1. 4th Quarter Producer Web Conference October 2, 2002
We’ve tried to piece together a lot of information and we’re hoping you could tell us what else we’re missing within the analysis or where you would like to see a focus going forward.
Presented By:
Ken Cochrane, Senior Vice President, National Sales
Peter Welsh, Regional Vice President

2. AdviceSolutionsSM - Agenda
Background/Advice Frameworks
Product Availability
Cost/Plan Requirements
Marketing Plan
Launch Plan
AdviceSolutions Walk Through
Q&A

3. AdviceSolutionsSM - Background
AdviceSolutions is a web-based investment modeling and retirement planning tool powered by Advice Frameworks.
Acquired by AEGON in 2001
Range of simulation capabilities

4. AdviceSolutionsSM - Background
Business Week, Money Magazine, and Yahoo Internet Life
Currently, Advice Frameworks also powers the Retiretek retirement planning tool for Diversified Investment Advisors.
Part of comprehensive employee retirement planning tools including Retirement Planning Assessment and Asset Allocation tool

5. AdviceSolutionsSM - Available Products
Transamerica Director Series I - Signature Services1
Underwriting guidelines of $200,000 in first-year weighted assets
Transamerica Partner Series I - TPA Services1
Underwriting guidelines of $100,000 in first-year weighted assets
Transamerica Advisor Series I2
Underwriting guidelines of $1,000,000 in first-year assets
1 Contract Form No. TGP is a group annuity issued by Transamerica Life Insurance and Annuity Company, Charlotte, NC, and offered through Transamerica Retirement Services. Contract form and number may vary, and this product may not be available in all jurisdictions. Not available in New York. 2 Transamerica Advisor Series I is administered by Transamerica Securities Sales Corporation and distributed by Diversified Investors Securities Corporation.

6. AdviceSolutionsSM - Cost/Plan Requirements
No additional costs
The plan must have at least 1 fund in each of the following asset classes:
Cash Equivalent
Bond
Large/Mid Cap Blend or Large/Mid Cap Growth and Large/Mid Cap Value

7. AdviceSolutionsSM Marketing Plan
Marketing Materials
Proposal - Included 9/3
Plan Highlights - Included 9/12
All Brochures - Updated 10/1 - 10/15
Demo Site will be available to all producers on
by 10/1.

8. AdviceSolutionsSM Brochure

9. AdviceSolutionsSM Launch
Plan Setup starting on 10/1/02
There is no additional contract for the plan sponsor to sign. They just need to check the box on the checklist to request for setup.
Participants will be able to access the advice feature within 5 days of request for set-up.
Participant access -
Existing Clients
At launch, we will not pro-actively roll out this service to existing clients.
Clients who request this feature will be treated on a case by case basis.
Producers/Field reps should contact their client service reps.

10. AdviceSolutionsSM - Walk Through
Participants’ retirement plan information is passed to AdviceSolutions each time they log in, so they don’t have to type in information such as name and retirement account balance and fund allocation.

11. AdviceSolutionsSM - Walk Through
The participant must enter their salary information and they can also enter other sources of income to get a more complete analysis.

12. AdviceSolutionsSM - Walk Through
Participants can use this feature to model the impact of a broad range of future life events on the future value of retirement assets.

13. AdviceSolutionsSM - Walk Through
Life Summary Timeline illustrates the income, expenses, retirement data and the potential life expectancy.

14. AdviceSolutionsSM - Walk Through
The participants have a chance to enter outside assets for a more complete analysis.

15. AdviceSolutionsSM - Walk Through
The goals pages allow the participant to enter their own goals or use our pre-set defaults.

16. AdviceSolutionsSM - Walk Through
The level of experience selector will dictate how many scenarios the user will see and be able to accept. Advanced will see 21, Intermediate will see 5, and Beginner will see 1.

17. AdviceSolutionsSM - Walk Through
The participant will have an opportunity to change the variables that would effect the retirement goals. Variables include deferral percentage, save more to outside assets, etc.

18. AdviceSolutionsSM - Walk Through
This page indicates what the risks are for the participant and what percentage chance the participant has to reach their goal.

19. AdviceSolutionsSM - Walk Through
The asset buildup and drawdown page shows a participant how his assets are built up and then depleted.

20. AdviceSolutionsSM - Walk Through
The recommendation page shows the participants’ current allocations and where AdviceSolutions recommends them to be. The analysis is based on asset class level, then pro-rated between the funds available in that asset class.

21. AdviceSolutionsSM - Walk Through
The action plan page will show the participants’ retirement goals, projected income and whether or not they will have a surplus or shortfall.

22. AdviceSolutionsSM - Walk Through
Action plans to meet the goals are outlined step by step for the participants so they will be able to take the necessary action.

23. AdviceSolutionsSM - Walk Through
AdviceSolutions reiterates all the assumptions to the participants to make sure they did not enter wrong information.

24. AdviceSolutionsSM - Walk Through
This is the final page of the AdviceSolutions module. At this point, the participant can either log-off or start another session.

25. AdviceSolutionsSM - Customer Service
AdviceSolutions offers collaborative browsing where an Advice Frameworks representative will be able to see the same thing as the participant and then walk them through each step.
The representatives will be able to answer questions about the tool and the concepts that are presented in AdviceSolutions.
Participants are instructed to send all plan related questions to their plan sponsors.

26. Retirement Planning Assessment

27. Retirement Planning Assessment
Retirement Planning Assessments are designed to allow eligible employees to understand what their retirement goals should be, whether they are on course to achieve those goals, and different actions they can take to try to achieve their goals.

28. Selling in the 4th Quarter 2002

29. No Better Time than Now Negative Market Returns Need to be proactive
Service Providers are consolidating/downsizing
Employees have never been more uncertain
Back to the basics

30. Plan Design Discrimination Test Issues
Fully enjoying benefits of EGTRRA
Allocate money in the most effective manner, i.e. Last Day Requirement
Safe Harbor options

31. 401(k) Discrimination Testing Options
HCEs want to take advantage of 401(k) Plan
Each HCE defers 7% of pay
Each NHCE defers 0% of pay
After discrimination testing, plan fails by 5% points
Bottom Up QNECs
Assumptions
Eligibility: Immediate
Each HCE defers 7% of pay
Each NHCE defers 3% of pay
After running the discrimination test, we find that the plan fails by 2% points
i.e. - the ADP for the NHCEs is 3% and it needs to be 5%

32. Bottom-Up QNECs Illustration
Eligible Avg Trad Pre-
Employee Income Deferral ADP% ADP QNEC
HCE $157, $11, %
HCE , , %
HCE , , %
HCE , , % %
NHCE , % % % %
NHCE , % % % %
NHCE , % % % %
NHCE , % % % %
NHCE , % % % %
NHCE , % % % %
NHCE , % % % %
NHCE , % % % %
NHCE , % % % %
NHCE ,000* % % % % %
ADP Test
3% x = %
3% x 2 (2% max) = 5%
NHCE total % has to reach 50% to give average of at least 5% to pass 2x test
Traditional QNEC
An across the board QNEC of 2% for each NHCE would achieve this goal but the cost would be $7,300.
Pick & Choose
Giving the 2 lowest paid NHCEs a 10% QNEC, the cost would be $2,500.
Bottom-Up
A QNEC of 20% for the lowest paid NHCE, would cost only $1,000.
*(termination date 5/01/01)
$18, $6, $2,500

33. Safe Harbor with NCP “How does it work?”
Use 3% non-elective Safe Harbor
No ADP testing
HCEs can get $40,000 under 401(k) and NCP combo
Same 3% can be used for top-heavy and NCP tests
401(k) helps pass NCP tests
100% vesting and employee notice required on safe
harbor
Safe Harbor with NCP
“How Does it Work?”

34. NCP with Non-Elective Safe Harbor
For Plan Year Ending December 31, 2002
Total Covered Income: $965, Total Profit Sharing: $36,000
Total 401(k) Deferral: $ 54, Total 401(k) Match: $
Total Safe Harbor: $ 28,950
Safe Harbor with NCP
“How Does it Work?”
* Meets 3:1 ratio gateway under proposed NCP regulations

35. Investments Ongoing responsibility to review
Multiple Fund Family offerings provide greater choice
Suggest review of ERISA 404(c) compliance and Investment Policy Statement
Transamerica’s Investment Monitor

36. Top-Notch Investment Managers*
Note: Contract form number TGP is a group annuity contract issued by Transamerica Life Insurance and Annuity Company, Charlotte, NC, and offered through Transamerica Retirement Services. Form number may vary, and this product may not be available in all jurisdictions. Not available in New York.

37. Investment Monitor
Transamerica Retirement Services provides The Investment Monitor as a valuable informational resource to assist in meeting Plan Participants needs and fulfilling due diligence responsibilities as a Plan Sponsor.

38. Service Many companies are cutting service capabilities during
these tough times
Need to tailor service to client profile
Introduction of Sponsor Connect
TRS Field Service Personnel for Larger Clients
Transamerica Partner Series combines our investment
contract with local TPA

39. Sarbanes-Oxley Act of 2002 Blackout Notice Requirement
30 Day Written Notice
Consecutive 3 day period required
$100/day/affected participant fine
Prohibition on Insider Trading of Employer Securities During Defined Contribution Blackout Periods
Applies to publicly traded securities only
Increased ERISA Criminal Penalties
DOL to issue interim final rules necessary to carry out provision of this Act by 10/13/02.
Blackout rules effective 1/27/03

40. Employee Communications
Confused employees are looking for assistance from Plan
Sponsor
Retirement Planning Assessment
Online Investment Advice
Enrollment Meetings
Customized Enrollment Communications
TRS new website

41. Visit www.TA-Retirement.com

42. Interactive Participant Web Site

43. Interactive Participant Web Site

44. Interactive Participant Web Site

45. Interactive Participant Web Site
PAT PARTICIPANT

46. Interactive Participant Web Site
Question & Answer Session