Next Generation Default Options for 403(b) Retirement Plans Every Move Counts! Next Generation Default Options for 403(b) Retirement Plans

Franklin University Founded in 1902 as a YMCA Institution Private, Non-Profit University 33 Undergraduate Degree Programs 9 Masters Degree Programs 3 Doctoral Degree Programs $70 Million Operating Budget $90 Million Investment Pool Only 5% Restricted 8,000 Students 6,000 Non-traditional Students 2,000 Traditional Students

Franklin University Randy Snyder, Vice President Financial Services Innovative Culture – Employee Outcomes Focus Revised 403(b) plan to include both TIAA and other investment options Allow for a six-month automatic rebalancing of asset allocation mix by participants with the help of PK Financial Group Inc. and TIAA. This provides a pathway for participants to take control of their investment decisions and select an asset allocation mix that is in line with their risk tolerances. Randy Snyder, Vice President Financial Services University Enterprise 403(b) Governance Committee Co-Chair openclipart.org

PK Financial Group Inc. Pete Kaplan, President Brian Petros, CEO Consultant Agreement with TIAA 21 Licensed Advisors and 3 Administrative Support Staff Members in Ohio Part of a national network of 6000 licensed advisors throughout the United States known as SagePoint Financial, Inc. (part of the Advisor Group)

PK Financial Group Inc. PK Financial Group Inc. provides: One-on-one meetings as needed Group seminars and on-going educational activities Account reviews as needed Top Level support for the Retirement Plan Committee An independent, unbiased education designed to help you realize your retirement savings goals. We are compensated on a “fee-based” arrangement.

Case Study: Franklin University Old Plan New Plan (GRA)/(RA) Funded with mandatory 5% of compensation from employees and Franklin match Defined Contribution (GSRA)/(RA)/(SRA) Funded with voluntary employee contributions in excess of 5% of compensation from employee per IRS limits Tax Deferred Annuity Retirement Choice (RC) Funded with mandatory 5% of compensation from employee and Franklin match Defined Contribution Retirement Choice Plus (RCP) Funded with voluntary employee contributions in excess of 5% of compensation from employees per IRS limits Tax Deferred Annuity

Five Custom Model Portfolios Meet the Portfolios: Model 1 - Conservative Model 2 - Moderate Conservative Model 3 - Moderate Model 4 - Moderate Aggressive Model 5 - Aggressive Constructed with the “Default Option” in Mind Age to Risk Hybrid Appropriately allocates default participants based on age Automatically moves participants to the appropriate model as they age

Custom Model Portfolio Participation Franklin Enterprise Franklin 346 Active Participants in Total Plan 238 Active Participants in Model Portfolios Urbana 97 Active Participants in Total Plan 71 Active Participants in Model Portfolios 80% Participation

Conservative Portfolio Performance Benchmark Model 5-Aggressive Benchmark: Morningstar Aggressive TRI

Moderate Conservative Portfolio Performance Benchmark Model 5-Aggressive Benchmark: Morningstar Aggressive TRI

Moderate Portfolio Performance Benchmark Model 5-Aggressive Benchmark: Morningstar Aggressive TRI

Moderate Aggressive Portfolio Performance Benchmark Model 5-Aggressive Benchmark: Morningstar Aggressive TRI

Aggressive Portfolio Performance Benchmark

Implementing Best Practices Clarity of roles is essential Plan sponsors should clearly designated and document who is responsible and accountable for each aspect of plan compliance Who is responsible for ensuring compliance? Plan sponsors bear responsibility and liability for a broad range of factors. Among the key compliance areas addressed are: Plan Documentation Operations Transactions Financial Reporting What are a plan sponsors primary compliance requirements? Personal Liability Legal Action Fines What are the penalties for non-compliance?

Principals Randy Snyder | Vice President, Financial Services Franklin University Email: randy.snyder@franklin.edu Phone: 614-947-6024 Pete Kaplan | President PK Financial Group Inc. Email: pkaplan@pkfinancialgroup.com Phone: 216-393-8182 Fax: 330-405-5874 Brian Petros | CEO PK Financial Group Inc. Email: bpetros@pkfinancialgroup.com Phone: 216-393-8182 Fax: 330-405-5874