1. DC Conversations: An industry assessment of Defined Contribution Plans

2. Overview BMO Global Asset Management’s DC Conversations: An industry assessment provides financial advisors and retirement plan sponsors with a comprehensive array of charts and graphs designed for you to help plan sponsors evaluate their retirement plan programs against a variety of benchmarks. We hope this annual publication allows you to have better conversations around potential plan changes for your clients and prospects. Some of these better conversations may include automatic enrollment (see page 13) or investment options (see page 35) to help assist plan participants achieve better outcomes. These illustrations include a wide range of retirement plan benchmarks and a number of newly identified and ongoing industry trends – each depicted in a ready-to-present format. We encourage you to use different pages or slides from DC Conversations: An industry assessment to build better conversations with your existing and potential clients. We believe better conversations result in better outcomes. Let’s start a DC Conversation today! bmo-global-asset-management Contact us dcio.info@bmo.com 1-844-BMO-Fund (266-3863) bmogamviewpoints.com

3. Table of contents Eligibility and participation4 Automatic enrollment 13 Employer contributions 17 Participant account balances 31 Investments35 Plan expenses42 References47 Disclosures48 3

4. Minimum age requirements for eligibility by plan size No minimum age Plan size 20.4% 1-49 50-199 200-999 1,000-4,999 5,000+ All plans 19.3% 32.1% 42.6% 57.3% 34.5% 18 years old 14.6% 35.1% 25.2% 38.5% 25.5% 28.1% 21 years old 65.0% 45.6% 40.5% 18.0% 16.4% 36.6% Other minimum age 0.0% 0.0% 2.3% 0.8% 0.9% Eligibility and participation Source: PSCA 4

5. Minimum months of service by contribution type Contribution typeNone (immediately eligible) 29.6% Non-matching Employee Matching 64.8% 32.1% 51.0% 3 months 1 year 17.4% 7.7% 12.4% 12.0% 6.5% 6.9% Other 6 months 46.7% 18.0% 8.0% 27.9% 4.0% 3.3% 1.8% Eligibility and participation Source: PSCA 5

6. Participation rate by number of participants All plans 87% 80% 81% 80% 77% 82% 83% 77% 87% 76% 75% 73% 78% 81% 77% 80% 73% 76% 78% 86% 78% 82% 78% 76% 81% 82% 90% 83% 82% 77% 82% 86% 84% 94% 87% 86% 83% 91% 5,000+ 200–999 1–49 1,000–4,999 50–199 2014 2013 2012 2011 2010 2009 2008 80% Eligibility and participation Source: PSCA 6

7. Eligibility and participation Source: Vanguard 1 Average plan participation rate. 2 The previously reported plan-weighted participation rate for 2013 was 76%. 3 Preliminary 7

8. Participation rate by age and plan design <25 46% 29% 78% 67% 54% 88% 70% 62% 88% 75% 66% 90% 75% 70% 92% 70% 64% 89% All plans Voluntary enrollment Automatic enrollment 25–34 45–54 65+ 35–44 55–64 Eligibility and participation Source: Vanguard 8

9. Participation rate by salary and plan design <$30,000 46% 32% 83% 65% 55% 89% 68% 62% 92% 74% 69% 95% 89% 85% 97% All plans Voluntary enrollment Automatic enrollment $30,000–$49,999 $75,000–$99,999 $50,000–$74,999 $100,000+ Eligibility and participation Source: Vanguard 9

10. Participation rate by years of service and plan design 0–1 57% 37% 82% 68% 56% 90% 71% 62% 92% 73% 66% 93% 76% 72% 93% All plans Voluntary enrollment Automatic enrollment 2–3 7–9 4–6 10+ Eligibility and participation Source: Vanguard 10

11. Participation rate by industry Construction 79% 77% 84% 78% 75% 78% 81% 79% 83% 79% 89% 93% 91% 92% 67% 61% 67% 66% 68% 70% 67% 70% 84% 80% 81% 79% 86% 85% 87% 86% 73% 77% 74% 76% 84% 83% 82% 83% 84% 83% 82% Durable goods manufacturing Health care Non-durable goods manufacturing Financial Insurance and real estate 2014 2013 2012 2011 Services Technology and communications Wholesale and retail trade Utility and energy Other Eligibility and participation Source: PSCA 11

12. Participation rate by contribution Fixed match 82% 81% 82% 81% 80% 83% 82% 81% 82% 81% 83% 79% 84% 87% 78% 84% 80% 82% 81% 78% 73% 88% 79% 83% 78% 83% 87% 88% 75% 77% 78% 74% 77% 67% Safe harbor match Discretionary match No contribution Graded match Other contributions 2014 2013 2012 2011 2010 2009 2008 79% Eligibility and participation Source: PSCA 12

13. Automatic enrollment Source: PSCA 13

14. Automatic enrollment Source: PSCA 14 Percentage of automatic enrollment plans by industry 52% 46% 44% 37% 49% 43% 44% 41% 39% 36% 37% 43% 39% 33% 55% 63% 54% 40% 62% 52% 60% 81% 73% 70% 72% Health care Non-durable goods manufacturing Insurance and real estate Construction and engineeringServices 56% 58% 38% 45% 41% 39% 69% 67% 48% 2014 2013 2012 2011 Financial Wholesale and retail trade Utility and energy Other 40% 41% 39% 47% 29% 36% 72% 67% Durable goods manufacturingTechnology and telecommunications 34%34%

15. Default deferral percentage of pay <3% 9% 13% 14% 11% 12% 11% 10% 9% 7% 10% 6% 18% 15% 12% 11% 8% 9% 8% 9% 13% 16% 20% 16% 51% 47% 52% 54% 62% 58% 57% 59% 53% 12% 13% 11% 10% 8% 11% 9% 2014 2013 2012 2011 2010 2009 2008 2007 2006 3% 4% 5% >5% Automatic enrollment Source: PSCA 15

16. Automatic enrollment Source: PSCA 16 Vesting schedules Contribution typeImmediate full vesting 41.8% Match Profit sharing 26.8% 6.2% 2-year cliff vesting 3-year graduated vesting 16.8% 3.9% 10.3% 4.8% 3-year cliff vesting 3.9% 4-year graduated vesting 2.1% 1.3% 18.9% 5-year graduated vesting Other 28.0% 16.4% 15.2% 0.7% 1.0% 6-year graduated vesting

17. Types of employer contribution Matching contributions only 2014 2013 2012 2011 2010 40% 37% Non-matching contributions only No contribution 14% 12% 13% 43% 41% 40% 42% Both matching and non-matching contributions 4% 5% 7% 16% 40% Employer contributions Source: PSCA 17

18. Employer contributions Source: PSCA 18

19. Employer contributions Source: PSCA 19 73% 72% 71% Quarterly or monthly 5% 7% 8% 9% Annually 18% 19% 18% Other 1% 2% 1% Frequency of matching company contributions 74%74% 75%75% Payroll period 2014 2013 2012 2011 2010

20. Employer contributions Source: PSCA 20 Frequency of non-matching company contributions Payroll period 21% 22% 18% 19% Quarterly or monthly 74% 73% Other 2% 4% 1% 70% 71% 6%6% 4%4% 6%6% 6%6% 8%8% Annually 2014 2013 2012 2011 2010

21. Frequency of true-up contribution by plan size All plans 59% 61% 55% 57% 67% 72% 54% 57% 46% 55% 53% 62% 69% 56% 53% 61% 59% 56% 61% 57% 52% 54% 55% 5,000+ 1,000–4,999 2014 2013 2012 2011 1–49 200–999 50–199 Employer contributions Source: PSCA 21

22. 50% 0% 11% 4% 17% 0% 6% 33% 35% Wholesale and retail trade 2%3% 17% 0% Utility or energy 0% 0% 46% 11% 20% 0% 8% 10% 5% 0% 10% 2% 37% 6% 3% 34% 3% 8% 6% 44% 42% 41% 29% Matching contribution by industry sector Durable goods manufacturingFinancial <$0.25 $0.25 $0.25–$0.50 $0.50 $0.50–$1.00 $1.00 >$1.00 Insurance and real estate Services Employer contributions Source: PSCA 22

23. Employer contributions Source: PSCA 23 2014 2013 2012 2011 2010 2009 2008 2007

24. Employer contributions Source: PSCA 24

25. 15.0%+ 7% Source: Vanguard Dispersion of employee deferral rates by percent of compensation deferred 0.1–3.9% 31% 30% 29% 28% 30% 34% 31% 22% 23% 25% 21% 22% 25% 26% 27% 24% 25% 10.0–14.9% 15% 15% 14% 15% 2014 2013 2012 2011 2010 2009 2008 4.0–6.0% 6.1–9.9% Employer contributions 25

26. Employer contributions Source: Vanguard 26 Deferral rate by industry sector Overall 6.9% 7.7% 7.6% 7.7% 8.0% 8.2% 8.1% 7.9% 7.6% 7.8% 6.4% 7.0% 8.3% 7.0% 7.1% 7.0% 7.1% 6.4% 7.3% Agriculture, mining and construction Media, entertainment and leisure Education and health Business, professional and non-profit 6.8% 6.1% 5.8% 5.9% 6.2% 6.0% 6.8% 6.6% 6.2% Transportation, utilities and communications Manufacturing Wholesale and retail trade Finance, insurance and real estate 6.2% 6.5% 6.7% 6.6% 7.8% 8.2% 6.7% 6.6% 2014 2013 2012 2011 2010

27. Deferral rate by salary < $30K 4.6% 4.7% 4.8% 4.7% 5.7% 5.6% 5.7% 5.8% 5.7% 6.9% 7.0% 7.1% 7.0% 7.8% 8.4% 8.3% 8.2% 8.3% 8.0% 8.2% 8.3% 8.4% 2014 2013 2012 2011 2010 2009 $30K–$50K $75K–$100K $50K–$75K $100K+ Employer contributions Source: Vanguard 27

28. Deferral rate by age < 25 4.6% 4.5% 4.3% 4.2% 3.9% 3.8% 5.6% 5.5% 5.6% 5.4% 5.3% 6.3% 6.4% 6.2% 6.1% 7.3% 7.4% 7.2% 8.7% 8.8% 8.7% 8.6% 10.2% 10.1% 10.0% 10.1% 9.9% 35–44 2014 2013 2012 2011 2010 2009 25–34 45–54 55–64 65+ Employer contributions Source: Vanguard 28

29. Employer contributions Source: Vanguard 29 Deferral rate by job tenure (years) < 2 4.7% 4.9% 4.4% 6.2% 6.1% 6.2% 6.5% 6.0% 5.8% 7.0% 6.9% 6.5% 6.4% 7.2% 7.1% 7.2% 8.1% 7.7% 7.2% 7.0% 6.8% 57% 2–3 7–9 4–6 10+ 4.8% 6.8% 8.0% 2014 2013 2012 2011 2010 2009

30. Deferral rate by account balance < $10K 3.7% 3.8% 3.7% 3.6% 6.1% 5.9% 5.7% 5.8% 7.1% 6.9% 7.0% 6.8% 7.1% 8.1% 7.9% 8.1% 8.3% 8.2% 8.4% 9.6% 9.5% 9.8% 9.9% 10.0% 10.2% 10.7% 10.5% 10.6% 10.5% 10.7% $25K–$50K 2014 2013 2012 2011 2010 2009 $10K–$25K $50K–$100K $100K–$250K >$250K Employer contributions Source: Vanguard 30

31. Participant account balances Source: Vanguard 31 Distribution of account balances <$10,000 $10,000–$19,999 $20,000–$39,999 $40,000–$59,999 $60,000–$79,999 $80,000–$99,999 >$100,000 31% 11% 13% 8% 4% 6% 27%

32. Account balance by age <25 $4,141 $24,378 $9,313 $65,767 $26,681 $124,287 $50,925 $186,404 $76,618 $208,158 $72,845 $1,430 Average Median 25–34 45–54 55–64 35–44 >65 Participant account balances Source: Vanguard 32

33. Account balance by job tenure (years) <2 $10,567 $25,867 $11,005 $51,193 $24,583 $81,421 $41,396 $195,609 $99,379 $2,308 Average Median 2–3 7–9 10+ 4–6 Participant account balances Source: Vanguard 33

34. Account balance by industry sector Agriculture, mining and construction $106,171 $37,031 $117,987 $36,237 $229,220 $27,397 $100,447 $33,795 $89,744 $84,005 $22,654 $75,327 $21,796 $69,264 $17,191 $67,367 Average Median Manufacturing Finance, insurance and real estate Transportation, utilities and communications Business, professional and nonprofit Wholesale and retail trade Media, entertainment and leisure Education and health Participant account balances Source: Vanguard 34

35. Default investment vehicle Stable value/money market 2% 5% 6% 5% 4% 3% 6% 7% 1% 2% 3% 5% 3% 4% 7% 11% 13% 11% 13% 12% 14% 13% 16% 7% 9% 10% 27% 20% 18% 21% 75% 72% 73% 70% 53% 57% 60% 49% Balanced Lifecycle/target date Lifestyle/target risk Other 2014 2013 2012 2011 2010 2009 2008 2007 Investments Source: PSCA 35

36. Investments Source: PSCA 36 No. of investments available for participant direction 2.0% 1 2–9 10 11–15 16–20 21–25 26+ 6.2% 2.9% 25.2% 31.4% 17.6% 14.7%

37. Number of investments available by plan size Investments Source: PSCA 37 1–49 24 21 23 22 19 22 21 22 23 21 18 17 19 18 20 18 16 15 1,000–4,999 5,000+ 2014 2013 2012 2011 2010 2009 50–199 200–999 17

38. Investments Source: PSCA 38

39. Average retirement plan asset allocation Cash 99.0% 98.0% >99.5% 99.0% >99.5% 100% 10.0% 4.0% 20.0% 35.0% 16.0% 12.0% 16.0% 27.0% 22.0% 11.0% 45.0% 55.0% 98.0% 99.0% 100% Equity funds All <1,000 1,000–4,999 5,000+ Bond funds Balanced funds Company stock Self-directed brokerage Managed account program Number of participants Investments Source: PSCA 39

40. Average asset allocation Balanced stock/bond Bond - actively managed, domestic Bond - indexed, domestic 0% Self-directed brokerage window 5% 6% 5% 6% 7% 5% 7% 8% 7% 11% 2% 1% 0% 1% 0% 2% 3% 2% 5% 4% 2014 2013 2012 2011 2010 2009 4% 10% 9% 26% 24% 25% 29% 1% 2% 1% 2% 7% 8% 10% 4% 5% 4% 1% 12% 23% 2% 5% Company stock Equity - domestic index Equity - domestic managed Equity - international managed 8% Target date Real estate Sector - other Other 16% 17% 13% 12% 13% 10% 8% 10% 11% 10% 1% 10% 1% 0% 9% Investments Source: PSCA 40 4%4% 4% Bond - internationalEquity - international indexStable value Target risk 3%3% 4% 4%4% 4%4% 3%3% Cash equivalents (CD/money market) 8% 2% 6%6%

41. Investments Source: Vanguard 41 Average asset allocation by industry sector Agriculture, mining and construction 12%7% 3%15% Business, professional and nonprofit 9%8%7%23% Media, entertainment and leisure 8%7%11%26% Transportation, utilities and communications 13%7%8%18% Manufacturing 12%6%8%25% Education and healthcare Wholesale and retail trade 14%7%6% Finance, insurance and real estate 11%9%5% Cash/equivalent Bond funds Balanced funds Target date funds Diversified equity Company stock 32%31% 48%5% 45%9% 43%6% 25%47%3% 46%2% 27%44%2% 0% 26%26%47%9%9%10%8%8%

42. All-in fees by plan asset class $1M – $10M 1.27% 1.65% 1.17% 0.70% $10M – $100M >$500M 0.59% 0.89% 1.28% 0.63% 0.90% 0.35% 0.57% $100M – $500M 0.41% 0.67% 0.24% 0.82% 0.37% Median Average 90th % 10th % Plan expenses Source: Deloitte/ICI 42

43. All-in fees by participant count 100 – 499 1.12% 0.35% 0.24% Median Average 90th % 10th % 1.75% 1.16% 0.70% 500 – 999 5,000 – 9,999 10,000+ 0.61% 1.21% 1.30% 0.74% 1.07% 0.44% 0.70% 1,000 – 4,999 0.59% 0.96% 0.35% 1.09% 0.55% 0.45% 0.36% Plan expenses Source: Deloitte/ICI 43

44. All-in fees by participant count and average account balance All plans 0.96% 0.64% 0.35% 100 – 499 1.31% 0.98% 0.87% 500 – 999 1.27% 0.93% 0.58% 1,000 – 4,999 0.82% 0.70% 0.58% 5,000 – 9,999 0.68% 0.50% 0.60% 10,000+ 0.69% 0.39% 0.29% <$25K $25K – $100K >$100K Plan expenses Source: Deloitte/ICI 44

45. Plan expenses Source: Deloitte/ICI 45 Median all-in fees by average account balance and plan size All plans 0.96% 0.64% 0.35% $1M – $10M 1.29% 1.03% 0.96% $10M – $100M 0.84% 0.77% 0.79% $100M – $500M 0.70% 0.55% 0.59% >$500M 0.43% 0.39% <$25K $25K – $100K >$100K 0.29%

46. Plan expenses Source: PSCA 46 Payment of plan expenses Plan Company Plan and company Audit fees Communication to employees Compensation of internal administrative staff Investment management fees Investment consultant fees 24.5%70.1%5.4% 27.0%53.6%19.2% 68.6%17.2%14.1% 39.9%50.0%10.2% 6.3%89.6%4.1% Other consultant fees 22.4%67.1%10.5% Legal fees 14.7%78.2%7.1% Trustee fees 43.7%45.7%10.6% Plan recordkeeping fees 47.4%34.9%17.7%

47. References 47 Survey data presented in this booklet, representing the most recent information available, is taken from the following surveys: The Profit Sharing Council of America’s 58th Annual Survey (“PSCA Survey”) This survey reports on the 2014 plan year experience of 592 plans with 8.8 million eligible employees and $785 billion in plan assets. The data is collected from plan sponsors invited to complete an online or hard-copy survey and represents a diverse array of plan sizes ranging from fewer than five participants to hundreds of thousands of participants. Company sizes, geographic locations, asset sizes and industries are quite diverse, as well. Vanguard How America Saves 2015 (“Vanguard Survey”) In this edition of How America Saves, the DC plans and participant behavior analysis is updated based on 2014 Vanguard record keeping data. The data in this survey is drawn from the universe of the Vanguard qualified plan clients consisting of more than 1,900 plans, 1,500 clients and more than three million participants. The data represents information reported as of December 31, 2014. The Deloitte/Investment Company Institute Defined Contribution/401(k) Fee Study (“Deloitte/ICI Fee Study”) The Investment Company Institute engaged Deloitte to conduct this survey of defined contribution plan sponsors. The survey reviewed data from ICI, as well as a Web based survey conducted by Deloitte during 2013. A total of 361 plan sponsors participated in the survey, providing detailed information regarding plan characteristics, design, demographics, products, services and associated fees. While the survey is not intended to be a statistical representation of the defined contribution/401(k) marketplace, Deloitte and ICI reported that the demographics of the plans participating in the survey appeared similar to the broader market.

48. BMO Global Asset Management is the brand name for various affiliated entities of BMO Financial Group that provide investment management, and trust and custody services. Certain of the products and services offered under the brand name BMO Global Asset Management are designed specifically for various categories of investors in a number of different countries and regions and may not be available to all investors. Products and services are only offered to such investors in those countries and regions in accordance with applicable laws and regulations. BMO Financial Group is a service mark of Bank of Montreal (BMO). BMO Global Asset Management is the brand name for BMO Investment Distributors, LLC. BMO Asset Management Corp. is the investment adviser to the BMO Funds. BMO Investment Distributors, LLC is the distributor of the BMO Funds. Member FINRA/SIPC. Investment products are: NOT FDIC INSURED — NO BANK GUARANTEE — MAY LOSE VALUE. © 2016 BMO Financial Corp. (4900493, 8/16) Disclosures 48