Expand Your Retirement Sales in 2003 With The Transamerica Retirement Services Producer’s Toolbox Thursday, January 30, 2003

Transamerica Retirement Services Producer’s Toolbox Plan Design and Compliance Expertise New 2003 Comp Plus Package Preferred Producer Program Producer Support

MEP Non-Control Groups Plan Design and Compliance Expertise Bottom-Up QNECs Sarbanes-Oxley Act MEP Non-Control Groups A Guide To Evaluating Your Company’s Retirement Program Fiduciary Guide Deemed IRAs

Bottom-Up QNECs Plan Design and Compliance Expertise Many plan sponsors are subjected to year- end testing Plans fail discrimination testing Plan sponsor obtain refunds from the discrimination test Visit last quarter’s web conference in the producer site Streaming Media Center on www.TA-Retirement.com

Three pension provisions Blackout Notice Requirement Plan Design and Compliance Expertise Sarbanes-Oxley Act Three pension provisions Blackout Notice Requirement Prohibition on Insider Trading of Employer Securities During Defined Contribution Plan Blackout Periods Increased ERISA Criminal Penalties

Sarbanes-Oxley Act Plan Design and Compliance Expertise DOL1 interim final rules with respect to the blackout period The notice must be furnished at least 30 days, but not more than 60 days before the last date participants and beneficiaries could exercise their affected rights before the blackout period begins. 1Department of Labor

Sarbanes-Oxley Act (cont.) Plan Design and Compliance Expertise Sarbanes-Oxley Act (cont.) If notice is not timely, a written explanation as to why the plan was unable to furnish the notice within the 30-day limit must be included.

Sarbanes-Oxley Act Plan Design and Compliance Expertise Exceptions to the 30-day notice requirement. Delay in implementing a blackout would violate the exclusive purpose rule or prudent man rule under ERISA Unforeseeable events or circumstances beyond the control of the plan administrator Blackout period is in connection with a merger, acquisition, divestiture or similar transaction. Note: Notice must nevertheless be provided in these situations

Sarbanes-Oxley Act Plan Design and Compliance Expertise Exceptions to the 30-day notice requirement. (cont.) The Plan administrator must make a written determination (dated and signed) with respect to the circumstances precluding compliance with the 30-day notice requirement. These regulations include a model notice Note: Notice must nevertheless be provided in these situations

Sarbanes-Oxley Act (cont.) Plan Design and Compliance Expertise Sarbanes-Oxley Act (cont.) Civil Penalties for Non-Compliance $100/day penalty (assessed to plan administrator) for non-compliance with the notice requirements Penalty cannot be paid with plan assets Penalty applies to each participant or beneficiary for each failure

Sarbanes-Oxley Act (cont.) Plan Design and Compliance Expertise Sarbanes-Oxley Act (cont.) These interim final rules are effective 1/26/03. The notice requirements apply to blackout periods that begin on or after 1/26/03 For blackout periods that begin between 1/26/03 and 2/25/03, notice must be provided as soon as reasonably possible.

Plan Design and Compliance Expertise MEP Controlled and Non-Controlled Groups Controlled Group definition: A controlled group consists of a group of businesses that are at least 80% owned by another business (“parent-subsidiary” controlled group) or an individual (“brother-sister” controlled group). All member companies of a controlled group are treated as if they were one employer for a number of employee benefit plan purposes.

Plan Design and Compliance Expertise MEP Controlled and Non-Controlled Groups Non- or Near-Controlled Group definition: A non-controlled group is similar in structure to a controlled group (multiple businesses with common ownership), but does not meet the ownership requirements (80%) to make it a true controlled group. Note: Some non-controlled groups are Affiliated Services Groups (i.e. business which share common ownership and derive a significant portion of their revenues by selling services to each other); ASGs are treated exactly the same as Controlled Groups

MEP Controlled and Non-Controlled Groups Plan Design and Compliance Expertise MEP Controlled and Non-Controlled Groups Characteristics Most likely do not have centralized payroll amongst member companies May have a single plan trustee and administrator Likely to have low employer terminations

MEP Controlled and Non-Controlled Groups Plan Design and Compliance Expertise MEP Controlled and Non-Controlled Groups Characteristics (cont.) Segment is attractive due to typically high asset levels and close ownership structure Segment is not easy to proactively target, since it is difficult to identify and qualify prospects

A Guide To Evaluating Your Company’s Retirement Program Plan Design and Compliance Expertise A Guide To Evaluating Your Company’s Retirement Program Four Pillars of a Successful Retirement Plan Plan Design and Compliance Employee Communication Investment Expertise and Performance Comprehensive Plan Administration, Service and Support

Plan Design and Compliance Expertise

Fiduciary Guide Plan Design and Compliance Expertise TRS commitment to Plan Sponsors Understanding Fiduciary Responsibility Fiduciary Management for Investments Value-added tool to help you service and manage your clients’ fiduciary risk and responsibility

Plan Design and Compliance Expertise

How can the fiduciary guide help you? Plan Design and Compliance Expertise How can the fiduciary guide help you? Describe roles to help you distinguish yourself from other brokers Provide a value-added way to service your client after plan sale Tool to provide you with the information involved in fiduciary responsibility

Deemed IRAs Plan Design and Compliance Expertise IRS issued its first guidance on Deemed IRAs in Revenue Procedure 2003-13 EGTRRA added Deemed IRA provisions to the Code effective for plan years beginning after 12/31/02. 

Deemed IRAs Plan Design and Compliance Expertise Background Highlights Impact  

Preferred Producer Program Educational Opportunities Broker Support Comp Plus Preferred Producer Program Educational Opportunities Internal Sales Desk

Applies to Partner Series and Director Series Products Comp Plus Changed for 2003 Applies to Partner Series and Director Series Products All above contracts in their first deposit year are eligible Comp Plus paid on all commissions generated in the first deposit year

(Commissionable Contracts) Comp Plus (% of First Year Commission) First Year Deposits (Commissionable Contracts) Comp Plus (% of First Year Commission) First $1,000,000 0% Next $4,000,000 15% Next $5,000,000 30% Excess over $10,000,000 50%

First-Year Deposits: $6,000,000 Eligible Comp Plus Amt: $6,000,000 Example: First-Year Deposits: $6,000,000 Eligible Comp Plus Amt: $6,000,000 Compensation: $ 60,000 (1% first commissions) Comp Plus Bonus: $ 9,500

Bonus available for commissionable cases only Comp Plus 2003 Bonus available for commissionable cases only Applicable to Partner Series and Director Series Products* Paid Monthly *“Director Series” and “Partner Series” refers collectively to the following policy forms: “Transamerica Director Series I” and “Transamerica Partner Series I”--Contract Form No. TGP-439-194 is a group annuity issued by Transamerica Life Insurance and Annuity Company, Charlotte, NC, and offered through Transamerica Retirement Services. Contract Form and number may vary, and this product may not be available in all jurisdictions. Not available in New York. “Director Series I” and “Partner Series I”--Contract Form No. TA-AP-2001-CONT is a group annuity contract issued by AUSA Life Insurance Company, Inc., Purchase, NY, and offered through Transamerica Retirement Services. In the State of New York, Transamerica Retirement Services refers to AUSA Life Insurance Company, Inc.

Preferred Producer Program Effective January 1, 2003, the following levels have been restructured based on written first year assets: PLATINUM $10 million GOLD $ 5 million SILVER $ 2 million Only sales of the Director Series and Partner Series qualify

Silver Preferred Producer Preferred Producer Program Silver Preferred Producer ($2 Million) Customized Ads Customized Worth A Look Marketing letters and customized materials Customized prospecting lists Seminar support Preferred Installation Service

Gold Preferred Producer Preferred Producer Program Gold Preferred Producer ($5 Million) Customized Ads Customized Worth A Look Contact Management Software Customized prospecting lists Seminar support Preferred Installation Service Personal Marketing Consultant

Platinum Preferred Producer Preferred Producer Program Platinum Preferred Producer ($10 Million) Customized Ads Customized Worth A Look Contact Management Software Customized prospecting lists Seminar support Preferred Installation Service Personal Marketing Consultant Invitation to Big Kahuna

Platinum Preferred Producer Preferred Producer Program Platinum Preferred Producer Big Kahuna Contest To qualify for this trip, you must have $10 million in first-year sales!  Regular standing updates on producer website Big Kahuna destination for 2004: Prague

Retirement Services University (RSU) Business Builder Workshops Producer Support Retirement Services University (RSU) Business Builder Workshops Internal Sales Desk Contact Us

Producer Support RSU Transamerica’s Retirement Services University is for those who already do retirement plan business and still want to do more. Our objective is to create an open forum where the best producers can get together and share tips for success.

Business Builder Workshops Producer Support Business Builder Workshops Held in Boston, Chicago, Los Angeles and San Francisco Expanding to run more workshops in other cities One-day workshops designed to Help you assess your business and To become a more effective producer

Internal Sales Desk Producer Support 3 teams: 4-6 Internal Sales Consultants per team Small teams where relationships are built yet large enough to respond to the needs of producers in various regions Calls are routed by area code (888) 401-5826

Your one-stop solution to all the sales support you need Proposals Producer Support Internal Sales Desk Your one-stop solution to all the sales support you need Proposals ERISA Desk/ Plan Design Exceptions Closing Support (888) 401-5826

Internal Sales Desk Producer Support Live attendance (coverage 9 AM-5 PM) Contact for marketing materials and fulfillment Answers plan design or ERISA-related questions Referral to appropriate TRS department Help with producer website login information (888) 401-5826

Contact our Internal Sales Desk at (888) 401-5826 for any questions. Producer Support Contact Us . . . Contact our Internal Sales Desk at (888) 401-5826 for any questions. Visit our website at www.TA-Retirement.com to learn more about what we have to offer.