This presentation is provided by AllianceBernstein L.P. This presentation booklet has been provided to you for use in a private and confidential meeting to discuss a potential or existing investment advisory relationship. This presentation is not an advertisement and is not intended for public use or distribution beyond our private meeting. March 2012 New Ideas About The Distribution Phase Mark Fortier Head, Product & Partner Strategy—DC Investments

AllianceBernstein.com 1  Offer employees a highly attractive participant-paid benefit  Potential tool to attract and retain talent  Help simplify worker investment and retirement income planning  Help motivate and encourage savings  Help provide the security—and confidence—employees need to retire Why Offer an In-Plan Lifetime Income Strategy? Key Employer Benefits

AllianceBernstein.com 2  Low cost distribution  Lower behavioral and anti-selection risks from default investors  Lower capacity risks from a multi-insurer structure  An customer that values risk management  An customer that values the security and confidence needed to retire Why Offer an In-Plan Lifetime Income Strategy? Key Insurer Benefits

AllianceBernstein.com 3 “Active Investors” (43%)“Accidental Investors” (57%)  I want a well-diversified mix of investments (48%)  I want the ability to withdraw all or part of my money with no fees/penalties (48%)  I want the ability to withdraw all or part of my money with no fees/penalties (51%)  I want protection of principal (46%)  I want a steady income stream in retirement Actives: 66%/Accidentals: 68% Most Important Investment Features: Control and Certainty Source: AllianceBernstein Research Survey, March 2011

AllianceBernstein.com 4 As of December 31, 2011 Source: AllianceBernstein Issue Product DC Sponsors May Have Concerns Over Adding In-Plan Income Solutions Fiduciary Expense Communication Portability Rationale Concerns that products are too new; can’t take advantage of upgrades Extended responsibility, including insurer selection and monitoring Cost of insurance versus investments How to add it to the investment menu; How will participants understand it? Concerns that participants can’t leave plan and preserve benefit, or that sponsor is “locked into” a package What’s the benefit to the employer?

AllianceBernstein.com 5 As of December 31, 2011 Source: AllianceBernstein Issue Product Concerns that products are too new; can’t take advantage of upgrades Extended responsibility, including insurer selection and monitoring Cost of insurance versus investments How to add it to the investment menu; How will participants understand it? Our Approach to Addressing Key Sponsor Concerns Fiduciary Expense Communication Concerns that participants can’t leave plan and preserve benefit, or that sponsor is “locked into” a pack Portability What’s the benefit to the employer? Rationale Lifetime Income Strategy Approach Combines age-based investing and GLWBs, neither of which are new, in an open and extensible architecture Designed to serve as a QDIA; independent fiduciaries can perform insurer selection and monitoring Insurance and investments cost structures are different; insurance in- plan can be a fraction of retail costs Single investment option with a singular focus: secure income Built to support provider, plan and participant portability Improved workforce management through a participant-paid benefit

AllianceBernstein.com 6 Target-Date Funds Can Be Good QDIAs, But What’s Next? Asset Class Funds... Money Market Fixed Income US Stock Target-Date Funds QDIA: Target-Date Funds  10+ target-date funds  “Pick-a-Date” complexity  Accumulation focused  Not personalized Plan Menu Today Asset Class Funds... Money Market Fixed Income US Stock Target-Date Funds Lifetime Income Strategy QDIA: Lifetime Income Strategy  Single investment  Completely simple for participants  Accumulation + retirement income  Personalized Plan Menu Tomorrow? Illustrative Example of Large DC Plan Menus