ACCE BENEFIT TRUST FALL MEETING NOVEMBER 2, 2012 Presented by Marsha Mathis Senior Relationship Manager
TABLE OF CONTENTS Page Section Title 5 Selected Plan & Investment Demographics 49 Plan Provision Comparison 51 Education Update 65 Legislative Update 71 Fee Disclosure 3
Selected Plan & Investment Demographics 4
AMERICAN CHAMBER OF COMMERCE EXECUTIVES PROFIT SHARING PLAN Contract # 6-14541 Breakdown of Plan Participants Plan Participants This chart shows the active, terminated, retired, and total plan participants. Breakdown of Participants 2009 2010 2011 2012 Active Participants 1704 2817 2737 2772 Terminated Participants 323 638 701 756 Retired Participants (Data Available 2007 Forward) 0 1 1 1 Total Plan Participants 2027 3456 3439 3529 Principal Retire SecureSM (Retire Secure) Impact Summary This chart shows an overview of the impact that Retire Secure had on your retirement plan. Results Specific to 1-on-1 Meetings Attended 1-on-1 253 Attended Follow Up 1-on-1 17 Number of New Participants 56 Average Deferral Percent of New Participants 3.65 Number of Existing Participants Increasing Deferrals 64 Average Deferral Percent of Existing Participants 2.3 Number of Participants Electing Principal Step Ahead Retirement Option(SM) 71 Number of Participants Changing Future Investment Direction 17 Principal Step Ahead Retirement Option (SM) This chart shows an overview of participants electing to utilize Step Ahead. Principal Step Ahead Retirement Option (SM) Total Number of Participants Enrolled 110 % of Participants 4 Average Number of Years 5.64 Average Annual Deferral % Increase 0.97 5
AMERICAN CHAMBER OF COMMERCE EXECUTIVES PROFIT SHARING PLAN Contract # 6-14541 Average Account Balance per Active Participant This chart shows the average account balance of active participants in your plan compared to the industry average. Average Account Balance per Active Participant (in thousands)1 70 58 59 63 56 42 35 29 35 36 28 14 0 2009 2010 2011 08/31/2012 0 Your Plan Industry Average 1 Principal Financial Group study of non-profit retirement plans. Average Account Balance per Active Participant by Age This chart shows the average account balance of active participants in your plan by participant ages. Average Account Balance per Active Participant (By Age) (in thousands) $150 $120 93.3 96.0 89.9 117.2 96.4 117.8 $90 70.6 $60 54.1 43.8 42.8 46.0 $30 8.5 27.7 12.4 12.0 12.7 $0 2009 2010 2011 08/31/2012 18-34 35-49 50-64 65+ 6
AMERICAN CHAMBER OF COMMERCE EXECUTIVES PROFIT SHARING PLAN Contract # 6-14541 Plan Participants with Outstanding Loans (8/31/2012) 11% Number of Participants without Loans (2467) Number of Participants with Outstanding Loans (305) 89% a Loan Balances as a Percent of Total Plan Assets (8/31/2012) 1% Outstanding Loan Balances (2,588,710.93) Plan Assets minus Outstanding Loan Balances (199,173,073.28) 99% a a Outstanding Loans per Participant 2010 2011 As of 8/31/2012 # of Plan Participants 338 319 305 # of Outstanding Loans 457 382 338 Avg # of Loans per Participant 1.4 1.2 1.1 aa Outstanding Loan Balance $2,952,777.98 $2,396,294.80 $2,588,710.93 a 7
AMERICAN CHAMBER OF COMMERCE EXECUTIVES PROFIT SHARING PLAN Contract # 6-14541 Internet and Voice Response Usage This chart shows how many times the internet and voice response system has been accessed by plan participants and the total number of participants and the total number of participants that have accessed the information. Internet and Voice Response Usage 50,000 45966 40,000 30,000 32246 33860 20,000 14093 10,000 0 966 1752 2007 1951 373 190 345 177 583 272 336 169 2009 2010 2011 2012 Internet Sessions VR Sessions Internet Users VR Users Frequently Accessed Information (Number of Times Accessed) Internet-2011 Internet-2012 Voice Response-2011 Voice Response-2012 Account Balance 65,081 16,335 105 37 Activity Detail 18,043 11,751 N/A N/A Activity Summary 0 0 N/A N/A Benefit Estimator 0 0 N/A N/A Check Status N/A N/A 150 67 Investment Options 819 511 N/A N/A Investment Performance 10,234 7,607 0 1 Loan Information 2,784 1,725 62 32 Loan Quote 3,568 3,228 N/A N/A Personal Information 11,805 6,707 N/A N/A Personalized Rate of Return 5,810 3,999 N/A N/A Review Allocation of Future Contributions 1,396 1,286 1 1 Review Contribution Rates 473 473 0 0 Rollover Information 415 387 N/A N/A Tax Information N/A N/A 1 0 8
AMERICAN CHAMBER OF COMMERCE EXECUTIVES PROFIT SHARING PLAN Contract # 6-14541 Top Transactions Conducted Online (Number of Times Accessed) Internet-2011 Internet-2012 Voice Response-2011 Voice Response-2012 Address Change 60 50 N/A N/A Beneficiary Change 1068 980 N/A N/A Change Allocation of Future Contributions 316 201 0 0 Change Contribution Rates 392 408 0 0 Investment Transfer 425 236 5 2 Rebalance 107 72 N/A N/A Reinvest Maturing Funds 0 0 0 0 Request Loan 0 0 N/A N/A 9
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GREATER SCRANTON CHAMBER OF COMMERCE (#686) PROFIT SHARING PLAN Contract # 4-54789 Breakdown of Plan Participants Plan Participants This chart shows the active, terminated, retired, and total plan participants. Breakdown of Participants 2009 2010 2011 2012 Active Participants 23 19 17 21 Terminated Participants 3 6 5 5 Retired Participants (Data Available 2007 Forward) 0 0 0 0 Total Plan Participants 26 25 22 26 Average Account Balance per Active Participant This chart shows the average account balance of active participants in your plan compared to the industry average. Average Account Balance per Active Participant (in thousands)1 200 166 177 158 160 121 120 80 40 0 29 35 36 0 2009 2010 2011 08/31/2012 Your Plan Industry Average 1 Principal Financial Group study of non-profit retirement plans. 11
GREATER SCRANTON CHAMBER OF COMMERCE (#686) PROFIT SHARING PLAN Contract # 4-54789 Average Account Balance per Active Participant by Age This chart shows the average account balance of active participants in your plan by participant ages. Average Account Balance per Active Participant (By Age) (in thousands) $650 572.6 617.8 $520 $390 294.7 333.0 $260 $130 $0 63.9 24.9 116.8 73.9 32.3 126.5 2009 2010 2011 08/31/2012 6.2 74.5 169.0 4.7 76.0 138.5 18-34 35-49 50-64 65+ 12
GREATER SCRANTON CHAMBER OF COMMERCE (#686) PROFIT SHARING PLAN Contract # 4-54789 Plan Participants with Outstanding Loans (8/31/2012) 19% Number of Participants without Loans (17) Number of Participants with Outstanding Loans (4) 81% a Loan Balances as a Percent of Total Plan Assets (8/31/2012) 1% Outstanding Loan Balances (37,369.90) Plan Assets minus Outstanding Loan Balances (3,776,923.09) 99% a a Outstanding Loans per Participant 2010 2011 As of 8/31/2012 # of Plan Participants 6 4 4 # of Outstanding Loans 9 6 6 Avg # of Loans per Participant 1.5 1.5 1.5 aaa Outstanding Loan Balance $62,910.23 $49,436.02 $37,369.90 a 13
GREATER SCRANTON CHAMBER OF COMMERCE (#686) PROFIT SHARING PLAN Contract # 4-54789 Internet and Voice Response Usage This chart shows how many times the internet and voice response system has been accessed by plan participants and the total number of participants and the total number of participants that have accessed the information. Internet and Voice Response Usage 300 254 240 180 192 169 120 60 0 75 16 20 19 10 6 11 15 4 5 4 2009 2010 2011 2012 Internet Sessions VR Sessions Internet Users VR Users 14
GREATER SCRANTON CHAMBER OF COMMERCE (#686) PROFIT SHARING PLAN Contract # 4-54789 Frequently Accessed Information (Number of Times Accessed) Internet-2011 Internet-2012 Voice Response-2011 Voice Response-2012 Account Balance 281 33 1 0 Activity Detail 47 6 N/A N/A Activity Summary 0 0 N/A N/A Benefit Estimator 0 0 N/A N/A Check Status N/A N/A 0 0 Investment Options 3 4 N/A N/A Investment Performance 29 33 0 0 Loan Information 86 30 0 0 Loan Quote 27 19 N/A N/A Personal Information 13 7 N/A N/A Personalized Rate of Return 32 10 N/A N/A Review Allocation of Future Contributions 5 8 0 0 Review Contribution Rates 2 3 0 0 Rollover Information 3 2 N/A N/A Tax Information N/A N/A 0 0 Top Transactions Conducted Online (Number of Times Accessed) Internet-2011 Internet-2012 Voice Response-2011 Voice Response-2012 Address Change 2 3 N/A N/A Beneficiary Change 11 9 N/A N/A Change Allocation of Future Contributions 0 2 0 0 Change Contribution Rates 2 3 0 0 Investment Transfer 8 3 0 0 Rebalance 0 0 N/A N/A Reinvest Maturing Funds 0 0 0 0 Request Loan 0 0 N/A N/A 15
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BIOMEDICAL RESEARCH FOUNDATION OF NW LA (#439) MONEY PURCHASE PLAN Contract # 4-54792 Plan Participants Breakdown of Plan Participants This chart shows the active, terminated, retired, and total plan participants. Breakdown of Participants 2009 2010 2011 2012 Active Participants 47 45 39 38 Terminated Participants 3 7 9 9 Retired Participants (Data Available 2007 Forward) 0 0 0 0 Total Plan Participants 50 52 48 47 Principal Retire SecureSM (Retire Secure) Impact Summary This chart shows an overview of the impact that Retire Secure had on your retirement plan. Results Specific to 1-on-1 Meetings Attended 1-on-1 15 Attended Follow Up 1-on-1 1 Number of New Participants 2 Average Deferral Percent of New Participants 2 Number of Existing Participants Increasing Deferrals 0 Number of Participants Electing Principal Step Ahead Retirement Option(SM) 0 Number of Participants Changing Future Investment Direction 4 17
BIOMEDICAL RESEARCH FOUNDATION OF NW LA (#439) MONEY PURCHASE PLAN Contract # 4-54792 Average Account Balance per Active Participant This chart shows the average account balance of active participants in your plan compared to the industry average. Average Account Balance per Active Participant (in thousands)1 80 64 52 59 64 73 48 32 29 35 36 16 0 2009 2010 2011 08/31/2012 0 Your Plan Industry Average 1 Principal Financial Group study of non-profit retirement plans. Average Account Balance per Active Participant by Age This chart shows the average account balance of active participants in your plan by participant ages. Average Account Balance per Active Participant (By Age) (in thousands) $250 213.7 232.6 $200 174.7 184.9 $150 $100 $50 23.4 31.9 59.7 26.8 34.3 69.3 38.6 22.3 78.0 45.4 31.8 89.0 $0 2009 2010 2011 08/31/2012 18-34 35-49 50-64 65+ 18
BIOMEDICAL RESEARCH FOUNDATION OF NW LA (#439) MONEY PURCHASE PLAN Contract # 4-54792 Plan Participants with Outstanding Loans (8/31/2012) 18% Number of Participants without Loans (31) Number of Participants with Outstanding Loans (7) 82% a Loan Balances as a Percent of Total Plan Assets (8/31/2012) 3% Outstanding Loan Balances (99,134.19) Plan Assets minus Outstanding Loan Balances (3,446,649.38) 97% a a a Outstanding Loans per Participant 2010 2011 As of 8/31/2012 # of Plan Participants 9 6 7 # of Outstanding Loans 13 9 11 Avg # of Loans per Participant 1.4 1.5 1.6 a a Outstanding Loan Balance $110,470.23 $111,170.64 $99,134.19 19
BIOMEDICAL RESEARCH FOUNDATION OF NW LA (#439) MONEY PURCHASE PLAN Contract # 4-54792 Internet and Voice Response Usage This chart shows how many times the internet and voice response system has been accessed by plan participants and the total number of participants and the total number of participants that have accessed the information. Internet and Voice Response Usage 700 682 560 538 420 376 415 280 140 0 37 18 33 30 36 9 6 4 4 3 9 3 2009 2010 2011 2012 Internet Sessions VR Sessions Internet Users VR Users Frequently Accessed Information (Number of Times Accessed) Internet-2011 Internet-2012 Voice Response-2011 Voice Response-2012 Account Balance 694 918 0 0 Activity Detail 239 383 N/A N/A Activity Summary 0 0 N/A N/A Benefit Estimator 0 0 N/A N/A Check Status N/A N/A 3 5 Investment Options 20 18 N/A N/A Investment Performance 90 29 0 0 Loan Information 91 27 2 1 Loan Quote 102 34 N/A N/A Personal Information 51 39 N/A N/A Personalized Rate of Return 111 68 N/A N/A Review Allocation of Future Contributions 16 27 0 0 Review Contribution Rates 2 5 0 0 Rollover Information 8 3 N/A N/A Tax Information N/A N/A 0 0 20
BIOMEDICAL RESEARCH FOUNDATION OF NW LA (#439) MONEY PURCHASE PLAN Contract # 4-54792 Top Transactions Conducted Online (Number of Times Accessed) Internet-2011 Internet-2012 Voice Response-2011 Voice Response-2012 Address Change 2 2 N/A N/A Beneficiary Change 8 12 N/A N/A Change Allocation of Future Contributions 5 10 0 0 Change Contribution Rates 1 5 0 0 Investment Transfer 4 2 0 0 Rebalance 1 6 N/A N/A Reinvest Maturing Funds 0 0 0 0 Request Loan 0 0 N/A N/A 21
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SANTA CLARA CHAMBER OF COMMERCE & CVB PROFIT SHARING PLAN Contract # 7-09097 Breakdown of Plan Participants Plan Participants This chart shows the active, terminated, retired, and total plan participants. Breakdown of Participants 2009 2010 2011 2012 Active Participants 63 62 60 64 Terminated Participants 7 5 8 4 Retired Participants (Data Available 2007 Forward) 0 0 0 0 Total Plan Participants 70 67 68 68 Principal Step Ahead Retirement Option (SM) This chart shows an overview of participants electing to utilize Step Ahead. Principal Step Ahead Retirement Option (SM) Total Number of Participants Enrolled 11 % of Participants 17 Average Number of Years 3.45 Average Annual Deferral % Increase 1.00 Average Account Balance per Active Participant This chart shows the average account balance of active participants in your plan compared to the industry average. Average Account Balance per Active Participant (in thousands)1 90 77 80 85 72 64 54 36 29 35 36 18 0 2009 2010 2011 08/31/2012 0 Your Plan Industry Average 1 Principal Financial Group study of non-profit retirement plans. 23
SANTA CLARA CHAMBER OF COMMERCE & CVB PROFIT SHARING PLAN Contract # 7-09097 Average Account Balance per Active Participant by Age This chart shows the average account balance of active participants in your plan by participant ages. Average Account Balance per Active Participant (By Age) (in thousands) $150 $120 $90 $60 $30 29.9 58.8 78.6 71.3 99.4 76.7 67.8 21.4 101.6 79.9 37.2 20.7 22.5 100.3 90.1 41.6 $0 2009 2010 2011 08/31/2012 18-34 35-49 50-64 65+ 24
SANTA CLARA CHAMBER OF COMMERCE & CVB PROFIT SHARING PLAN Contract # 7-09097 Plan Participants with Outstanding Loans (8/31/2012) Number of Participants without Loans (31) Number of Participants with Outstanding Loans (33) 52% 48% a Loan Balances as a Percent of Total Plan Assets (8/31/2012) Outstanding Loan Balances (388,678.19) 7% Plan Assets minus Outstanding Loan Balances (5,133,833.54) 93% a a Outstanding Loans per Participant 2010 2011 As of 8/31/2012 # of Plan Participants 31 30 33 # of Outstanding Loans 59 52 49 Avg # of Loans per Participant 1.9 1.7 1.5 aa Outstanding Loan Balance $523,484.88 $410,530.37 $388,678.19 a 25
SANTA CLARA CHAMBER OF COMMERCE & CVB PROFIT SHARING PLAN Contract # 7-09097 Internet and Voice Response Usage This chart shows how many times the internet and voice response system has been accessed by plan participants and the total number of participants and the total number of participants that have accessed the information. Internet and Voice Response Usage 2,500 2,000 1,500 1720 2092 2190 1503 1,000 500 0 49 60 13 48 24 13 67 9 7 51 26 12 2009 2010 2011 2012 Internet Sessions VR Sessions Internet Users VR Users 26
SANTA CLARA CHAMBER OF COMMERCE & CVB PROFIT SHARING PLAN Contract # 7-09097 Frequently Accessed Information (Number of Times Accessed) Internet-2011 Internet-2012 Voice Response-2011 Voice Response-2012 Account Balance 2,532 113 3 13 Activity Detail 85 30 N/A N/A Activity Summary 0 0 N/A N/A Benefit Estimator 0 0 N/A N/A Check Status N/A N/A 3 9 Investment Options 87 30 N/A N/A Investment Performance 240 64 2 2 Loan Information 143 91 1 3 Loan Quote 47 89 N/A N/A Personal Information 52 40 N/A N/A Personalized Rate of Return 519 247 N/A N/A Review Allocation of Future Contributions 148 49 0 2 Review Contribution Rates 39 19 0 0 Rollover Information 17 10 N/A N/A Tax Information N/A N/A 0 0 Top Transactions Conducted Online (Number of Times Accessed) Internet-2011 Internet-2012 Voice Response-2011 Voice Response-2012 Address Change 0 0 N/A N/A Beneficiary Change 32 16 N/A N/A Change Allocation of Future Contributions 40 7 0 0 Change Contribution Rates 35 17 0 0 Investment Transfer 41 10 0 0 Rebalance 8 0 N/A N/A Reinvest Maturing Funds 0 0 0 0 Request Loan 0 0 N/A N/A 27
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AMERICAN ROYAL ASSOCIATION PROFIT SHARING PLAN Contract # 7-10599 Breakdown of Plan Participants Plan Participants This chart shows the active, terminated, retired, and total plan participants. Breakdown of Participants 2009 2010 2011 2012 Active Participants 23 21 12 17 Terminated Participants 16 5 6 4 Retired Participants (Data Available 2007 Forward) 0 0 0 0 Total Plan Participants 39 26 18 21 Average Account Balance per Active Participant This chart shows the average account balance of active participants in your plan compared to the industry average. Average Account Balance per Active Participant (in thousands)1 40 35 36 32 29 24 19 22 23 21 16 8 0 2009 2010 2011 08/31/2012 0 Your Plan Industry Average 1 Principal Financial Group study of non-profit retirement plans. 29
AMERICAN ROYAL ASSOCIATION PROFIT SHARING PLAN Contract # 7-10599 Average Account Balance per Active Participant by Age This chart shows the average account balance of active participants in your plan by participant ages. Average Account Balance per Active Participant (By Age) (in thousands) $50 40.1 $40 33.7 32.2 30.8 28.4 $30 23.8 26.7 $20 17.6 16.4 18.0 $10 8.6 6.8 8.8 5.3 7.4 4.5 $0 2009 2010 2011 08/31/2012 18-34 35-49 50-64 65+ 30
AMERICAN ROYAL ASSOCIATION PROFIT SHARING PLAN Contract # 7-10599 Plan Participants with Outstanding Loans (8/31/2012) 6% Number of Participants without Loans (16) Number of Participants with Outstanding Loans (1) 94% a Loan Balances as a Percent of Total Plan Assets (8/31/2012) 0% Outstanding Loan Balances (710.28) Plan Assets minus Outstanding Loan Balances (510,994.02) 100% a a Outstanding Loans per Participant 2010 2011 As of 8/31/2012 # of Plan Participants 2 1 1 # of Outstanding Loans 3 1 1 Avg # of Loans per Participant 1.5 1.0 1.0 a Outstanding Loan Balance $19,670.12 $1,676.63 $710.28 a 31
AMERICAN ROYAL ASSOCIATION PROFIT SHARING PLAN Contract # 7-10599 Internet and Voice Response Usage This chart shows how many times the internet and voice response system has been accessed by plan participants and the total number of participants and the total number of participants that have accessed the information. Internet and Voice Response Usage 150 131 120 113 90 77 78 60 30 0 11 10 12 14 6 8 3 3 1 1 2009 2010 2011 2012 Internet Sessions VR Sessions Internet Users VR Users 32
AMERICAN ROYAL ASSOCIATION PROFIT SHARING PLAN Contract # 7-10599 Frequently Accessed Information (Number of Times Accessed) Internet-2011 Internet-2012 Voice Response-2011 Voice Response-2012 Account Balance 108 22 2 0 Activity Detail 29 7 N/A N/A Activity Summary 0 0 N/A N/A Benefit Estimator 0 0 N/A N/A Check Status N/A N/A 4 0 Investment Options 1 1 N/A N/A Investment Performance 47 6 0 0 Loan Information 1 0 0 0 Loan Quote 0 0 N/A N/A Personal Information 19 4 N/A N/A Personalized Rate of Return 21 12 N/A N/A Review Allocation of Future Contributions 8 3 0 0 Review Contribution Rates 0 0 0 0 Rollover Information 0 2 N/A N/A Tax Information N/A N/A 0 0 Top Transactions Conducted Online (Number of Times Accessed) Internet-2011 Internet-2012 Voice Response-2011 Voice Response-2012 Address Change 0 0 N/A N/A Beneficiary Change 4 15 N/A N/A Change Allocation of Future Contributions 0 1 0 0 Change Contribution Rates 0 0 0 0 Investment Transfer 5 0 0 0 Rebalance 0 0 N/A N/A Reinvest Maturing Funds 0 0 0 0 Request Loan 0 0 N/A N/A 33
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GREATER TAMPA CHAMBER OF COMMERCE 749 PROFIT SHARING PLAN Contract # 8-04178 Breakdown of Plan Participants Plan Participants This chart shows the active, terminated, retired, and total plan participants. Breakdown of Participants 2009 2010 2011 2012 Active Participants 25 19 17 18 Terminated Participants 14 15 16 14 Retired Participants (Data Available 2007 Forward) 0 0 0 0 Total Plan Participants 39 34 33 32 Principal Step Ahead Retirement Option (SM) This chart shows an overview of participants electing to utilize Step Ahead. Principal Step Ahead Retirement Option (SM) Total Number of Participants Enrolled 5 % of Participants 28 Average Number of Years 12.40 Average Annual Deferral % Increase 1.00 Average Account Balance per Active Participant This chart shows the average account balance of active participants in your plan compared to the industry average. Average Account Balance per Active Participant (in thousands)1 50 42 40 29 31 35 30 36 35 30 20 10 0 2009 2010 2011 08/31/2012 0 Your Plan Industry Average 1 Principal Financial Group study of non-profit retirement plans. 35
GREATER TAMPA CHAMBER OF COMMERCE 749 PROFIT SHARING PLAN Contract # 8-04178 Average Account Balance per Active Participant by Age This chart shows the average account balance of active participants in your plan by participant ages. Average Account Balance per Active Participant (By Age) (in thousands) $90 $72 $54 62.0 74.8 83.0 64.9 45.5 38.8 72.2 50.1 69.2 55.4 $36 $18 12.9 19.8 19.0 8.4 10.5 23.3 $0 2009 2010 2011 08/31/2012 18-34 35-49 50-64 65+ 36
GREATER TAMPA CHAMBER OF COMMERCE 749 PROFIT SHARING PLAN Contract # 8-04178 Plan Participants with Outstanding Loans (8/31/2012) 11% Number of Participants without Loans (16) Number of Participants with Outstanding Loans (2) 89% a Loan Balances as a Percent of Total Plan Assets (8/31/2012) 0% Outstanding Loan Balances (4,573.07) Plan Assets minus Outstanding Loan Balances (1,221,126.34) 100% a a Outstanding Loans per Participant 2010 2011 As of 8/31/2012 # of Plan Participants 2 2 2 # of Outstanding Loans 3 3 3 Avg # of Loans per Participant 1.5 1.5 1.5 aa Outstanding Loan Balance $12,430.19 $8,108.39 $4,573.07 a 37
GREATER TAMPA CHAMBER OF COMMERCE 749 PROFIT SHARING PLAN Contract # 8-04178 Internet and Voice Response Usage This chart shows how many times the internet and voice response system has been accessed by plan participants and the total number of participants and the total number of participants that have accessed the information. Internet and Voice Response Usage 350 314 280 210 205 205 140 144 70 0 28 31 33 25 9 7 5 3 9 7 1 1 2009 2010 2011 2012 Internet Sessions VR Sessions Internet Users VR Users 38
GREATER TAMPA CHAMBER OF COMMERCE 749 PROFIT SHARING PLAN Contract # 8-04178 Frequently Accessed Information (Number of Times Accessed) Internet-2011 Internet-2012 Voice Response-2011 Voice Response-2012 Account Balance 238 28 3 0 Activity Detail 48 33 N/A N/A Activity Summary 0 0 N/A N/A Benefit Estimator 0 0 N/A N/A Check Status N/A N/A 3 0 Investment Options 3 3 N/A N/A Investment Performance 36 21 0 0 Loan Information 5 5 3 0 Loan Quote 14 14 N/A N/A Personal Information 14 17 N/A N/A Personalized Rate of Return 23 17 N/A N/A Review Allocation of Future Contributions 6 4 0 0 Review Contribution Rates 12 8 0 0 Rollover Information 5 0 N/A N/A Tax Information N/A N/A 0 0 Top Transactions Conducted Online (Number of Times Accessed) Internet-2011 Internet-2012 Voice Response-2011 Voice Response-2012 Address Change 0 0 N/A N/A Beneficiary Change 14 5 N/A N/A Change Allocation of Future Contributions 2 1 0 0 Change Contribution Rates 10 7 0 0 Investment Transfer 6 4 0 0 Rebalance 0 0 N/A N/A Reinvest Maturing Funds 0 0 0 0 Request Loan 0 0 N/A N/A 39
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Portfolio Review for ACCE BENEFIT TRUST 401(K) PLAN Investment Review - Allocation 01/01/2012 through 06/30/2012 Inv Manager or Sub-Advisor Investment Option Large U.S. Equity Large Value Capital Research and Mgmt Co Beginning Balance Breakdown % Contributions/ Additions Breakdown % Withdrawals/ Deductions Breakdown % Ending Balance Breakdown % American Funds Washington Mutual Investors R3 $18,879,333 9.49% $534,943 4.70% $1,176,628 9.83% $19,069,010 9.06% Fund 24 Large Blend Principal Global Investors LargeCap S&P 500 Index R4 Fund A, 2, 4, 27 $5,685,878 2.86% $357,671 3.15% $399,240 3.33% $6,491,174 3.09% Large Growth Capital Research and Mgmt Co American Funds Growth Fund of America R3 Fund 24 $14,378,373 7.23% $571,065 5.02% $881,596 7.36% $15,531,735 7.38% Small/Mid U.S. Equity Mid Cap Value Columbia Management Advisors Columbia Mid Cap Value R Fund 1, 24 $396,204 0.20% $50,641 0.45% $40,412 0.34% $501,190 0.24% Mid Cap Blend Principal Global Investors MidCap S&P 400 Index R4 Fund A, 1, 2, 6, 27 $1,091,132 0.55% $97,977 0.86% $48,679 0.41% $1,478,563 0.70% Mid Cap Growth Goldman Sachs Asset Mgt Goldman Sachs Growth Opportunities A Fund 1 $7,257,161 3.65% $248,644 2.19% $356,494 2.98% $8,034,432 3.82% Small Value DFA/Vaughan Nelson/LA Capital SmallCap Value II R4 Fund A, 1, 20, 21 $4,277,851 2.15% $168,063 1.48% $244,764 2.04% $4,386,563 2.08% Small Blend Principal Global Investors SmallCap S&P 600 Index R4 Fund A, 1, 2, 5 $4,558,268 2.29% $219,736 1.93% $252,726 2.11% $4,885,333 2.32% 41
Investment Review - Allocation 01/01/2012 through 06/30/2012 Inv Manager or Sub-Advisor Investment Option Small Growth Portfolio Review for ACCE BENEFIT TRUST 401(K) PLAN Beginning Balance Breakdown % Contributions/ Additions Breakdown % Withdrawals/ Deductions Breakdown % Ending Balance Breakdown % Prudential Investments, LLC Prudential Jennison Small Company R Fund 1, 24 $928,023 0.47% $64,707 0.57% $49,036 0.41% $1,014,499 0.48% International Equity Diversified Emerging Markets Principal Global Investors International Emerging Markets R4 Fund A, 3, 18 $1,038,216 0.52% $141,405 1.24% $97,261 0.81% $1,348,707 0.64% Foreign Large Blend Capital Research and Mgmt Co American Funds EuroPacific Growth R3 Fund 3, 24 $12,592,092 6.33% $582,043 5.12% $678,088 5.66% $12,217,536 5.81% Balanced/Asset Allocation Retirement Income Multiple Sub-Advisors Principal Trust(SM) Income Fund R4 9, 17, 22, 23, 26 $2,502,531 1.26% $145,256 1.28% $158,690 1.33% $2,896,651 1.38% Target Date 2000-2010 Multiple Sub-Advisors Principal Trust(SM) Target 2010 Fund R4 9, 17, 22, 23, 26 $9,994,453 5.02% $707,996 6.23% $1,227,193 10.25% $10,503,881 4.99% Target Date 2016-2020 Multiple Sub-Advisors Principal Trust(SM) Target 2020 Fund R4 9, 17, 22, 23, 26 $13,657,344 6.86% $1,415,872 12.45% $1,056,879 8.83% $15,936,804 7.57% Target Date 2026-2030 Multiple Sub-Advisors Principal Trust(SM) Target 2030 Fund R4 9, 17, 22, 23, 26 $15,144,022 7.61% $1,808,321 15.90% $489,906 4.09% $17,975,682 8.54% Target Date 2036-2040 Multiple Sub-Advisors Principal Trust(SM) Target 2040 Fund R4 9, 17, 22, 23, 26 $7,475,653 3.76% $1,074,965 9.45% $357,165 2.98% $9,245,705 4.39% 42
Investment Review - Allocation 01/01/2012 through 06/30/2012 Inv Manager or Sub-Advisor Investment Option Target Date 2046-2050 Multiple Sub-Advisors Principal Trust(SM) Target 2050 Fund R4 9, 17, 22, 23, 26 $3,225,195 1.62% $737,837 6.49% $290,000 2.42% $3,994,623 1.90% Short-Term Fixed Income GIC Fixed Income Guaranteed Option 89 $63,474,809 31.90% $1,890,243 16.62% $3,322,944 27.75% $59,367,148 28.22% Fixed Income Intermediate-Term Bond PIMCO PIMCO Total Return R Fund 10, 17, 24 $4,414,362 2.22% $312,024 2.74% $646,507 5.40% $5,692,982 2.71% Other Principal Self-Directed Brokerage Account $7,984,250 4.01% $243,176 2.14% $184,794 1.54% $9,818,848 4.67% Transition Holding Arrangement * $0 0.00% $0 0.00% $14,882 0.12% $0 0.00% TOTAL $198,955,148 100% $11,372,580 100% $11,973,888 100% $210,391,068 100% * This investment option is closed to new contributions. Portfolio Review for ACCE BENEFIT TRUST 401(K) PLAN 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 disclosures at the end of this presentation. Beginning Balance Breakdown % Contributions/ Additions Breakdown % Withdrawals/ Deductions Breakdown % Ending Balance Breakdown % 43
Portfolio Review for ACCE BENEFIT TRUST 401(K) PLAN Asset Class Breakdown Beginning % As Of 01/01/2012 Contributions/Additions % 01/01/2012-06/30/2012 Withdrawals/Deductions % 01/01/2012-06/30/2012 Ending % As Of 06/30/2012 Balanced/Asset Allocation Short-Term Fixed Income Large U.S. Equity Small/Mid U.S. Equity International Equity Other Fixed Income 44
Disclosures For the Principal Trust SM Target Date Funds, Principal Management Corporation provides nondiscretionary advisory services. A Sub-advised Investment Options include Principal Funds, Inc. mutual funds. Principal Funds, Inc is distributed by Principal Funds Distributor, Inc. Securities are offered through Princor Financial Services Corporation, 800-547-7754, member SIPC and/or independent broker/dealers. Securities sold by a Princor Registered Representative are offered through Princor. Principal Funds Distributor, Princor, and Principal Life are members of the Principal Financial Group, Des Moines, IA 50392. Certain investment options may not be available in all states or U.S. commonwealths. 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. Principal mutual funds are part of the Principal Funds, Inc. series. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities are offered through Princor Financial Services Corporation, 800-547-7754, member SIPC and/or independent broker/dealers. Securities sold by a Princor Registered Representative are offered through Princor. Principal Funds Distributor, Princor and Principal Life are members of the Principal Financial Group, Des Moines, IA 50392. Certain investment options may not be available in all states or U.S. commonwealths. 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 1-800-547-7754. Read the prospectus carefully before investing. 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. Morningstar generally provides holdings information, operations data, and rankings or statistics proprietary to Morningstar. Morningstar is also the source of information on certain mutual funds. (C) 2012 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. For the Principal Trust SM Target Date Collective Investment Funds, 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, fees for plan administrative services and compensation to your Financial Professional based on the amount of business they have with us including such factors as total deposits and assets, 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. See the Principal Funds, Inc. prospectus for the full name of each Fund. 1. 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. 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. 45
4. S&P 500 is a trademark of The McGraw-Hill Companies, Inc., and has been licensed for use by Principal Life Insurance Company and Principal Management Corporation. 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. 5. S&P SmallCap 600 is a trademark of The McGraw-Hill Companies, Inc. and has been licensed for use by Principal Life Insurance Company and Principal Management Corporation. 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. 6. S&P MidCap 400 is a trademark of The McGraw-Hill Companies, Inc. and has been licensed for use by Principal Life Insurance Company and Principal Management Corporation. 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. 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 50392. May not be available in all states. 9. 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. 10. 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. 11. 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. 12. 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. 13. 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. 17. Fixed-income and asset allocation investment options that invest in mortgage securities are subject to increased risk due to real estate exposure. 18. Instances of high double-digit returns were achieved primarily during favorable market conditions and may not be sustainable over time. 20. Effective May 1, 2009, LA Capital was added as an additional sub-advisor. Performance results displayed reflect all sub-advisors managing this portfolio during the time periods displayed. 21. The manager of the Fund, Principal Management Corporation, 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. 22. 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. Additionally there is no guarantee this investment option will provide adequate income at or through retirement. 23. 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. 46
24. 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. 26. This Principal Trust Target Date Fund indirectly bears its pro rata share of the Total Investment Expense incurred by the underlying investment options in which this fund invests. Based on the asset allocation of the Principal Trust Target Date Funds as of March 31, 2012, the weighted average operating expenses of the underlying investment options are: Principal Trust Income, 0.26%; Principal Trust Target 2010, 0.29%; Principal Trust Target 2015, 0.30%; Principal Trust Target2020, 0.30%; Principal Trust Target 2025, 0.31%; Principal Trust Target 2030, 0.32%; Principal Trust Target 2035, 0.32%; Principal Trust Target 2040, 0.33%; Principal Trust Target 2045, 0.34%; Principal Trust Target 2050, 0.34%; Principal Trust Target 2055, 0.35%. This fund may invest in underlying mutual funds. For more information on the underlying funds and their expenses, see the prospectus for those funds. 27. 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. Delaware Charter Guarantee & Trust Company, conducting business as Principal Trust SM Company ( Principal Trust ) is a member of the Principal Financial Group. The Principal Trust SM Target Date Funds is a series of collective investment funds maintained by Principal Trust, as trustee, under the Plan and Declaration of Trust of Principal Trust SM Target Date Collective Investment Funds, as amended from time to time ( Trust ). Principal Trust has discretion over the investment of the Principal Trust Target Date Funds. Principal Management Corporation ( PMC ), an affiliate of Principal Trust, provides nondiscretionary advisory services to Principal Trust with respect to the Principal Trust Target Date Funds. Principal Trust and PMC are fiduciaries subject to the Employee Retirement Income Security Act of 1974, as amended. PMC also manages portfolios of Principal Funds, Inc., ( Principal Funds ) a series of mutual funds, which may be included as underlying investments in the Principal Trust Target Date Funds. PMC receives management fees from Principal Funds. The Principal Trust Target Date Funds may also include group annuity separate accounts ( Separate Accounts ) managed by Principal Life Insurance Company ( Principal Life ), an affiliate of Principal Trust. Principal Life receives management fees from the Separate Accounts. PMC, Principal Life, or other affiliates of Principal Trust may provide services with respect to Principal Funds or Separate Accounts and may receive fees for such services. The due diligence process of Principal Life Insurance Company, through its rigorous framework for sub-advisor selection and monitoring, provides assistance to the Investment Advisors of the Separate Accounts and Principal Funds selected for the Principal Trust SM Target Date series. Principal Trust Target Date Funds are available only to qualified plans and governmental 457(b) plans. They are not mutual funds and are not registered with the Securities and Exchange Commission, the State of Delaware or any other regulatory body. Principal Trust Target Date Funds are not guaranteed by Principal Trust, PMC, any of their affiliates, the FDIC or any other governmental agency. The value of the Principal Trust Target Date Funds will fluctuate so that when redeemed, shares or units may be worth more or less than the original cost. Past performance is no guarantee of future results. Participation in the Principal Trust Target Date Funds is governed by the terms of the Trust and a Participation Agreement, which is signed by the retirement plan s fiduciary at the time the plan invests in the Principal Trust Target Date Funds. The retirement plan s fiduciary is also provided with a Principal Funds, Inc. Institutional Class Shares Prospectus ( Prospectus ) before the plan invests in the Principal Trust Target Date Funds. The Trust and Prospectus are available from Principal Trust or Principal Life by visiting us at principal.com. A copy of the Participation Agreement can be obtained from your plan administrator. The Trust, Participation Agreement, and the Prospectus contain important information about Trust fees and investment objectives, risks, and expenses of the underlying investments in the Principal Trust Target Date Funds and should be read carefully before investing. 47
Glossary of Terms 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. 48
Plan Provision Comparison 49
Plan Provision Comparison Provision 09/30/2011 09/30/2012 SERVICE REQUIREMENT None 8.82% 7.29% 3 Months 5.59% 10.07% 6 Months 4.70% 7.64% 1 Year 80.88% 75.00% AUTOMATIC ENROLLMENT 15 (4.41%) 34 (11.80%) Initial Deferral @ 6% N/A 12 Initial Deferral @ 5% N/A 4 Initial Deferral @ 4% N/A 4 Initial Deferral @ 3% N/A 8 Initial Deferral @ 1% N/A 6 EMPLOYER CONTRIBUTIONS Match 56.06% 55.21% Standard 93.22% 90.57% QMAC 6.78% 9.43% Other Profit sharing 5.44% 0.00% Employer Additional 49.22% 50.00% Stated Discretionary 1.21% 0.00% Discretionary Profit Sharing 19.64% 23.61% QNEC 24.47% 26.39% 50
Education Update 51
Award winning education from the Principal Financial Group 2012-2013 ACCE Benefits Trust Retirement TEAM Education Plan American Chamber of Commerce Executives Overview The Principal Financial Group (The Principal ) created an Education Plan designed to help achieve success in the areas of focus identified by American Chamber of Commerce Executives (ACCE). The Education Plan identifies education objectives with strategies and viable mediums with a timeline for targeted dates of communication. As part of My Principal Edge, the education program at The Principal, personalization, specific calls to action, and multiple touch points are utilized to address participants retirement planning needs. In addition, the Principal Retire Secure SM (Retire Secure) program is available to employees (onsite or by phone). We will assess the Education Plan with you annually to help ensure strategies are successful and remain aligned with your business objectives. Modifications can be made as needed. Page 1 of 6 52
Education Objectives Total Retirement Benefits Overview: Develop employee knowledge, appreciation and understanding of the retirement benefits. Retire Secure SM : Provide one-on-one meeting opportunities with a financial professional from The Principal to develop a personalized retirement savings and investment plan. Plan Participation: Help newly eligible employees and non-participants decide how much to save, choose investment options, and enroll in the Plan. Retirement Readiness: Provide guidance to participants that are nearing retirement and give them tips for creating an easy-to-follow plan Beneficiary Designation: Help participants understand the importance of designating a beneficiary Quarterly Communications ACCE Education Strategies Education Strategy Communication Medium Additional Information Plan Ahead. Get Ahead. - An award winning 1 electronic publication providing participants the most up-to-date financial and retirement information to help them plan for a brighter future Principal Retirement Newsletter SM An electronic publication educating participants age 50 and over on saving for retirement and determining how to convert savings into a retirement income stream Retirement Plan Statements- Award winning 2 comprehensive print and online plan statements 1 st Quarter 2012 Notification of 2012 IRS Plan Limits (includes catch up for those 50+) Delivered electronically (March, June, September, December) Delivered electronically (January, May, August, November) Delivered electronically and by mail (January, April, July, October) ACCE to distribute to Plan Administrators and The Principal to distribute to participants Page 2 of 6 Per 12/1/11 call, Denyce will prepare and send silverpop to all in January (ACCE to send to Plan Administrators in December 2011); Sent 1/10/12 General participant education Innovative Retirement Services Guide and mobile apps article Provided 1/4/12 Onsite group education conversion Jupiter, Florida on 2/6/12 at 10 a.m. for 6 people Date & resources confirmed and reserved Utilize three different modules to help educate the unique group of participants who are within 5 years of retirement New Seminar, Time to Shift Gears Updated and provided online seminar communications in 1/30/12 email 53
Promote and conduct Retire Secure one-on-one opportunities Participation Campaign - Promote participation in the retirement plan with newly eligible (3/1) Participation Campaign - Promote participation in the retirement plan with newly eligible (4/1) Participation Campaign - Promote participation in the retirement plan with newly eligible (5/1) Schedule, coordinate, and provide promotional materials to locations as notified Targeting newly eligible approximately 60 days prior to entry date sent electronically via silverpop or direct mail (if no email) Targeting newly eligible approximately 60 days prior to entry date sent electronically via silverpop or direct mail (if no email) Targeting newly eligible approximately 60 days prior to entry date sent electronically via silverpop or direct mail (if no email) Education Discussion Conference Call ACCE and Principal 3/6/12 Beneficiary Campaign Participation Campaign - Low Contributors Promote catch up contributions to active participants age 50+ Help participants age 57 and older with a plan to convert savings to income 2 nd Quarter Educate on the importance of designating a beneficiary statement message Target participants deferring less than 3% with silverpop, You have the power Client campaign provided by The Principal - Targeted email Client campaign provided by The Principal - targeted direct mail based on birthday Promote and conduct Retire Secure one-on-one opportunities Schedule, coordinate, and provide promotional materials to locations as notified Participation Campaign - Promote participation in the Targeting newly eligible approximately 60 days prior to entry retirement plan with newly eligible (6/1) date sent electronically via silverpop or direct mail (if no email) Beneficiary Campaign Participation Campaign - Promote participation in the retirement plan with newly eligible (7/1) Retirement Readiness (Targeting participants age 50+) - Help employees that are nearing retirement evaluate where they are and where they want to be Participation Campaign - Promote participation in the retirement plan with newly eligible (8/1) Article, Important Information About Your Beneficiary Designation to post to ACCE.org; silverpop with link to update beneficiary and link to ACCE to view article Targeting newly eligible approximately 60 days prior to entry date sent electronically via silverpop or direct mail (if no email) Provide ABC s of Retiring (ACCE custom)online seminar link sent via silverpop Targeting newly eligible approximately 60 days prior to entry date sent electronically via silverpop or direct mail (if no email) Page 3 of 6 ACCE & Principal Sent 1/4/12 Sent 2/1/12 Sent 3/2/12 Code in March - statements distributed in April (silverpop targeting participants without a beneficiary sent 12/12/11) Sent 3/27/12 March Monthly (Feb Dec) ACCE & Principal Sent 4/2/12 Sent 4/25/12 Sent 5/1/12 Sent 5/10/12 5/31/12 Education Discussion Conference Call ACCE and Principal 6/7/12 rescheduled to 6/5/12 54
Participation Campaign Promote account access on the go with mobile apps and text messages Help participants age 57 and older with a plan to convert savings to income 3 rd Quarter Promote and conduct Retire Secure one-on-one opportunities 2 nd Quarter statement message to encourage increasing salary deferrals Client campaign provided by The Principal - targeted email Client campaign provided by The Principal - targeted direct mail based on birthday Schedule, coordinate, and provide promotional materials to locations as notified Code in June - statements distributed in July June Monthly (Feb Dec) ACCE & Principal Participation Campaign - Promote participation in the retirement plan with newly eligible (9/1) Beneficiary Campaign Participation Campaign - Promote participation in the retirement plan with newly eligible (10/1) Participation Campaign illustrate the benefits of participating in the plan Seek feedback on retirement benefits and education from Plan Administrators and participants to provide insight into education plans Participation Campaign - Promote participation in the retirement plan with newly eligible (11/1) Targeting newly eligible approximately 60 days prior to entry date sent electronically via silverpop or direct mail (if no email) Targeted postcard to participants without a beneficiary designation Targeting newly eligible approximately 60 days prior to entry date sent electronically via silverpop or direct mail (if no email) Article, It s All About Your Future to post to ACCE.org; Principal to provide ACCE communication for Plan Administrators to send email with link to ACCE.org to view article Custom survey to be sent via silverpop and conducted online with a link to take survey Targeting newly eligible approximately 60 days prior to entry date sent electronically via silverpop or direct mail (if no email) 7/3/12 Sent 7/25/12 Education Discussion Conference Call ACCE and Principal 9/6/12 Retirement Readiness (Targeting participants age 50+) - Help participants prepare to turn their savings into income. Provide NEW seminar, It s Time to Shift Gears (to be customized for ACCE) online seminar in a link to be sent via silverpop 9/25/12 Help participants age 57 and older with a plan to convert savings to income Client campaign provided by The Principal - targeted direct mail based on birthday 8/2/12 Provided in 8/7/12 email Surveys provided in 8/27/12 email. ACCE distributed Plan Administrator survey 8/30/12; Principal sent participant survey 9/5/12; results to be provided in October for education planning and meeting in November 8/31/12 Monthly (Feb Dec) Page 4 of 6 55
4 th Quarter Promote and conduct Retire Secure one-on-one Schedule, coordinate, and provide promotional materials to ACCE & Principal opportunities locations as notified Plan and prepare ongoing education Draft education plans and prepare materials for board meeting October Principal and ACCE (typically 1 st of November) Participation campaign amongst eligible non-participants Targeted custom communication (CP8825ZZZ) to be sent Annually in October slated for 10/23 electronically via silverpop Participation Campaign - Promote participation in the Targeting newly eligible approximately 60 days prior to entry Sent 10/3/12 retirement plan with newly eligible (12/1) date sent electronically via silverpop or direct mail (if no email) Retirement Readiness (Targeting participants age 50+) - Principal to provide communication and article, What Will Your November Educate participants on issues to consider when determining when to retire Retirement Age Be? (PT 194)for ACCE to post to ACCE.org; and to provide Plan Administrators to send email with link to ACCE.org to view article Participation Campaign - Promote participation in the Targeting newly eligible approximately 60 days prior to entry November retirement plan with newly eligible (1/1) date sent electronically via silverpop or direct mail (if no email) Education Discussion Conference Call ACCE and Principal 12/6/12 Participation Campaign - Promote participation in the Targeting newly eligible approximately 60 days prior to entry December retirement plan with newly eligible (2/1) date sent electronically via silverpop or direct mail (if no email) Help participants age 57 and older with a plan to convert savings to income Client campaign provided by The Principal - targeted direct mail based on birthday Monthly (Feb Dec) 1 st Quarter 2013 Promote and conduct Retire Secure one-on-one opportunities Schedule, coordinate, and provide promotional materials to locations as notified ACCE & Principal Education Discussion Quarterly Conference Call ACCE and Principal 2013 Quarterly calls to be scheduled Notification of 2013 IRS Plan Limits (includes catch up for Principal to provide ACCE content to distribute to Plan January those 50+) Administrators; Principal to distribute to participants Participation Campaign - Promote participation in the retirement plan with newly eligible (3/1) Participation Campaign - Promote participation in the retirement plan with newly eligible (4/1) Targeting newly eligible approximately 60 days prior to entry date sent electronically via silverpop or direct mail (if no email) Targeting newly eligible approximately 60 days prior to entry date sent electronically via silverpop or direct mail (if no email) January February Participation Campaign - Low Contributors Target participants deferring less than 3% with silverpop March Participation Campaign - Promote participation in the Targeting newly eligible approximately 60 days prior to entry March retirement plan with newly eligible (5/1) date sent electronically via silverpop or direct mail (if no email) Page 5 of 6 56
Beneficiary Campaign - Educate on the importance of designating a beneficiary 1 st Quarter statement message Code in March - statements distributed in April Important Notes: Onsite meetings require a minimum attendance of twenty employees. Cancellations or requests to postpone scheduled education opportunities that are received with less than two weeks notice before scheduled opportunities could result in a postponement/cancellation fee. Please contact your Senior Relationship Manager with questions. Principal Retire Secure SM A quick overview of your plan: As of 12/31/11 As of 10/05/12 Number of one-on-one meetings conducted 176 (169 Onsite & 7 Phone) 342 (325 Onsite & 17 Phone) Contacts Contact Name Title Company Phone Number Marsha Mathis Senior Relationship Manager the Principal Financial Group 804-272-415, ext. 3020 Loyed Hedges Senior Client Service Manager the Principal Financial Group 800-543-4015, ext, 84721 Denyce Wingert Senior Education Strategist The Principal Financial Group 800-543-4015, ext. 35995 1 Award of Excellence - 2008 IABC Bronze Quill Awards 2 Received the DALBAR Communication Seal of Excellence in customer communications for defined benefit, defined contribution, total retirement, variable annuity and mutual fund statements. September 2009 Insurance products and plan administrative services are provided by Principal Life Insurance Company, a member of the Principal Financial Group (The Principal ), Des Moines, IA 50392. t10092702fe 09/2010 Page 6 of 6 57
BRAINSHARK STATISTICS (1/1/12 through 10/15/12) Brainshark Enrollment Debt Reduction Dream Design Rebuild Shifting Gears Silver Lining Navigating Investment Choices: Charting Investment Decisions Retire Secure Road Map Social Security ABCs of Retiring Estate Planning Retire Secure (Phone) Online Seminar Payout Solutions Retirement Savings Vehicles Market Volatility Number of views 43 1 3 55 1 5 2 84 3 2 83 3 42 1 1 3 58
ACCE 2012 Campaign Summary Benenficiary Campaign Targeted communication sent electronically (via silverpop) to participants without a beneficiary designation Mail Date: 12/12/11 Results Date: 2/7/12 Target Audience: Participants without a beneficiary designation on file Number of Participants receiving mailing: 1,147 Number of Participants taking action: 141 Response Rate: 12% Communication sent electronically (via silverpop) to all participants Mail Date 4/25/12 Results Date: 6/25/12 Target Audience: Participants without a beneficiary designation on file Number of Participants receiving mailing: 1,381 Number of Participants taking action: 85 Response Rate: 6% 59
Direct mail postcard targeting participants without a beneficiary designation on file Mail Date: 7/25/12 Results Date: 9/27/12 Target Audience: Participants without a beneficiary designation on file Number of Participants receiving mailing: 1,617 Number of Participants taking action: 107 Response Rate: 7% 60
Participation Campaign Targeted communication sent electronically (via silverpop) to participants deferring less than 3% Mail date: 3/27/12 Results date: 5/23/12 Target Audience: ACCE participants deferring 1%-2% Number of Participants receiving this mailing: Number of Participants taking action: 12 Average deferral percent increase for all contribution changes Average deferral percent for all making a changes 466 1.58% 3.79% Response Rate: 2.58% 61
Monthly communication sent electronically (via silverpop) targeting newly eligible Participants Eligible as of: Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 # of new hires: Action Taken # Enrolled Response Rate: (% enrolled) Average Salary Deferral 60 17 28.30% 4.70% 11 0 0% 0% 10 6 60% 7% 45 3 6.70% 4.70% 14 9 64% 4.40% 5 2 40% 3.00% 49 14 28.50% 4.8%^ 18 6 33% 4.50% 5 3 60% 7.33% 50 11 22% 4.50% 4 1 25% 3.00% 11 0 0 0% 62
Retire Secure Recap (As of 9/5/12) 2011 2012 Locations Visited Onsite Meetings Held 6 16 169 312 Results Enrollments 22 60 Deferral Increases 42 63 Step Ahead Elections 25 63 Phone Based Meetings 7 16 Results Deferral Increases 1 2 Step Ahead Elections 3 4 63
Retire Secure Onsite Meetings Pending As of September 5, 2012 Kingsport Dallas Regional Dallas Chamber Scranton STL Greater Raleigh Chamber Delaware Advancement Corp Muncie Chamber of Commerce Retire Secure Phone Meeting Pending As of September 5, 2012 Holland Chamber Limestone Ameila Island #879 McAllen Chamber 697 Market Street #917 Steamboat Chamber 658 Greater Starkville Development Partnership 765 Greater Norwalk #936 American Lighting Frisco Chamber 64
Legislative Update 65
Compliance News October 2012 Pension Plan Dollar Limits for 2013 The contributions and benefits under qualified retirement plans are subject to certain annual limits. The annual limits are subject to an annual cost-of-living increase based on the increase in the Consumer Price Index (CPI). For most limitations, the increase in the CPI over the past year has caused an increase in the dollar limit. The IRS has announced the cost-of-living adjustments to dollar limitations for retirement plans for 2013. Here is a comparison of the 2012 limits and the new limits effective January 1, 2013: Limit 2012 2013 Compensation Limit $250,000 $255,000 Defined Contribution 415 Limit $50,000 $51,000 Defined Benefit 415 Limit $200,000 $205,000 Key Employee Officer $165,000 $165,000 Highly Compensated Employee $115,000 $115,000 Governmental Plan Compensation Limit $375,000 $380,000 ESOP 409(o) Limits $1,015,000 $200,000 $1,035,000 $205,000 Elective Deferral and Catch-up Limits for 2013 The elective deferral contribution limits increased for 2013, the Simple plan catch-up contribution limits did not change. Limit 2012 2013 401(k), 403(b), 457(b) Plan Deferral Limit $17,000 $17,500 401(k), 403(b), governmental 457(b) Catch-up Limit $ 5,500 $ 5,500 Simple Plan Deferral Limit $11,500 $12,000 Simple Plan Catch-up Limit $ 2,500 $ 2,500 66
IRA Limits For 2013, the limit for both traditional and Roth IRAs will increase from $5,000 to $5,500. The limit that applies to IRA catch-up contributions (contributions for individuals age 50 and over) remains at $1,000. Social Security Increases The Social Security Administration announced an increase in the taxable wage base (TWB) for 2013 from $110,000 to $113,700. Workers pay Social Security tax on wages up to the TWB. Also, some retirement plan formulas are integrated with Social Security. These plans often use the TWB when allocating contributions or calculating benefits. WE LL GIVE YOU AN EDGE SM Principal Life Insurance Company, Des Moines, Iowa 50392-0001, www.principal.com Prepared by Retirement & Investor Services Compliance. While this communication may be used to promote or market a transaction or an idea that is discussed in the publication, it is intended to provide general information about the subject matter covered and is provided with the understanding that none of the member companies of The Principal are rendering legal, accounting, or tax advice. It is not a marketed opinion and may not be used to avoid penalties under the Internal Revenue Code. 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 are provided by Principal Life Insurance Company, a member of the Principal Financial Group, Des Moines, IA 50392. PQ10846 10/2012 67
Legislative Update Legislative/Regulatory Activity Definition of Fiduciary Department of Labor (DOL) may not re-propose until after the election in November Fee and Investment Disclosure - DOL released final 408(b)(2) regulations now effective July 1, 2012 - Earliest plan sponsors would need to provide participant disclosure changed to August 30, 2012 - July field assistance bulletin withdraws previous guidance, requiring fiduciaries to track certain individual investments available through their open brokerage-window. 68 For use with prospects, plan sponsors and financial professionals only.
Legislative Update Legislative/Regulatory Activity Electronic Delivery of Information DOL reviewing current rules for using electronic media to deliver required information to plan participants Savings Enhancement by Alleviating Leakage in 401(k) Savings (Seal) Act Proposed legislation on repayment of plan loans and the number of outstanding loans permitted DB Interest Rate and PBGC Premium Levels legislation passed in July stabilizes interest rates for DB funding, but also increases PBGC premiums 69 For use with prospects, plan sponsors and financial professionals only.
Disclosures While this communication may be used to promote or market a transaction or an idea that is discussed in the publication, it is intended to provide general information about the subject matter covered and is provided with the understanding that none of the member companies of The Principal are rendering legal, accounting, or tax advice. It is not a marketed opinion and may not be used to avoid penalties under the Internal Revenue Code. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements. No part of this presentation may be reproduced or used in any form or by any means, electronic or mechanical, including photocopying or recording, or by any information storage and retrieval system, without prior written permission from the Principal Financial Group. Information is current as of the creation of this piece. Insurance products and plan administrative services are provided by Principal Life Insurance Company a member of the Principal Financial Group (The Principal, Des Moines, IA 50392. 2012 Principal Financial Services, Inc. All rights reserved. 09/2012 #t12082802jd 70 For use with prospects, plan sponsors and financial professionals only.