CONFIDENTIAL – NOT FOR DISTRIBUTION The Manning & Napier Fund, Inc. is managed by Manning & Napier Advisors, LLC (“Manning & Napier”). Manning & Napier Investor Services, Inc. and affiliate of Manning & Napier, is the distributor of the Fund shares. Prepared byPrepared for Xxxxxx Health Care Reform Changing the Health and Retirement Plan Landscape

2 History as a solutions provider Holistic approach to meeting participant objectives Investment solutions to drive outcomes Deep bench of resources and subject matter expertise Managing Risk Through Changing Environments Manning & Napier: The Investment Manager Founded in 1970 $45.2 billion is assets under management as of 12/31/2012 First objectives-based account in 1971 Co-fiduciary status to actively manage asset allocation in separately managed accounts and collective investment trust funds Client Analytics Group of over 20 analysts with approximately 200 years of combined industry experience Founded in 1970 $45.2 billion is assets under management as of 12/31/2012 First objectives-based account in 1971 Co-fiduciary status to actively manage asset allocation in separately managed accounts and collective investment trust funds Client Analytics Group of over 20 analysts with approximately 200 years of combined industry experience Manning & Napier Advisors, LLC (Manning & Napier) provides investment advisory services to Exeter Trust Company, Trustee of the Manning & Napier Collective Investment Trust funds. The Collectives are available only for use within certain qualified employee benefit plans.

3 Retirement Plan Shift Increased Regulation and Unsustainable Employer Liability Motivate Shift from Defined Benefit to Defined Contribution Poor Employee Retirement Savings Choices Strain Employer Bottom Line

4 Health Plan Shift Health Care Reform and Unsustainable Health Care Inflation Motivate Shift from Defined Benefit to Defined Contribution Poor Employee Health Spending Choices Strain Employer Bottom Line

5 Convergence of Health and Wealth Employers Cannot Afford to Wait. HEALTHWEALTH +

6 Significance of 2014 Changing the Way Employers Approach Benefits Retirement regulation and health regulations on a parallel path Health Care Reform Accelerates Convergence Impact Cost Impact for Some, Consulting Opportunity For All Retirement industry has a responsibility to help plan sponsors understand retirement plan implications to health decisions Opportunity Call to Action Plan sponsors must partner with experts to help guide them through the uncertainty

7 Health Care Reform Timeline Phase 2: Strategic Compliance New Options, Benchmarks, and Penalty Requirements Phase 1: Tactical Compliance New Coverage, Administrative, and Disclosure Requirements 2010 Passage of the Patient Protection and Affordable Care Act

8 2014: The New Landscape BenchmarksPenalties Options Employer Sponsored Coverage Public Exchanges Expanded Medicaid Benchmarks Broader Access More Affordable Premiums (for lower earners, high health consumers) Less Rich Benefits Penalties Individual Mandate Employer Mandate (for Employers with 50+ full time employees) Cadillac Tax

9 Importance of a Holistic Benefits Perspective 1. In 2014, do you plan to offer health plan coverage? Health Consideration Health Care Reform cost impact Retirement Implication Competitive total benefits offering 2. Are you making changes to administrative processes? 3. Are health benefits part of your current executive compensation package? Health Consideration Health Care Reform establishes new administrative requirements Retirement Implication Health plan administration may differ from retirement plan administration Health Consideration Health Care Reform imposes new nondiscrimination requirements on health plans Retirement Implication Competitive total executive benefits offering

10 Health Plan Termination Drop Coverage Maintain Coverage This prompts the question: Do you plan to drop or maintain health plan coverage? Did You Know… Citing a Deloitte report published in June 2012, The Wall Street Journal reported that an estimated 1 in 10 employers will stop offering health coverage because of the new health care reform law. 1 1 Source: The Wall Street Journal. “Deloitte: One in 10 U.S. Employers to Drop Health Coverage.” 24 July Web.

11 Health Plan Administration This prompts the question: Have you evaluated your administrative procedures and processes to comply with health care reform requirements? Did You Know… Beginning in 2014, employers that employed an average of 50 full-time employees during the previous calendar year must offer health coverage that meets minimum essential coverage requirements or pay a fine. The Joint Committee on Taxation estimates employers will pay $52 billion over 10 years in penalties for noncompliance. 1 Yes No 1 Source: U.S. Chamber of Commerce. “Critical Employer Issues in the Patient Protection and Affordable Care Act.” Web.

12 Health Plan Nondiscrimination This prompts the question: Prior to health care reform have you used health benefits as part of your executive compensation package? Did You Know… Health Care Reform expanded the application of rules prohibiting health benefits discrimination in favor of highly compensated employees (HCEs). As a result, it is more difficult for employers to use health benefits as part of their executive compensation package. Yes No

13 Total Outcomes Strategy Allocation of Benefits Dollars Health Care Reform Impact may shift employer investment away from core health Reallocate Benefits Spend to enhance employer contribution to retirement, employee engagement Total Rewards align benefits allocation with benefits valued by employees Plan Design Coordinate health and retirement incentives for holistic financial health Use Plan Designs that facilitate behavior changes and maximize participant outcomes Employee Engagement Understand Employee Demographics to nudge behavior in the right direction Empower Employees to be better consumers of health care and save more Total Outcomes Allocation of Benefit Dollars Plan Design Employee Engagement

14 Manning & Napier Can Help Resources Read Manning & Napier White Papers available at Helping Employers and Employees Navigate the Health/Wealth Convergence An Evolving Landscape: Regulatory Impacts on Health/Wealth Choices Webinar For a more in-depth discussion on this, sign-up for our upcoming webinar at Partnering to Drive Outcomes Our investment solutions are designed to manage the real world risks facing plan sponsors and participants. To learn more about our solutions, talk to you retirement advisor or service provider.