401(k)omplete. Offering a 401(k) Has Never Been Easier

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1 401(k)omplete The Small Market Solution from Paychex Retirement Services and LPL Financial Offering a 401(k) Has Never Been Easier The Small Market Solution Preparing for retirement is complex. Paychex and LPL Financial have joined forces to provide a powerful offering, the Small Market Solution, complete with recordkeeping, administration, fiduciary support, and confidence. Our goal is to support you and your employees with a 401(k) experience that fits everyone s needs, both now and in the future. You can rely on us through every step, from plan design, to onboarding, to ongoing plan administration. For financial professional or plan sponsor use only. Not for distribution to the public.

2 Convenient. Compliant. Confident. The 401(k) Solution You Need To Minimize Risk, Maximize Efficiency Paychex Handles the Details Paychex offers comprehensive bundled recordkeeping and third party administrative (TPA) services to keep retirement plans running smoothly, allowing you to focus on what you do best. Bundled Recordkeeping and Administration Plan Setup and Design Plan document, adoption agreement, summary plan description (SPD) Plan design assistance, including: - Safe harbor - Roth 401(k) - Profit sharing, including new comparability and age-weighted - Automatic enrollment and auto escalation Ongoing Service Participant enrollment materials and support Per-pay-period investing Loan processing Distributions Online management tools SSAE 16 Type II Reports Regular client support and communications Regulatory Compliance Form 5500 preparation Forms 8955-SSA, 945, and 1099-R processing Quarterly non-discrimination compliance testing (ADP/ACP, Top-Heavy test) Required annual notices and disclosures Service at Every Step: Your Team We are dedicated to helping you and your employees toward retirement readiness. We provide an extensive team of highly trained retirement experts at every stage: Local sales reps for consultation, plan design, and enrollment meetings Personal implementation manager for easy onboarding Single-point-of-contact relationship manager for ongoing administration, daily questions, annual reviews, and much more The Next Level of Efficiency Our bundled retirement solution is streamlined for all businesses, regardless of what payroll service is used. However, if you use payroll services from Paychex, you will enjoy another layer of efficiency, thanks to our Paychex Flex SM solution. A single employee record within Paychex Flex helps you: Reduce administrative time and cost Improve data accuracy and reporting Meet certain fiduciary obligations with automatic electronic fund transfer Access from Anywhere You and your employees can view and manage your plan information via desktop, tablet, or smartphone. Our Paychex Flex system makes it easy and mobilefriendly with real-time updates.

3 The Fiduciary Help You Need As a retirement plan sponsor, you are also a plan fiduciary, which comes with many duties and potential risks. You are responsible for: Selecting an appropriate investment menu Strict adherence to the plan s written documents and guidelines Adequate training and proper oversight of all service providers Helping employees understand why and how to save Communicating with participants about the plan and its fees 3(38) Investment Management Service LPL Financial will serve as the ERISA Section 3(38) investment manager and share fiduciary responsibility for the plan s investments, helping reduce your fiduciary responsibility and legal liability under ERISA. As the 3(38) fiduciary, LPL Financial will: Act with discretionary authority over plan investment selection and monitoring Accept ERISA 3(38) fiduciary responsibility for investment-related decisions Assist with the preparation of Investment Policy Statements (IPS) The Solution Paychex has partnered with LPL Financial to offer the Small Market Solution, a turnkey retirement program that offers assurance of investment fiduciary support as well as access to LPL s comprehensive suite of resources to help your plan stay on track, including: 3(38) investment management service Assistance with plan support services Employee support through Worksite Financial Solutions

4 Help Your Employees Take Control of Their Retirement Paychex has partnered with LPL Financial to offer Worksite Financial Solutions, a guidance-based, beginning-to-end retirement solution designed to help your employees create confidence in their financial life. Employees get access to tools and resources designed to help simplify retirement planning, as well as ongoing support from the Retirement Results Team a powerful combination that can help them pursue their retirement goals. Employee Engagement Solution Assistance with consolidating retirement assets in one place, making them easier to monitor and manage. Employee Education Solution Plan Support Services LPL will provide assistance with plan administrative and support functions. Services include: Quarterly report preparation Investment monitoring, with quarterly notifications Comprehensive fee analysis and benchmarking reports Periodic plan service reviews and assistance with the RFP process A holistic wellness solution that includes tools and educational resources that inspire employees to take action toward saving for a healthy retirement. Employee Advice Solution A managed account option that offers employees personalized retirement guidance to help them work toward their retirement goals. Employee Transition Solution Career transition retirement planning, with early separation counseling, retirement counseling, and rollover education and guidance.

5 Offer Employees Personalized Retirement Guidance with the Employee Advice Solution Many employees don t know how much they need to save for retirement and are unsure how they should invest their hard-earned savings. The Employee Advice Solution from Worksite Financial Solutions creates a customized retirement strategy based on the employee s current financial situation and individual needs to help them work toward their retirement goals. Different employees have different needs that s why the Employee Advice Solution offers two levels of service that employees can choose from: Manage On My Own and Manage For Me. Manage On My Own is a no-fee option for those who feel more confident managing their own account, while Manage For Me is fee-based and provides the employee with the benefits of a professionally managed account on an ongoing basis. Manage On Manage Included Features My Own For Me Access to Employee Advice Solution Online Tool Customized Retirement Strategy Report Implementation of Recommended Strategy Direct Access to a Financial Advisor Automatic Account Monitoring and Rebalancing Quarterly and Annual Progress Reports The Role of the Plan Advisor The advisor is the face of the service for you and your employees. They work to provide assistance through the employee enrollment process, and the online tool does the rest to help keep employees on track toward their retirement goals. Your Role as the Employer Cost The service will be implemented in the plan at no charge to you. In most cases, the employee pays the fee if they opt in to the Manage For Me service. However, you may choose to pay for the service on behalf of your employees. Approval To offer this service to employees enrolled in your retirement plan, you must sign a service agreement. In this service agreement, you are agreeing to the terms of the service and how the advisor will help promote the program in your company. You may also choose to use the Employee Advice Solution Manage for Me option as the plan s Qualified Default Investment Alternative (QDIA). Fiduciary Risk The Department of Labor has made it possible for you to provide an advice option in your retirement plan as long as you approve the service as the plan fiduciary. LPL Financial will provide the necessary documentation that will help facilitate your necessary due diligence on this service for your fiduciary file. Monitoring You will receive regular reports on the Employee Advice Solution service. The data in the reports will include utilization rates, benchmarking comparisons, and other key factors that enable you to demonstrate ongoing monitoring of the service.

6 About LPL Financial LPL Financial is a leading financial services provider to independent advisors, RIAs, and financial institutions. For over 40 years, LPL has focused on enabling its clients to focus on what they do best create the personal, long-term client relationships that are the foundation for turning life s aspirations into financial realities. Largest independent broker/dealer in the country for the 19th consecutive year 1 4th largest brokerage firm in the U.S. by number of financial advisors 2 3,400+ employees, with primary offices in Boston, Charlotte, and San Diego LPL Retirement Partners is the retirement planfocused division of LPL Financial. Retirement Partners supports the operational and practice management needs of retirement plan advisors through an integrated business platform and team of retirement industry experts. 3 Over 43,000 retirement plans More than 3 million retirement plan participants $118 billion in assets under advisement 50+ dedicated investment research professionals About Paychex Retirement Services Paychex, Inc. is a leading provider of integrated human capital management solutions, including a full suite of retirement services designed to meet the needs of businesses of all sizes. By combining its innovative software-as-a-service technology and mobility platform with dedicated, personal service, Paychex empowers small- and mediumsized business owners to focus on the growth and management of their business. 70,000 retirement plans serviced Largest recordkeeper in the U.S. by number of plans Plansponsor magazine 590,000 payroll clients One of the World s Most Ethical Companies Ethisphere Institute One of the World s Most Innovative Companies Forbes magazine For more information about the Small Market Solution from Paychex and LPL Financial, contact Paychex Retirement Services today payx.me/retire E 4/12/16 Worksite Financial Solutions is a program exclusive to LPL Financial and its advisor partners. Retirement Results Team specialists are registered representatives of LPL Financial. Securities and advisory services are offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC. LPL Financial and Paychex are not affiliated entities. 1 As reported by Financial Planning magazine, June , based on total revenue. 2 LPL Financial is ranked 4th in number of registered representatives among leading Broker/Dealers (Based on publicly disclosed information from Cerulli as of March 31, 2013). 3 Data as of December 31, 2015.