A TIAA-CREF RETIREMENT PLAN PRESENTATION TO: MARCH 31, 2011 FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC.

Transcription

1 A TIAA-CREF RETIREMENT PLAN PRESENTATION TO: MARCH 31, 2011 FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC.

2 INTRODUCTIONS PETE D ANGIO, Director JOEY NORDMARK, Managing Consultant DOUG CALNEK, Managing Director CARISSA ROMAN, Senior Marketing Manager MICHAEL MULKEEN, Director Institutional Development & Sales Individual & Institutional Client Services Shared Services/Implementation Marketing Field Consulting Group FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 1

3 TODAY S DISCUSSION I. Organizational Overview a. Baptist Health Care Key Goals and Objectives b. Mission and Vision c. Strength and Experience d. 403(b) Market Share e. Recognition II. Baptist Health Care Service Model a. Dedicated Service Teams b. Plan Review c. Outsourced Plan Administration d. Administrator Website III. An Engaging and Effective Employee Experience a. Discussion of Employee Education Strategy b. Employee Education Needs, Mediums and Tools c. Participant Advice d. On-site Education Strategy IV. Implementation and Conversion V. Investments / Pricing VI. The TIAA-CREF Difference FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 2

4 BAPTIST HEALTH CARE AND TIAA-CREF FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 3 FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. Source: ebaptisthealthcare.org

5 CONFIRMING BAPTIST HEALTH CARE S KEY GOALS AND CONSIDERATIONS An Organization that Shares your Values A Coordinated Employee Communication Process Proactive Consultative Plan Guidance A True Business Partner Enhanced Web Site Effective Transition / Implementation Open Investment Architecture Enhanced Pricing FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 4

6 BAPTIST HEALTH CARE AND TIAA-CREF ALIGNED IN MISSION AND VALUES BAPTIST HEALTH CARE Mission To provide superior service based on Christian values to improve the quality of life for people and communities served. Values Integrity, Vision, Innovation, Superior Service, Stewardship, Teamwork TIAA-CREF To serve those who serve others; to aid and strengthen the client institutions we serve while seeking to provide retirement security to their employees on the best terms practicable. founded on our long-held commitment to the highest standards of excellence, integrity and respect from careful stewardship of managed assets to an unwavering focus on corporate governance and social responsibility. FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 5

7 LONG-TERM EXPERIENCE AND FINANCIAL STRENGTH TIAA-CREF IS THE PROVIDER YOU CAN TRUST Long-Term Experience Experience by the Numbers 90+ years serving not-for-profits $453 billion in assets (12/31/10) 15,000 institutional clients 24,000 retirement plans 4 million participants Financial Strength Highest Ratings Available (TIAA)* A.M. Best Company A++ (2/11) Fitch AAA (4/10) Moody s Investors Service Aaa (7/10) Standard & Poor s AAA (8/10) * TIAA, the insurance company affiliate that backs TIAA Traditional and our other guaranteed products, has received the highest ratings for its stability, claims-paying ability and overall financial strength. These ratings do not apply to variable annuities, mutual funds or any other product or service not fully backed by TIAA's claims-paying ability. Ratings may be affirmed or adjusted at any time. There is no guarantee that current ratings will be maintained. FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 6

8 TIAA-CREF IS THE NOT-FOR-PROFIT MARKET LEADER TIAA-CREF leads not only in assets under management, but in participant retirement account balances as well** Top (b) Plan Providers* TIAA-CREF Fidelity VALIC $40,381 $70,832 $242,194 ING Lincoln Financial Vanguard Diversified Great West MetLife Prudential $8 $25,463 $20,414 $16,323 $16,049 $12,323 $10,900 NOT-FOR-PROFIT MARKET MARKET SEGMENT TIAA-CREF RANKING** Higher Higher Education Education 1 K-12 K-12 1 Hospital & Hospital Healthcare & Healthcare 2 Other 1 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 Millions * Source: PLANSPONSOR s 2010 Recordkeeping Survey, based on 2009 recordkeeping assets; ** Source: LIMRA, Not-for-Profit Market Survey, fourth-quarter 2010 results. Based on a survey of 30 companies. TIAA-CREF assets under management by market segment estimated; segment breakdown based on 20 companies representing 97% of the total reported full service assets. Market share ranking does not reflect current investment performance. Average assets per participant based on full-service business. FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 7

9 BAPTIST HEALTH CARE RECOGNIZED FOR EXCELLENCE Awarded to Baptist Hospital Inc. in 2003 Established by Congress in 1987 to raise awareness about the importance of quality and performance excellence Highest honor given to American businesses FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 8

10 TIAA-CREF RECOGNIZED FOR EXCELLENCE Diversity is part of our company history. More importantly, it is integral to our future. Gold: Education Programs for Advice communications Roger W. Ferguson, Jr., President and CEO ASPPA (American Society of Pension Professionals & Actuaries) Recordkeeper Certificate awarded to firms that successfully satisfy audit criteria and meet best practices One of America's 50 Best Companies for Minorities, Fortune Magazine (annually, ) FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 9

11 BAPTIST HEALTH CARE SERVICE MODEL FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 10 FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. Source: ebaptisthealthcare.org

12 TIAA-CREF HEALTHCARE MARKET TIAA-CREF Dedicated hospital segment team 120 hospital clients nationwide Manages $17.5 billion in hospital assets More than 108,000 active participants FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 11

13 THE TIAA-CREF MANAGING CONSULTANT COORDINATING SOLUTIONS ALIGNED WITH YOUR OBJECTIVES Plan Design Administrator Training Baptist Health Care Administration Regulatory Updates Industry Information Service Coordination FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 12

14 INTEGRATED SERVICE DELIVERY. INDUSTRY DISTINCTIVE VALUE. Managing Consultant JOEY NORDMARK ADMINISTRATION COMMUNICATION & EDUCATION IMPLEMENTATION Institutional Liaison TAMI LOPEZ Marketing Director BRAD THOMAS Individual Consultant Director MIKE MULKEEN Wealth Management Advisor ROGER JUDY Plan Implementation Manager DOUG CALNEK Communication & Education Manager CARISSA ROMAN FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 13

15 BAPTIST HEALTH CARE CURRENT PLANS BHC 403(b) BHC 401(k) BHV 401(k) BHV 401(k) SC MPA 401(k) 457(b) Lakeview 403(b) GCI 403(b) NQ FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 14

16 BAPTIST HEALTH CARE AND TIAA-CREF PROGRESS THROUGH PROACTIVE PLANNING We will partner with Baptist Health Care to ensure plan progression and evolution Conduct needs assessment Establish annual plan goals Create a measure for each identified goal Develop and execute business and communication plans Monitor through annual progress meeting MEASURE IMPLEMENT ASSESS DESIGN FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 15

17 BAPTIST HEALTH CARE SAMPLE MANAGING CONSULTANT ACTION PLAN FOR st Quarter January February March Annual Plan Review Meeting TIAA-CREF Quarterly Investment Review (4th Qtr 2010) 2011 Goals and Metrics (Sign-Off) Annual 402(g) Notices for 2010 (Prior Year) TIAA-CREF Files Form 1099-Rs for 2010 Plan Document and Summary Plan Description (SPD) for 403(b) Supplemental Plan Finalized TIAA-CREF Issues Form 1099-Rs for 2010 Distributions Distributions with IRS 2 nd Quarter April May June TIAA-CREF Quarterly Investment Review TIAA-CREF SAS 70 Issued Plan Audit Support (1st Qtr 2011) Deadline for Refunds of 2010 Excess Contributions 2010 Plan Financial Reporting Package Issued Plan Audit Support 2011 Goals and Metrics Review Plan Audit Support 3 rd Quarter July August September TIAA-CREF Quarterly Investment Review (2nd Qtr 2011) Form 5500s Filed or Extensions Filed Non-Discrimination Data Finalized Annual Required Minimum Distribution Notices Summary of Material Modification (SMM) for Prior Plan Year (If Applicable) 2011 Goals and Metrics Review 4 th Quarter October November December TIAA-CREF Quarterly Investment Review (3rd Qtr 2011) Form 5500s Filed (If Extensions Applicable) 2011 Goals and Metrics Review Annual QDIA and Auto Enroll Notices FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 16

18 STRATEGIC PLAN ANALYSIS IDENTIFYING OPPORTUNITIES TO DELIVER THE BEST OUTCOMES In-depth knowledge of trends in plan participation is key to delivering programs that influence desired savings and investing behaviors Plan Review Participation rates Contribution rates Assets accumulated Investments and asset classes held Gap Analyses Satisfaction Surveys Seminar Attendance Focus Groups Client Feedback FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 17

19 SOLUTIONS TO EASE YOUR WORKLOAD Your Administrative Needs REDUCED RISK Meet fiduciary obligations and ensure regulatory compliance Our Administrative Solutions Investment Policy & Menu Construction Plan financial reporting package, Signature-Ready 5500 Program monitoring, consultative services INCREASED EFFICIENCIES Simplify administration and reduce plan costs Default & online enrollment, automated salary reduction Loan and hardship withdrawal compliance Vesting services, termination processing INCREASED EMPLOYEE ENGAGEMENT Promote retirement readiness Highly targeted campaigns Objective Advice and Planning Services Auto Enroll and Roth 403(b) FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 18

20 TIAA-CREF SECURE PLAN ADMINISTRATOR WEBSITE EFFICIENT, CENTRALIZED PLAN MANAGEMENT Convenient, Online Access to Data and Plan Administration Services Employee account and plan participation data Contribution data and fund remittances Individual and group employee enrollment Salary deferral agreements Plan and compliance reports Wide variety of report templates Report run scheduling preferences & alerts Publications, forms, resources and help Auditors get direct access Plan Sponsor Dashboard for Access to Real-Time Plan Data FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 19

21 AN ENGAGING AND EFFECTIVE EMPLOYEE EXPERIENCE FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 20 FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. Source: ebaptisthealthcare.org

22 YOUR DEDICATED INDIVIDUAL CONSULTANT COMBINING PERSONALIZED ADVICE WITH TARGETED EDUCATION Life- and Career-Stage Education Group Step-by-Step Enrollment Assistance One-On-One Baptist Health Care Employees Personalized Objective Advice & Recommendations Customized Strategies for Complex Needs Retirement Income and Distribution Options Telephone Product Information FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 21

23 OPTION A: TIAA-CREF ADVICE AND PLANNING SERVICES DESIGNED TO ADDRESS THE UNIQUE NEEDS OF EVERY EMPLOYEE Counseling sessions targeted to career and life stages help employees answer three primary questions: Am I saving enough for retirement? How should I allocate and invest to reach my goals? When can I retire? GUIDANCE & EDUCATION Asset Allocation Savings Rate Distribution Options Retirement Age PERSONALIZED ADVICE & COUNSELING Objective Advice & Planning Service Personalized Action Plan Plan-Specific Fund Selection CUSTOMIZED FINANCIAL SOLUTIONS * Holistic Financial Planning Annual Retirement and Investment Reviews Managed Accounts Discretionary Management Fiduciary Services * These services may not be available to all employees. FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 22

24 YOUR TIAA-CREF INDIVIDUAL CONSULTANTS PERSONALIZED SERVICE FROM EXPERIENCED PROFESSIONALS EXPERIENCE DISTINCTIVE VALUE ACCOUNTABILITY FINRA registered / Insurance licensed Financial, investment and retirement income training Thorough understanding of your retirement plans Results from Individual Counseling Session Surveys conducted for 2010 show: 81% stated the experience was better or much better than with other financial services representatives 98% of our participants said that the Individual Consultant put their interests first Held to balanced scorecard People Operations Customer satisfaction Asset growth Service quality monitoring program The above quotes may not be representative of the experiences of other TIAA-CREF participants and are not indicative of future performance or success. They stem strictly from the participants' experiences with broker-dealer related services and not from any investment advisory services offered by a TIAA-CREF affiliate. FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 23

25 PERSONALIZED SERVICE FOR YOUR EMPLOYEES LOCATION # OF EMPLOYEES # OF SERVICE DAYS/ IMPLEMENTATION # OF SERVICE DAYS/ ONGOING Andrews Institute Atmore Community Hospital Baptist Hospital 3, Baptist Leadership Institute Baptist Manor Baptist Medical Park Navarre Baptist Medical Park Nine Mile Gulf Breeze Hospital Jay Hospital Lakeview Center FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 24

26 TIAA-CREF ADVICE AND PLANNING SERVICES PERSONALIZED ACTION REPORT WITH RECOMMENDATIONS RECOMMENDED SAVINGS RATE RECOMMENDED ASSET ALLOCATION RECOMMENDED FUND SELECTION DESIRED RETIREMENT INCOME FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 25

27 TIAA-CREF AND FINANCIAL SOUNDINGS TWO OPTIONS FOR OBJECTIVE ADVICE SERVICES Option A TIAA-CREF Personalized planning and objective fund recommendations through TIAA-CREF Individual Consultants Independent advice methodology through Ibbotson Associates Option B FINANCIAL SOUNDINGS All employees receive personalized reports with specific recommendations Retirement Plan Analysis Annual Portfolio Review Service coordinated with TIAA-CREF Individual Consultants FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 26

28 TIAA-CREF WEALTH MANAGEMENT SERVICES FOR MORE COMPLEX NEEDS TIAA-CREF Wealth Management clients have access to a personal advisory relationship to help address their financial needs as they plan for and live well in retirement Focused organization with a long term approach to stability Dedicated team committed to working in participants best long-term financial interest Disciplined and defined financial planning and investment philosophy Deep and thorough knowledge of your clients retirement plans Wide array of investment products and services FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 27

29 TELEPHONE COUNSELING CENTER OVERVIEW Overview Locations in Charlotte, Denver and Dallas Staff of 800 phone consultants capable of English and Spanish conversations 150 Counseling consultants ( and written correspondence) Extensive Consultant Qualifications Minimum of Series 6 and Series 63 FINRA registrations 95% are college graduates Four-month training program; ongoing training on new products, industry regulations, etc. Consultative approach FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 28

30 BAPTIST HEALTH CARE BRANDED SITE Providing a single access point where your employees can easily: Understand their plan investment options Access tools and education Complete a salary reduction agreement and enroll Log in to: View balances Transact Update information FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 29

31 COMMUNICATION AND EDUCATION WORKING TOGETHER TO BUILD YOUR CUSTOMIZED PLAN Demographics Behavior Market environment Target audiences Messages Timing Metrics Surveys Feedback In person Phone Mail / FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 30

32 COMMUNICATIONS PLAN OVERVIEW Transition / Implementation Explain key elements of the transition and guide employees through the plan implementation stage Ensure that all employees understand their investment options and the principles of asset allocation, and take appropriate action Ongoing Promote the overall value of the retirement plan and sound asset allocation Motivate participants to increase contributions, if appropriate for their situation Encourage new hires to participate in the plan Monitor and measure the impact of the education and advice program FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 31

33 MEASUREMENT: DRIVING CONTINUAL IMPROVEMENT TIAA-CREF will continue to monitor the performance of your program and work with you on enhancements as necessary. The plan will be successful only with continual monitoring and adjustment. Pre- and Post-Campaign Analysis We analyze participation rates, asset allocation and deferral rates Surveys We survey Financial Education Seminar attendees to ensure that the seminars are providing actionable education, and to understand their motivation to attend Plan Review We discuss all metrics during a regular plan review and the marketing and education plan is adjusted based on the results FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 32

34 COMMUNICATION, EDUCATION AND ADVICE MAXIMUM ENGAGEMENT DURING THE TRANSITION AND ONGOING Individual Counseling and Group Education Online Planning Tools, Calculators, Resources Social Media and Downloads Plan Change Communications Customized Campaigns, Statement Messaging Enrollment Resources FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 33

35 IMPLEMENTATION/ CONVERSION FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 34 FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. Source: ebaptisthealthcare.org

36 COMMITMENT TO INFRASTRUCTURE FOCUSED ON OPERATIONAL AND SERVICE EXCELLENCE Transaction Processing 13.1 million contribution transactions each month Greater than 98% same-day transaction processing rate Quality program links operational performance and customer satisfaction Service Capacity Three national counseling centers: Denver, Charlotte, Dallas Call-handling and interactive voice recognition technology Single-source participant statement and web management Systems Stability and Security Two state-of-the-art data centers; Level 9 classification Fully redundant infrastructure ensures business continuity and technical recovery capabilities Facilities fully staffed and monitored 24/7 Data as of June 2010 FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 35

37 DISCIPLINE AND EXPERIENCE ENSURING OPERATIONAL EFFECTIVENESS Proven Implementation Process Plan and System Setup End-to-End Testing Post-Implementation Monitoring FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 36

38 BAPTIST HEALTH CARE MULTIPLE PLANS: IMPLEMENTATION CONSIDERATIONS BHC 403(b) BHC 401(k) BHV 401(k) BHV 401(k)(SC) MPA 401(k) 457(b) Lakeview 403(b) GCI 403(B) NQ Plan and System Setup Plan Provisions Payroll Remittance Mapping Instructions Post-Implementation Monitoring FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 37

39 INTEGRATED IMPLEMENTATION TIMELINE OVERVIEW Kick-off Meeting & Strategy Planning On-site Administrator Training Announcements & Invites Plan and System Setup Individual Counseling & Group Education Conversion & Testing Blackout & Launch Weeks FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 38

40 NEW ONLINE IMPLEMENTATION DASHBOARD COORDINATING ALL ACTIVITIES THROUGH A SHARED SITE Detailed project timeline Baptist Health Care Statement of work Setup and design documents Forms and agreements Remittance instructions Sample employee communications Educational materials FOR FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR FOR USE USE WITH WITH OR OR DISTRIBUTION TO THE TO PUBLIC. THE PUBLIC. 39 Source: en.wikipedia.org/wiki/file:willametteueatonhall.jpg

41 INVESTMENTS AND PRICING FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 40 FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. Source: ebaptisthealthcare.org

42 TIAA-CREF OPEN ARCHITECTURE INVESTMENT LINEUPS FLEXIBLE Open architecture and broad menu discretion COMPREHENSIVE Nearly 15,000 mutual funds through NSCC network EASY Proven process to exchange/replace existing investment options VALUE ADDED All mutual fund reimbursements used to offset plan expenses FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 41

43 FULLY OPEN ARCHITECTURE ACCESS TO MORE THAN 12,000 MUTUAL FUNDS FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 42

44 TIAA STABLE VALUE: A FIXED ANNUITY PROVIDING CAPITAL PRESERVATION AND INCOME TIAA STABLE VALUE Plan type: Primary collateral account: Credit rate structure: Crediting rate reset frequency: Minimum crediting rate: Participant-initiated plan benefit withdrawals: Employer liquidity: 403(b), 401(a)/(k), 457(b) Public, 457(b) Private, 457(f) TIAA Separate Account Single portfolio rate by pool Semiannually 1% - 3%, before deductions for plan-specific charges Fully liquid, no restrictions (90-day equity wash applies if competing funds exist). Transfers in may not be made for 30 days following a transfer out Within 90 days or in two years, depending on interest-rate environment, with no surrender charge TIAA Stable Value is a guaranteed annuity contract issued by Teachers Insurance and Annuity Association (TIAA), New York, NY Contributions from different plans are pooled together and deposited in a non-unitized pooled separate account of TIAA. This guaranteed annuity contract is not considered to be an investment or security under federal securities laws. In addition, the contract provides a guaranteed minimum rate of interest of between 1% and 3% (before deductions for contract fees). Contract fees are described in the annuity contract and are collected on a daily basis. Payment obligations and the fulfillment of the guarantees provided for in the contract in the accumulation phase are supported by the assets held in the separate account. If the assets in the separate account are insufficient to meet these obligations, the shortfall is supported by the General Account of TIAA, and is therefore subject to TIAA s claims-paying ability. Lifetime annuity payments are provided by TIAA, are subject to TIAA s claims-paying ability, and are not supported by the assets in the separate account. Past interest rates are not indicative of future interest rates. This product is not a mutual fund, variable annuity or bank product. The obligations of TIAA are not insured by the FDIC or any other federal governmental agency. As provided for in the annuity contract, restrictions may apply to certain plan sponsor and/or participant initiated transactions. Please refer to the annuity contract or certificate for further details. FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 43

45 TIAA TRADITIONAL ANNUITY ACCOUNT VALUE TO PARTICIPANTS Guaranteed stability** Supported by TIAA s AAA (and equivalent) rating* Seeks high yields Limited cashability permits long-term investment horizon Ideal complement to equity holdings Diversification and stability Low correlation to equities Product Features Guarantees principal plus minimum interest rate Opportunity to to receive additional amounts*** Multiple payout options available Provides guaranteed lifetime income** Principal plus interest guarantees supplemented by additional amounts that may be declared can result in increased account values*** * The four leading insurance company rating agencies: A++, A.M. Best Company (as of 2/11); AAA, Fitch (as of 4/10); Aaa, Moody s Investors Service (as of 7/10); AAA, Standard & Poor s (as of 8/10) the highest possible ratings from these independent analysts. These ratings of TIAA as an insurance company do not apply to variable annuities, mutual funds, or any other product or service not fully backed by TIAA s claims-paying ability. Ratings are subject to change. There is no guarantee that current ratings will be maintained. ** All guarantees are based on TIAA s claims-paying ability. *** Additional amounts of interest may be declared on a year-by-year basis by the TIAA Board of Trustees. These additional amounts, when declared, remain in effect for the declaration year, which begins each March 1. TIAA Traditional is a guaranteed insurance contract, not an investment. FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 44

46 BRINGING BAPTIST HEALTH CARE THE TIAA-CREF DIFFERENCE Not for Profit Heritage Mission Driven Long-term Approach to Stability Proven History of Integrity 403(b) Leader 403(b) Regulatory Expertise Proactive, Cohesive Service Team FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 45

47 BAPTIST HEALTH CARE AND TIAA-CREF ALIGNED CULTURES. SHARED VALUES. COMMON GOALS. AN IDEAL PARTNERSHIP FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 46

48 IMPORTANT INFORMATION TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc., members FINRA, distribute securities products. Advisory services offered by Advice and Planning Services, a division of TIAA-CREF Individual & Institutional Services, LLC, a Registered Investment Advisor. Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association (TIAA) and College Retirement Equities Fund (CREF), New York, NY. TIAA-CREF products may be subject to market and other risk factors. See the applicable product literature, or visit tiaa-cref.org for details. Investment products, and insurance and annuity products are NOT FDIC insured; are not bank guaranteed; may lose value; are not deposits; are not insured by any federal government agency; are not a condition to any service or activity. You should consider the investment objectives, risks, charges and expenses carefully before investing. Go to tiaa-cref.org for a prospectus that contains this and other information. Please read the prospectus carefully before investing Teachers Insurance and Annuity Association-College Retirement Equities Fund (TIAA-CREF), New York, NY C50602 FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 47

49 IMPLEMENTATION TIMELINE OVERVIEW INTEGRATED EVENTS Timeline Milestone Who Action TIAA-CREF and Baptist Health Care Introductions Project planning Upon Selection Kick-off Meeting Baptist Health Care Recordkeeping, custodial and trust agreements Remittance file layout Final fund lineup Letter of Intent Communication & Education Plan TIAA-CREF Baptist Health Care Strategy delivered Strategy review and approval - 12 weeks Plan / System Setup TIAA-CREF Plan setup Data Request for Conversion File TIAA-CREF Data request Wire instructions - 10 weeks Test Conversion & Remittance Files Baptist Health Care Conversion and remittance file testing FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 48

50 IMPLEMENTATION TIMELINE OVERVIEW INTEGRATED EVENTS Timeline Milestone Who Action Communication & Education Rollout TIAA-CREF Transition announcements Seminar and meeting invitations -5 weeks Administrator Training TIAA-CREF Website training Review of Test Conversion File TIAA-CREF Test file review Conversion trial run Enrollment Period TIAA-CREF Enrollment materials, meetings and seminars Individual counseling sessions -1 week Blackout Period Prior Recordkeeper(s) Blackout period Asset/Data Transfer Prior Recordkeeper(s) Re-registration of assets/data Conversion Initiated TIAA-CREF Data and assets reconciliation Conversion transactions FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 49

51 IMPLEMENTATION TIMELINE OVERVIEW INTEGRATED EVENTS Timeline Milestone Who Action Day 0 Post-Conversion Process Begins TIAA-CREF Ongoing activities coordination + 1 week Final Conversion File Prior Recordkeeper(s) Final conversion data Post-Conversion Process Ends TIAA-CREF Business as usual + 4 weeks Ongoing Communication and Education TIAA-CREF Welcome kits Ongoing communication and education strategy FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 50