1 Overview Bencor Special Pay Plan For Employees of the School District of Lee County

2 Introduction BENCOR NATIONAL GOVERNMENT EMPLOYEES RETIREMENT PLAN™ (BENCOR Special Pay Plan) BENCOR NATIONAL GOVERNMENT EMPLOYEES RETIREMENT PLAN™ (BENCOR Special Pay Plan) Offered by BENCOR, Inc. Offered by BENCOR, Inc. Allows governmental entities and their employees to take maximum advantage of the Federal tax laws. Allows governmental entities and their employees to take maximum advantage of the Federal tax laws.

3 Eligibility Must be administrative, supervisory-technical, confidential, or instructional employee. Must be administrative, supervisory-technical, confidential, or instructional employee. Must be eligible for accumulated sick leave pay and/or annual leave pay from the School District of Lee County. Must be eligible for accumulated sick leave pay and/or annual leave pay from the School District of Lee County. Must be retiring, terminating or enrolled in DROP. Must be retiring, terminating or enrolled in DROP. Must have accumulated sick and annual leave equal to $1, or more. Must have accumulated sick and annual leave equal to $1, or more.

4 Eligibility Accumulated sick leave pay and annual leave pay of employees who retire, terminate employment, or enter into the DROP program will be placed into the BENCOR “Special Pay Plan” subject to contribution limits. Accumulated sick leave pay and annual leave pay of employees who retire, terminate employment, or enter into the DROP program will be placed into the BENCOR “Special Pay Plan” subject to contribution limits.

5 Contribution Limits In the last year of employment, the Maximum Plan Contribution cannot exceed 50% of the Plan Year Compensation* or $51,000, whichever is less. In the last year of employment, the Maximum Plan Contribution cannot exceed 50% of the Plan Year Compensation* or $51,000, whichever is less. *Plan Year Compensation=Wages for the previous 12 months + Accumulated Sick Leave Pay + Accumulated Annual Leave Pay (“Special Pay”) that is to be paid in that year.

6 Plan Trustee Reliance Trust Company

7 Plan Sponsors Diversified/Transamerica Diversified/Transamerica BENCOR, Inc. BENCOR, Inc.

8 Plan Administrator BENCOR Administrative Services Toll free number:

9 Investments Diversified/Transamerica offers 17 investment options. Diversified/Transamerica offers 17 investment options. Special Pay Plan contributions are automatically placed in a fixed account (Guaranteed Pooled Fund) and can only be invested in other accounts in accordance with the participants’ instructions. Special Pay Plan contributions are automatically placed in a fixed account (Guaranteed Pooled Fund) and can only be invested in other accounts in accordance with the participants’ instructions.

10 Investment Expenses No fee charged for contributions that remain in the Guaranteed Pooled Fund (i.e. fixed) Account option. No fee charged for contributions that remain in the Guaranteed Pooled Fund (i.e. fixed) Account option.

11Distributions Distributions may be taken upon: Distributions may be taken upon: 1) Termination of employment 2) Total disability 3) Death

12 Distributions The participant may choose to leave money in the Plan, self-directing future investments and taking distributions as desired in a tax-deferred manner. The participant may choose to leave money in the Plan, self-directing future investments and taking distributions as desired in a tax-deferred manner. Distributions may be taken in a lump sum or as periodic payments taken monthly, quarterly, semi-annually, or annually. Distributions may be taken in a lump sum or as periodic payments taken monthly, quarterly, semi-annually, or annually.

13 Distributions To receive a distribution, the participant must complete a DISTRIBUTION/LOAN REQUEST FORM. A distribution packet is available from BENCOR Administrative Services at To receive a distribution, the participant must complete a DISTRIBUTION/LOAN REQUEST FORM. A distribution packet is available from BENCOR Administrative Services at Distributions will be processed in a timely manner with minimal waiting (once BENCOR receives the money from the District AND the distribution request form has been submitted). Distributions will be processed in a timely manner with minimal waiting (once BENCOR receives the money from the District AND the distribution request form has been submitted).

14 Distributions Participants (or surviving spouses) can “roll over” Plan Assets into an IRA or into another qualifying plan after termination of employment from the School District of Lee County. Participants (or surviving spouses) can “roll over” Plan Assets into an IRA or into another qualifying plan after termination of employment from the School District of Lee County.

15 IRS Penalties There is no IRS penalty for any Plan participant age 55 or older who elects to withdraw plan funds provided the participant separated from service during the calendar year in which he/she turned age 55, or later.

16 IRS Penalties Plan participants who separate employment before the calendar year in which they turn age 55 and who elect to withdraw Plan funds prior to age 59 ½ are subject to a 10% early withdrawal penalty by the IRS. Plan participants who separate employment before the calendar year in which they turn age 55 and who elect to withdraw Plan funds prior to age 59 ½ are subject to a 10% early withdrawal penalty by the IRS.

17 IRS Penalties The School District will “make whole” (subject to applicable withholding tax) participants who are subject to this penalty if they request all of their funds from the Plan Administrator within 60 days of termination of employment with the School District of Lee County. The School District will “make whole” (subject to applicable withholding tax) participants who are subject to this penalty if they request all of their funds from the Plan Administrator within 60 days of termination of employment with the School District of Lee County.

18 Excess Sick and Annual Leave Any eligible sick leave or annual (vacation) leave in excess of plan contribution limits will be paid to the participant, subject to Federal withholding and related payroll taxes (Social Security and Medicare). Any eligible sick leave or annual (vacation) leave in excess of plan contribution limits will be paid to the participant, subject to Federal withholding and related payroll taxes (Social Security and Medicare).

19 Employee Responsibilities 1) Complete BENCOR/Diversified/Transamerica enrollment form * a. Select account(s) (if not previously selected) selected) b. Identify beneficiaries 2) Forward completed form to BENCOR 3) Retain packet and all pertinent information * Note: If no selection is made, eligible dollars will automatically be paid into the Guaranteed Pooled Fund (Fixed) Account.

20 End Part I

21 BENCOR Calculation Example

22 BENCOR Calculation Information Needed Plan Year Salary (July 1 – Term. Date) Plan Year Salary (July 1 – Term. Date) Hourly Rate Hourly Rate Base salary + Degree Supplement divided by hours worked per year Final Sick Leave Balance (In Hours) Final Sick Leave Balance (In Hours) Final Annual Leave Balance (In Hours) Final Annual Leave Balance (In Hours) Payment % Eligibility Payment % Eligibility (12+ Years at Lee County School Board = 100%) (12+ Years at Lee County School Board = 100%)

23 John Anderson is a teacher with a Master’s degree and 30 years of experience at the Lee County School Board. He is retiring on May 30, At May 30, 2013 he will have 1,500 hours of unused sick leave. He does not earn annual leave. His 2012/2013 plan year salary includes a base salary of $ 49,833, a Master’s degree supplement of $ 2,500, and various other supplements totaling $ 2,667. Sample Data

24 Plan Year Salary = $55,000Plan Year Salary = $55,000 Base salary + Degree Supplement + Other Supplements $ 49,833 $ 2,500 $2,667 $ 49,833 $ 2,500 $2,667 Hourly Rate = [($49, ,500) divided byHourly Rate = [($49, ,500) divided by (7.5 x 196 days)] = $ /hr. (7.5 x 196 days)] = $ /hr. Sick Leave Balance = 1,500 hoursSick Leave Balance = 1,500 hours Payment % Eligibility (12+ Years at Lee CountyPayment % Eligibility (12+ Years at Lee County School Board = 100%) BENCOR Calculation Example

25 Calculation of Sick Leave Pay-off Sick Leave Balance 1, hrs Payment Percentage x 100% 1, hrs Hourly Rate x _ $ Equals: Sick Leave Pay-off $ 53,400.00

26 Calculation of Plan Year Compensation Plan Year Salary $ 55, Sick Leave Pay-off + 53, Equals: Plan Year Compensation $ 108,400.00

27 IRS Limitations Maximum Contribution to BENCOR for the 2013 Plan year is the lesser of: for the 2013 Plan year is the lesser of:$51,000or 50% of Plan year Compensation

28 Calculation of Actual BENCOR Contribution 50% of Plan Year Compensation $ 54, (1) IRS Limit $ 51, (2) Sick Leave Pay-off $ 53, (3) Actual BENCOR Contribution $ 51, (Lesser of 1, 2 or 3) Note: If sick leave pay-off is less than $ 1,000 no contribution will be made to BENCOR. no contribution will be made to BENCOR.

29 Calculation of Remainder of Terminal Pay Accumulated Sick Leave $ 53, Less: BENCOR Contribution $ 51, Remainder of Terminal Sick Leave $ 2, paid directly to Employee paid directly to Employee Note: Applicable Income and Social Security Taxes will be deducted from the remainder portion paid directly to the employee.

30 End Part II