2016 RETIREMENT PLAN UPDATES / TRENDS Presented by: Brad Wexler, MBA, QPA, QKA, CPFA Tycor Benefit Administrators, Inc.® (610) 251-0670 bwexler@tycorbenefit.com Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Kestra IS and Kestra AS are not affiliated with Tycor Benefit Administrators, Inc.® or Tycor Asset Management, Inc.® 9/16

Agenda Department of Labor Conflicts of Interest Rule Litigation Trends Proposed Changes to Form 5500 Capturing the Young Saver QDIA / Evaluating Target Date Investment Structure Alternative Plan Designs

DOL Conflicts of Interest Rule The most notable change in 2016 Increased responsibility for trustees / plan sponsors Revised definition of “Fiduciary” Revised the activities that are excluded from the definition of advice Created the Best Interest Contract Exemption (BICE) New agreements and disclosures Education vs. Advice

Litigation Trends Increased litigation due to excessive fees Increased responsibility for plan sponsors to value / document services DOL/IRS moving down-market toward smaller plans Increasing civil monetary penalties to retirement plans / sponsors Selecting your auditor (if over 100 employees)

Proposed Changes to Form 5500 Will have significant impact on retirement plan sponsors. Previously, an information return. Proposal will supply key components for DOL, IRS and PBGC. Will lead to more plan audits. Key Areas- Timely 401(k) Deposits, Fee disclosures, required minimum distributions, hardship distributions. To go into effect gradually, between 2016 plan year and 2019 play year.

Capturing the Young Saver Generation “Y” (age 40 or younger) - Least engaged employees with regard to retirement. Will be first generation to have 401(k) accounts for their entire working career. 55% have not started saving; 64% do not think about retirement*. Uncertainty related to Social Security/Medicare; increasing life expectancies. Must improve retirement readiness among the young saver. Raise participation. Automatic Enrollment – ‘path of least resistance’. Automatic Escalation. *2012 Forbes Magazine

QDIA / Evaluating Target Date Investment Structure QDIA-Qualified Default Investment Alternative Used with Auto Enrollment/Auto Escalation Target Date Investments (TDI) most popular QDIA 48% of 401(k) participants in TDI as of 2014 (expected to be around 85% as of 2019)* Not all TDIs the same; plan sponsor responsible for evaluating them Investment Management Firm *April 2016 Employee Benefit Research Institute

QDIA / Evaluating Target Date Investment Structure (Cont’d) Equity Glide Path To vs. Through Retirement Asset Class Selection Investment Management Implementation Investment Costs Customized TDI

Alternative Plan Design “The Cash Balance Plan” IRS-qualified (tax-favored) retirement plan that combines the high contribution amounts of a defined benefit plan that looks and feels like a 401(k) plan. Participant accounts grow annually via employer contribution and interest crediting rate (ICR). ICR benchmarked to 30-year Treasury Rate or flat rate between 4%-6%. Should be used in conjunction with 401(k) plan. Allows owners to squeeze 20+ years of savings in 10 years.

Questions

850 Cassatt Road, Suite 310 Berwyn, PA 19312 610.251.0670 Tycor Benefit Administrators, Inc.® Confidence in your plan ™ For More Information Call Brad Wexler 610.251.0670 bwexler@tycorbenefit.com 850 Cassatt Road, Suite 310 Berwyn, PA 19312 610.251.0670 Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Kestra IS and Kestra AS are not affiliated with Tycor Benefit Administrators, Inc.® or Tycor Asset Management, Inc.® 9/16