AUL Retirement Services Support for plan sponsors of tax-exempt organizations Products and financial services provided by American United Life Insurance Company a OneAmerica company
AUL has made understanding and meeting the retirement needs of tax-exempt organizations a specialty through. 2
Offering a retirement plan is an advantage in attracting and retaining loyal employees. Offering a retirement plan that is fully compliant is essential. To help tax-exempt plan sponsors do both and allow them to focus on their traditional business needs and unique missions, American United Life Insurance Company (AUL), a OneAmerica company, offers, its package of contracts, services, and tools for tax-exempt organizations. Business leaders might be surprised to learn just how high retirement benefits rate as reasons for employee loyalty. Top influencers of employee loyalty According to Small Business Benefits: Cost Effective Strategies for Maximizing ROI research, MetLife, 2009, Employee retention is the top benefits objective of businesses. Retirement benefits 100% 75% 50% 25% 0 37% Perception of value by employer 68% Valued by employees The 403(b) world has evolved Beginning in 2009, 403(b) retirement plan regulations required plan sponsors to become more involved in maintaining and monitoring their plans. Are you still concerned about any of the following topics? Plan document requirements Return of excess employee deferral guidelines New employer communication requirements New transfer rules Deposit timing guidelines Coordination of catch-up contributions Restrictions on life insurance Regardless of your level of concern, we have a resource for you in the support for plan sponsors of tax-exempt organizations. AUL s offers the following to support plan sponsors: Resources for tax-exempt organizations Personalized service Support for fiduciaries Experienced retirement services leader Some 5,000 tax-exempt organizations, including churches, public and private schools, health care, and other organizations confidently turn to AUL Retirement Services for assistance. 3
AUL provides the support you need to get through the continuing challenges and increased administrative responsibilities faced by plan sponsors. 4
Are you operating your plan in compliance with current regulations? AUL s can help ease your concerns in the midst of the 403(b) evolution and assist you in bringing or keeping your plan in compliance. As a plan sponsor, your risk of noncompliance is: Information Sharing Agreement (ISA) Vendors High Moderate-to-high Moderate-to-low Low No information sharing ISA draft has been delivered ISA has been secured ISA has been secured agreement (ISA) drafted to approved vendors No ISA secured Process has begun to secure an ISA Multiple vendors and unfiltered 90-24 transfer activity Uncertain of all current vendors Uncertain of who future vendors will be No process in place to approve vendors Multiple vendors and unfiltered 90-24 transfer activity Process has begun to reduce the number of vendors Process in place to choose both limited and approved vendors Eliminated certain vendors for contributions as of January 1, 2009 Approved vendors for ongoing contributions as of January 1, 2009 Intent to reduce the number of vendors even further, and considering an exclusive vendor relationship Identified and notified approved vendors Has a contract with a services provider Considering an exclusive relationship with AUL Retirement Services or another vendor Operation Unsure how to monitor applicable limits Unsure how to comply with other aspects of the new regulations, such as nondiscrimination rules and universal availability Inadequate process in place to secure a service provider for plan documents, compliance services, and other regulatory requirements Identified staff or vendors responsible for full compliance with the new regulations Developed a communications plan that describes the impact of the new regulations to my plan participants Confident that the plan is in full compliance with the new regulations 5
Plan sponsors can confidently turn to AUL for assistance. 6
AUL offers resources Our extensive knowledge and experience in serving the retirement needs of tax-exempt employers makes AUL the quality provider that plan sponsors are seeking. Plan design and recordkeeping Long before the new 403(b) regulations of 2007, AUL developed a recordkeeping system that could accommodate the unique needs of tax-exempt organizations. Our systems are designed to accommodate the unique needs of tax-exempt organizations, offering: Centralized reporting of all employer and employee contributions for all types of employer plans, including 403(b), 457(b), and 401(a) plans Divisional recordkeeping and reporting for multiple entities under controlled group/aggregation rules Accurate tracking and allocation of employee contributions, deferrals, loans, hardship withdrawals, and other distributions Coordination of catch-up contributions for eligible employees Consolidating information of multiple plan types for a single employer provides significant benefits to plan sponsors and employees, including: One contribution remittance for all sources One contract number for Web site login Participant statement consolidation Ability to offer better pricing options Third party administration options If you prefer to work with a third party administrator for plan administration, you can still turn to AUL as your quality plan provider. AUL has: Specific programs to meet the needs of TPA s and plan sponsors An understanding of multiple TPA service models Investment options with no proprietary requirements: More than 200 carefully preselected investment options through an AUL group annuity contract No proprietary variable investment requirements Flexibility in set-up, investment selection and participant guidance We work with you every step of the way Roger Crawford, HR Director of WELS, stated, The plan offers complexities most insurers couldn t tackle; and, the implementation offered its own challenges. AUL cleared every hurdle with flexibility, reliability, and a desire to make it work. Client testimonials are the personal views of a select group of WELS clients. These clients do not have a financial interest in AUL and were not paid to express these views and have no other interest in or relationship with AUL other than a client relationship. These opinions are not necessarily indicative of future performance or results and may not reflect the experience of all clients. 7
AUL s service commitment to plan sponsors is fundamental. 8
Personalized service Our capabilities are matched by our personalized service, which is provided by knowledgeable, experienced retirement plan professionals who focus on plans for tax-exempt organizations. Premier service Full service plans that qualify for premier service also receive additional benefits, including priority processing and custom communications. AUL offers an array of services in the following categories: Compliance Plan administration Web Plan document/plan testing Local service provided to our clients Plan sponsors benefit from a local client service consultant and a dedicated plan manager. For online plan management, use www.oneamerica.com Plan summary and specifications Account activity Plan asset allocation summary Investment options by style and category Account information for employees Enrollment reporting Administrative forms Loan center for paperless loans (if applicable) Participant electronic activity report Participant summary report Contribution confirmation report Distribution detail report Loan summary report Loan default report Compliance testing results (if applicable) Form 5500 (if applicable) Plan entry report Legislative updates Administration manual Current and past issues of Plan Sponsor Monthly e-newsletter AUL Retirement Services sales office Voluntary Products sales office 9
Plan sponsors and employees can benefit from our services and education tools which can help them make informed decisions about retirement. 10
Support for fiduciaries AUL s provides support to help you determine if your plan follows regulatory and legal guidelines. Plan Sponsor Advice provides fiduciary support Offered by Mesirow Financial, a recognized, independent leader in asset allocation and investment research, Plan Sponsor Advice assists in creating, documenting, and maintaining your company s retirement plan portfolio. Plan Sponsor Advice includes: Mesirow becomes an ERISA 3(21) Fiduciary for the selection of investments included in the service Personalized assistance in selecting a menu of investment options, in conjunction with your financial professional An Investment Policy Statement (IPS) to document the process used to select and maintain the investment portfolio Ongoing monitoring and evaluation of the investment options in the portfolio and recommended changes when necessary Mesirow s quarterly market commentary report ProNvest AUL s supports your efforts to help employees make wise investment decisions. ProNvest is an optional service provided by an Independent Registered Investment Advisor who offers two different types of services for employees. Do-it-for-me investor profile ProNvest accepts 3(21) Fiduciary responsibility Annual fee charged to the employee s account ProNvest managed account service Do-it-yourself investor profile Investment advice at an asset class level Access to ProNvest s retirement planning software tool Artesys Plan sponsors are provided additional support through Artesys which accepts 3(21) Fiduciary responsibility. Artesys, provided by Independent Registered Investment Advisor R.T. Jones, is an optional service consisting of eight separately managed portfolios. Exclusive to AUL Actively manages participant retirement accounts within the investment choices made available by the plan provider Offers both offensive and defensive managed portfolios Education and communication AUL s provides the tools for education and communication to your employees. Registered representatives of OneAmerica Securities, Member FINRA and SIPC, conduct the on-site meetings and create, as well as disseminate materials. Enrollment Posters to announce enrollment meetings Education meetings to introduce plan provisions Customized enrollment booklets and video to introduce retirement planning Enrollment available through phone services or Web site which includes an online enrollment guide and demo Ongoing education and planning Asset Allocation Builder online can assist with investment selection Other online tools, such as retirement planning guides and calculators, and a personal retirement income strategy interactive planner 11
Our customer loyalty speaks for itself: We can measure our commitment to be there when our customers need us most by the tenure of our clients. Average tenure of our retirement plan customers (As of December 31, 2010) 14.3 years for plans over $10 million 12.8 years for $5 10 million plans 11.7 years for $1 5 million plans 16.1 years for plans under $1 million 12
Experienced retirement services leader You can rely on AUL s financial strength and demonstrated leadership to lead you through this 403(b) evolution. Retirement services industry leadership With more than 10,000 active plans as of March 31, 2010, AUL has been an industry leader in retirement services for more than 45 years. We are among the top 10 retirement services plan providers, according to Investment Advisor (November, 2009). Industry leadership by plan count 403(b) 2nd largest provider 457 1st largest provider 401(k) 9th largest provider Source: Industry leadership by plan count according to Investment Advisor (November, 2009) Awards from third-party sources 2010 Plan Sponsor Satisfaction and Loyalty Survey Boston Research Group Ranked in the top quartile in the following categories of satisfaction: Value for cost #1 Overall satisfaction ERISA services Plan coordinator Participant statement AUL s proven leadership is backed by financial strength 135-year heritage of financial strength $24.4 billion in assets under management as of December 31, 2010 (OneAmerica companies) A.M. Best rating A (Excellent) S&P rating AA- (Very Strong) A.M. Best s A (Excellent) is the third highest of 15 possible ratings, according to the release dated June 9, 2010. Standard & Poor s AA- (Very Strong) is the fourth highest of 21 possible ratings, according to its report dated August 3, 2010. These ratings reflect agency assessment of the financial strength and claims-paying ability of AUL. They are not intended to reflect the investment experience or financial strength of any variable account, which is subject to market risk. Because the dates are only updated when there s a change in the rating, the dates above reflect the most recent ratings we have received. Please know that these ratings can change at any time. 2010 Best in Class awards PLANSPONSOR magazine Earned seventeen Best in Class awards. Sixteen of these awards are in the small market segment ($5 million $50 million) and one is for participation services in the micro market (less than $5 million in assets). The small market segment awards consist of seven for services delivered to participants and the nine listed below are for plan sponsor services. Plan analytics/reporting/benchmarking Form 5500 processing Compliance support/testing Legislative/regulatory updates Account/service team industry knowledge Account/service team responsiveness Staff consistency/lack of staff turnover Plan design flexibility Cost-to-Value of plan fees 13
Let the support of AUL s help you navigate your retirement plan through this 403(b) evolution.
To find out more, please visit us at www.oneamerica.com or call our National Nonprofit Sales Desk at 1-866-476-4632.
Your future. Our goal. Tax qualified retirement plans from American United Life Insurance Company (AUL) are funded by an AUL group annuity contract. While a participant in an annuity contract may benefit from additional investment and annuity related benefits under the annuity contract, any tax deferral is provided by the plan and not the annuity contract. Registered group variable annuity contracts issued by AUL are distributed by OneAmerica Securities, Inc., Member FINRA, SIPC, a Registered Investment Advisor, 433 N. Capitol Ave., Indianapolis, IN 46204, 1-877-285-3863, which is a wholly owned subsidiary of AUL. Registered group variable annuities are sold by prospectus. Both the product prospectus and underlying fund prospectuses can be obtained from your investment professional or by writing to American United Life Insurance Company, One American Square, Indianapolis, Indiana 46282, 1-877-285-3863. Before investing any money, plan participants should read the prospectus and carefully consider the fund s investment objectives, risks, charges and expenses. Investing involves risk, including the potential loss of principal. About AUL Retirement Services American United Life Insurance Company (AUL) is the founding member of OneAmerica and offers a wide range of products and services for retirement plans of individuals and employers. As a leader in the retirement services industry, AUL provides local service through a national network of experienced professionals focusing on the 401(k), 403(b) and 457 markets. About OneAmerica OneAmerica Financial Partners, Inc., is headquartered in Indianapolis, IN. The companies of OneAmerica can trace their solid foundations back more than 130 years in the insurance and financial services marketplace. OneAmerica s nationwide network of companies offers a variety of products to serve the financial needs of their policyholders and other clients. These products include retirement plan products and services; individual life insurance, annuities, long-term care solutions and employee benefit plan products. The goal of OneAmerica is to blend the strengths of each company to achieve greater collective results. The products of the OneAmerica companies are distributed through a network of employees, agents, brokers and other distribution sources that are committed to increasing value to our policyholders by helping them prepare to meet their financial goals. American United Life Insurance Company a OneAmerica company One American Square, P.O. Box 368 Indianapolis, IN 46206-0368 (317) 285-1877 www.oneamerica.com 2011 OneAmerica Financial Partners, Inc. All rights reserved. OneAmerica and the OneAmerica banner are all registered trademarks of OneAmerica Financial Partners, Inc. R-22418 03/17/11