Pacific Administrators Knowledge Adventure Pension Plan Presented by Pacific Administrators Urs Kaelin – Pension Division

Pacific Administrators It’s never too late…or too early  Participating in your company sponsored pension plan is an excellent way to save money for your retirement.  You decide how much you want to contribute towards retirement.  Contributions are automatically withheld from your gross pay and deposited into your own Personal Choice Retirement Account (PCRA) at Charles Schwab.

Pacific Administrators Charles Schwab Personal Choice Retirement Account (PCRA)  PCRA is a self directed brokerage account that allows you to invest your plan contributions into a greatly expanded range of investment choices.  PCRA’s are part of your company sponsored retirement plan. You can not make deposits or withdraw money directly, to or from your PCRA.

Pacific Administrators Expanded Investment Choices  Through Schwab’s PCRA, you have access to more than 2,500 mutual funds, including:  mutual funds with no-load and no transaction fees; and  500+ load-waived fund shares typically only available to institutional clients.

Pacific Administrators Enrolling in the Pension Plan…………….  Included in the enrollment packet are the following:  Enrollment Instructions;  Plan Enrollment & Salary Reduction Form;  PCRA Limited Power of Attorney (LPOA);  Direct Investment Disclosure Form; and  Standard Investment Election Form

Pacific Administrators The Schwab Advantage  You can choose from over 20 in-person and online seminars covering current investment topics such as “Navigating Today’s market” and “Building a Diversified Portfolio.”  You can meet with a Schwab Investment Consultant, who can answer questions and help with your investment needs.  Or you can take advantage of powerful research tools at: schwab.com

Pacific Administrators Completing the Paperwork Before you can participate, you must complete the following documents: 1.PCRA Limited Power of Attorney; 2.Enrollment & Salary Election Form; 3.Direct Investment Disclosure; and if applicable 4.Standard Investment Election Form.

Pacific Administrators Do It Yourself – Choosing where to allocate the contributions… 1) Once your PCRA has been established, Charles Schwab will mail to you a Welcome Kit. 2) The Kit will include your account number as well as Instructions on how to access your account and how to place your own trades. It also provides additional information on the life cycle of a PCRA and whom to contact with questions. 3)You’ll have 24/7 access to your account information on or you may call 888/

Pacific Administrators Authorize the TPA to place your Trades…….. 1)If you decide to have a standing order appointing the TPA to place your trades for you, complete the Standard Investment Election Form; 2)Select each funds based on a percentage of your contribution, total must add up to 100%; 3) You’ll have 24/7 access to your account info at:

Pacific Administrators Plan Details – Salary Deferral Contributions and Eligibility  Employees hired before December 31, 2004 are automatically eligible.  New Hires are eligible to participate in the Salary Deferral portion of the Plan on the 1st. of the month following the Date of Hire and are 21 years of age. Employees may enter the Plan Quarterly, on January 1st. April 1st. July 1st. or October 1st.  For 2005, participants may contribute up to an annual maximum amount of $14,  In addition, participants over the age of fifty (50), can contribute an additional $4,

Pacific Administrators Employer Matching Contributions and Eligibility  Employees hired before December 31, 2004 are automatically eligible.  New Hires will be eligible, if they are 21 years of age and have completed 1 Year of service. Eligible employees may enter the Plan quarterly: January 1 st. April 1 st. July 1 st. & October 1 st.  Matching contributions are discretionary and determined each year by the Board of Directors.  For the 2005 Plan Year, matching contribution equal 25% of the employees deferral, up to a maximum of the first 6% of salary.

Pacific Administrators Important Plan Details  The Anniversary and Valuation Date is December 31, the last day of the Plan Year;  The Plan benefits all Employees, except for members of a collective bargaining unit and non-resident aliens;  Employer contributions shall be vesting at 20% after the first year of service; and  Regular Retirement Age 65 – Early Retirement Age 59.5 and 5 Years of Service.

Pacific Administrators More Details - Distributions  Plan distributions are made in Lump Sums.  Distributions to Participants who resign or are discharged prior to retirement are made at the Participant's election within a reasonable period following the Distribution Date.  Participants who have terminated employment and have an account balance of $5,000 or less may be paid out without their consent.  Hardship Distributions are available for qualifying events.

Pacific Administrators More Details - Loans  Participants may borrow up to 50% of their vested account balance, minimum loan amount $1000;  Only two loans can be outstanding at any given time;  Loan payments are through payroll deductions;  Maximum term for general loans is 5 years;  Maximum term for the purchase of a personal residence is 10 years;  The minimum loan fee is $100* and interest rates are determined at the time that the loan is requested to be processed.

Pacific Administrators Your Third Party Administrator (TPA) Info.. PACIFIC ADMINISTRATORS 6180 QUAIL VALLEY COURT RIVERSIDE, CA Telephone: 800/ X210 Fax: 760/ Web: Plan Contact: Urs Kaelin