INSTRUCTIONS Update your name/title on the title slide and other applicable slides Select appropriate disclosure and add to title slide: If financial professional’s.

INSTRUCTIONS Update your name/title on the title slide and other applicable slides Select appropriate disclosure and add to title slide: If financial professional’s name is mentioned in the script, also need to mention: “(financial professional’s name) works for (financial professional’s company). (Financial professional’s company) is not an affiliate of any company of Principal Financial Group.” If not an employee of Principal, you should have the following disclosure: (Name of entity) (Name of financial professional) is not an affiliate of Principal Financial Group or any of its member companies. If he or she is an employee of Principal, you need the following disclosures: (Name), Principal Life, Financial Representatives and Principal Securities Registered Representatives. (DBA company name) is not an affiliate of Principal Financial Group or any of its member companies. Note to Presenter: Delete this slide before presenting. Use it as a guide on the order of slides and the flow of the presentation.

Take the first step toward your retirement
We’ll help you get started Presenter’s name Purpose of slide: To welcome employees and tell them a little bit about the company that provides services to their organization’s retirement plan. Sell them on Principal Financial Group® and our commitment to them. Sample script: Welcome. My name is [presenter name] and I’m from Principal Financial Group. As you know, Principal® is [was recently selected as] the service provider of [company name]’s retirement plan. We understand that saving for retirement can seem overwhelming. That’s why we work to help make things easier along the way and give you innovative tools and resources to help you manage your retirement account at any time. Our goal today is to help you understand your company’s retirement plan so you can make smart decisions today and going forward in order to reach your retirement goals. You’ll see how a few simple steps can make planning much easier — and maybe even a little fun. Just by being here today, you’re taking an important step toward a more secure future. The presenter’s title goes on this line *Insert appropriate disclosure from previous instruction slide

1 2 3 Three steps to get you on your way toward retirement:
Set up your account 1 See if you’re on track 2 Slide 1a NOTE TO PRESENTER: If using this slide, delete slide 1b Use this slide for: ACA/Non-SDS/No My Virtual Coach (MVC) ACA/SDS/No MVC ACA/SDS/MVC Purpose of slide: To outline the steps that will be covered during the presentation. Sample script: In fact, you can get started with just three steps. The first step is setting up your account online. We’ve made the process easy for you. And I’ll explain the process and answer your questions shortly. After you’ve set up your account, you can review your contributions and decide if you’re on track for the retirement you want. Finally, you’ll review the plan’s investment options available to you and decide if the plan default is in line with your level of comfort with risk. Or, you can select from the plan’s other investments. It’s that easy. Let’s get started. Review your investment options 3

1 2 3 Three steps to get you on your way toward retirement:
Start saving for retirement 1 How much will you put aside today? 2 Slide 1b NOTE TO PRESENTER: If using this slide, delete slide 1a Use this slide for: No ACA/SDS/My Virtual Coach (MVC) No ACA/SDS/No MVC No ACA/No SDS/No MVC Purpose of slide: To outline the steps that will be covered during the presentation. Sample script: In fact, you can get started with just three steps that we’ll discuss today. The first step is to start saving for retirement by enrolling in the plan. We’ve made the process easy for you. And I’ll explain the process and answer your questions shortly. Then, you’ll need to decide how much you want to save today to help you reach your retirement goals. Finally, you’ll review the available investment options and decide which is best for you. It’s that easy. Let’s get started. Review your investment options 3

1 Set up your account principal.com/NextSteps or 800.547.7754 Slide 2a
NOTES TO PRESENTER: If the plan automatically enrolls its participants, please use this slide and delete slide 2b, 2c and 2d, 3, and all versions of slides 4b, 4c and 4d. Use this slide for the following: ACA/Non-SDS/No MVC ACA/SDS/No MVC ACA/SDS/MVC Purpose of slide: To introduce Step 1. Sample script: Your organization has made it easy to set up your retirement account. In fact, they’ve provided you information about being automatically enrolled (or will soon when you’re eligible to start contributing). It doesn’t get much easier than that. Your organization has chosen to enroll you in the retirement plan at a contribution rate of [X%] of your eligible pay unless you elect otherwise. If you’ve already reached the automatic enrollment date (or when you do), just visit principal.com/NextSteps to set up your account online. Setting up your account online is a great way to track your progress and can help keep your information safer. You’ll need to enter some basic information about yourself, and then you’ll be able to review and change your contribution amount and investment options. Or let us help you by calling

1 Start saving for retirement principal.com/Enroll or 800.547.7754
or complete the enrollment form Slide 2b NOTES TO PRESENTER: If using this slide, delete slide 2a, 2c and 2d Use this slide for the following: No ACA/SDS/MVC No ACA/SDS/No MVC Purpose of slide: To introduce Step 1. Sample script: What’s the most important thing you can do when it comes to retirement saving? Get started. Your organization has made it easier than you might think. You can enroll in your organization’s retirement plan in just a few minutes by visiting principal.com/Enroll and providing some basic information about yourself. Setting up your account online is a great way to track your progress and can help keep your information safer. Or let us help you by calling Alternatively, you can complete the enrollment form and submit it to your HR representative. Once you’ve enrolled and set up your account, you can start saving.

1 Start saving for retirement Complete the enrollment form Slide 2c
NOTES TO PRESENTER: If using this slide, delete slide 2a, 2b and 2d Use this slide for the following: No ACA/No SDS/No MVC Purpose of slide: To introduce Step 1. Sample script: What’s the most important thing you can do when it comes to retirement? Get started. Your organization has made it easier than you think. You can enroll by filling out an enrollment form and submitting it to your HR representative to get started. After you’re enrolled, you can set up your account online and start using the interactive, personalized tools and resources available.

1 Start saving for retirement Text ENROLL to 25827 Slide 2d
NOTES TO PRESENTER: If using this slide, delete slide 2a, 2b and 2c Use this slide for the following: ACA/SDS/Quick Enroll Purpose of slide: To introduce Step 1. Sample script: What’s the most important thing you can do when it comes to retirement saving? Get started. Your organization has made it easier than you might think. You can enroll in your organization’s retirement plan in just a few minutes by texting the word "enroll" to After you're enrolled, you can set up your account online and start using the interactive, personalized tools and resources available. Use the Quick Enroll form if available to help pick your contribution amount. Or let us help you by calling Alternatively, you can complete the enrollment form and submit it to your HR representative. Once you’ve enrolled and set up your account, you can start saving.

When to enroll Open enrollment: [date/time frame]
Eligible if: [list conditions of enrolling in the plan — e.g., been with the company for one year, are 18 years old, work full time, etc.] Select your salary deferral percentage — anywhere between [% to % - refer to plan summary for limits] of your eligible pay* Select your investment elections. Refer to the Investment Option Summary included in your workbook for a full listing of investment options. Unless you make a different investment election prior to your first contribution, your contributions will be directed to the Plan’s default investment option as selected by the plan sponsor** Slide 3 NOTE TO PRESENTER: You need to verify all plan/organization specific information with CSA/CSM. Red text is variable. If variables are not based on what’s provided within client’s plan document/summary, the slide will need SME Compliance and Final Ad Review. Use this slide for the following: No ACA/No SDS/No MVC Purpose of slide: To explain to participants their eligibility and how to enroll in their organization’s retirement plan. Sample script: Open enrollment in your company’s retirement plan is [date/time frame]. You’re eligible to enroll if: (list conditions of enrolling in the plan – e.g., been with the company for one year, are 18 years old, work full time, etc.) Then, select your salary deferral percentage—anywhere between [% to % - refer to plan summary for limits] of your eligible pay and your investment options. You can refer to the Investment Option Summary included in your workbook for a full listing of investment options. And remember, unless you make a different investment election prior to your first contribution, your contributions will be directed to the Plan’s default investment option as selected by the plan sponsor.** You can change your investment options at any time by logging in to your account. And of course, if you need help, someone at Principal is always available to assist you through the process. After you’re enrolled, you can set up your account online and start using the interactive, personalized tools and resources available. **See enrollment form for Plan’s default investment. *Contributions are limited to the lesser of the plan or the IRS limit as indexed. **See enrollment form for Plan’s default investment.

Enroll today! principal.com/Enroll Elect a contribution amount
Choose your investment options Set up your account Slide 4a NOTE TO PRESENTER: If the plan offers online enrollment, please use this slide and delete slide 4b. Use this slide for the following: SDS/No MVC Purpose of slide: To inform participants how they can enroll. Sample Script: It’s easy to enroll online. Just visit principal.com/enroll. When you enroll, you’ll need to provide some basic information and then select an amount to contribute from your paycheck into the retirement plan. And you’ll select where your contributions go (or how they will be invested). We’ll talk more about making those decisions soon as well as some helpful resources.

Enroll today! principal.com/Enroll
Get help along the way from My Virtual Coach Elect a contribution amount Choose your investment options Slide 4b NOTE TO PRESENTER: If the plan offers online enrollment and My Virtual Coach, please use this slide and delete slide 4a. Use this slide for the following: SDS/MVC Purpose of slide: To inform potential participants how they can enroll. Sample Script: It’s easy to enroll online. Just visit principal.com/enroll. I also want to talk a little about My Virtual Coach. It’s an online, interactive resource at principal.com/MyVirtualCoach-Enroll that offers personalized educational assistance throughout the enrollment process. Plus, it’s pretty entertaining!

Quick Enroll today! Text ENROLL to 25827
Sign up online at principal.com/Enroll or Use the Quick Enrollment form Slide 4c NOTE TO PRESENTER: Use this Enroll Now slide when offering online enrollment with text and paper quick enrollment methods. Delete all other Enroll Now slides. Use this slide for the following: No ACA/SDS/Quick Enroll - text & form Sample script: You can enroll quickly anytime on your mobile device because your organization’s plan has selected Quick Enroll as an enrollment option. We have a couple options for you to enroll this way. From your mobile phone, you can text the word ENROLL to You’ll receive a series of messages to answer. Or you can enroll online at principal.com/Enroll or by completing a quick enrollment paper form. If you’re already enrolled in the plan, you can use the form to increase your contribution. If you don’t want to enroll today or if you’re already participating and you don’t want to change your contribution amount, please fill out the top section with your name and personal information and then check one of the boxes near the bottom of the form. This will provide your organization a record of your choice. Remember, if you enroll by text or the short paper form, you’ll also need to log in to your account at principal.com or call Principal at to select your investment options. If you don’t make an election, your contributions will be directed to your plan’s default investment option. Information on that is provided in your enrollment workbook. As always, I’m happy to help as you work through these options. Standard text messaging and data rates apply. IMPORTANT: This quick enrollment method is designed to give you a quick way to pick your contribution amount. You must select investment options online at principal.com or by calling If you don’t make an election, your contribution will be directed to the Plan’s Qualified Default Investment Alternative (QDIA) based on your current age and the Plan’s normal retirement date. See the QDIA notice for additional information. The quick enrollment methods are valid only if accompanied by the Plan’s Investment Option Summary and 404 notice.

Quick Enroll today! Text ENROLL to 25827
Slide 4d NOTE TO PRESENTER: Use this Enroll Now slide when offering online enrollment with text quick enrollment methods. Delete all other Enroll Now slides. Use this slide for the following: No ACA/SDS/Quick Enroll - text only Sample script: You can enroll quickly anytime on your mobile device because your organization’s plan has selected Quick Enroll as an enrollment option. From your mobile phone, you can text the word ENROLL to You’ll receive a series of messages to answer. Remember, if you enroll by text, you’ll also need to log in to your account at principal.com or call Principal at to select your investment options. If you don’t make an election, your contributions will be directed to your plan’s default investment option. Information on that is provided in your enrollment workbook. As always, I’m happy to help as you work through these options. Standard text messaging and data rates apply. IMPORTANT: This quick enrollment method is designed to give you a quick way to pick your contribution amount. You must select investment options online at principal.com or by calling If you don’t make an election, your contribution will be directed to the Plan’s Qualified Default Investment Alternative (QDIA) based on your current age and the Plan’s normal retirement date. See the QDIA notice for additional information. The quick enrollment methods are valid only if accompanied by the Plan’s Investment Option Summary and 404 notice.

Quick Enroll today! Use the Quick Enrollment form
Slide 4e NOTE TO PRESENTER: Use this Enroll Now slide when offering online enrollment with paper quick enrollment methods. Delete all other Enroll Now slides. Use this slide for the following: No ACA/SDS/Quick Enroll – form only Sample script: You can enroll quickly anytime because your organization’s plan has selected Quick Enroll as an enrollment option. You can enroll by completing a quick enrollment paper form. If you’re already enrolled in the plan, you can use the form to increase your contribution. If you don’t want to enroll today or if you’re already participating and you don’t want to change your contribution amount, please fill out the top section with your name and personal information and then check one of the boxes near the bottom of the form. This will provide your organization a record of your choice. Remember, if you enroll by the short paper form, you’ll also need to log in to your account at principal.com or call Principal at to select your investment options. If you don’t make an election, your contributions will be directed to your plan’s default investment option. Information on that is provided in your enrollment workbook. As always, I’m happy to help as you work through these options. IMPORTANT: This quick enrollment method is designed to give you a quick way to pick your contribution amount. You must select investment options online at principal.com or by calling If you don’t make an election, your contribution will be directed to the Plan’s Qualified Default Investment Alternative (QDIA) based on your current age and the Plan’s normal retirement date. See the QDIA notice for additional information. The quick enrollment methods are valid only if accompanied by the Plan’s Investment Option Summary and 404 notice.

2 See if you’re on track Slide 5a NOTES TO PRESENTER:
- If using this slide, delete slide 5b. - Use this slide for: ACA/Non-SDS/No MVC ACA/SDS/No MVC ACA/SDS/MVC Purpose of the slide: To introduce step 2. Sample script: Let’s move on to step 2. Have you thought about how much you may need to contribute to the retirement plan to help reach your savings goals? Unless you’ve elected otherwise, you’ve already been enrolled at [X%]. But you can change that amount anytime by logging in to your account at principal.com. In fact, many suggest you may need to save at least 10% of your pay throughout your career.1 That’s estimated to leave you with enough to replace about 85% of your pre-retirement income.2 You should review your savings progress and post-retirement needs at least annually or as significant events occur. Use the Retirement Wellness Planner to get a more complete retirement picture. If you can’t get there just yet, that’s OK! Every little bit helps to get you closer to your retirement vision. 1 Based on analysis conducted by the Principal Financial Group®, October The estimate assumes a 40-year span of accumulating savings and the following facts: retirement at age 65; a combined individual and plan sponsor contribution of 12%; Social Security providing 40% replacement of income; 7% annual rate of return; 2.5% annual inflation; and 3.5% annual wage growth over 40 years in the workforce. This estimate is based on a goal of replacing about 85% of your salary. The assumed rate of return for the analysis is hypothetical and does not guarantee any future returns nor represent the return of any particular investment. Contributions do not take into account the impact of taxes on pre-tax distributions. Individual results will vary. Participants should regularly review their savings progress and post-retirement needs. 2 Assuming pre-retirement annual gross income of $40,000. AON Consulting’s 2008 Replacement Ratio Study™

2 How much will you put aside today? Slide 5b
NOTE TO PRESENTER: - If using this slide, delete slide 5a. - Use this slide for: No ACA/SDS/MVC No ACA/SDS/No MVC No ACA/No SDS/No MVC Purpose of the slide: To introduce step 2. Sample script: Let’s move on to step 2. Have you thought about how much you may need to contribute to the retirement plan to help reach your savings goals? Keep in mind, many suggest you may need to save at least 10% of your pay throughout your career.1 That’s estimated to leave you with enough to replace about 85% of your pre-retirement income.2 You should review your savings progress and post-retirement needs at least annually or as significant events occur. Use the Retirement Wellness Planner to get a more complete retirement picture. The sooner you start saving, the more potential those savings have to grow. That’s because, over time, the amount you save may grow because any earnings are reinvested. So you can potentially get earnings on both your original contributions and the reinvested earnings. 1 Based on analysis conducted by the Principal Financial Group®, October The estimate assumes a 40-year span of accumulating savings and the following facts: retirement at age 65; a combined individual and plan sponsor contribution of 12%; Social Security providing 40% replacement of income; 7% annual rate of return; 2.5% annual inflation; and 3.5% annual wage growth over 40 years in the workforce. This estimate is based on a goal of replacing about 85% of your salary. The assumed rate of return for the analysis is hypothetical and does not guarantee any future returns nor represent the return of any particular investment. Contributions do not take into account the impact of taxes on pre-tax distributions. Individual results will vary. Participants should regularly review their savings progress and post-retirement needs. 2 Assuming pre-retirement annual gross income of $40,000. AON Consulting’s 2008 Replacement Ratio Study™

Consider saving as much as you can, as early as you can
Potential savings $500k 450k 400k 350k 300k 250k 200k 150k 100k 50k 10 15 1 5 20 25 30 years Diane saves $448,000 Diane begins to contribute 6% of her pay right away. Total contributions $162,600* David saves $247,200 David begins to contribute 6% of his pay after 10 years. Total contributions $125,700* Slide 6a NOTE TO PRESENTER: If the plan offers an organization match, please use this slide and slide 6c and delete slide 6b. Purpose of slide: An illustration to demonstrate the potential benefit of starting to save now. Sample script: Here’s an example of why it may be important to save as much as you can, as early as you can. David and Diane are both 35 and earn a salary of $35,000 and hope to retire at age 65. In this example, the organization matches 50% of employee salary deferrals up to a 6% contribution. Diane gets off to an early start and begins to contribute 6% of her pay per year right away. But David doesn’t start saving 6% of his pay until he has already been employed for 10 years. How much does this delay cost him? As you can see from the chart, when they both reach age 65 and are ready to retire, Diane’s contributions could potentially grow to $448,000 inside her organization’s retirement plan, whereas David’s contributions could potentially grow to $247,200. That means Diane’s savings may have grown to nearly double those of David’s. Saving now may help retirement funds grow larger—no matter where you are in your career. This chart assumes a starting salary of $35,000, 3.5% annual salary raise, a 50% organization match on up to 6% salary contribution (providing an additional 3%) and a 7% annual rate of return on investment, compounded biweekly. This example is for illustrative purposes only. The assumed rate of return is hypothetical and does not guarantee any future returns nor represent the return of any particular investment option. Amounts shown do not reflect the impact of taxes on pre-tax distributions. Individual taxpayer circumstances may vary. *Total contributions include employee and organization match contributions.

Consider saving as much as you can, as early as you can
Potential savings $500k 450k 400k 350k 300k 250k 200k 150k 100k 50k 10 15 1 5 20 25 30 Diane begins to contribute 8% of her pay right away. Total Contributions $144,543 Diane saves $398,300 David saves $219,800 David begins to contribute 8% of his pay after 10 years. Total Contributions $111,696 Slide 6b NOTE TO PRESENTER: If the plan does not offer an organization match, please use this slide and delete slides 6a and 6c. Purpose of slide: An illustration to demonstrate the potential benefit of starting to save now. Sample script: Here’s an example of why it may be important to save as much as you can, as early as you can. David and Diane are both 35 and earn a salary of $35,000 and hope to retire at age 65. Diane gets off to an early start and begins to contribute 8% of her pay per year right away. But David doesn’t start saving 8% of his pay until he has already been employed for 10 years. How much does this delay cost him? As you can see from the chart, when they both reach age 65 and are ready to retire, Diane’s contributions could potentially grow to $398,300 inside her organization’s retirement plan, whereas David’s contributions could potentially grow to only $219,800. That means Diane’s savings may have grown to nearly double those of David. Saving now may help retirement funds grow larger—no matter where you are in your career. years This chart assumes a starting salary of $35,000, 3.5% annual salary raise, and a 7% annual rate of return on investment, compounded biweekly. This example is for illustrative purposes only. The assumed rate of return is hypothetical and does not guarantee any future returns nor represent the return of any particular investment option. Amounts shown do not reflect the impact of taxes on pre-tax deductions. Individual taxpayer circumstances may vary.

Organization match An added benefit that can really add up $200,001 $99,146 $449,575 $299,147 4% 6% 2% 3% $299,147 $150,428 Slide 6c NOTE TO PRESENTER: If the organization does not offer a match, delete this slide. If the organization does offer a match, fill in the organization match and organization name in the script below. Purpose of slide: To demonstrate the difference your organization’s match can make. Sample script: You are fortunate because your organization matches a percentage of your contribution to your retirement savings. Employees who take advantage of this match can make a big difference in how fast their retirement savings can potentially grow. If you look at this graph, you’ll see the difference between two employees making contributions over 30 years. In this example, the organization matches 50% of employee salary deferrals up to 6%. Employee 1 only defers 4% of their annual salary, so the organization will contribute an additional 2%, bringing total contributions to 6%. Employee 2 defers 6%, so the organization will contribute the full 3%. Employee 2 took full advantage of the match, which results in a 9% total contribution. As you can see, the difference between taking full advantage of the organization’s matching contribution at retirement in this example could potentially be almost $150,000 extra at retirement! Think how much money you could be leaving on the table if you don’t take advantage of your full match. Fortunately, [your organization] offers a company match of [X%] up to [Y%] of your pay. Keep this in mind, and make sure to take full advantage of your company match. Employee’s contribution Organization’s contribution The chart assumes a $35,000 salary with a 3.5% annual salary increase, an annual 7% rate of return and a 50% organization match up to a 6% contribution. This example is for illustrative purposes only. The assumed rate of return in this chart is hypothetical and does not guarantee any future returns nor represent the return of any particular investment option. Amounts shown do not reflect the impact of taxes on pre-tax distributions. Example is reflective of two individuals making contributions over a 30-year time period.

Save on taxes $20.19 How it works
6% contribution No contribution Biweekly pay $1,346.15 Contribution $80.77 $0 Taxable income $1,265.38 Taxes (assuming 25% tax bracket) $316.35 $336.54 Take-home pay $949.03 $1,009.61 Tax savings $20.19 Slide 7 Purpose of slide: To demonstrate the tax-saving benefits when you save for your retirement. Sample script: Here’s another benefit to saving in the retirement plan — saving even more money in taxes you pay today. The money you put into your account can go in as a pre-tax contribution. So your savings are not subject to federal income tax until you withdraw the funds during retirement. This may make it even more affordable to save for retirement today. In this example, contributing 6% of pay to the retirement plan saved $20.19 in taxes for just one biweekly paycheck. Over the course of the year, this person saves nearly $525 in taxes while putting away money for retirement. Here’s another advantage. Potential earnings on your investments in the plan grow pre-tax. So you don’t pay tax on those either until they’re withdrawn, which may help your savings grow faster. The $80.77 contribution reduced the pay by only $60.58. ($1, $ = $60.58) This chart assumes a 25% tax bracket, which includes local, state, and federal taxes; amounts shown reflect what a person might receive if not deferred. Reduced take-home pay is accurate for the initial year and would change based on participant’s annual pay. For illustrative purposes only.

reduction in biweekly paycheck
Low impact on your take-home pay Current annual salary Salary contribution reduction in biweekly paycheck 4% 6% 8% 10% 12% $20,000 $23 $35 $46 $58 $69 $30,000 $52 $87 $104 $40,000 $92 $115 $138 $60,000 $173 $208 $80,000 $185 $231 $277 $100,000 $288 $346 Slide 8 Purpose of slide: To demonstrate very simply that a higher percentage may not impact your paycheck as much as you would think. Sample script: If you’re thinking you can’t afford to save enough for retirement, I have some good news. Contributing some of your pay to retirement may not reduce your take-home pay as much as you think. You can see from this chart how much it may cost to contribute from 4% to 12% of your salary each pay period based on different income levels. The example assumes the salary is paid biweekly (26 times a year) and that the marginal tax rate is 25%. Are these numbers smaller than you thought they would be? This chart assumes a 25% tax bracket, which includes local, state, and federal taxes; amounts shown reflect what a person might receive if not deferred. Reduced take-home pay is accurate for the initial year and would change based on participant’s annual pay. For illustrative purposes only.

How much will you potentially need to save for retirement?
Use the Retirement Wellness Planner or the retirement savings worksheet Consider your goals and expenses Slide 9 Purpose of slide: To help participants consider how much they may need to save for retirement. Sample script: Now that you’ve seen some of the reasons to save, let’s consider how much you may actually need to save for retirement. You can use the Retirement Wellness Planner by logging in to your account to see how much you may need to save to have income at retirement and meet your retirement goals. You can also use the retirement savings worksheet if you prefer a paper copy in front of you (if provided). Link to paper worksheet: To make it easier to figure out how much you may need to save, think about your goals for retirement and what your expenses might be. Will you have significant expenses like travel or purchasing a second home? Or do you plan to continue living much like you do now and expect to be mostly free of debt? There’s no magic number. Everyone’s situation is different. We suggest replacing about 85% of the income you’ll be earning before retirement to maintain your current standard of living in retirement.1 As a rule of thumb, you may need to save at least 10% of your pay plus any organization contributions over your entire career to have enough income in retirement.2 To save that much, it’s important to contribute the maximum you can. 1 Assuming pre-retirement annual gross income of $40,000. Aon Consulting 2008 Replacement Ratio Study, 2 Based on analysis conducted by the Principal Financial Group®, October The estimate assumes a 40-year span of accumulating savings and the following facts: retirement at age 65; a combined individual and plan sponsor contribution of 12%; Social Security providing 40% replacement of income; 7% annual rate of return; 2.5% annual inflation; and 3.5% annual wage growth over 40 years in the workforce. This estimate is based on a goal of replacing about 85% of salary. The assumed rate of return for the analysis is hypothetical and does not guarantee any future returns nor represent the return of any particular investment. Contributions do not take into account the impact of taxes on pre-tax distributions. Individual results will vary. Participants should regularly review their savings progress and post-retirement needs. Save at least 10% throughout your career* *Based on analysis conducted by Principal®, October The estimate assumes a 40-year span of accumulating savings and the following facts: retirement at age 65; a combined individual and plan sponsor contribution of 12%; Social Security providing 40% replacement of income; 7% annual market returns; 2.5% annual inflation; and 3.5% annual wage growth over 40 years in the workforce. This estimate is based on a goal of replacing about 85% of salary. The assumed rate of return for the analysis is hypothetical and does not guarantee any future returns nor represent the return of any particular investment. Contributions do not take into account the impact of taxes on pre-tax distributions. Individual results will vary. Participants should regularly review their savings progress and post-retirement needs.

3 Review your investment options Slide 10
Purpose of slide: To introduce Step 3. Sample script: Now let’s move on to Step 3 and talk about the mix of investment options available to you. One thing we’ll need to figure out is what kind of an investor you are.

The basics of investing
Diversify Rebalance Stay invested Monitor investment choices Slide 12 Sample script: Here are some of the basic things to consider when investing. We’ll go over these in more detail in just a minute. Diversify Rebalance Stay invested Monitor investment options Asset allocation and diversification do not ensure a profit or protect against a loss.

Diversify or Slide 13 Sample script:
What do we mean when we say diversify? There are many different ways to invest, or asset classes, as they’re often called—stocks, bonds, international, large value, small growth, etc. Some are more risky; some are less risky. Over time, those asset classes can perform differently. And when the markets are unpredictable, winners and losers can change year by year. That’s why it can be important to diversify. It can be one of the best ways to spread your risk and potentially reduce the impact of the ups and downs of the market. No investment strategy, such as diversification, can guarantee a profit or protect against loss in periods of declining value. But here’s why you might consider diversification of your investments: • By having investments in different asset classes, you may reduce the risk of one asset class decreasing the value of your investments. • Investing in both the U.S. and internationally may reduce the risk that a decline in one country’s market could reduce the value of your savings. • Reducing investment risk may help with other potential risks, such as outliving your retirement savings or inflation. It is important to think about how comfortable you are with risk. Investment risk is the chance you take on how much an investment option will go up or down in value. Asset allocation and diversification do not ensure a profit or protect against a loss.

Rebalance Slide 14 Sample script: Some investment options may perform at different rates over various time periods, causing your investment mix to differ from what you originally selected. Rebalancing helps keep your mix of investments in line with your intended strategy for limiting investment options that may be more conservative or risky than you wanted. Just remember, it’s a good idea to review your account at least annually or as significant events occur to help make sure your mix of investments and future goals add up. Log in to your account at principal.com and select “Investments” to review your investment strategy. Asset allocation and diversification do not ensure a profit or protect against a loss.

Stay invested Investment value Time
I read about the great performance of this investment—BUY! Investment value I want out—SELL! It’s OK. I’m in it for the long run. Slide 15 Sample script: Let’s talk about the ups and downs of the market. Some investors make the mistake of trying to guess exactly when the market will rise and fall. They’re trying to make their buy and sell decisions by “timing” the market. However, it’s nearly impossible to predict exactly what the market will do. These variations are often referred to as market volatility. That’s why it’s important to have a long-term plan and stick with it. That means riding out the lows so you can also be there for the highs. Take a look at the hypothetical example illustrated in this chart. [Talk through illustration.] Time Example—for illustrative purposes only. Dollar Cost Averaging involves continuous investing. Investors need to consider their ability and willingness to continue investing through periods of low price levels. This does not assure a profit nor protect against loss in declining markets.

Monitor investment choices
Slide 16 Sample script: At least annually, or as significant events occur, you should review the way your savings are invested and what investment options are available through the retirement plan. This will help you make sure that your portfolio is in line with how comfortable you are with risk and your years to retirement. For example, someone who has a long time until retirement and/or a high tolerance for risk may want to choose a portfolio of investment options with higher risk and higher potential for return. On the other hand, if retirement is approaching quickly and/or you have a low tolerance for risk, it may be more likely you would want to choose investment options with lower risk and lower potential for return. At least annually or as significant events occur, you should review the way your savings are invested and what investment choices are available through the retirement plan.

What kind of investor are you?
Slide 17 Sample script: To determine what type of investor you are, you need to know how comfortable you are with risk. In the next few slides we’ll go over levels of risk and how we can help you determine what type of investor you may be.

Levels of risk/asset classes
Low risk/return High risk/return Short-term fixed income Fixed income Large U.S. equity Small/mid U.S. equity International equity Slide 18 Sample script: Here are some examples of risk levels/asset classes. At one end of the scale are investments classified as short-term fixed income, which are typically less risky but have a lower potential for returns. On the other end are international equity, which generally carry more risk and have the potential for higher returns. Historically, the longer you’re in the market, the more you may be able to absorb market lows and enjoy the rewards of market highs. The opposite may be true as you approach retirement. Given this, you may need to adjust your allocation accordingly as you approach retirement. To help determine a mix of risk levels/asset classes to use when creating your investment portfolio, consider taking our Investor Profile Quiz. Asset allocation and diversification do not ensure a profit or protect against a loss.

Take the Investor Profile Quiz
Slide 19 Sample script: To help determine what kind of investor you are, take our Investor Profile Quiz online at principal.com/InvestorProfileQuiz. It’s quick, it’s fun, and you’ll enjoy seeing the results. Best of all, it may help you choose the investment options that fit your style. The quiz focuses on these two primary questions: How comfortable are you with risk? How long do you have until retirement? Once you complete the quiz, you’ll see which investor profile matches your comfort level with risk and time until retirement. It’s a good idea to take the quiz every year or so, as your comfort level can change as you get closer to retirement. Please keep in mind that the information provided in the Investor Profile Quiz is educational and just a guideline — it isn’t intended to tell you how to invest. Please keep in mind that information provided in the Investor Profile Quiz is educational and just a guideline — it isn’t meant to tell you how to invest.

Important information
Equity investment options involve greater risk, including heightened volatility, than fixed-income investment options. Fixed-income investments are subject to interest rate risk; as interest rates rise their value will decline. Fixed-income and asset allocation investment options that invest in mortgage securities are subject to increased risk due to real estate exposure. International and global investment options are subject to additional risk due to fluctuating exchange rates, foreign accounting and financial policies, and other economic and political environments. Asset allocation and diversification do not ensure a profit or protect against a loss. Additionally there is no guarantee this investment option will provide adequate income at or through retirement. Investment options are subject to investment risk. Shares or unit values will fluctuate and investments, when redeemed, may be worth more or less than their original cost. No part of this presentation may be reproduced or used in any form or by any means, electronic or mechanical, including photocopying or recording, or by any information storage and retrieval system, without prior written permission from Principal Financial Group. The subject matter in this communication is provided with the understanding that Principal® is not rendering legal, accounting, or tax advice. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements. Insurance products and plan administrative services provided through Principal Life Insurance Co. Securities offered through Principal Securities, Inc., , member SIPC and/or independent broker-dealers. Principal Life, and Principal Securities® are members of the Principal Financial Group®, Des Moines, IA Certain investment options may not be available in all states or U.S. commonwealths. PT488 | t e5 | 05/2017 © 2017 Principal Financial Services, Inc. Slide 20 Required disclosures for investment basics material.

Designate a beneficiary
Slide 21 Purpose of slide: To introduce the beneficiary topic.

Make sure your savings goes to the right person
Online at principal.com/Beneficiary Request a beneficiary form from your organization Slide 22 Purpose of slide: To show participants how to designate a beneficiary. Sample script: None of us like to think about death. But you can gain a little peace of mind knowing your savings will be distributed according to your wishes if something were to happen to you prior to retirement. You can make sure the money in your account gets transferred to your loved one when you designate a beneficiary at principal.com/Beneficiary or request a beneficiary form from your organization.

Rollovers Slide 23 Purpose of slide: To introduce the rollover topic.

Consolidate retirement funds in your organization’s plan with Principal®
Roll funds into an individual retirement account (IRA) Keep funds in your current account(s) Cash out Know your options Slide 24 Purpose of slide: To educate viewers on the options for rollovers. Sample script: As you change jobs during your career, you might accumulate more than one retirement account, making it harder to keep track of where your money is. If you have money left in a previous organization’s retirement plan, you have several options: You could roll the funds into your current organization’s plan with Principal. Funds could also be rolled into an IRA. This may provide you with added flexibility and access to more investment options. You could keep the funds where they are now. However, if the account balance is less than $5,000, your former organization has the right to cash you out of the plan. You will also want to determine if you are comfortable with the investment options and fees of your previous plan. Finally, you could cash out of your old account. But be warned, you could lose as much as 50% of your savings to taxes and penalties. That’s money that won’t be there when you retire if you cash out now. You may want to talk to a tax advisor before cashing out.

Rolling over to the plan
Online at principal.com/Simplify Request a rollover form from your organization Slide 25 Purpose of slide: To show how to request a rollover and where to get more help. Sample script: For more information about rollovers, visit principal.com/Simplify. It’s also smart to talk to your financial professional or a retirement specialist from Principal to discuss your options. They will explain the advantages and possible disadvantages so you can make an informed decision before taking action. (If the Rollover Form is available) Then, if you decide a rollover is right for you, you can start the process by requesting a rollover form through your organization. You should consider the differences in investment options and risks, fees and expenses, tax implications, services and penalty-free withdrawals for your various options. There may be other factors to consider due to your specific needs and situation. You may wish to consult your tax advisor or legal counsel.

Helping you get — and stay — on track for retirement
Slide 26 Purpose of slide: To introduce the next section that showcases Principal resources, tools, and more for participants.

Manage your plan for retirement
My Virtual Coach Monthly webinars at principal.com/LearnNow Retirement Wellness Score Mobile app Retirement Wellness Planner Participant e-magazine Up-to-date investment information 24/7 account access Slide 27 Purpose of slide: To highlight additional retirement resources from Principal. Sample script: Once you’re enrolled, you can take advantage of many of the plan’s resources at principal.com that are designed to help you stay on track for your retirement goals. My Virtual Coach turns complicated topics and decisions into much easier ones with a straightforward, interactive conversation. It’s like having your own personal retirement assistant at your beck and call 24/7. Your Retirement Wellness Score can help you see if you’re on track for the retirement you want. It’s always up-to-date, and you can get it anytime. Once you know your score, head over to the Retirement Wellness Planner to see how different things you do can impact your plans for retirement.* You can even take action while you’re there. You’ll also find up-to-date information on your investments, and you can explore additional investment information. Our monthly webinars offer insight you can’t get anywhere else. These webinars boil down topics like tax strategies, retirement income, Social Security and more to help you make informed financial decisions. You can also download our app to manage your account with text alerts and mobile access. You’ll also stay up-to-date on financial topics by receiving our e-magazine designed for retirement plan participants just like you. You can keep track of your retirement funds with regular statements and view past statements online (up to the last 18 months) at principal.com. *Based on specific assumptions. The Retirement Wellness Planner information and Retirement Wellness Score are limited only to the inputs and other financial assumptions and are not intended to be a financial plan or investment advice from any company of Principal Financial Group. They only provide general guidelines which may be helpful in making personal financial decisions. Responsibility for those decisions is assumed by the participant, not Principal Financial Group. Individual results will vary. Participants should regularly review their savings progress and post-retirement needs.

Let’s connect facebook.com/PrincipalFinancial twitter.com/Principal
youtube.com/PrincipalFinancial Slide 28 Purpose of slide: Show participants the many ways to connect with Principal. Sample script: In addition to the other contact information we’ve talked about, you can stay connected to Principal 24/7. Like us on Facebook, follow us on Twitter and watch videos on YouTube for the latest information to help you plan for your financial future. You can also download the Principal Mobile app to view your account information and make immediate changes to help you save more for retirement at principal.com/OnTheGo. I want to thank you for coming today. I know we’ve reviewed a lot of information about retirement planning, so please don’t hesitate to see me with questions. Or contact Principal anytime at principal.com or by calling As I said earlier, by being here today you’ve taken an important first step toward a more secure financial future. So congratulations! principal.com/OnTheGo

Important information
Investing involves risk, including possible loss of principal. Asset allocation and diversification does not ensure a profit or protect against a loss. Equity investment options involve greater risk, including heightened volatility, than fixed-income investment options. Fixed-income investments are subject to interest rate risk; as interest rates rise their value will decline. International and global investing involves greater risks such as currency fluctuations, political/social instability and differing accounting standards. These risks are magnified in emerging markets. The subject matter in this communication is educational only and provided with the understanding that Principal® is not rendering legal, accounting, investment or tax advice. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, investment or accounting obligations and requirements. The Retirement Wellness Planner information and Retirement Wellness Score are limited only to the inputs and other financial assumptions and is not intended to be a financial plan or investment advice from any company of the Principal Financial Group® or plan sponsor. This calculator only provides education which may be helpful in making personal financial decisions. Responsibility for those decisions is assumed by the participant, not the plan sponsor and not Principal®. Individual results will vary. Participants should regularly review their savings progress and post-retirement needs. Insurance products and plan administrative services provided through Principal Life Insurance Co. Securities offered through Principal Securities, Inc., , member SIPC and/or independent broker-dealers. Principal Life, and Principal Securities are members of the Principal Financial Group®, Des Moines, IA Certain investment options may not be available in all states or U.S. commonwealths. © 2017 Principal Financial Services, Inc. PD641PT-51 | 05/2017 | t e5 Slide 29 NOTE TO PRESENTER: Use in ALL presentations

Thank you Slide 30 Closing slide. Use this as the last slide in your presentation.

Additional plan slides
Slide 31 (Optional slides) NOTE TO PRESENTER: The following are optional slides to use to further customize the presentation and provide additional information for specific plans.

Plan enhancements Organization match Discretionary year-end organization match may be made at year-end Loan provision Loans available after [enter date] More investment options [Enter number] investment options as of [Enter date] (vs. [Enter number] today) Vesting 100% vesting (if date of hire before [Enter date]) in all prior and future organization contributions Slide 32 (Optional slides) NOTE TO PRESENTER: Information in parentheses needs to be updated. Discuss enhancements as applicable. Purpose of slide: To outline any plan enhancements. Sample script: When we talk to employees around the country, they often tell us their organization matching contribution is one of the main reasons they participate in their retirement plan. This is an extra benefit that helps your savings grow faster. If you were hired before [date], you’re 100% vested in the plan, meaning you keep all prior and future contributions by your organization. For more flexibility, your retirement plan will have a loan provision that allows you to borrow against your savings in the plan effective [date]. You’ll soon have even more choice in the way you invest your savings. The number of investment options in the plan will grow from [number] to [number] on [date]. For more details regarding the plan, see the plan summary or the Summary Plan Description. While this communication may outline one of your organization's retirement plan features, it is not the legal plan document which governs the organization's plan. If there are any discrepancies between this communication and the legal plan document, the legal plan document will govern. Contact your plan sponsor if you would like more details regarding applicable retirement plan provisions.

Automatic enrollment Effective [Enter date], all eligible employees [will be/have been] enrolled in the plan unless you elect otherwise At a pre-tax contribution rate of [X%] of eligible pay* Opt-out period between [Enter date] and [Enter date] (DELETE THIS BULLET IF AE HAS ALREADY OCCURRED) Slide 33 (Optional slides) Slide for use with plans with Automatic Enrollment. NOTE TO PRESENTER: Information in parentheses needs to be updated. These slides do NOT replace any required participant noticing. Ensure that proper noticing has been provided to participants. Purpose of slide: To highlight the automatic enrollment feature. Sample Script: Effective [date], all eligible employees [will be/have been] enrolled in the retirement plan at a pre-tax contribution rate of [X%] of eligible pay unless you elect otherwise.* Include if automatic enrollment has not taken place: You can opt out of automatic enrollment or elect a deferral percentage other than [X%], but you must do so between [date] and [date] by visiting principal.com, calling or contacting your human resources representative. Watch for an automatic enrollment notice for additional details. *Salary deferral contributions are limited to the lesser of the plan or Internal Revenue Service limit as indexed for the calendar year, $18,000 for 2017.

Enrollment sweep If you are currently … then …
Not saving in the plan Effective [Enter date], you [will be/were] automatically enrolled in the plan at a pre-tax contribution rate of [X%] of eligible pay unless you elect otherwise.1,2 Saving less than [X%] of eligible pay Effective [Enter date], your pre-tax contribution rate [will automatically increase/was automatically increased] to [X%] of eligible pay.1,2 Saving [X%] or more of eligible pay Your contribution will not change.2 Slide 34 (Optional slides) NOTE TO PRESENTER: Optional slide if plan is performing an enrollment sweep. Customize the slide and script with variable information. Purpose of slide: To highlight enrollment sweep feature. Sample Script: Walk participants through chart and dates. Include if automatic enrollment sweep has not taken place: You can opt out of the automatic enrollment sweep or elect a deferral percentage other than [X%], but you must do so between [date] and [date] by visiting principal.com, calling or contacting your human resources representative. Watch for an automatic enrollment notice for additional details. 1Salary deferral contributions are limited to the lesser of the plan or Internal Revenue Service limit as indexed for the calendar year, $18,000 for 2017. 2 Changes can be made at principal.com or by calling

Automatic annual increase
(Principal Step Ahead Retirement OptionSM) Years to retirement Potential account value at retirement With Principal Step Ahead Contribution Without Principal Step Ahead Contribution 10 $65,380 $46,125 20 $234,340 $155,799 30 $610,124 $398,258 Slide 35 (Optional slides) Slide for use with plans with Principal Step Ahead Purpose of slide: To explain the automatic contribution increase feature (Principal Step Ahead Retirement Option). Sample script: Your organization’s retirement plan includes a helpful feature called the Principal Step Ahead Retirement Option. It allows you to automatically increase the percentage of your salary you contribute to your retirement savings each year. You specify how much the increase is each year and for how many years you’d like it to increase. You can also choose the date this happens, and we’ll let you know when it’s time. It’s an easy way to take action without having to remember to increase your contributions every year to keep on track with your retirement goals. It doesn’t cost you much to increase your contributions a little each year and, as you can see on this chart, it can potentially make a huge difference in your savings at retirement. In this example, an employee contributing 8% of their salary automatically increases that deferral by 1% for five years. To take advantage of this feature of your organization’s retirement plan, select the automatic annual increase online or complete the Step Ahead section of your enrollment form. Assume $35,000 in annual income, an annual 7% rate of return, a starting contribution of 8% and an annual pay increase of 3.5% every year. Assume 1% annual salary deferral increase with Principal Step Ahead for five years. The assumed rates of return in this chart are hypothetical and do not guarantee any future returns nor represent the returns of any particular investment option. Amounts shown do not reflect the impact of taxes on pre-tax distributions. This is for illustrative purposes only. Individual tax payer circumstances may vary. Withdrawals prior to age 59½ may be subject to income tax including a 10% tax penalty and redemption costs.

Principal Total Retirement SuiteSM
Slide 36 (Principal Total Retirement Suite) Slides for use with plans with Principal Total Retirement Suite Purpose of slide: To outline the benefits of the Principal Total Retirement SuiteSM. Sample script: Principal Total Retirement SuiteSM is a total retirement solution used when your organization offers multiple retirement plan types.

Retirement plan services for multiple plan types, including: Defined contribution plans Defined benefit plans Nonqualified plans Employee stock ownership plans Slide 37 (Principal Total Retirement Suite) Purpose of slide: To outline the benefits of the Principal Total Retirement SuiteSM. Sample script: Let’s talk in a little more detail about the most common types of retirement plans: • Defined contribution plans (e.g. IRA, 401(k)) • Defined benefit plans (e.g. pensions) • Nonqualified plans (e.g. deferred compensation, executive bonus) • Employee stock ownership plans Principal Total Retirement SuiteSM makes it easier to manage your accounts because you can have the same point of contact for all of your organization’s retirement plans. And you can monitor them with a personalized retirement plan statement and your account information at principal.com.

Defined contribution Savings at retirement based on contributions you make to the plan, plus any earnings on these investments. Advantages Choose the amount you want to save Change the amount saved to help meet retirement goals Reduce current taxable income with your pre-tax contributions Slide 38 (Principal Total Retirement Suite) Purpose of slide: To highlight benefits of Defined Contribution plans. Sample Script: Defined contribution plans, like a 401(k), allow you to save for retirement by making contributions to the plan. Your total savings depend on the amount you contribute plus any possible earnings from investments. Not only do you choose the amount you want to save, but you can update that amount based on your needs. And because your contributions can be made pre-tax or prior to federal taxes being deducted, you can reduce your current taxable income. Increasing your contribution does not guarantee you put yourself in a better spot. Investment options are subject to investment risk. Shares or unit values will fluctuate and investments, when redeemed, may be worth more or less than their original cost. It is possible for an investment option to lose value.

Defined benefit Your organization makes all contributions to the plan. You receive a monthly income during retirement. Advantages No cost to you Receive a retirement benefit without assuming any investment risk Receive a benefit set by the formula in the plan Slide 39 (Principal Total Retirement Suite) Purpose of slide: To highlight benefits of Defined Benefit plans. Sample script: A defined benefit plan—commonly known as a pension plan—is a great benefit that isn’t available to many workers. If you’re eligible, your organization makes all of the contributions to this retirement benefit with no cost to you. And you don’t take on any investment risk. In retirement, you receive a benefit set by the formula in the plan.

Nonqualified plan Provides additional retirement benefits for a select group of employees. Advantages Additional savings option to supplement a defined contribution plan and Social Security Tax-deferred* Slide 40 (Principal Total Retirement Suite) Purpose of slide: To highlight the benefit of the nonqualified plan. Sample script: A nonqualified plan is another way for some employees to save, especially high earners who may have additional income to replace at retirement—a gap that a defined contribution plan and Social Security alone won’t cover. *Withdrawals prior to age 59½ may be subject to income tax including a 10% tax penalty and redemption costs.

Employee stock ownership plan (ESOP) Employee benefit plan that allows employees to own stock in the company. Advantages Tax-deferred savings* Encourages employee ownership Slide 41 (Principal Total Retirement Suite) Purpose of slide: To highlight benefits of ESOPs. Sample script: Like a 401(k) plan, an employee stock ownership plan allows for tax-deferred savings—but it also allows you to own stock in your company, giving you a personal stake in the company’s success. I’ll go into more detail soon about ESOPs. *Withdrawals prior to age 59½ may be subject to income tax including a 10% tax penalty and redemption costs.

Public employee stock ownership plans
Slide 42 (Public ESOP) Slides for use with plans with a public employee stock ownership plan (ESOP) Purpose of slide: To go into more detail public employee stock ownership plans. Sample script: Your company offers a public ESOP.

What is an ESOP? Employee stock ownership plan
Qualified retirement plan similar to a 401(k) plan, but with key differences Company and/or employee contributions are invested in company stock You become vested over time This program is available at no cost to you Slide 43 (Public ESOP) Purpose of slide: To explain what the employee stock ownership plan is and how it works. Sample script: An ESOP is really a pretty simple concept. It’s a retirement benefit provided by your company. While it has similarities to profit sharing or a 401(k) plan, ESOPs are primarily invested in company stock. With an ESOP, your company contributes to the plan, and then company stock is purchased on your behalf. As an employee, you are entitled to any vested portion in your account when you leave the company. You do not contribute anything to the ESOP, which is a major benefit to you. INTERNAL NOTE TO AE/EBSS: There are some cases where an ESOP allows the employee to invest in company stock. Please check into the specifics of your client’s plan.

Valuation of company stock
Publicly traded Account value = market price x shares Account balance at principal.com Slide 44 (Public ESOP) Purpose of slide: Details of ESOP. Sample script: Because company stock is publicly traded, its value is determined by the market and can fluctuate. Your ESOP statement lists the number of shares you have in your account and the value of those shares based on the stock value. Your account balance is updated daily at principal.com.

Contributions to the ESOP
Company and/or you may contribute Board of directors determines the amount(s) Allocated at the end of the plan year Based on eligible compensation Slide 45 (Public ESOP) Purpose of slide: How contributions are made to the ESOP. Sample script: As I mentioned, the company may make contributions to the ESOP on your behalf. That amount can be discretionary and can change from year to year, usually based on the company’s annual profits. Those contributions are made at the end of the plan year and are usually calculated according to a percentage of your eligible compensation. INTERNAL NOTE TO AE/EBSS: There are a few cases where an ESOP allows the employee to invest in company stock. Please check into the specifics of your client’s plan.

How an ESOP balance may grow
More shares – Contributed by the company – Reallocated from former employees Increasing stock value – Your dedication and everyday work can have a positive impact Slide 46 (Public ESOP) Purpose of slide: To show how ESOP account balances may grow. Sample script: ESOP account balances may grow two ways. The first is if additional shares are contributed to the plan by the company. Many ESOPs also reallocate shares to those who are still active in the plan when those shares are forfeited by employees who leave the company before they are fully vested. This is why it can also pay to stay with the company. The second way an ESOP account balance may grow is if the stock value itself grows. The more successful and profitable the company is, the more likely your ESOP balance may grow. Investment options are subject to investment risk. Shares will fluctuate and investments, when redeemed, may be worth more or less than their original cost.

Private employee stock ownership plans
Slide 47 (Private ESOP) Slides for use with plans with a private employee stock ownership plan Purpose of slide: To introduce private employee stock ownership plans. Sample script: Your company offers a private ESOP.

What is an ESOP? Employee stock ownership plan
Qualified retirement plan similar to a 401(k) plan, but with key differences Company contributions are invested in company stock You become vested over time This program is available at no cost to you Slide 48 (Private ESOP) Purpose of slide: To explain what the employee stock ownership plan is and how it works. Sample script: An ESOP is really a pretty simple concept. It’s a retirement benefit provided by your company. While it has similarities to profit sharing or a 401(k) plan, ESOPs are primarily invested in company stock. With an ESOP, your company contributes to the plan, and then company stock is purchased on your behalf. As an employee, you are entitled to any vested portion in your account when you leave the company. You do not contribute anything to the ESOP, which is a major benefit to you. INTERNAL NOTE TO AE/EBSS: There are some cases where an ESOP allows the employee to invest in company stock. Please check into the specifics of your client’s plan.

Valuation of company stock
Valued annually by an independent advisor Takes generally 12–16 weeks Statement shows new share price Slide 49 (Private ESOP) Purpose of slide: Details of ESOP. Sample script: Because company stock is not publicly traded, its value must be determined at least once a year by the ESOP trustee with the help of an independent financial advisor. That process starts at the end of the plan year and generally takes about 12–16 weeks to complete. Once the new stock value is known, you’ll receive a statement with your number of shares and the value of those shares based on the new price per share.

Contributions to the ESOP
You do not contribute Board of directors determines the amount(s) Allocated at the end of the plan year Based on eligible compensation Slide 50 (Private ESOP) Purpose of slide: How contributions are made to the ESOP. Sample script: As I mentioned, you don’t make contributions to the ESOP. The company contributes on your behalf. That amount is discretionary and can change from year to year, usually based on the company’s annual profits. Those contributions are made at the end of the plan year and are usually calculated according to a percentage of your eligible compensation. INTERNAL NOTE TO AE/EBSS: There are a few cases where an ESOP allows the employee to invest in company stock. Please check into the specifics of your client’s plan.

How an ESOP balance may grow
More shares – Contributed by the company – Reallocated from former employees Increasing stock value – Your dedication and everyday work can have a positive impact Slide 51 (Private ESOP) Purpose of slide: To show how ESOP account balances may grow. Sample script: ESOP account balances may grow two ways. The first is if additional shares are contributed to the plan by the company. Many ESOPs also reallocate shares to those who are still active in the plan when those shares are forfeited by employees who leave the company before they are fully vested. This is why it can also pay to stay with the company. The second way an ESOP account balance may grow is if the stock value itself grows. The more successful and profitable the company, the more likely your ESOP balance may grow. Investment options are subject to investment risk. Shares will fluctuate and investments, when redeemed, may be worth more or less than their original cost.

Roth elective deferral contributions
Slide 52 (Roth elective deferrals) Slides for use with plans with Roth elective deferral contributions Purpose of slide: To explain what Roth contributions are along with their benefits and limitations. Sample script: Your organization’s retirement plan also allows for Roth elective deferral contributions, which are contributions you elect to be made from your eligible pay and on an after-tax basis.

Roth elective deferral contributions
Additional way to save for retirement After-tax contributions Distributions generally tax-free (if requirements are met)* Subject to annual limitations Slide 53 (Roth elective deferrals) Purpose of slide: To explain what Roth contributions are along with their benefits and limitations. Sample script: Your organization’s retirement plan gives you another way to save for retirement by allowing for Roth elective deferral contributions. They’re different from a regular pre-tax contribution in that they are made on an after-tax basis. Where that turns into an advantage is when you withdraw the after-tax money from the account because those funds and any potential earnings will be tax-free if you are at least 59½, disabled or deceased, and it’s been at least five years after the first Roth contribution was made. * A qualified distribution is one that is made after a participant reaches age 59½, death or disability and must be made at least five years after the first Roth 401(k) contribution was made. Deferrals limited to the lesser of the plan or IRS limits as indexed for the current calendar year. See IRS website for annual limits for deferrals.

Are you a good candidate for Roth?
Strong retirement savings Exceed income limits for Roth IRA Higher tax bracket Participate in organization-sponsored defined benefit plan To learn more about a Roth 401(k), talk to your financial professional or a Principal® retirement specialist at Slide 54 (Roth elective deferral contributions) Purpose of slide: To help participants determine whether or not a Roth contribution is right for them. Sample script: Now that you know more about Roth elective contributions, you might want to evaluate whether they would be a good option for you. Here are four characteristics of a good candidate: • You’ve established strong retirement savings. • You’re not allowed to participate in a Roth IRA because of its income limits. • You expect to be in a higher tax bracket because you’ll be making more money at retirement. • If you are participating in your organization’s defined benefit plan, Roth elective deferral contributions may help you balance your tax obligations during retirement. Roth 401(k) contributions may not be the right choice for you if you are not confident you’ll have enough money for retirement. In that case, you may want to focus your retirement savings on traditional pre-tax 401(k) contributions. Or maybe you don’t expect to be earning more at retirement than you do now, which may put you in a lower tax bracket at retirement. And if your organization doesn’t offer a defined benefit plan, you may not have a tax obligation when you retire, which could make Roth contributions less helpful than if you had a tax obligation. If you think you’d be a good candidate for Roth 401(k) elective deferral contributions, talk to your financial professional or a retirement specialist from Principal. You can call Principal at

Optional slides to use for transition plans
NOTE TO PRESENTER: The following are optional slides to use to further customize the presentation and provide additional information for specific plans when in a transition situation.

Questions we’ll help answer today
What is the impact of the change in retirement service providers? What changes have been made to the plan? What do I need to know about investing? What resources do I have available? What forms do I need to complete? Slide 56 (Transition presentation) Slides to use when a plan sponsor/organization chooses to move services from a different provider to Principal Purpose of slide: To outline a few questions potential participants may have. Sample script: We’re going to review some new information today, and we hope by the end of today’s meeting we’ll have answered all of these questions for you.

Choosing Principal® Technology Diverse selection of investment options
Commitment Slide 57 (Transition presentation) NOTE TO PRESENTER: If bullets above do not apply to the plan sponsor, you may replace with any of the following: • Local service representatives • Education • Principal Retire SecureSM • Customized, personalized approach Purpose of slide: To list reasons why Principal was chosen. Sample script: Your organization cares about you and your financial needs, including retirement. Principal was chosen to be your retirement services provider for a number of reasons, including: • Modern and intuitive technology that makes it easier for you to plan for retirement. Like our user-friendly website that gives you valuable information and lets you take immediate control over your account. • Access to a diverse selection of investment options and premier portfolio managers. • And our commitment to the retirement industry and giving you the help and knowledge you need to reach your goals. (Add’l script for optional bullets) • Our local service representatives. • Our educational capabilities, such as [offerings]. • Principal Retire SecureSM and the opportunity to meet one-on-one with a retirement professional. • Our customized, personalized approach to participant communications and education.

What Principal® means for you
What Principal® means to you What Principal® means for you 130+ years in financial services 70+ years in the retirement plan services industry1 Total retirement solutions A leading provider of defined contribution plans2 A provider with experience serving 19.2 million customers worldwide3 Slide 58 (Transition presentation) NOTE TO PRESENTER: If company name has not been used until this point in presentation, full name should be used in title (replace “you”). Purpose of slide: To detail some benefits of Principal. Sample script: As a participant in the retirement plan, you will have access to Principal products and services. With more than 130 years in the financial services industry and more than 70 in retirement plan services, we’ve become an innovator in total retirement solutions. More than 19 million customers around the world trust us to help them with their financial futures. 1 Over 130 years experience , over 70 years in the retirement plan industry 2 Based on number of recordkeeping plans, PLANSPONSOR Recordkeeping Survey, June #2 with 47,857 plans 3 As of March 31, 2014 1 Over 130 years of experience 1879 – 2014; over 70 years in the retirement plan industry 1941 – 2014. 2 Based on number of recordkeeping plans, PLANSPONSOR Recordkeeping Survey , June 2015 — #2 with 51,020 plans. 3 As of December 31, 2015.````

Transition process overview
Current services with [change to reflect correct provider] will end on [DATE] Transition period will last from about [DATE] to [DATE]* Some retirement account activities will be on hold until transition is completed Slide 59 (Transition presentation) NOTES TO PRESENTER: Fill in all information in parentheses. If including this slide, slide immediately following this one (slide 32 titled “Beginning the Transition”) must be included as well. Purpose of slide: To explain a little about the transition from previous provider to Principal Sample script: Your current retirement plan services with [change to reflect correct provider] will end on [date]. The transition period to Principal will last from about [date] to [date]. Some retirement account activities (for example: balance inquiries, withdrawals, plan loans, and investment option changes) will be put on hold until the transition period is completed. [Name of entity] is/are not an affiliate of Principal Financial Group or any of its member companies. *This date depends on the accurate and timely transfer of data between your service provider and Principal. Delays in the transfer of data could change this date and lengthen the transition process.

The transition process
Last day for some account activities through [Customize organization]. [Date] Loan requests Hardship withdrawal requests Paper requests for rollovers, terminations, etc. Salary deferral and investment option changes [Date]* Expected completion of transition Slide 60 (Transition presentation) NOTE TO PRESENTER: Update Information in parentheses. Purpose of slide: To highlight important dates during the transition. Sample script: To make the transition process easier, we recently sent a transition notice to your home. Let’s review some key dates. The plan’s services with [name of company] will be transitioning to Principal between [date] and [date]. During this time a few account activities will temporarily be on hold, as you can see from this chart. [Name of entity] is/are not an affiliate of Principal Financial Group or any of its member companies. *This date depends on the accurate and timely transfer of data between your service provider and Principal. Delays in the transfer of data could change this date and lengthen the transition process.

Beginning the transition
Temporarily stop activities such as: Changes in investment direction for new contributions Transfers of existing retirement funds among investment options Requests for loan payouts, distributions and withdrawals Changes in salary deferral amounts Slide 61 (Transition presentation) NOTE TO PRESENTER: Fill in all information in parentheses — You must insert contact name or department from client’s organization. NOTE TO PRESENTER: The name on the slide must be a contact name or department from client’s organization. Purpose of slide: To outline what participants may experience during the transition. Sample script: To begin the transition process, it’s necessary to briefly stop some activities, including: • Changes in investment direction for new contributions. • Transfers of existing retirement funds among investment options. • Changes in salary deferral amounts. • Requests for loan payouts, distributions, and withdrawals. Changes in investment direction for new contributions, transfers of existing retirement funds among investment options, and changes in salary deferral amounts will be paused beginning at [customize time and date]. These activities will remain paused until the week of [customize date].* If you’d like to perform any of the transactions above, you need to do so before the transition begins. Requests for loan payouts, distributions, and withdrawals will be paused beginning at [customize time and date]. During the blackout period, you will be unable to direct or diversify the funds held in the retirement account. That’s why it’s important for you to review your current investment decisions and make any changes before the blackout period begins. If you have any questions regarding the blackout period, please contact: [Name, Phone number, ] *This date depends on the accurate and timely transfer of data between your service provider and Principal Financial Group®. Delays in the transfer of data could change this date and lengthen the transition process. If you have any questions regarding the blackout period, please contact [Name, Phone number, ]

Automatically transfer to
During the transition Existing balances in the plan & new contributions Similar investment options in the [customize organization] plan with services at Principal® Automatically transfer to Slide 62 (Transition presentation) NOTES TO PRESENTER: Fill in all information in parentheses Go through Sarbanes and explain the process of mapping. Please use their specific investment options as examples. Sample script: During the transition, your balances in the [customize name of plan] plan and new contributions will automatically go to similar investment options in the [customize organization] Plan. • Your payroll deductions for contributions and loan payments will continue to be withheld and submitted to Principal. • Existing plan retirement funds will continue to be invested until the actual date of the plan transfer. With the transition of plan services to Principal, the plan will have new investment options available for you to direct your contributions. Investment options will automatically transfer as follows: (go through example) After the transfer of retirement funds is complete, you’ll be able to transfer retirement plan contributions into any of the new investment options available. If you’d like to redirect retirement funds or change your current investment direction based on the chosen investment strategy, you need to do so before the transition begins.

Contributions will continue to be withheld and directed into the plan
Slide 63 (Transition presentation) Purpose of slide: To ensure that participants understand that their contributions will continue to be withheld from their paychecks throughout the transition. Sample script: While some activities may be put on hold, there will be no interruption in your saving for retirement during the transition process. Your contributions will continue to be made and they will continue to be directed into the plan.

After the transition Access account information at principal.com or by calling Change future investments Transfer existing balances among the plan’s available investment options Slide 64 (Transition presentation) Purpose of slide: To outline what participants will experience after the transition. Sample script: Once the transition is complete, you’ll receive additional information so you have full access to retirement account information. You’ll set up your account by visiting principal.com or calling Once you’ve set up your account, you’ll have access to your retirement account information and your Retirement Wellness Score, you’ll be able to change your future investments and transfer existing retirement funds among the plan’s available investment option and so much more.

Important dates to remember
[Time] [Date] Last day to request any loan payouts, distributions or withdrawals from [Customize organization] Last day to request changes in investment direction for new contributions, transfers of existing retirement funds among investment options, and changes in salary deferral amounts from [Customize organization] Retirement funds will transfer from [Customize organization] to Principal® Week of [Date]* The transition process will be complete and you will have full access to retirement account information Slide 65 (Transition presentation) NOTE TO PRESENTER: Fill in all information in parentheses. Purpose of slide: To list important dates. Sample script: This chart outlines some of the key dates of the transition, including the last day for certain requests and when you will have full access to your retirement account information from Principal. [Customize organization] is/are not an affiliate of Principal Financial Group or any of its member companies. *This date depends on the accurate and timely transfer of data between your service provider and Principal. Delays in the transfer of data could change this date and lengthen the transition process.

New investment options in the plan
Find information on the plan’s new investment options in Notice mailed to your home Provided investment information Investment Options Summary in the workbook and notice Transition website: principal.com/XXXX Once the transition is finished, log in to your account at principal.com or call Slide 66 (Transition presentation) NOTE TO PRESENTER: If client is an Institutional client, customize the transition website. If client is NOT an Institutional client, delete /XXXX** at end of url. Purpose of slide: To tell participants where to find information about new investment options. Sample script: If you would like more information about the new investment options available in the plan: • Look for a Sarbanes Oxley Notice mailed to your home. • Check the provided investment information. • Read the investment options summary in your workbook and notice. • Or visit the transition website at principal.com/XXXX.

INSTRUCTIONS Update your name/title on the title slide and other applicable slides Select appropriate disclosure and add to title slide: If financial professional’s.

Similar presentations

Presentation on theme: "INSTRUCTIONS Update your name/title on the title slide and other applicable slides Select appropriate disclosure and add to title slide: If financial professional’s."— Presentation transcript:

Similar presentations

About project

Feedback

Log in

Auth with social network:

INSTRUCTIONS Update your name/title on the title slide and other applicable slides Select appropriate disclosure and add to title slide: If financial professional’s.

Similar presentations

Presentation on theme: "INSTRUCTIONS Update your name/title on the title slide and other applicable slides Select appropriate disclosure and add to title slide: If financial professional’s."— Presentation transcript:

Similar presentations

About project

Feedback