Schwab Retirement Technologies User Forum May 16, 2012 Philadelphia, PA

2 Agenda Schwab RT Product Update Best Practices Reporting Product Discussion Product Tips & Tricks Closing Remarks

Schwab RT User Forum Ben Lee, Charles Schwab Cathy Whisonant, Charles Schwab Schwab RT Product Update

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6 Schwab RT Participant Experience & Communication Levers

7 Product Feature Review dailyVest planAnalytics Automated Savings Increase Broadridge Print and Mail Services Retirement Readiness – Gap Analysis (Klein Decisions) Fund Fact Sheets Fund of Funds (IPM) Rate of Return Calculations Participant Fee Disclosure Report Generation and Publishing Usability Enhancements

8 planAnalytics Features and Benefits - Highlights: Plan Highlights: cash flows, contributions, increase/decrease in plan assets Plan Performance: measures how well plan/participants are performing, range of personal rates of return achieved by participants Plan Asset Allocation and Investment Allocation: illustrates breakdown of plan assets by fund, by asset allocation, by age vs. average asset allocation Plan Balances & Activity: summarizes plan’s activity history by fund, plan’s net investment history vs. market value, balance history Investor/Participant Account Details & Drill-down: sorts all plan participants by highest to lowest personal rate of return, balance, age

9 planAnalytics – Plan Detail Report

10 planAnalytics – Plan Assets by Asset Class

11 planAnalytics Available today with Schwab RT Web at no additional cost Can be enabled selectively for your Plan Sponsors and Advisors to analyze financial wellness (via Schwab RT Admin) Monthly extract process runs to update participant balances and transactions between the 5 th and 7 th day following month-end (contact Client Services) Required Data Elements (see dailyVest planAnalytics Getting Started Guide)

12 Automatic Savings Increase (ASI) Recordkeeping system default settings Minimum % and increment Day and month for increment Option to auto increment Plan level overrides for system settings Source level setting for ASI Participant Maintenance ASI settings added to Deferral Screen shows if they are in the program, increment percent and maximum percent, next increment date

13 Automatic Savings Increase (ASI) Participant Web Ability to opt into ASI – settings take effect immediately Participant can return and cancel Cancel upcoming increase but stay in program Opt out completely Confirmation page SchARP New business activity – identifies participants with next increment date based on lead time Generates a report of participants 2 options You control whether to handle the updates You report the upcoming updates to the plan sponsor who will feed them back to you Annual reminders to participants

14 Broadridge Print and Mail Services (available today) Print and Mail Services (using your own statement design) Designed to be ‘hands off’ Leverages existing SchARP eStatement process Schwab ASP sweeps your print files to Broadridge (no limit to # of files) Service level: Broadridge takes up to 4 calendar days to process files delivered between 5 th and 25 th calendar days Sign agreements with both Broadridge and Schwab RT Fees: Setup: $500 $ per image (e.g. $0.45 for a 2 sheet/4 page color statement) Quarterly Minimum: $3,000 (breakeven 6,667 based on a 4 page statement) First class postage is extra

15 Fund Fact Sheets Schwab RT currently analyzing a fund fact sheet license with Morningstar Schwab RT may assess a fee for this service Plans to integrate with Schwab RT Web’s new Investment Performance page Delivery date and cost TBD

16 Retirement Readiness – K4 Plan Goals Available through Klein Decisions, Inc. and KD Advisors, LLC (see handout for features, benefits, cost) KD Guidance and KD Advice Plan Track plan health report for plan sponsors Personalized participant gap report (On Track / Not On Track) with suggested strategy Seamless participant online experience and gap report

17 The four key retirement variables Solved at the same time In a complete strategy Without frustrating iteration Ready for participants to implement

18 Priorities are also important Two participants with the same savings, risk, age, and income goals will have different priorities. Retirement Goals Priorities Participant 1Participant 2 Savings Rate 3% - 10% Priority 4 Priority 2 Investment Risk (Loss in Poor Year) 5% - 27% Priority 3 Priority 1 Retirement Age Priority 2 Priority 3 Retirement Income Replacement 75% - 90%Priority 1 Priority 4

19 Different Priorities, Different Strategies Retirement Goals Priorities Participant 1Participant 2 Savings Rate 3% - 10%10%3% Investment Risk (Loss in Poor Year) 5% - 27%13%5% Retirement Age Retirement Income Replacement 75% - 90%90%78% Both Participants get the solution that best meets their top priorities K 4 Plan Goals delivers the correct solution to each participant, which motivates action

20 Compare Alternatives 20

21 Your Results 21

22 Compare Alternatives 22

23 Print a Report 23

24 Print a Report 24

25 Retirement Readiness – K4 Plan Goals Process Overview, Key Differentiators SchARP automates the generation and transmission of bulk plan and participant data to Klein Decisions to produce participant gap and sponsor reports Participants are notified when gap reports are available Login to K4 Plan Goals admin to retrieve participant reports (pdfs in one file) and sponsor report Participant single sign-on via Schwab RT Web Option to rebalance automatically Menu option and new gadget for landing page to help drive engagement Cost – K4 Plan Goals online and gap reports for 1 st 20 plans: Guidance: $2,500 (average $125/plan/year) Advice: $3,500 (average $175/plan/year) Coming Q3 2012

26 Fund of Funds (IPM) Rate of Return Calculations Approach Based on monthly performance values from underlying funds Leverages Participant Fee Disclosure 404a5 Morningstar (M*) data feed IF you use any non OEMFs, custom investments, CTFs, ETFs in your IPMs – you will need to acquire the data for those investments Calculation – current and hypothetical (not historical) Performance Operating Expense Portfolio Turnover fi360 (Platinum) Model Portfolio Report Custom Fund Fact Sheets

27 Participant Fee Disclosure Handouts Implementation Checklist Sample Annual Fee Disclosure Sample Participant Statement Disclosure Sample Investment Performance Web Page

Schwab RT User Forum Kris Studioso, Charles Schwab Best Practices Peer Discussion

29 Best Practices Peer Discussion Network and exchange ideas with others on how you handle operational items. Potential Table Topics: Re-enrollments Handling install payments Sponsor driven Payroll submissions Fee Disclosures

Schwab RT User Forum Lisa Adams, Charles Schwab Frank Seta, Charles Schwab Reporting Strategy Discussion

31 Agenda Recent Focus Publishing to Sponsors and Advisors Participant eStatements – 2010 Web Activity Tracking Reports for Sponsors and Advisors eConfirmations DailyVest Plan Analytics Reporting Features Today – Birds Eye View Self Service by Sponsors and Advisors Publishing to Sponsors and Advisors Data Extracts Event Driven reporting Next Focus Self Service enhancements Data availability Centralized report center

32 Recent Focus – Publishing to Sponsors and Advisors

33 Recent Focus – Participant eStatements

34 Recent Focus – Web Activity Tracking Reports for Sponsors and Advisors

35 Recent Focus – eConfirmations

36 Recent Focus – dailyVest planAnalytics

37 Reporting Features Today – Birds Eye View Self Service by Sponsors and Advisors Publishing to Sponsors and Advisors Data Extracts Event Driven reporting

38 Reporting Features Today – Birds Eye View Self Service - Sponsor and Advisors 12 online reports Web Activity tracking reports Message Queries dailyVest planAnalytics Internally generated – Published externally Statement Generator (cp20): RK – manually publish from SchARP Report Center eStatements – publish to participants from SchARP Report Generator (cp50): RK - manually publish from SchARP Report Center SchARP – schedule and publish Any document manually publish from SchARP Report Center Data Extracts SQL Extract – Access or SQL database Participant Data Extract – comma delimited text file Cp20 – CSV extract Event Driven Reporting/Notification Payroll Monitoring ACA Notifications Compliance Management Notifications Confirmation Letters – paper and eDelivery Participant Fee Disclosure

39 Reporting Features – Next Focus Reporting Portal 1. Self Service enhancements 2. Data availability 3. Centralized Report Center

40 Reporting Features – Next Focus Self Service Enhancements Make it easier for Sponsors and Advisors to view the data that they need online and on-demand Not Crystal Reports Increase self service options – to lessen the need for back office report generation Ad-hoc Commonly used data elements available As of Date parameter Templates User Defined Commonly Used Defaults Export to PDF and Excel Charts and Graphs?

41 Reporting Features – Next Focus Data Availability Make calculated data readily available Statement Generator (cp20) creates a data mart on the fly. Make this a SchARP event so that the data is available outside of cp20. Persist this data: For Reuse To be accessed by the web for a plan level statement on Demand Replicate data to a secondary database for scale and performance ASP clients will have access to this secondary database for reporting Extra service for in House clients.

42 Reporting Features – Next Focus Centralized Report Center on SchARP Bring together cp20 and cp50 features Provide a robust library of reports Expose to Sponsors and Advisors – for additional self-service. Improve the management around the publishing of reports Continue to leverage Crystal Reports?

Product Tips & Tricks Schwab RT User Forum Jarrod Facchino, Charles Schwab Don Oldfield, Charles Schwab

44 Agenda Data Conversion Tips & Tricks Admin Tool Tips & Tricks

45 Data Conversion - What’s New? Expanded Data Import Capabilities Eases Conversion Data Manipulation Mass Updates Easier System Level Plan Level Participant Level Also use Multi-Plan ADT

46 Importing Investments

47 Importing IPMs

48 Importing Historical Prices

49 Importing Plans

50 Importing Participants

51 Importing Investment Elections

52 Importing Vesting Schedules

53 Importing Transaction History

54 Admin Tool - What’s New? Ability to copy an entire plan’s settings Ability to copy individual plan settings to multiple plans Enhanced plan search options Redesigned layout Improved usability New confirmation page that can be exported to PDF

55 Enhanced Plan Search Options

56 Redesigned Layout

57 Improved Usability

58 New Confirmation Page

59 Copy Individual Plan Settings to Multiple Plans

60 Copy Individual Plan Settings to Multiple Plans – Cont.

61 New Statement Generator (cp20) Options

62 New Search Functionality for Investment Maintenance

63 Search Functionality for Investment Maintenance – Cont.

64 Import Performance Data

65 Import Performance Data - Continued

66 Missing Investment Performance

Closing Remarks

68 Closing Remarks New Training Course Schedule SalesForce Portal Update Open for Questions

Thank you.

70 Disclosures The Charles Schwab Corporation provides services to retirement plans and participants through its subsidiaries: Charles Schwab & Co., Inc., Charles Schwab Bank, Schwab Retirement Plan Services, Inc., Schwab Retirement Plan Services Company and Schwab Retirement Technologies, Inc.® (Schwab RT). Schwab RT is engaged in developing and licensing proprietary retirement plan recordkeeping systems to independent recordkeepers. © 2012 Schwab Retirement Technologies, Inc. All rights reserved.