ACCE 401(k) Retirement Plan Review

Transcription

1 ACCE 401(k) Retirement Plan Review May 17, 2018 Marsha Mathis Senior Relationship Manager

2 Today s Focus Industry Benchmarking Portfolio Review Education Update Fee Disclosure

3 Industry Benchmarking Page 3

4 Agenda Industry trends Plans like yours Retirement plan executive summary Fiduciary Review Plan compliance news What s new For financial professional/institutional use only. Page 4

5 Industry trends Page 5

6 What s trending? Automated plan features remain strong Important factors in measuring plan success cited by sponsors 71% of DC plans use automatic enrollment Contribution rate 4.6% highest automatic enrollment default in survey history Popular features 4/5 of plans with automatic enrollment also offer automatic escalation Participation Investment performance 91% of plans have a target date fund 71% of plans offer a Roth feature Source: Callan 2018 Defined Contribution Trends Survey, 152 U.S. DC plan sponsors For financial professional/institutional use only. Page 6

7 What s trending? Reviewing plan fees was cited as the most important step in improving fiduciary position 83% calculated fees within the past year 41% reduced fees as a result of fee review 55% increase in the use of explicit per participant fees 27% decrease in use of revenue sharing to pay fees Source: Callan 2018 Defined Contribution Trends Survey, 152 U.S. DC plan sponsors For financial professional/institutional use only. Page 7

8 What s trending? Participants support automated plan features Support automatic enrollment at 6% 75% 80% Support automatic increases 80% Support QDIA 60% re-enrollment Support retroactive automatic enrollment Source: American Century 5 th Annual National Survey of DC Plan Participants, 2017 For financial professional/institutional use only. Page 8

9 What s trending? Mega plans leading the way Immediate eligibility Immediate vesting 84% 41% Attracting millennials Up from 77% in 2014 Up from 39% in 2014 Automatic enrollment 65% Automatic enrollment at 6% 29% Automatic escalation 36% 41% overall 18% overall 18% overall Source: 2018 PLANSPONSOR Defined Contribution Survey, Mega Plans (>$1 billion), 241 U.S. DC plan sponsors For financial professional/institutional use only. Page 9

10 Plans like yours Comparing your plan to plans of similar asset size Page 10

11 Take a look at your plan Does your plan design align with industry trends? Your plan offers* Automatic enrollment Voluntary automatic escalation Plan design may help attract talent Millennials make up 38% of your plan 1 *Plan data as of 3/31/ Participants born in Percent based on all eligible participants. For financial professional/institutional use only. Page 11

12 Plan design and participation Participation 90% of your eligible participants are contributing The average participation for plans like yours is 80% 7.2% Average deferral rate Your average deferral rate is 6.6% Is the average deferral rate for plans like yours Average deferral rate for plan and survey excludes 0 s Account value Your average account value is: $82,962 Plans like yours: $105,816 Loans 10% of your participants have outstanding loans compared to 18% in plans like yours Average account value for plan and survey excludes 0 s Source: 2018 PLANSPONSOR Defined Contribution Survey, Large Plans (>$200M-$1B), 327 U.S. DC plan sponsors Plan data as of 3/31/2018. For financial professional/institutional use only. Page 12

13 Plan design 43% Percentage of plans like yours that are Safe Harbor plans 70% Up from 55% in 2014 Your plan: 54% of participating employers are Safe Harbor Plans Percentage of plans like yours that offer a Roth contribution feature Your plan: Offers a Roth contribution feature 211 participants are contributing to Roth 1% of your plan s assets are in Roth contributions Source: 2018 PLANSPONSOR Defined Contribution Survey, Large Plans (>$200M-$1B), 327 U.S. DC plan sponsors Plan data as of 3/31/2018 Page 13 For financial professional/institutional use only. In-plan Roth conversion offering: 39% 9% 12% 40% Yes - currently offer No, considering No, not considering Unsure Your plan: Does offer in-plan Roth conversion

14 Automated plan features Automatic enrollment Your plan offers: Automatic enrollment at a minimum of 6% 65% of comparable plans offer automatic enrollment What s trending % Plans using a default deferral rate of 6% % has increased Common default investment options for automatic enrollment: Automatic escalation Your plan offers: Voluntary automatic escalation at 1% 33% of plans like yours offer a form of automatic escalation, with most choosing 1% as the escalation rate 6% 6% Retail target date fund (active) 8% Retail target date fund (indexed) 35% Custom target date fund 9% Professionally managed acct Balanced fund 36% Other Your plan s default investment option for automatic enrollment is: Principal LifeTime Hybrid CIT Source: 2018 PLANSPONSOR Defined Contribution Survey, Large Plans (>$200M-$1B), 327 U.S. DC plan sponsors Plan data as of 3/31/2018 Page 14 For financial professional/institutional use only.

15 Employer contributions 78% of comparable plans offer a matching contribution When are participants eligible to receive the match? 6% 17% 77% Immediate Once eligible, up to 6 months Once eligible, more than 6 months Percentage of your locations offering: Immediate Eligibility: N/A 6 months or less: 57% Greater than 6 months: 43% How long before participants are 100% vested? Immediate 1 year 2 years 3 years 4 years 5 years 6 years Other 40% 6% 9% 16% 4% 16% 9% N/A Your plan: 34% Your plan: 22% Your plan: 30% Your plan: 14% Source: 2018 PLANSPONSOR Defined Contribution Survey, Large Plans (>$200M-$1B), 327 U.S. DC plan sponsors Plan data as of 3/31/2018 Page 15 For financial professional/institutional use only.

16 Loan review Your plan offers loans 89% of plans like yours offer loans How many loans are allowed at a time? 51% 40% Your plan allows 1 loan 7% 2% 1 loan 2 loans 3 loans 4+ loans 10% of your participants have loans 18% of participants have loans in plans like yours Average loan balance: $9,683 your participants $9,646 plans like yours Source: 2018 PLANSPONSOR Defined Contribution Survey, Large Plans (>$200M-$1B), 327 U.S. DC plan sponsors Plan data as of 3/31/2018 For financial professional/institutional use only. Page 16

17 Distribution options What distribution options are allowed? Your plan Plans like yours Hardship withdrawals Yes 90% Distributions connected to specific age Distributions to active duty military Distributions of rollover assets from previous employer Distributions of after-tax dollars Yes 81% No 43% Yes 52% Yes 31% Other specific circumstances No 9% None - 3% How many participants have taken hardship withdrawals in the past year? 0.5% of your plan participants 2.2% of participants in plans like yours Source: 2018 PLANSPONSOR Defined Contribution Survey, Large Plans (>$200M-$1B), 327 U.S. DC plan sponsors Plan data as of 3/31/2018 For financial professional/institutional use only. Page 17

18 Investment options Plans like yours allow the following investment vehicles Your plan Mutual Funds 95% Yes # of investment options offered Separate Accounts Collective Investment Trust 15% 29% Yes Yes Your plan 15 Plans like yours 21 ETFs (outside of brokerage windows) Self-Directed Brokerage Window 11% 38% No Yes Average # of investments held Mutual Fund Window Other 7% 7% No N/A Your plan 2.1 Plans like yours 4.9 Source: 2018 PLANSPONSOR Defined Contribution Survey, Large Plans (>$200M-$1B), 327 U.S. DC plan sponsors Plan data as of 3/31/2018 For financial professional/institutional use only. Page 18

19 Administrative fees How are administrative fees paid? 18% 82.2% at least partially paid by participants 63% 20% 100% paid by plan sponsor Paid by both plan sponsor and participants 100% paid by plan participants Your plan: paid by participants* Source: Callan 2018 Defined Contribution Trends Survey *Fee details are per the plan s fee summary as of 5/2/2018. Subject to change annually For financial professional/institutional use only. Page 19

20 Retirement plan executive summary Page 20 31

21 ACCE PROFIT SHARING 401K PLAN Retirement Plan Executive Summary Primary Contract Number: Report Date: 04/25/2018 Total Account Value as of 03/31/2018 Participant Details as of 03/31/2018 $271,264,328 $298,703,303 Average Deferral Rates as of 03/31/2018 $348,285,367 03/31/ /31/ /31/2018 Total Deferring Participants 2,962 Total Eligible Participants 3,283 Eligible Employees Participating % 90.2% Eligible Employees Not Participating % 9.8% Account Values for Participants w/o Term Date $262,158,627 Number of Participants with an Account Value 3,160 Average Account Balance $82,962 Terminated Participant Account Value $76,494,806 Terminated Participant Counts 1,098 Highly Compensated Employee Account Value $94,642,437 Highly Compensated Employee Counts 281 Average Participation Rate as of 03/31/ % 92.9% 90.2% 6.2% 6.2% 5.8% 5.9% 76.8% 4.7% 03/31/ /31/ /31/ /31/ /31/ /31/2018 w/o Non Participants with Non Participants Retirement Wellness Score - Plan Level as of 03/31/2018 All Defined Contribution Plans as of 03/31/2018 Age 34 and Under 34% 45% 21% Age 34 and Under 24% 35% 41% Age % 34% 41% Age % 35% 53% Age 55 and Over 18% 29% 53% Age 55 and Over 10% 26% 64% Total Participants 26% 35% 39% Total Participants 15% 33% 52% 0% 20% 40% 60% 80% 100% Score 70 and Greater Score Score 49 and Under Plan Design and Settings as of 04/25/2018 0% 20% 40% 60% 80% 100% Score 70 and Greater Score Score 49 and Under Asset Class Allocation as of 03/31/2018 Automatic Enrollment Yes -.00% Auto Enroll Plan Type Automatic Increase QDIA Investment Option N/A Voluntary Yes 2% 10% 5% 12% 2% Salary Deferral Service Yes Step Ahead Retirement Option Safe Harbor Plan Design Yes N/A 18% Roth Contributions Allowed Yes # of Available Loans At One Time 1 Hardship Withdrawals Allowed Yes Eligibility Determination Service Match Type (if allowed) Yes N/A 50% Match Formula Definition N/A Short-Term Fixed Income Fixed Income Balanced/Asset Allocation Large U.S. Equity Small/Mid U.S. Equity International Equity SDS Page 21 Other

22 ACCE PROFIT SHARING 401K PLAN Retirement Plan Executive Summary Primary Contract Number: Report Date: 04/25/2018 Life Stage Information as of 03/31/2018 Age 34 and Under Age Age 55 and Over Total Eligible Participants 888 1, Total Deferring Participants 803 1, Eligible Employees Participating % 90.4% 92.0% 87.4% Average Deferral Rate (w/np) 5.4% 5.9% 6.4% Average Deferral Rate (w/o NP) 5.9% 6.4% 7.3% Account Values for Participants w/o Term Date $11,677,357 $105,240,502 $145,240,768 Number of Participants with an Account Value 843 1, Average Account Balance $13,852 $76,041 $155,671 Terminated Participant Account Value $3,885,038 $28,403,372 $44,206,396 Terminated Participant Counts Highly Compensated Employee Account Value $346,303 $32,966,847 $61,329,288 Highly Compensated Employee Counts Non-Highly Compensated Employee Account Value $11,331,055 $72,273,655 $83,911,480 Non-Highly Compensated Employee Counts 841 1, Roth Contributor Account Value $520,115 $1,353,479 $1,004,056 Roth Contributor Counts Outstanding Loan Account Value $140,606 $2,111,038 $1,089,859 Outstanding Loan Counts Step Ahead Counts SDS Page 22

23 DEFINITIONS AND DISCLOSURES TOTAL ACCOUNT VALUE These values represent the recordkeeping account values for the plan as of the previous month end for the current year and year-ends as applicable. Values noted do not guarantee any future distributions, or returns. Investing involves risk, including possible loss of principal. PARTICIPANT DETAILS Total Deferring Participants: Number of Total Eligible Participants. with a deferral dollar amount or percent greater than zero as of the previous month end. Total Eligible Participants: Number of individuals who have met their plan entry date, in active or non-participant status that do not have a termination date coded as of previous month end. Eligible Employees Participating %: The number of Total Deferring Participants divided by the number of Total Eligible Participants. Eligible Employees Not Participating %: 100% minus the Eligible Employees Participating %. Account Values for Participants w/o Term Date: Total account value for participants in active status without a termination date coded as of previous month end. Participants with an Account Value: Count of participants in active status without a termination date coded as of previous month end. Average Account Balance: The Account Value for Participants w/o Term Date divided by the Number of Participants with an Account Value. Terminated Participant Account Value: Total account value for participants in Personal Retirement Account (PRA) status as of previous month end. Terminated Participant Counts: Count of participants in Personal Retirement Account (PRA) status as of previous month end. Highly Compensated Employee Account Value: Total account value for highly compensated participants in active status without a termination date coded as of previous month end. Highly Compensated Employee Counts: Count of highly compensated participants in active status without a termination date coded as of previous month end. AVERAGE DEFERRAL RATES Average Deferral Rate (w/o NP): Represents the average elective deferral being made by plan participants. The calculation does not include those participants who are eligible to participate in the plan but not making an elective deferral contribution. Average Deferral Rate (w/ NP): Represents the average elective deferral being made by plan participants. The calculation includes those participants who are eligible to participate in the plan but not making an elective deferral contribution. AVERAGE PARTICIPATION RATE Average Participation Rate: The number of Total Deferring Participants divided by the number of Total Eligible Participants. RETIREMENT WELLNESS SCORE The Retirement Wellness Score represents an estimate of the percentage of an individual's pre-retirement income available once he or she retires. Studies suggest achieving a score of at least 70 to maintain their current standard of living while in retirement. Plan-Level: Displays the Retirement Wellness Score color breakdown for participants who have met their plan entry date as of previous quarter end, with no termination date coded. All Defined Contribution Plans: Displays the Retirement Wellness Score color breakdown of those participants within the defined contribution plan block at Principal. Locked Score: For individuals where salary or deferral percentage information is not provided by the plan sponsor or participant a score is considered locked. For the purpose of this report the below assumptions are used to calculate locked scores: Assumptions Deferral % - participants without a deferral rate on file and account balance greater than $0 Deferral - 0% - participants without a deferral rate on file and account balance of $0 Deferral - 0% - participants on plans that do not allow elective deferral contributions Salary - $35,000 - participants younger than 50 years old Salary - $40,000 - participants 50 years old or older Retirement Wellness Scores were calculated as of 03/31/2018 Assumptions were used for participants with locked scores. There may be some instances when a participant's available information does not meet the technical requirement to generate a score. Those participants will not have a score represented in the report. PLAN DESIGN AND SETTINGS Provides information as of the date noted based on plan design features and settings related to the specific plan based on information on file. ASSET CLASS ALLOCATION Provides a breakdown of how plan assets are divided among the investment options available under the plan based on investments and applicable asset class as of previous month end. Asset allocation and diversification do not ensure a profit or protect against a loss. The Retirement Wellness Planner information and Retirement Wellness Score are limited only to the inputs and other financial assumptions and is not intended to be a financial plan or investment advice from any company of the Principal Financial Group. They only provide general guidelines which may be helpful in making personal financial decisions. Responsibility for those decisions is assumed by the participant, not Principal. Individual results will vary. Participants should regularly review their savings progress and post-retirement needs. The subject matter in this communication is provided with the understanding that Principal is not rendering legal, accounting, or tax advice. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements. Insurance products and plan administrative services provided through Principal Life Insurance Co., a member of the Principal Financial Group, Des Moines, IA , Principal Financial Services, Inc. 06/2016 t nq-t br For use with plan sponsors and financial professionals only; not for use with participants. SDS Page 23

24 ACCE PROFIT SHARING 401K PLAN Internet and Voice Response Usage Number of Times Accessed Internet Voice Response Top Information Accessed YTD YTD Account Balance 23,430 2, Activity Detail 4,480 1,986 N/A N/A Check Status N/A N/A Investment Options N/A N/A Investment Performance 4,362 1,978 N/A N/A Loan Information Loan Quote 1, N/A N/A Personal Information 8,243 3,539 N/A N/A Personalized Rate of Return 14 2 N/A N/A Review Allocation of Future Contributions N/A N/A Rollover Information 3 6 N/A N/A Tax Information N/A N/A Number of Times Accessed Internet Voice Response Top Transactions Initiated YTD YTD Beneficiary Change 1, N/A N/A Change Allocation of Future Contributions 119 N/A N/A N/A Change Contribution Rates N/A N/A Investment Transfer N/A N/A Rebalance 35 9 N/A N/A Last Refreshed on 05/03/2018 Page 1 of 1 Page 24

25 Fiduciary review Page 25

26 ACCE Benefit Trust committee roles & responsibilities Non-Fiduciaries Advisor/RIA Committee Members Other Experts Committee Members (Fiduciary & Plan Administrator) Appoint and monitor named fiduciaries Evaluate and monitor performance of investments and investment managers Maintain a due diligence file Schedule ongoing training Advisor/RIA Help select, evaluate, and monitor investments Help monitor investment fees Non-Fiduciaries, ACCE Benefit Trust HR Dept & Others Plan sponsor (Company, Board) decide terms of the plan, establish/amend/terminate the plan, shape governance structure Ministerial roles follow direction from fiduciaries Principal, accountants provide expertise/follow direction from fiduciaries For financial professional/institutional use only. Page 26

27 ACCE Benefit Trust committee roles & responsibilities All Fiduciaries standards of conduct Exclusive benefit rule: You must act for the exclusive purpose of providing benefits and paying only reasonable plan fees. Prudent person rule: You must perform your duties with care, skill, prudence and diligence that would be exercised by a prudent person familiar with the matter and acting under similar circumstances. Voting Committee Members Diversification rule: You must diversify the plan investments to minimize the risk of investment loss. When choosing investment Wilshire options, you should select investments with different objectives and risk/return characteristics. A broad range of investment options Other Experts should be offered to help participants meet their goals and risk tolerances. Duty to follow plan terms: You must act in accordance to plan documents and ERISA rules. For financial professional/institutional use only. Page 27

28 Plan compliance news Page 28

29 Department of Labor Fiduciary Regulation Fifth Circuit Court of Appeals vacates the fiduciary rule On March 15, 2018 the Fifth Circuit Court of Appeals reversed the judgment of the district court and struck down the DOL's fiduciary rule The court found the DOL's definition of fiduciary investment advice overly broad and inconsistent with ERISA Until the judgement is final, the rule remains in effect For now, Principal continues to operate in accordance with the fiduciary rule. For financial professional/institutional use only. Page 29

30 How does the Bipartisan Budget Act of 2018 affect your retirement plan? What has changed? As of January 1, 2019 in the event of a hardship withdrawal, plans utilizing the deemed hardship withdrawal rules have the following options available: No longer required to suspend employee contributions for 6-months following the withdrawal Removes the requirement to take a loan prior to taking a withdrawal Expands the hardships to include additional money types (e.g QACA/QNEC) and also includes earnings) Note: While more guidance is expected, the additional flexibility is not available until the beginning of the plan year that begins after December 31, Other change include: Relief for disasters caused by the California wildfires For financial professional/institutional use only. Page 30

31 How does the new Tax Cuts and Jobs Act affect your retirement plan? What has changed? Terminated employees with an outstanding loan balance have until tax return filing to repay loan balance as a rollover (also applies at plan termination) Restricts the definition of casualty loss, which restricts the reason for hardship withdrawals For financial professional/institutional use only. Page 31

32 What s new Page 32

33 Retirement planning at your fingertips Coming soon! New mobile app features: Fingerprint and biometric sign-in Seamless mobile transactions Improved Retirement Wellness Score experience Chat-interface integration Additional business unit integration (i.e. life insurance, dental) Stronger sense of community Intuitive concierge tech services Next generation education tools and resources Expanded product offerings (i.e. medical debt support) Sample materials, including linked audio samples, are for illustrative purposes only and do not represent the final product. They are the property of Principal. All rights reserved. No part of the content may be reproduced or used in any form. For financial professional/institutional use only. Page 33

34 Ask Alexa Alexa, ask Principal how my retirement account is doing Alexa will allow participants to check their account balance and rate of return. It will also prompt them to check their retirement wellness score and through education, encourage personalized action for their retirement readiness. Sample materials are for illustrative purposes only and do not represent the final product. They are the property of Principal. All rights reserved. No part of the content may be reproduced or used in any form. For financial professional/institutional use only. Page 34

35 Will preparation resourceavailable to all participants 71% of Americans don t know where to turn or how to get started with legal matters 1 We re here to help Starting in May, retirement participants and retail customers will have access to a library of documents legally valid for each state Documents include: Standard Will Healthcare Power of Attorney HIPAA authorization Durable Power of Attorney Living Will Medical treatment authorization for minors Working towards overall financial wellness 1 ARAG North America, Inc., How Legal & Financial Stress Impacts Employee Wellness And What You Can Do to Help, For financial professional/institutional use only. Page 35

36 Principal recognition Top place to work Best Place to Work in Money Management 1 One of Top 100 Best Places to Work in Information Technology 2 One of America's Best Employers 3 One of the World's Most Ethical Companies Best Companies for Working Mothers Best Workplaces for Giving Back 6 Fortune 2018 World s Most Admired Companies 7 Forbes list of America's Best Employers for Diversity 8 1 Pensions & Investments, December Computerworld, June Forbes, May Ethisphere Institute, March Working Mother magazine, September Great Place to Work, February Forbes February #6 on Forbes' list of America's Best Employers for Diversity, January For financial professional/institutional use only. Page 36

37 Best in class retirement plan service provider Best in Class ranking for service team & 98% overall satisfaction score 1 #1 #1 #1 Satisfaction with plan service provider 2 Range of investment products 2 Participant website & online capabilities Chatham Partners Client Satisfaction Survey of defined contribution plans with more than $50 million in assets, January Market Strategies International Cogent Reports TM Retirement Planscape : Maximizing Plan Provider and Investment Manager Success in the DC Retirement Market, May 2017 For financial professional/institutional use only. Page 37

38 Important Information The subject matter in this communication is educational only and provided with the understanding that Principal is not rendering legal, accounting, investment advice or tax advice. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, investment or accounting obligations and requirements. This document is not a recommendation and is not intended to be taken as a recommendation. This material was prepared for general distribution and is not directed to a specific individual. Insurance products and plan administrative services provided through Principal Life Insurance Co., a member of the Principal Financial Group, Des Moines, IA Certain investment options and contract riders may not be available in all states or U.S. commonwealths. Principal, Principal and symbol design and Principal Financial Group are trademarks and service marks of Principal Financial Services, Inc., a member of the Principal Financial Group Principal Financial Services, Inc Page 38

39 Portfolio Review Page 39

40 Portfolio Review Investment Review - Allocation 01/01/2018 through 03/31/2018 Inv Manager or Sub-Advisor Investment Option Large U.S. Equity Large Value Capital Research and Mgmt Co ASSOCIATION+OF+CHAMBER+OF+COMMERCE+EXECUTIVES+PROFIT+SHARING+PLAN Contract # Beginning Balance Breakdown % Contributions/ Additions Breakdown % Withdrawals/ Deductions Breakdown % Ending Balance Breakdown % American Funds Washington Mutual Investors R6 $23,041, % $224, % $381, % $22,592, % Fund 30 Large Blend Principal Global Investors A, 2, 6, LargeCap S&P 500 Index Separate Account-Z 31, 38 Large Growth $16,489, % $330, % $257, % $16,046, % Capital Research and Mgmt Co American Funds Growth Fund of America R6 Fund 30 $23,781, % $300, % $379, % $24,729, % Small/Mid U.S. Equity Mid Cap Value Principal Global/Barrow Hanley MidCap Value III Separate Account-Z A, 1, 38 $2,247, % $47, % $66, % $2,063, % Mid Cap Blend Principal Global Investors A, 1, 2, 8, MidCap S&P 400 Index Separate Account-Z 31, 38 Mid Cap Growth $5,168, % $121, % $110, % $5,279, % Columbus Circle Investors MidCap Growth Separate Account-Z A, 1, 38 $9,676, % $99, % $176, % $9,772, % Small Value DFA/Vaughan Nelson/LA Capital SmallCap Value II Separate Account-Z A, 1, 3, 26, 39 $5,823, % $70, % $56, % $5,845, % Small Blend Principal Global Investors A, 1, 2, 7, SmallCap S&P 600 Index Separate Account-Z 31, 38 Small Growth AB/Brown/Emerald $8,562, % $170, % $79, % $8,788, % SmallCap Growth I Separate Account-Z A, 1, 3, 26, 33, 39 $2,824, % $52, % $27, % $3,050, % Page 40

41 Portfolio Review ASSOCIATION+OF+CHAMBER+OF+COMMERCE+EXECUTIVES+PROFIT+SHARING+PLAN Contract # Investment Review - Allocation 01/01/2018 through 03/31/2018 Inv Manager or Sub-Advisor Investment Option International Equity Diversified Emerging Markets Principal Global Investors International Emerging Markets Separate Account-Z A, 4, 38 Foreign Large Blend $2,900, % $99, % $70, % $3,279, % Principal Global Investors Diversified International Separate Account-Z A, 4, 38 $13,829, % $227, % $251, % $13,881, % Balanced/Asset Allocation Target-Date Retirement Multiple Sub-Advisors 12, 23, 27, 28, 32, Principal LifeTime Hybrid Income CIT Z 34, 35, 36, 37 Target-Date Multiple Sub-Advisors 12, 23, 27, 28, 32, 34, Principal LifeTime Hybrid 2010 CIT Z 35, 36, 37 Target-Date 2020 Multiple Sub-Advisors 12, 23, 27, 28, 32, 34, Principal LifeTime Hybrid 2020 CIT Z 35, 36, 37 Target-Date 2030 Multiple Sub-Advisors 12, 23, 27, 28, 32, 34, Principal LifeTime Hybrid 2030 CIT Z 35, 36, 37 Target-Date 2040 Multiple Sub-Advisors 12, 23, 27, 28, 32, 34, Principal LifeTime Hybrid 2040 CIT Z 35, 36, 37 Target-Date 2050 Multiple Sub-Advisors 12, 23, 27, 28, 32, 34, Principal LifeTime Hybrid 2050 CIT Z 35, 36, 37 Beginning Balance Breakdown % Contributions/ Additions Breakdown % Withdrawals/ Deductions Breakdown % Ending Balance Breakdown % $4,175, % $52, % $25, % $4,379, % $10,320, % $295, % $241, % $10,547, % $43,787, % $1,116, % $1,688, % $41,544, % $55,107, % $1,507, % $675, % $54,828, % $37,932, % $1,677, % $726, % $39,044, % $21,356, % $1,521, % $590, % $21,885, % Page 41

42 Portfolio Review Investment Review - Allocation 01/01/2018 through 03/31/2018 Inv Manager or Sub-Advisor Investment Option Target-Date Multiple Sub-Advisors 12, 13, 23, 27, 28, 32, Principal LifeTime Hybrid 2060 CIT Z 34, 35, 36, 37 Short-Term Fixed Income GIC $2,916, % $421, % $69, % $3,339, % Fixed Income Guaranteed Option 11 $44,335, % $832, % $2,894, % $42,885, % Fixed Income Intermediate-Term Bond Principal Global Investors Income Separate Account-Z A, 3, 9, 15, 23, 40 $7,902, % $143, % $120, % $7,543, % Owned Real Estate Principal Real Estate Inv U.S. Property Separate Account-Z A, 29, 38 $784, % $20, % $49, % $759, % Other Principal Self-Directed Brokerage Account * $6,553, % $0 0.00% $67, % $6,299, % Transition Holding Arrangement * $0 0.00% $0 0.00% $179, % $0 0.00% TOTAL $349,516, % $9,332, % $9,187, % $348,387, % * This investment option is closed to new contributions. Contributions/Additions reflect contributions, negative contributions, loan payments, etc. Withdrawal/Deductions reflect distribution requests such as terminations, death, disability, and loans. Participant and Employer level investment transfers are not included in these columns. Please see important information at the end of this presentation. ASSOCIATION+OF+CHAMBER+OF+COMMERCE+EXECUTIVES+PROFIT+SHARING+PLAN Contract # Beginning Balance Breakdown % Contributions/ Additions Breakdown % Withdrawals/ Deductions Breakdown % Ending Balance Breakdown % Page 42

43 ASSOCIATION+OF+CHAMBER+OF+COMMERCE+EXECUTIVES+PROFIT+SHARING+PLAN Contract # Portfolio Review Allocation of Assets Beginning % As Of 01/01/2018 Contributions/Additions % 01/01/ /31/2018 Withdrawals/Deductions % 01/01/ /31/2018 Ending % As Of 03/31/2018 Balanced/Asset Allocation Large U.S. Equity Short-Term Fixed Income Small/Mid U.S. Equity International Equity Fixed Income Other Page 43

44 Important Information ASSOCIATION+OF+CHAMBER+OF+COMMERCE+EXECUTIVES+PROFIT+SHARING+PLAN Contract # A Sub-advised Investment Options include Separate Accounts available through a group annuity contract with the Principal Life Insurance Company. Insurance products and plan administrative services, if applicable, are provided by Principal Life Insurance Company a member of the Principal Financial Group, Des Moines, IA See the fact sheet for the full name of the Separate Account. Certain investment options may not be available in all states or U.S. commonwealths. Principal Life Insurance Company reserves the right to defer payments or transfers from Principal Life Separate Accounts as described in the group annuity contracts providing access to the Separate Accounts or as required by applicable law. Such deferment will be based on factors that may include situations such as: unstable or disorderly financial markets; investment conditions which do not allow for orderly investment transactions; or investment, liquidity, and other risks inherent in real estate (such as those associated with general and local economic conditions). If you elect to allocate funds to a Separate Account, you may not be able to immediately withdraw them. A mutual fund's share price and investment return will vary with market conditions, and the principal value of an investment when you sell your shares may be more or less than the original cost. Insurance products and plan administrative services, if applicable, are provided by Principal Life Insurance Company. Securities are offered through Principal Securities, Inc., , member SIPC and/or independent broker/dealers. Securities sold by a Principal Securities Registered Representative are offered through Principal Securities. Principal Securities and Principal Life are members of the Principal Financial Group, Des Moines, IA Certain investment options may not be available in all states or U.S. commonwealths. Principal Life Insurance Company reserves the right to defer payments or transfers from Principal Life Separate Accounts as described in the group annuity contracts providing access to the Separate Accounts or as required by applicable law. Such deferment will be based on factors that may include situations such as: unstable or disorderly financial markets; investment conditions which do not allow for orderly investment transactions; or investment, liquidity, and other risks inherent in real estate (such as those associated with general and local economic conditions). If you elect to allocate funds to a Separate Account, you may not be able to immediately withdraw them. 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. Before directing retirement funds to a separate account, investors should carefully consider the investment objectives, risks, charges and expenses of the separate account as well as their individual risk tolerance, time horizon and goals. For additional information contact us at or by visiting principal.com. Investment options are subject to investment risk. Shares or unit values will fluctuate and investments, when redeemed, may be worth more or less than their original cost. This does not apply, however, to the guaranteed portions of group annuity contracts issued by Principal Life that constitute guaranteed benefit policies as defined in ERISA 401(b)(2)(B). This report includes investment options that contain information from a variety of sources. A primary source is Morningstar which provides holdings information, operations data, and rankings or statistics proprietary to Morningstar. Morningstar is generally the source of information on mutual funds unaffiliated with the Principal. Page 44

45 Important Information (C) 2018 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. Stable Value funds are not available for Not For Profit clients. Compliance number: t t1 ASSOCIATION+OF+CHAMBER+OF+COMMERCE+EXECUTIVES+PROFIT+SHARING+PLAN Contract # 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 least expensive share class 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. 6. S&P 500 is a trademark of S&P Global and is used under license. 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 600 is a trademark of S&P Global and is used under license. 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 400 is a trademark of S&P Global and is used under license. 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. 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. 11. Principal Fixed Income Guaranteed Option is the Group Annuity Contract - Custodial Guaranteed Interest Contract available through Principal Life Insurance Company, a member of the Principal Financial Group, Des Moines Iowa May not be available in all states. 12. 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. Page 45

46 Important Information ASSOCIATION+OF+CHAMBER+OF+COMMERCE+EXECUTIVES+PROFIT+SHARING+PLAN Contract # 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. 15. 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. 16. If the retirement program provides a participant access to the Fixed Income Guaranteed Option and Competing Plan Investment Options, participant transfers, either directly or indirectly, to Competing Plan Investment Options will generally be subject to an Equity Wash. An Equity Wash requires that transfers must be directed to a non-competing investment option under the plan for 90-days before such transferred amounts may be directed to any other Competing Plan Investment Option. Competing Plan Investment Options include other guaranteed investment options, or fixed income, money market, or bond funds that have ever had an average duration of 3.0 years or less. 17. The Fixed Income Guaranteed Option is a guarantee backed by the general account of Principal Life Insurance Company(Principal Life). As a guarantee, it does not have an investment management fee or expense ratio; those are concepts unique to investment products. The Rate Level Service Fee illustrated here represents the part of the overall fee arrangement that the plan pays for services from Principal Life as a provider of administrative services to the plan, as agreed to in the Service and Expense Agreement for the plan. 18. The crediting rate shown for the Fixed Income Guaranteed Option is an effective annual rate and is displayed here as the rate guaranteed by Principal Life net of the fees for administrative services to the plan illustrated in the Rate Level Service Fee column for the Fixed Income Guaranteed Option. 23. Fixed-income and asset allocation investment options that invest in mortgage securities are subject to increased risk due to real estate exposure. 26. This Separate Account invests solely in the least expensive share class of a mutual fund (Fund) from Principal Funds, Inc. The investment manager of the Fund, Principal Global Investors, 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. 27. Asset allocation and diversification do not ensure a profit or protect against a loss. Additionally there is no guarantee this investment option will provide adequate income at or through retirement. 28. 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. 29. This investment option is subject to investment and liquidity risk and other risks inherent in real estate such as those associated with general and local economic conditions. If you elect to contribute funds into the U.S. Property Separate Account, withdrawals may be delayed for up to 3 years. Page 46

47 Important Information ASSOCIATION+OF+CHAMBER+OF+COMMERCE+EXECUTIVES+PROFIT+SHARING+PLAN Contract # 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. 31. The risks associated with derivative investments include that the underlying security, interest rate, market index, or other financial asset will not move in the direction the Investment Adviser and/or Sub-Advisor anticipated, the possibility that there may be no liquid secondary market, the risk that adverse price movements in an instrument can result in a loss substantially greater than a fund's initial investment, the possibility that the counterparty may fail to perform its obligations; and the inability to close out certain hedged positions to avoid adverse tax consequences. 32. International and global investing involves greater risks such as currency fluctuations, political/social instability and differing accounting standards. 33. Effective September 30, 2016, this portfolio is sub-advised by AB LP, Brown Advisory and Emerald Advisors, Inc. Prior to September 30, 2016, the portfolio was sub-advised by AB LP, Brown Advisory, Emerald Advisors, Inc. 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. 34. Effective January 1, 2017, the trustee for the Principal LifeTime Hybrid Collective Investment Funds changed from Principal Trust Company to Principal Global Investors Trust Company. Principal Trust Target Date Collective Investment Funds were renamed the Principal LifeTime Hybrid Collective Investment Funds (CITs). 35. For the Principal Lifetime Hybrid Collective Investment Funds (CITs), Total Investment Expense Net equals the sum of these expenses: (a) the amount of money, expressed as a percentage, deducted for the cost of managing the collective investment trust, and where applicable, plus (b) if the collective investment trust invests in an underlying mutual fund, separate account, or collective investment trust, the total investment operating expenses of the underlying investment option, as listed in the most recent prospectus if applicable. 36. The Principal LifeTime Hybrid Collective Investment Funds (CITs) are collective investment trusts maintained by Principal Global Investors Trust Company, (the Trust Company). The Trust Company has retained Principal Global Investors, LLC (the Adviser), to serve as investment adviser with respect to the CITs, subject to the Trust Company's supervision and review. The Adviser is an indirect wholly owned subsidiary of Principal Financial Group. Inc. and is under common control with the Trust Company. The Adviser also manages portfolios which may be included as underlying investments in the CITs. The Adviser receives management fees from these portfolios. The Adviser or other affiliates of the Trust Company may provide services to the CITs and may receive fees for such services. The CITs are available only to certain qualified retirement plans and governmental 457(b) plans. 37. The CITs are not mutual funds and are not registered with the Securities and Exchange Commission, the State of Oregon, or any other regulatory body. Units of the CITs are not deposits or obligations of, guaranteed by, or insured by the Trust Company or any affiliate, and are not insured by the FDIC or any other federal or state government agency. The value of the CITs will fluctuate so that when redeemed, units may be worth more or less than the original cost. The declaration of trust, participation agreement, and disclosure documents contain important information about investment objectives, risks, fees and expenses associated with investment in the CITs and should be read carefully before investing. The declaration of trust is available at principal.com. A copy of the participation agreement can be obtained from your plan administrator. Page 47

48 Important Information ASSOCIATION+OF+CHAMBER+OF+COMMERCE+EXECUTIVES+PROFIT+SHARING+PLAN Contract # Investment manager/sub-advisor means either the Investment Advisor or Sub-Advisor to the investment option or the underlying asset(s). Principal Life Insurance Company is the Investment Manager as defined by ERISA, with regard to the assets of the Separate Accounts. Principal Global Investors is a member of the Principal Financial Group. 39. Investment manager/sub-advisor means either the Investment Advisor or Sub-Advisor to the investment option or the underlying asset(s). 40. Investment manager/sub-advisor means either the Investment Advisor or Sub-Advisor to the investment option or the underlying asset(s). Principal Life Insurance Company is the Investment Manager as defined by ERISA, with regard to the assets of the Separate Accounts. Principal Global Investors is a member of the Principal Financial Group. Edge Asset Management is an internal investment boutique of Principal Global Investors. Page 48

49 Glossary of Terms ASSOCIATION+OF+CHAMBER+OF+COMMERCE+EXECUTIVES+PROFIT+SHARING+PLAN Contract # Total Investment Expense Gross - The maximum expense ratio that can be applied to an investment option. This includes expenses and management fees, including 12b-1 fees, administrative fees, and all other asset-based costs incurred by the investment option, except brokerage costs. Investment Advisor - May include Registered Investment Advisers as defined in the Advisers Act of 1940, Investment Advisers as defined in the Investment Company Act of 1940, as well as a company employed by the investment option's advisor to handle the investment option's day-to-day management. In these instances, the portfolio manager generally works for the fund's subadvisor, and not the advisor. See definition of Multiple Sub-Advisor appearing elsewhere in this presentation for greater detail about Sub-Advisors. Page 49

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55 *2017 results as of 12/31/2017 ** results as of 12/31/2017 Page 55

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71 Fee Disclosure Page 71

72 ACCE PROFIT SHARING 401K PLAN Plan Number: Retirement Plan Fee Summary As of 05/02/2018 This fee summary is provided in compliance with section 408(b)(2) of the Employee Retirement Income Security Act (ERISA). Fee Paid By Plan Sponsor 0.00% How the fee is allocated Fee for ACCE PROFIT SHARING 401K PLAN Do not delete Plan Characteristics Fee Paid By Participants This represents the current netted amount, which you have chosen to be taken from the investment return of participant accounts. Recordkeeping Services include Core Services and Optional Services elected. There are no additional fees from any member company of the Principal Financial Group for this service package. Þ See Investment Options on page 2 for more details. Current Assets: $350,690,665 Annual DeposIts: $32,402,226 Average Account Balance: $73,474 Current Participants with Account Balance: 3, % Total Investment Expense Net % Total Cost 1 = 0.71% + Recordkeeping Services % Wilshire's 3(21) Fiduciary Service % ERISA Budget % Revenue Retained by Investment Provider 0.26% Terminated Participants with Account Balance: 1,121 As an Independent Fiduciary, as defined by the Department of Labor (DOL), you make fiduciary investment decisions. Principal Life and its affiliates have not and will not undertake to provide impartial investment advice or give you advice in a fiduciary capacity, unless agreed to separately in writing. In general, the DOL defines an Independent Fiduciary as plan fiduciaries with $50 million or more in assets under their control or designated financial professionals, who may have the expertise to independently evaluate investment risks. Absent receipt of a written objection from you, we are acting in reliance that you are an Independent Fiduciary. PRIN ADV - R6 MFN Print Date 05/02/2018 Page 72