investment policy, which may be changed at any time. Transactions for private clients are executed through a custodian platform. The basis for recommendation of the custodian includes availability of low-cost, high-quality mutual funds on the platform, transaction costs, and the accuracy and quality of trade execution and overall service to the client. StanCorp Investment Advisers, Inc., does not execute trades for soft dollar benefits. We participate in the Schwab Advisor Network to a limited extent. The service is designed to help investors find an independent investment advisor. Schwab is a broker-dealer independent of and unaffiliated with StanCorp Investment Advisers, Inc. Schwab does not supervise StanCorp Investment Advisers, Inc., and has no responsibility for StanCorp Investment Advisers, Inc., management of clients portfolios or StanCorp Investment Advisers, Inc., other advice or services. StanCorp Investment Advisers, Inc., pays Schwab fees to receive client referrals through the service. StanCorp Investment Advisers, Inc. s, participation in the service may raise potential conflicts of interest. We may have an incentive to place client accounts with Schwab over another custodian. In addition to Schwab, our private client assets may be custodied with T.D. Ameritrade, Fidelity or TIAA-Cref. However, Schwab is our preferred custodian. Due the size of the assets we have with Schwab, we have the ability to negotiate favorable transaction charges on behalf of our clients with them. Where individual clients are in specified model portfolios, transactions may be aggregated across relevant clients. This allows us to execute trades at a single price and may reduce transactions costs. Review of Accounts Investment portfolios are reviewed regularly. Fixed-income holdings are monitored for changes in credit quality, business focus and merger activity using alert mechanisms from our various information sources. Mutual funds are monitored for changes in ownership, management or investment strategy. Mutual fund performance, selections and terminations are reviewed at least quarterly, and occasionally more often, by StanCorp Investment Advisers Inc. s, investment committee for both retirement plan and private clients. Investment management clients receive reports quarterly or more often, detailing holdings, market value and activity. All clients receive a quarterly performance review comparing investment returns to appropriate benchmarks. In addition, private client portfolios are reviewed regularly to determine whether rebalancing is required. Financial plans are also reviewed on a regular basis and updated as needed. Client Referrals and Other Compensation StanCorp Investment Advisers, Inc., may, from time to time, enter into agreements with our employees or unrelated individuals for the purpose of obtaining client referrals. These individuals may be compensated for referring new business to us (3/08) 13