1. Processing Day by Day: It’s All in the Details
Leecea Johnson
Vice President Operations, Los Angeles

2. Overview Operations Overview TRS Initiatives 2006 Goals
Recordkeeping and Administration Overview
Partner Management
Service Standards
Chatham Results
Keeping You Informed
Day to Day Processing
Enhancements - Fees
Client Satisfaction

3. Operations Mission Statement
To delight and retain our clients by delivering reliable, high quality plan services through stable, well-controlled operations.
Customer Satisfaction
Service Delivery
Quality
Responsiveness

4. TRS Operations Goals Customer Satisfaction Service Delivery Quality
Increase customer satisfaction 10% by 12/31/2006 as measured by the Annual Client Satisfaction Survey
Service Delivery
Annually increase service standards and delivery to become industry leader by 12/31/07
Quality
Improve overall quality of customer interaction as measured by achieving 90% on Customer Satisfaction Index by 12/31/06; Maintain 90% while improving underlying standards by 10%
Responsiveness
Resolve 90% of customer issues on 1st call by 12/31/07 (80% by 12/31/06); Improve overall responsiveness by 10% as of 12/31/07

5. Operations Mission Quality & Responsiveness Service Delivery
Customer Satisfaction
Asset Retention

6. TRS Operations Goals: Status Update
Service Delivery: Annually increase service standards and delivery to become industry benchmark by 12/31/07
2005 Target Standards = Kits, Contributions, Distributions & Statements
2006 Target Standards = Fund mapping, takeover allocation, enrollment forms
2007 Target Standards = Address changes, fund additions, eStatements
Quality: Improve overall quality of customer interaction as measured by achieving 90% on Customer Satisfaction Index by 12/31/06; Maintain 90% while improving underlying standards by 10%

7. TRS Operations Goals: Update
3/31/06 Target
3/31/06 Results
Activity – AE Visits
514
606
Activity – AE Calls
1685
1895
Activity – PSD RR
80%
82.9%
Activity – PSD ASA
30 seconds
23 seconds
Activity – ESD RR
86.2%
Quality – Installation
90%
93.2%
Quality – AE
91.4%
Quality – PSD
91.2%
Quality – ESD
94%
Quality – Doc Ops
90.7%

8. TRS Operations Goals: Update (cont.)
3/31/06 Target
3/31/06 Results
SL – Kits
98%
99%
SL – Statements
100%
99.9%
SL – Contributions
96.7%
SL – Distributions
99.2%
Survey – AE Overall
85%
95.9%
Survey – PSD Overall
Survey – Ed Services
90%
98.3%
Survey – Installation
91%

9. TRS Operation Goal: Single Point of Contact
Launch Date is June 12, 2006
Plans over $500,000
TPAs with >1 plan
Assigned Retirement Plan Specialist
Proactive call & goals

10. Recordkeeping & Administration Overview
Partners of Transamerica and the Recordkeeping Services provided
Partner Management Team and Overview
Partner Management Reporting
2005 Service Standards Statistics
2006 Initiatives

11. Recordkeeping Overview: Partners
TRS Partners
TA-OHIO
Partner since 1994
TPA Service Partner for Merrill Lynch plans starting in 2006
Located in Cincinnati, OH with approximately 100 employees
3,826 Plans with 69,728 Participants (as of 12/31/2005)
TAEAST
Partner since 1995
Original Partner for TPA product
Partner for MEP plans since 2003
Located in Long Island, NY with approximately 100 employees
3,297 Plans with 251,893 Participants (as of 12/31/2005)
Diversified Investment Advisors
Sister company under Aegon umbrella providing NAV product
Located in Cedar Rapids, IA
156 plans with 20,715 Participants (as of 12/31/2005)

12. Recordkeeping & Administration: Partner Management Team
Leecea Johnson
Director
Gloria Cleveland
Pension
Specialist
Chris Logan
Pension
Consultant
Rose Cozzolino
Pension
Consultant
Tom Henderson
Pension
Consultant
David Ruiz
Pension
Consultant
Francine Gray
Pension
Consultant
Audit Support
DOL/IRS Inquiries
Retroactive Calcs.
NCP Calculations
SAS-70 Reviews
Monthly Reporting
SDBA
Participant Forms
Invoice Generation
Fee Adjustments
Billing
Fund Changes
Trading Restrictions
Process Improvements
Trend Analysis
QC Management Training
Plan Audit Support
Research Requests
Process Improvements
On-site Management

13. Recordkeeping & Administration: Partner Audits
On Site Audits
Methodology
Pension consultant conducts on site audit each quarter
Random selection of plans
Review for service level, accuracy and documentation
Audit report provided to Senior Management for review
Scope
Daily balancing and quarter end reconciliation
Payroll contributions and loan payments
Participant level requests: transfers, elections,
Participant loans and distributions

14. Recordkeeping & Administration: Partner Management Responsibilities
Project management for new products and services
Plan sponsor billing for recordkeeping fees
On site audits
Recordkeeping scorecard for survey results
Monthly reporting
Quality control procedures
Implementation of new funds
Monitor partner service standards
Analysis of trends on recordkeeping operations
SAS-70 assessments
Participant Level Trading

15. Recordkeeping & Administration: Service Standards
Service Standards versus Actual Performance
January 1, 2005 through December 31, 2005
Service Standard
2005 YTD Performance
Contributions Processed within 1 business day
99.5% processed within 1 business day
Distributions / Loans processed within 3 business days
99.4% processed within 3 business days
Participant Statements processed within 10 business days
99.7% processed within 10 business days

16. Recordkeeping & Administration: Chatham Results
Chatham - Overall satisfaction with…..
2004
2005
Diff
Transamerica Averages
Processing transactions
81.3%
83.8%
2.5%
Participant statements
74.5%
81.5%
7.0%
Plan sponsor services
66.7%
72.7%
6.0%
Plan Recordkeeper
73.0%
1.5%

17. Recordkeeping & Administration: Customer Satisfaction
“And the survey says?”
Transamerica’s strengths noted in Chatham Results
Clients are very satisfied with the accuracy and timeliness of contributions, disbursements, and loans. Clients give “best-in-class” scores for timeliness, accuracy and overall satisfaction in the this area.
Additional comments were given that Transamerica is quick in processing disbursements, a rarity among Chatham clients.
Accuracy, clarity, and timeliness of participant statements all received very strong scores, and surpass Chatham’s proprietary benchmark in all attributes.

18. Keeping You Informed

19. Keeping You Informed Installation
Plan installation & reconciliation data
Statements
Quarterly Activity Statements & Valuation Reports
Year End Data
TPA web site to obtain census data download
Form 5500 Schedule D Fund Codes
Vesting Update
Template for Processing Refunds
Distributions
Distribution forms not in good order
Loan Default letters (Pending)
RMD Mailing

20. Day to Day: Employee Enrollment
On-line or by Hardcopy (Paper)
Select Deferral % (Maintained by Sponsor)
Select Investment Allocations (Future changes via VRU / Web)
Cancel future employee contributions (Maintained by Sponsor)
Designate Beneficiary (Maintained by Sponsor)

21. Day to Day: Contribution Processing
Data Remittance Methods
Internet Upload (preferred method)
3-1/2” Diskette
Contribution
Remittance Method
ACH
Wire Transfer
Check

22. Day to Day: Contribution Processing
Contributions invested in “Default” fund in the event of missing or incomplete participant investment elections
Default fund selected by Sponsor
Default confirmations provided to Sponsor and Participant
Contribution detail report available on website

23. Day to Day: Payroll Upload
Contribution processing – preferred method. Access web site via TA-Retirement.com login as an employer with ID and Password into Transaccess. Select Payroll Upload options and the above screen appears.
Payroll Validation program currently being implemented. Intended to streamline the data remittance process. Program checks performs various checks prior to accepting the file from the plan sponsor. Produces error messages that need to be resolved prior to the acceptance of the file. Types of error checks performed:
Valid file type and format
Data logic checks:
SSN not on recordkeeping system
SSN Format error
Loan payment for a participant with no loan
Funding Discrepancies: Total participant contributions do not equal deposit amount

24. Day to Day: Vesting Sponsor can submit full census each payroll
Vesting calculated and updated according to method in document
Vesting update request sent to plan sponsor in November to request hours by participant to update vesting in time for 4th quarter statement (copy to TPA)
Vesting can be suppressed on statements, web, VRU

25. Day to Day: Distribution Processing
Distributions must be approved by an authorized signor (can be TPA)

26. Day to Day: Distribution Processing
Distribution Events:
Termination
Retirement
Forced Distributions
QDRO
In-Service Withdrawals
Hardship
Required Minimum Distribution
Disability or Death

27. Day to Day: Forfeiture Processing
Forfeitures used according to TPA checklist
Forfeitures used after the close of the plan year:
Pay Plan Expenses
Reduce Employer Contributions
Reallocate to employee (must provide dollar amount per participant)
Forfeitures invested in fund chosen by Sponsor

28. Day to Day: Loan Administration
Loan Requests:
Plan design determines number of loans, recordkeeping system limit is 20 loans.
Request loans via Form or paperless
Paperless requests only for General Purpose loans, and no J&S requirements.
Paperless loan requests initiated by 4:00pm EST processed next day. Check received within 5 days

29. Day to Day: Loan Administration
Loan Payments:
Interest & Principal applied to loan payment
Loans can be paid off anytime, partial payments not permitted.
Loan delinquent report generated for participants that have not made a loan payment in the last 90 days

30. Day to Day: Transactions and Reporting
Participant
Statements and
Worth a Look
newsletter
Participant Homes
Plan Sponsor
Summary Reports
Plan Sponsor
Mailed within 10 business days of the end of the quarter
TPA automatically receives a copy of all sponsor summaries

31. Participant Statement
Day to Day
Sample
Participant Statement

32. Enhancements: Fees Current TPA billing options:
TRS can deduct the following fee types when instructed by Trustee/TPA.  (TRS must receive instructions each period in which fee(s) are to be deducted)
Specified amount deducted from contract (pro-rated)
Specified amount from each participant's account

33. Enhancements: Fees TPA billing options available August 1, 2006:
 Options for TPA billing will be available on Supplemental Installation Checklist to include specific dollar amounts for the following:
Distributions (deducted from benefit)
New loan set-fee (deducted from loan amount)
Amount deducted from each participant's account
Amount deducted from contract (pro-rated)
Fee deductions can be automatically processed for each plan as requested
Instructions can still be performed on a one-time basis

34. Enhancements: Fees TPA billing options available August 1, 2006:
TPA will receive payment and detailed report from TRS monthly. Report will include :
Contract Number and Name
Participant Name (if applicable)
Effective Date
Fee Deducted

35. Customer Satisfaction
“And the survey says?”
Transamerica’s strengths noted in Chatham Results
Clients using the Partner Series service model are generally more satisfied than clients using other TRS models.

36. Best Practices Part II