The World Bank Group Net Plan Changes Effective May 1, 2007 Pension Administration Tel: (202)

The World Bank Group 2 World Bank Pension Administration April 2007 Staff Retirement Plan  Objectives for change  Changes effective May 1, 2007  Plan design  Voluntary Savings Component details  How to enroll in Voluntary Savings Component  Expanded pension option  Cash Balance & Voluntary Savings investment options  Sources of Additional Information

The World Bank Group 3 World Bank Pension Administration April 2007 Objectives for Change  Make the Plan more flexible  Increase investment flexibility  Expand opportunities to build retirement savings  Improve eligibility for pension  Create more of an employer/employee balance for retirement income

The World Bank Group 4 World Bank Pension Administration April 2007 Net Plan Changes – May 1, 2007  Increase Cash Balance Component investment options from 4 to 8  Add a new Voluntary Savings Component with 8 investment options  Provide an pension to employees who have five years of service and whose age plus years of defined benefit services equals at least 60  Allow monthly investment changes Increased Expanded O P P O R T U N I T I E S

The World Bank Group 5 World Bank Pension Administration April 2007 Net Plan Components Defined Benefit Component Cash Balance Component Voluntary Savings Component A Balanced Partnership for Building Retirement Income World BankEmployees

The World Bank Group 6 World Bank Pension Administration April 2007 Voluntary Savings Component  Participants may contribute 1%-15% of net pay  Eight investment options  Option to change contribution percentage and investment options monthly  Contributions are after-tax  Investments grow tax-deferred until distribution  Account tracked in US dollars Expanded O P P O R T U N I T I E S

The World Bank Group 7 World Bank Pension Administration April 2007 Voluntary Savings Component  Account paid as lump sum upon retirement or termination of employment  Account paid to beneficiary upon death while an active employee  No tax supplement on Voluntary Savings Component  U.S. tax qualified plan which provides for rollovers upon termination  Distribution paid in US dollars or currency of choice based on spot exchange rate

The World Bank Group 8 World Bank Pension Administration April 2007 Voluntary Savings Component - Enrollment

The World Bank Group 9 World Bank Pension Administration April 2007 Voluntary Savings Component Enrollment

The World Bank Group 10 World Bank Pension Administration April 2007 Voluntary Savings Component Statement

The World Bank Group 11 World Bank Pension Administration April 2007 Voluntary Savings Component Statement

The World Bank Group 12 World Bank Pension Administration April 2007 Defined Benefit Component – Pension Payment  Employees have asked for greater flexibility to receive an pension  New pension qualifications  10 years of benefit service or,  5 years of benefit service and age plus years of benefit service equals 60  Example: change allows an employee hired at age 57 to receive pension payment if they work until age 62 Increased

The World Bank Group 13 World Bank Pension Administration April 2007 Cash Balance Component – Investment Changes  Monthly investment changes  Changes received by last day of the month effective first day of following month. (Example: changes made by midnight April 30, 2007 will be reflected on May 1, 2007)  More investment options Expanded O P P O R T U N I T I E S Current Options New Options

The World Bank Group 14 World Bank Pension Administration April 2007 Cash Balance & VS – Investment Options Lower RiskModerate RiskHigher Risk  Real 3% 1,3  Lehman Brothers Government/ Credit Index 1  Merrill Lynch USD LIBOR  Lehman Brothers 2 U.S. TIPS Index  S&P 500 Index 1  JP Morgan Emerging Market Bond Index Plus (EMBI+)  MSCI EAFE Index 1  Russell 2000 Index  MSCI Emerging Market Index 1) Currently offered as investment options 2) Available in Voluntary Savings Component Only 3) Real 3% available in Cash Balance Component Only

The World Bank Group 15 World Bank Pension Administration April 2007 Real 3% Investment Objective – guaranteed return of 3% above inflation rate based on US Consumer Price Index Administration Fees: None Risk Level LowModerateHigh Real 3% Option available in Cash Balance Component only

The World Bank Group 16 World Bank Pension Administration April 2007 Lehman Brothers U.S. TIPS Index Investment Objective – Unmanaged market index comprised of all U.S. investment grade Treasury Inflation Protected Securities with at least one year to final maturity and at least $250 million per amount outstanding. Administration Fees: Annual fees of $10 per $10,000 in account value. Risk Level LowModerateHigh U.S. TIPS Option available in Voluntary Savings Component only

The World Bank Group 17 World Bank Pension Administration April 2007 Lehman Brothers Government/ Credit Bond Index Investment Objective – Provide a return based on U.S. Treasury obligations with maturities over one year, government-related issues, and investment grade U.S. Corporate issues. Administration Fees: Annual fees of $10 per $10,000 in account value. Risk Level LowModerateHigh

The World Bank Group 18 World Bank Pension Administration April 2007 Merrill Lynch USD LIBOR Investment Objective – Track purchase of an instrument having 3 months to maturity with a coupon equal to the closing quote for 3-month LIBOR. Administration Fees: Annual fees of $5 per $10,000 in account value. Risk Level LowModerateHigh

The World Bank Group 19 World Bank Pension Administration April 2007 S&P 500 Index Investment Objective – Track the return of the S&P 500 Index, which contains a representative sample of common stocks that trade on the NY and American Stock Exchanges and some over-the-counter stocks. Administration Fees: Annual fees of $4 per $10,000 in account value Risk Level LowModerateHigh

The World Bank Group 20 World Bank Pension Administration April 2007 JP Morgan Emerging Market Bond Index Plus (EMBI+) Investment Objective – Track return of traditional, market- capitalization weighted index comprised of U.S. dollar- denominated Brady Bonds, Eurobonds and traded loans issued by sovereign entities. Includes currency fluctuation risk. Administration Fees: Annual fees of $15 per $10,000 in account value. Risk Level LowModerateHigh

The World Bank Group 21 World Bank Pension Administration April 2007 Russell 2000 Index Investment Objective – Measures performance of the 2,000 smallest companies in the Russell 3000 Index, which is made up of 2,000 of the biggest U.S. Stocks. Administration Fees: Annual fees of $10 per $10,000 in account value. Risk Level LowModerateHigh

The World Bank Group 22 World Bank Pension Administration April 2007 MSCI EAFE Index Investment Objective – Track return of the Morgan Stanley Capital International Europe, Australasia, Far East Index, a free float-adjusted market capitalization index designed to measure developed market equity performance, excluding the U.S. and Canada. Includes currency fluctuation risk. Administration Fees: Annual fees of $10 per $10,000 in account value. Risk Level LowModerateHigh

The World Bank Group 23 World Bank Pension Administration April 2007 MSCI Emerging Market Index Investment Objective – Measure equity market performance in the Global emerging markets through a free float-adjusted market capitalization index. Includes currency fluctuation risk. Administration Fees: Annual fees of $20 per $10,000 in account value. Risk Level LowModerateHigh

The World Bank Group 24 World Bank Pension Administration April 2007 Investment Funds – Average Annualized Returns Investment Option1 Year3 Years5 Years Real 3%6.38%5.77%5.57% Lehman Brothers U.S. TIPS Index2.74%3.44%7.22% Lehman Brothers Government/ Credit Index5.39%3.27%5.18% Merrill Lynch USD LIBOR5.32%3.41%2.67% S&P 500 Index11.97%9.10%6.82% EMBI+7.88%11.61%14.12% Russell 2000 Index9.87%11.95%12.44% MSCI EAFE Index21.57%19.53%16.88% MSCI Emerging Market Index17.39%26.84%25.31% Historic performance is not necessarily indicative of actual future investment performance, which could differ substantially

The World Bank Group 25 World Bank Pension Administration April 2007 Additional Resources  Pension and Retirement Information website  Investment Fact Sheets  Voluntary Savings Component description  Voluntary Savings Component Account Statements  Basic Investment Guidelines  FAQ’s  Information to come  Staff Retirement Plan Highlights Brochure  Enhancements to Retirement Planner

The World Bank Group 26 World Bank Pension Administration April 2007 Additional Questions X82977  Pension Information Line: (202)  “Pension Administration”

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