1. Director of Business Development
Product Updates
Peter Welsh
Senior Vice President
Director of Business Development
Chicago

2. Agenda
Merrill Lynch Product
Self Directed Brokerage Account
Roth 401(k)
Plus 15 Enrollment Initiative
Participant Education

3. Merrill Lynch Product
107 Investments vs. 92 Investments (ML Funds added)
No Tiers, i.e. Open Architecture and no proprietary fund requirements
$250,000 minimum first year deposits
4 Standard Commission Options
SDBA - Not Available
Sponsor Advice – Not Available
Service Level Standards
Establishment of Link

4. Service Standards
Transamerica Financial Life Insurance Company (TFLIC) will perform the services listed below within the established service standards. If TRS or the TPA, where applicable, does not meet the defined stated delivery service standard, TFLIC will credit to Client 10% of the total quarterly record keeping fee paid to Transamerica on the next invoice to be processed for each service standard failure that occurred during the previous quarter.

5. Service Standards - TRS
Enrollment: Transamerica will mail enrollment material within 10 business days after receipt of final data in “Good Order”.
Conversion/Takeover Process: Transamerica will complete the plan conversion within 10 business days after receipt of final data in “Good Order”.
Participant Statements: Participant statements will be mailed within 10 business days after the end of the calendar quarter or 10 calendar days after the receipt of data in “Good Order”.

6. Service Standards - TRS
Payroll Contributions: Transamerica will process payroll contributions submitted via the required medium (Website and request ACH within 1 business day of receipt of data in “Good Order”. Payroll contributions received via paper or diskette will be processed within 3 business days of receipt of data in “Good Order”.
Benefit Distributions: Distribution and loan checks will be mailed within 3 business days from the receipt of a distribution request that is determined by Transamerica to be in “Good Order”.

7. Service Standards - TPA
Employer Contribution Illustrations: Illustrations for allocation of Employer Contribution will be provided within 45 calendar days after receipt of final data in “Good Order”.
Compliance Testing: For calendar-year plans that return data by the pre-defined cut off date and the data is in “Good Order”, ADP and ACP test results will be provided by March 15 of each year. For all other compliance tests when data is provided in “Good Order, such test results will be delivered within 45 calendar days after receipt of the last piece of data.
5500 Reporting: A draft Form 5500 will be delivered within 6 months following the applicable plan year end, provided 5500 data is received in “Good Order”, within 45 calendar days following the plan year end for which the return is to be completed.

8. Good Order:
For the purpose of administering the above Service Standards, Good Order defined as:
Receipt of complete and accurate participant information on conversion or contribution files that reconcile and match dollar amounts remitted. For conversion files, complete and accurate records include loan summary reports that match and reconcile to loan repayments being remitted
Receipt of complete and accurate forms, responses to requests for additional information or census data necessary and required in order for the TPA/Transamerica to perform disbursements, compliance testing or other services, including those services listed above.

9. Reporting and tracking
TRS monthly report to ML
TPA tracking
3 service level standards
Online tracker
Date level input
Data in Good Order
Completion
Automatic jogger
notification of missing date
notification of approaching deadline
Online messaging and plan highlighting

10. Self-Directed Brokerage Account
TruSource will be new option effective 6/30/06 replacing Harris Direct
Allows multiple brokerage account consolidation options
3 Options
Broker Managed
Do-It-Yourself via Ameritrade
Mutual Funds Only window – TruSource will process
Ability to hold unique assets – Unregistered Securities, Life Insurance, Real Estate

11. Roth 401(k)
CE Presentation Approved
Promoting Roth 401(k) with Alliance Partners
Promotional Brochures Completed
Enrollment Materials modified and Certified Enrollers trained on Roth 401(k)

12. Plus 15 Enrollment Initiative
Promotion to increase participation 15%
Focus on Participation Drivers and educational tools
Keys:
Must have less than 75% participation
100% of eligible, non-participating must attend workshop
No material decrease in benefits
Must provide Participation Data at time of Takeover
Must select a minimum of 4 recommended drivers
Recommendations outlined in comprehensive analysis

13. Participant Education
Enrollment and re-enrollment
Seminars
401(k) Made Simple
Investments Made Simple
New Seminars
Women and Investing
Roth 401(k) Made Simple