©UFS Emerging Retirement Model Study: A Survey of Plan Sponsors January 12, 2010 Cynthia Mallett, Vice President, Product & Market Strategies, Corporate Benefit Funding L [exp1111][All States][DC]

2 Overview Background –Current economic forces are driving opposing trends –Workforce reductions colliding with workers seeking to delay retirement –Employers, as well as Congressional leaders, are grappling with the notion of what “retirement” really means –Implications for future benefit design and longer term workforce management Research objectives –Explore whether and to what extent plan sponsors are recalibrating issues surrounding the aging workforce –Identify emerging benefits and workplace practices that may be used to manage very experienced workers going forward

L [exp1111][All States][DC] 3 Methodology Commissioned Asset International to conduct online survey of plan sponsors –with 1,000+ employees –offered DB and/or DC plan, and as well as at least two employee welfare benefits Targeted senior compensation & employee benefits executives with a strategic view of their company’s direction Fielded August – September survey respondents

L [exp1111][All States][DC] 4 Knowledge Drain Concerns Trump Delayed Retirement Concerns relating to employee retirement, today and in 3-5 years Knowledge drain is both a “today” and “tomorrow” issue for most employers

L [exp1111][All States][DC] 5 Productivity and culture are casualties of retirement But many believe the bottom line will benefit Impact of Retirement of Older Employees

L [exp1111][All States][DC] 6 Disconnect Between Worry and Action Few employers have taken steps to curtail or assess impact But time may be on their side Current and Expected Retirement Ages +3.0 Years +3.3 Years

L [exp1111][All States][DC] 7 Benefits Not Viewed as a Strategic Lever Retiree benefits incidence increases with firm size Few acknowledge link between post-retirement benefits and retirement decision Missed opportunity to use benefits as a strategic tool? Do You Offer Post-Retirement Benefits?

L [exp1111][All States][DC] 8 More legislation and regulatory guidance welcome Phased Retirement Programs Key to Recalibrated Retirement Potential Obstacles to Offering a Phased Retirement Program

L [exp1111][All States][DC] 9 New Retirement Model Emerging? A more gradual transition of older workers from full-time work to retirement. The burden of retirement security has, by large, shifted to the individual. Older workers, once retired, may move back into and out of the workforce either for the social engagement and/or out of financial necessity. A fluid and flexible continuum of company-specific needs and solutions. A continuum that may change in response to market conditions, employees / retiree needs and company objectives.

L [exp1111][All States][DC] 10 MetLife Insurance Company 200 Park Avenue, New York, NY