Denominational Retirement Plan Presented: Colorado Springs:August 20, 2012 Atlanta:August 23, 2012 © 2012 Envoy Financial, Inc. All rights reserved. Envoy Financial, 8415 Explorer Drive, Suite 115, Colorado Springs, CO Securities offered through Envoy Securities, LLC, Broker Dealer, Member FINRA/SIPC. Advisory Services offered through Envoy Advisory, Inc., Registered Investment Advisor. First Use: August 20, 2012

Bruce H. Bruinsma Envoy Financial CEO & Co-Founder Direct: , ext. 203 Cell:

 What is retirement? ◦ That depends on your perspective. ◦ Retirement years are also “ministry” years.  At Envoy, we see retirement as “not only a reward for past service, but a stepping-stone to future ministry”  Future-Funded Ministry: ◦ Managing God’s resources God’s way so His purposes can be carried out in and through our lives, to the very end.

 “It is vanity to wish to live long... and then not to live it impacting others. A life well spent”

 A National Plan: Reduces costs, simplifies administration  A 403(b)(9) Church Plan: Maintains key benefits  10% Required church contribution for all Ministers and Designated Executives  All churches, Presbyteries, and National office a part of the plan: An Opt Out Option for Churches

 National Office: ◦ Legal ◦ Investment menu ◦ Administrative oversight  Local Church: ◦ Who Participates ◦ How much is contributed (10% for ministers) ◦ When the church contributions start ◦ [Universal eligibility on a voluntary basis]

 A plan for those with ministerial status and named executives is required: ◦ 10% minimum contribution ◦ Additional options such as an additional matching component are possible  Staff may participate on a voluntary basis immediately beginning with employment  A plan for staff composed of either a basic contribution, matching contribution, or both is available and up to each church to decide

 Housing Allowance: Distributions taken by those with ministerial status can be tax- protected  A Roth Provision: After-tax contribution and tax-free growth  Loan Provision  Default Investment: Where the money goes if the participant does not select one  Automatic Enrollment: Starts the contribution even if the eligible participant has not enrolled

*Subject to Qualification Rules Traditional 403(b)Roth 403(b) Pre-Tax Contributions Tax-Deferred Savings Taxable Withdrawals Taxed Contributions Tax-Free Earnings* Tax-Free Withdrawals*

 The Retirement Plan Oversight committee:  Minimum of 5 members: ◦ Minister with investment knowledge ◦ Minister with no retirement plan expertise ◦ Investment specialist ◦ Communication specialist ◦ COO of the ECO ◦ Additional member as needed  Support for the plan will come from:  Envoy TPA and Recordkeeping  Envoy Advisory  Envoy Financial ◦ Legal and Compliance ◦ Recordkeeping and reporting ◦ Investment Counsel ◦ Education and Information

 Our SmartPlan Interactive Guide helps Participants determine their risk profile, select investments, complete account reviews, and more!

 Provides clear, concise, easy to understand information: ◦ Plan information ◦ Keys to understanding ◦ Enrollment : Risk Profile, $ goals, Investment allocation suggestion ◦ Periodic reviews ◦ All administrative activities: Loans, Distributions, Contributions, and Investment changes

How does this impact me? Will I have enough?

 Ministers: ◦ Your PCUSA defined benefit plan will remain and be distributed according to its formula and age availability ◦ All future contributions will go into the ECO 403(b)(9) Church plan ◦ All current 403(b)(9) account values may be transferred to the new ECO Plan ◦ Transfers from other plans and eligible IRA’s to the ECO Plan are allowed

 Non-Ministerial Staff: ◦ All current PCUSA 403(b)(9) account values are eligible for transfer to the ECO 403(b)(9) Plan ◦ All future voluntary, and if available, church basic or matching contributions will be made to the ECO 403(b)(9) Plan ◦ Transfers from other plans and eligible IRA’s to the ECO plan are allowed

 Key Assumptions: ◦ Age ◦ Current income ◦ Life expectancy ◦ Salary growth (1.5%) ◦ Contribution to retirement ($ amount) (10%) ◦ Rate of return (6%) ◦ Distribution factor (7.3%)

Current Defined Benefit Plan + Current Defined Contribution Plan + ECO 403(b)(9) Plan = Estimated Income

 Current PCUSA Defined Benefit$ 2,800  Estimated Defined Contribution$ 1,500  Estimated ECO 403(b)(9)$ 2,012  Total Monthly Inc. Estimate$ 6,312  Annual Estimated Income$ 75,744 ◦ Assumes: Age 50, $70,000, retires at 67

 Current PCUSA Defined Benefit$ 3,500  Estimated Defined Contribution$ 1,500  Estimated ECO 403(b)(9)$ 564  Total Monthly Inc. Estimate$ 5,064  Annual Estimated Income$ 60,768 ◦ Assumes: Age 60, $100,000, retires at 67

ALERT! One of the Goals for the ECO plan is total transparency regarding costs and fees. New regulations will require that all fees and costs be disclosed by all vendors later in In the industry, costs of 403(b) and 401(k) plans have often not been disclosed. The disclosure will be paired with the services being provided. There will not be just a “total” number. If you are involved in other retirement plans, these disclosures will be coming later this year... don’t be surprised.

 Initial: ◦ $5 Recordkeeping setup per participant ◦ $5 Advisory setup per participant  Ongoing: ◦ $75 per year administrative

 Participant: ◦ Advisory:$5 annually,  collected monthly ◦ Administrative:$35 annually,  collected monthly ◦ Recordkeeping:.0025 annually,  collected monthly  Advisory: ◦ $1,000,000.58% annual rate.0542% monthly ◦ $2,000,000.48% annual rate.0400% monthly ◦ $4,000,000.39% annual rate.0325% monthly

 Church decides whether to opt out or not? ◦ If “opt out”, then Church Board to sign required paperwork  If in, then decide the answers to: ◦ Who, When, and How much  Complete the Member Sponsor paperwork: ◦ This will be available “online” so look for information ◦ Select a Member Sponsor Plan Administrator for your church ◦ Follow the instructions as provided

 Website: ◦ Envoyfinancial.com ◦ ECO Retirement plan website (available soon)  Question and Answer: ◦ Available online or  Envoy Financial ECO representative (contact information available soon)  National Office ECO representative (contact information available soon)

 A National Plan: Nat’l Office, Presbyteries, Churches  A 403(b)(9) Church Plan, defined contribution  10% to ministers and designated executives  A church may opt out, but have adequate substitute  Legal, Investments and Administration: National Office  Plan design and qualifications, local church  Support: Envoy Advisory, Envoy TPA and Recordkeeping, Envoy Financial

Services provided by: Envoy TPA and Recordkeeping, Inc.Third Party Administration Envoy TPA and Recordkeeping, Inc. Recordkeeping Services Envoy Advisory, Inc. Registered Investment Advisor Envoy Securities, LLC Broker/Dealer Member FINRA/SIPC Envoy Financial, Inc. Education, Sales and Marketing Bruce H. Bruinsma Direct: , ext. 203 Cell: m Web: