1 Lockton Retirement Services Fiduciary Coverage  Retention/succession  Benefit completion  Cash flow optimization (NQDC) Executive Benefits  Portfolio management  LDI strategies  Pension risk transfer  Cost containment Defined Benefit  Fees  Fund line-up  Fiduciary process  Retirement outcomes Defined Contribution WHO WE SERVE CFO/VPHR needing managed risk & cost, employee results, competitive offers

2 Lockton Retirement Plan Services WHAT WE DO STRATEGY DEVELOPMENT  Cost management  Talent strategy  Risk reduction PLAN DESIGN  DC, Pension, Executive Benefits  Results/Expense Optimization  Pension Risk Transfer  Benefit Completion  Overall benefits alignment VENDOR MANAGEMENT  Market assessment  Fee negotiation  Project management EMPLOYEE ENGAGEMENT  Demographic analysis  Enrollment support  Financial well-being guidance PLAN GOVERNANCE  Regulatory and design trends  Service-Level Agreement tracking  ERISA Compliance Fiduciary Coverage Deliver PROTECTION for your business, SECURITY for your employees INVESTMENT ADVICE  3(38) fiduciary  Investment selection and ongoing monitoring  Market and economic insight

3 The Tools We Use Lockton Total Value Axis In Development Sophisticated systems, national databases, fiduciary documentation HOW WE WORK

4 Fiduciary Consulting and Support  Evaluates notices, documents, audit files, committee oversight, investment reviews, and 404(c) compliance  Provides a scorecard highlighting areas of potential compliance risk and suggests mitigation options to alleviate exposure A recent DOL study failed two out of every five audit reviews. Recent Regulations  Fee disclosure  Conflicted advice, aka Fiduciary Rule Anticipated Regulations  Target date fund disclosure  Lifetime income disclosure  Self-directed brokerage regulation Lockton-advised plans were audited nearly 30 times per year over the last 5 years 1, 0 findings 1 Fiduciary Review process established in 2010.

5 Investment Review, Monitoring, and Documentation  Assists in the management of your fiduciary duty to select and monitor a plan’s investment options  Identifies underperforming options and proposes better alternatives consistent with a plan’s Investment Policy 70% of fund managers recommended five years ago remain above median today Process Summary  Considers 40 quarters of rolling period excess returns  Evaluates modern portfolio theory statistics  Overlays qualitative analysis of style consistency, tactical allocation capability and organizational strength  Identifies managers with consistent above-median performance and minimal bottom quartile history 1 Desired Result  Minimizes plan participant uncertainty with consistently above-average performing fund options  Instills confidence with investment managers that consistently fulfill their asset class assignment in the plan’s allocation strategy 2 Implementation and Monitoring  Delivers ERISA 3(21) or ERISA 3(38) fiduciary advice  Customizes monitoring process 3

6 Plan Design Consulting and Benchmarking  Compares plan design, fees and results with that of similarly-sized plans in the same industry  Proposes design, administration and communication alternatives that may reduce cost and/or improve plan and participant results

7 Recordkeeper Evaluation and Selection Weight categories Rate current provider’s performance Evaluate plan goals Analyze recordkeeping fees and strengths 90% of provider RFP answers will be indistinguishable. Lockton questions highlight differentiators. Lockton “reads the footnotes” to draw out distinguishing characteristics, especially in the service agreements. Lockton’s Total Value Axis tool encourages committee collaboration and focuses on items of unique interest. Providers must respond with measurable, objective metrics which aid in selection process and establish ongoing monitoring. Lockton has existing relationships with nearly 50 recordkeepers

8  Provides a single, secure dashboard for easy, constant access to documents and information  Offers a collaborative environment for more streamlined and efficient partnership with your Lockton account team Sample Recordkeeper Transition Timeframe SAMPLE TRANSITION TIMELINE WEEK 1 Appoint Lockton as investment advisor WEEK 2 Schedule onboarding and RFP project planning Review and sign Lockton service agreement WEEK Develop RFP Review and gather feedback 4 WEEK 6 Draft IPS, charter, and fiduciary acceptance memos Approve RFP and list of receiving vendors Collect all plan data WEEK 7 Send final RFP to selected vendors WEEK 12 RFP responses due Complete first committee meeting Provide fiduciary training and recommend plan governance practices including documents (IPS, charter, etc.) Present first investment review WEEK 15 Select and meet with finalists Conduct site visits, if desired WEEK 20 Select new vendor MONTH Conversion to new vendor complete 10

9 Strategic Employee Analysis and Education Retirement Medical Costs from Accident / Illness Standard of Living Debt Healthcare Monthly Bills Children’s College Rent/Mortgage Americans Top Financial Concerns % Very or Moderately Worried Source: ”Economy and Personal Finance Poll,” Gallup, April The Top 3 Sources of Stress All Converge in the Workplace Source: “Financial Wellness at Work: A Review of Promising Practices and Policies,” Consumer Financial Protection Bureau, August 2014  Workers reporting high stress were $413 more costly per year than those not at risk for stress  By comparison, smokers were $587 more costly per year than non-smokers cite money as the top source of stress 71% cite work as the top source of stress 69% cite the economy as the top source of stress 59% Education Policy statement monitors objective success measures Customized employee communication helps achieve goals Negotiated performance metrics fund ERISA budget when goals are missed We place fees at risk based on achieving Education objectives Lockton Commit to Education