Insight from the nation s leading plan sponsors and retirement plan advisers. Sponsored by

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1 Sponsored by PSNC14_LivePollResult_p1.indd 1 8/6/14 11:48 AM

2 Day 1 June 2, 2014 How long have you been working with workplace retirement plans? l Less than a year...5% l 1 3 years...6% l 3 5 years...5% l 5 10 years... 17% l years... 20% l More than 15 years... 46% What s the most used definition of success for your retirement plan? l Participation rate... 39% l Deferral rate(s)...15% l Maximization of the match... 7% l Employee satisfaction... 7% l Being on track to an income replacement target... 27% l Being on track to a certain multiple of final income...5% Roughly speaking, how big is your retirement plan? l Less than 10 participants...6% l participants...6% l participants...6% l participants... 22% l 501 1,000 participants... 9% l 1,001 5,000 participants... 20% l More than 5,000 participants...31% Have you attended the PLANSPONSOR National Conference previously? l Yes, more than once... 29% l Yes, once...14% l No, this is my first time... 57% What s your definition of your retirement success? l Having enough money to have a 50% probability of replacing 80% of my age 64 income...1% l Having enough money to have a 100% probability of replacing 80% of my age 64 income...5% money to pay the essential expenses of living for the rest of my life...3% money to pay the essential and life style choice expenses for the rest of my life... 49% money to pay the essential and life-style choice expenses for the rest of my life and to leave an inheritance... 38% l Something else...5% What words were used in the ERISA statement of goals? ERISA caused employers to: l Universal coverage... 19% l Maintain coverage... 19% l Expand coverage...18% l Maintain and expand coverage...21% l None of the above... 23% l Move away from DB plans... 24% l Redesign pension plans to hold cost constant or reduce cost... 9% l Embrace portability through single sum distributions... 8% l Adjust to fast vesting and high vested participant turnover by moving away from using life income payments with longevity protection... 9% l Embrace individual investment managers and move from insured plans... 11% l All of the above... 39% Is the voluntary system more successful today than in 1975? l Yes, Clearly... 35% l Yes, Maybe... 35% l No, Clearly... 9% l Not Clear...21% PSNC14_LivePollResult_p1.indd 2

3 Day 1 June 2, 2014 Continued What do you think is the level of pre-retirement income one needs to live comfortably in retirement? l More than 100%...16% l 80% 99%...61% l 60% 79%... 22% l Less than 60%...1% Do you use plan participation rate as a retirement plan benchmark? l Yes... 87% l No...13% What is the likelihood that plan participants savings and known sources of income will be sufficient to sustain their retirement income needs? l Very likely... 9% l Somewhat likely... 46% l Somewhat unlikely... 24% l Very unlikely... 20% Do you use deferral rate as a retirement plan benchmark? l Yes... 78% l No... 22% How many of your retirement plan participants (or your clients retirement plan participants) are on track to reach their retirement savings need by their intended retirement date? l More than 90%... 2% l 75% 90%...13% l 50% 74%... 46% l Less than 50%... 39% Do you use participant retirement readiness as a retirement plan benchmark? l Yes... 39% l No...61% Do you have a goal for your retirement plan? l Yes... 65% l No... 35% Does your retirement plan (or client retirement plans) allow for partial distribution of plan assets after retirement? l Yes... 67% l No... 22% l Don t know/never looked into it... 10% Do you have a definition of success for your retirement plan? l Yes... 49% l No...51% PSNC14_LivePollResult_p1.indd 3

4 Day 1 June 2, 2014 Continued Are your participant educational campaigns? l Retirement-specific...21% l Financial literacy or financial wellness-focused...12% l Both... 67% Have you done a re-enrollment of your plan? l Yes, on conversion to a new provider...13% l Yes, without a provider conversion... 25% l No, but are considering... 28% l No, and are not considering... 34% Are you concerned about your workforce or clients workforces not being able to retire? l Yes...91% l No... 9% Does your current TDF series incorporate Alternative Asset Classes? l Yes... 33% l No... 59% l No, but will consider adding alts to TDF in the future... 8% What ramifications of having an aging workforce are you most concerned about? l Increased costs due to healthcare... 68% l Increased costs due to higher salaries...5% l Lack of new talent... 11% l Lack of ability to promote from within... 9% l Other... 2% l I am not concerned...5% Do you believe your plan design is helping your participants be adequately prepared for retirement? l Yes, our plan is designed to encourage higher levels of participation and deferrals... 28% l Yes, it is helping, but could be improved... 57% l No, our plan design does not encourage higher levels of participation and deferrals...15% PSNC14_LivePollResult_p1.indd 4

5 Day 3 June 4, 2014 How would you BEST define success for your retirement plan? l All investment options are meeting the criteria of our IPS...3% l Total plan cost is lower than average for plans our size...6% l High participation rate...5% l High participation and average deferral rate... 67% l Participants are appropriately diversified for their age in their investments... 19% When measuring participant retirement readiness, do you consider potential participant outcomes: Have you offered fiduciary training to your committee members? l Yes...61% l No... 39% Have you had to correct an operational failure within the last months? l Yes...39% l No...61% l To the participant s retirement date?...16% l Through the participant s retirement lifetime?... 48% l Don t consider retirement readiness as a success measure... 36% Which indicator has been the MOST effective in measuring plan success? l High participation rate... 30% l High average deferral rate... 24% l High average account balance...12% l Number of participants appropriately diversified in investments...4% l Aggregate retirement readiness of employees... 29% What percent of your employees would say they are stressed? l Less than 30%...4% l 30% 50%...25% l 50% 70%... 40% l More than 70%...31% What do people worry about the most? l Health... 5% l Family... 13% l Financial Difficulties... 82% Have the mandatory 408(b)(2) fee disclosures made it easier to understand your plan costs and fees? l Yes... 24% l No... 47% l Not sure...29% Do you think your service providers have delivered on their commitments and promises since the point of sale? l Yes, they deliver everything promised and more... 56% l Yes, but we ve had to remind them of contractual agreements... 25% l No, we are lacking services we expected... 19% Do you think your participants have a clear understanding that an asset-allocation model/qdia solution is meant to be a single investment (entire balance and contributions)? l Yes, and the majority of participants use these options correctly...20% l Yes, but they haven t changed their investments to reflect that...14% l No, and they invest in multiple solutions/funds...20% l No, our participants are not very investment-savvy... 46% PSNC14_LivePollResult_p1.indd 5