Brethren Pension Plan Bethany Seminary — March 10,

Today’s presentation High cost of retirement How Brethren Pension Plan works Time and rate of return BBT investments making a difference Context for allocation decisions 2

High cost of retirement Research indicates average U.S. employee needs 15.7 times final pay (11 times if Social Security is included) This example of retirement savings needed is based on research conducted by AONHewitt. It is an approximation of the amount of money needed in retirement based on a number of variables that may or may not conform to specific individual needs. This exhibit is intended for educational purposes and is not to be construed as advice. 3 — Age 30 employee — 37 years to normal retirement age — $20,000 gross annual income — 3 percent annual inflation rate $626,900 Retirement savings goal

Advantages of your plan… Tax qualified savings — 403(b)9 Church Plan — Tax-deferred employee contributions — 2014 — up to $17,500 pre-tax — Join as soon as you are hired — Time is key 4

Advantages of your plan… Employer Contributions — PCBAC recommended rate — 11 percent — Start immediately upon participation — 100 percent immediately vested 5

Advantages of your plan… In-Plan Annuity — Monthly payments for life! — 100 percent of employer accumulations — Employee accumulations — flexible distribution — Benefit amount can vary — May start at age 55 regardless of employment status — Survivor benefit — 50, 75, or 100 percent 7

Web-based tools 10 Account management Retirement readiness

BBT Investments 11 Asset Classes 1.Stocks (also called “equities”) — form of ownership 2.Bonds (also called “fixed income”) — a type of debt 3.Cash 4.Other a.Commodities b.Community Development c.Real Estate

BBT Investments 11 Investment NameAsset Class Balanced FundBalanced Bond FundBond High Yield Bond FundBond Treasury Inflation - Protect Sec FundBond Treasury-Free Bond FundBond Short-Term FundBond Common Stock FundStock Domestic Stock Core FundStock Domestic Stock Growth FundStock Domestic Stock Mid Cap FundStock Emerging Markets Stock FundStock International Stock Core FundStock Small Cap FundStock Commodities-Based FundOther Community Development FundOther Public Real Estate FundOther

BBT Investments — SRI 11

Allocation decisions — time horizon 11 1.How much time before starting my retirement income? 2.How long will my retirement be?

Allocation decisions — risk tolerance What is yours? 1.Low tolerance — accepting losses ≤ 5 percent (over a 12-month period) 2.Moderate tolerance — accepting losses between 6 and 15 percent (over a 12-month period) 3.High tolerance — accepting losses between 16 and 25 percent (over a 12-month period)

Time and rate of return 40 years to save20 years to save Annual RoR$/month saved 7%$404.00$1, %$523.00$119.00$2,200.00$ %$673.00$150.00$2,459.00$ %$860.00$187.00$2,744.00$ %$1,089.00$229.00$3,056.00$ %$1,366.00$277.00$3,396.00$ %$1,696.00$330.00$3,766.00$ Avg incremental increase $215.33$ Savings goal: $1 million at retirement; starting with $0 Two time scenarios: 40 years and 20 years

Time and rate of return 3 1.Time and investment returns are levers to reaching your goal 2.The sooner you start, the easier it is to reach goal

Questions? 49