This UBA WisdomWorkplace webinar program is brought to you by United Benefit Advisors in conjunction with the Principal Financial Group

Sandi Eskew and Kim McVicker Personal and Financial Wellness Principal Wellness Company and Principal Financial Group

Working Benefit Programs You’re focused on: Maximize value Lower costs Engage employees 3 Health=Wealth

The Needs Employee Benefits Target 4 Employees Employers Attract and retain employees At the same time: Maximize the value of the investment, and Control costs Fiscal & physical health Present Productive Engaged Protected Prepared Health=Wealth

Employee Impact Employer Impact Current Landscape Increased absenteeism Decreased productivity Reduced dollars available for other investments and the bottom line Reduced productivity from employee financial stress and retirement insecurities Unhealthy lifestyles Inadequate retirement savings Rising healthcare costs Decreased earnings power Reduced vitality and poor health Reduced discretionary income Diminished retirement readiness Reduced ability to retire secure Health=Wealth

Effective Wellness Programs Maintain health now Reduce health risks over time Extend quality of life Health=Wealth 6

Wellness Works Less cost and better results $3.27 in reduced medical costs $2.73 Lower absenteeism costs $3.42 in reduced medical costs $3.91 lower productivity costs 1 Workplace Wellness Programs can Generate Savings, Health Affairs, February As of 12/31/2011 Wellness Study 1 Principal Wellness Company client 2 $ EVERY SPENT ON WELLNESS 1 Principal Wellness client case study results are not typical. Projected savings does not include the cost of the wellness program. 7 Health=Wealth

Why Wellness Works Successful wellness plans include Participant engagement rates around 80% Typical risk improvement is approximately 5% 1 Key program components | Points and incentives | Digital platform Employees and spouses Lower risks translate to improved health | Improved health means favorable trends 1 Principal Wellness Company, two-year average of 4.79%, as of 12/31/ Health=Wealth

Tying Personal Health to Wealth “The first wealth is health.” -Ralph Waldo Emerson Illness can reduce retirement readiness Dollars that could have gone into savings pay for healthcare expenses An employee’s ability to retire as planned is endangered Health=Wealth 9

Pairing Health Wellness with Financial Wellness Financial worry makes us sick 2 : 84% of workers view physical health as an investment in their financial future 2 2x as likely to suffer from chronic pain 2x as likely to suffer from heart attacks 3x as likely to suffer from insomnia 8x as likely to suffer from depression 10x as likely to suffer from migraines of participants who retired earlier than planned did so because they had a health problem or disability 1 63% 1 Employee Benefit Research Industry Retirement Confidence Survey, Associated Press Research, annual Retirement Confidence Survey average retirement balance 3 is barely over $25, Health=Wealth

Retirement Trend #1 60% of employees have less than $25,000 saved or invested for retirement. 2 Employee confidence in retirement remains at historic low. 1 Social Security contributes only about 1/5 of pre-retirement income. Employees aren’t saving enough for retirement Retirement Confidence Survey conducted by Employee Benefit Research Institute (EBRI) and Matthew Greenwald & Associates, Inc percent of employees report that the total value of their household’s savings and investments, excluding the value of their primary home and any defined benefit plans, is less than $25,000 according to the 2012 Retirement Confidence Survey (EBRI). Health=Wealth 11

Retirement Trend #2 Today’s average life expectancy after age 65 is 19 years* Wellness programs address this trend by: Helping reduce medical and healthcare costs Addressing health risks now Retirees are living longer. *Center for Disease Control and Prevention, “Health, United States 2012,” p.152 Average life expectancy after age 65 by gender:* Men:17.2 years Women: 19.9 years Health=Wealth 12

Healthcare costs are rising, leaving people with less discretionary income. Retirement Trend #3 Today’s average retiree needs $250,000+ to pay for healthcare costs through retirement.* When health is in check: Employers can spend less on healthcare and more on salaries and other employee benefits. Employees can spend less on healthcare and have more money for other things – including savings. *“Funding Savings Needed for Health Expenses for Persons Eligible for Medicare,” EBRI Issue Brief, December 2010 Health=Wealth 13

Replicate Health on the Wealth Side Leveraging engagement and behavioral change Health Wealth Total Wellness Solution Activities ————————————————— Incentives ————————————————— Digital platform 14 Health=Wealth

Taking Apart a Typical Health Wellness Program Incentives High Risk IDCoaching Culture Communication Education Engagement/ Activities All employees Employees that need a lot of help Productivity Presenteeism Retention Satisfaction Health All of the above plus a reduction in a key cost driver Health=Wealth 15

Driving Behavior Change For Wellness Assessment Education Coaching Inspiration / Motivation Tools and Resources Incentives / Rewards Health Financial Health=Wealth 16

Taking Control of Your Total Wellness Financial Risk Assessment Counseling Milestones Online Seminars Challenge Completion GET ACTIVITIES! Wellness Dashboard Earned Points: 60 Qualifying Activities YTD Health Risk Assessment Screening Health Coaching Online Seminars Challenge Completion Earned Points: 80 Current Wellness Bank 70 Qualifying Activities YTD Financial Health GET ACTIVITIES! This chart is an example of possible wellness activities and points tied to each activity, and is for illustrative purposes only. The “current wellness bank” is an average of the health and wealth components, and would be based on each individual’s situation. 17 Health=Wealth

Increased productivity and morale Greater loyalty Reduce healthcare expenses Boost discretionary income Extend quality of life Reduce medical costs Benefits of Optimal Health Health=Wealth 18

Principal Wellness Company does not diagnose or treat any medical condition or provide medical advice. Results obtained from program participation depend upon health status and how the information provided is applied. Wellness and wellness incentive programs are subject regulation under federal and state law. Principal Wellness Company does not give legal advice. Consult with your legal advisor regarding the design of any wellness or incentive program. Savings and health improvement are not guaranteed. GP60600UBA | 11/2012 | ©2012 Principal Financial Services, Inc. WE’LL GIVE YOU AN EDGE ®

This program, has been approved for 1.25 (General) recertification credit hours toward PHR, SPHR and GPHR recertification through the HR Certification Institute. For more information about obtaining HRCI recertification credit for viewing this webinar, please contact your local UBA Partner Firm.

Thank you for your participation in the UBA WisdomWorkplace Webinar Series. To obtain a recording of this presentation, or to register for future presentations, contact your local UBA Firm.