1. 2009 Schwab RT User Forum Plan Administrator Services Regional Summit The material contained herein is proprietary to Charles Schwab and for informational purposes only. The information is not intended to provide tax, legal or investment advice. Certain information presented herein may be subject to change. Neither the presentation, nor any information or material contained in it may be copied, assigned, transferred, disclosed or utilized without the prior express written approval of Schwab. © 2009 Schwab Retirement Technologies, Inc. All rights reserved. (0409-8661) April 27, 2009 – Phoenix, AZ May 11, 2009 - Charlotte, NC

2. 2 Agenda  Welcome & Introductions  Design Session – Payroll Trade Automation  Design Session – Reporting Strategy  Product Update  Peer Networking  Closing Remarks Schwab RT Users Forum

3. Payroll Trade Automation Design Session Ben Lee Product Strategy, Schwab Retirement Technologies Lisa Adams Director of Technology, Schwab Retirement Technologies

4. 4 Payroll Trade Automation (PTA)  Project Objective – Overview  Recordkeeping changes  Plan Maintenance  Trade Link (TDI) Maintenance  Order Maintenance  SchARP – changes to current Business Activities  Cash Activity – intra day files  SchARP Payroll History – new screens  Matching cash received with payrolls  Reviewing and editing cash and payroll matches  Examples  Feedback and Questions Objective: Validate PTA Design

5. 5 Recordkeeping – Plan, TDI Maintenance  Plan Maintenance –  Option to require Approval step in SchARP Payroll  A new default template is available that does not include Approval step  TDI Maintenance –  Option to wait for cash and payroll match before sending Payroll Orders on the Trade Export files  Available for Link 40 Charles Schwab

6. 6 Recordkeeping - Order Maintenance  Search Criteria  Single Order ID  Single Batch ID  Date Range  Order Status  Activity Batch ID  Maintain Records  Display and allow edit for new Funding Status and Funded Date fields  Display Investment ID, Activity Batch ID and SchARP Workflow ID New!

7. 7 SchARP – Changes to Current Business Activities  File Transfer – downloads all available Cash Activity files  Files available hourly from 7am – 7pm PST  Payroll – based on plan settings  Use current payroll workflow with approval, or  Use a new payroll workflow that does not require approval before generating batches  Payroll History – displays historical and detailed view of Payroll information  Allows manual matching between funding and payrolls  Ability to edit matching until trades are exported

8. 8 SchARP - Payroll Workflow New!

9. 9 SchARP Enhancements  Match Funding with Payroll – new business activity  Automatically matches cash received in each Cash Activity file with expected payroll funding amount  If exact match, then corresponding payroll Trade Orders are flagged as funded and Orders are ready to be exported  SchARP Payroll – 3-way match compares the Expected Funding Amount entered, with cash amounts from Cash Activity files and the sum of the payroll purchase Trade Orders  If not exact, then user can manually match funding with payroll Discussion: payrolls entered via ADT

10. 10 CASH ACTIVTY FILE INFORMATION RECORD TYPETPA IDPLAN IDRECEIPT ID ACTIVITY DATE RECEIPT AMOUNTTRAN CODE Filename: C010109A.ABCCAABCAAA1000000001"010109"10000.00DEP CAABCAAA1000000002"010109"10000.00DEP CAABCBBB1000000003"010109"25000.00DEP CAABCCCC1000000004"010109"10000.00DEP Filename: C010109B.ABCCAABCAAA1000000005"010109"10000.00DEP CAABCCCC1000000007"010109"25000.00DEP CAABCCCC1000000008"010109"10000.00DEP CAABCDDD1000000009"010109"50000.00DEP PAYROLL INFORMATION PLAN ID PAYROLL DATEDIVISION PAYROLL AMOUNT MATCH FUNDING RECEIPT IDs MANY TO MANYAAA1/15/2009110000.00 1000000001 AAA1/15/2009210000.00 1000000002 MANY TO ONEDDD1/15/2009325000.00 1000000009 DDD1/15/2009425000.00 1000000009 ONE TO ONEBBB1/31/2009525000.00 1000000003 ONE TO MANYCCC1/31/2009645000.00 1000000004, 1000000007 AND 1000000008 Matching Cash Received with Payrolls

11. 11 SchARP Payroll History New!

12. 12 SchARP Cash and Payroll Match

13. 13 Feedback and Questions  What type of Notifications would be beneficial?  Each time Cash and Payroll Match business activity runs  Separate email for matched, unmatched  Email content: list of plans, cash amounts, activity cash file names that were either matched or unmatched  Permission of SchARP Roles  Roles  SchARP Payroll User and Payroll Approver (Current)  Match Funding User (New)  Can Payroll and Match Users view same information?  Match Information displays on the Payroll History page  Closing Comments

14. Break 1:50 – 2:00pm

15. Reporting Strategy Design Session Lisa Adams Director of Technology, Schwab Retirement Technologies Don Oldfield Sales and Consulting, Schwab Retirement Technologies

16. 16 Reporting Strategy  Phase 1 - Reporting Library – deployed 4/23/2009  New data elements for Custom Statement Generator (cp20)  Advance database linking  Phase 2 – Schedule Off-cycle reports – June 2009  Foundation for the ARC (Automation Report Center)  Phase 3 – Publish reports to Sponsor and Advisors from ARC – Q4  Also allow for publishing of non SchARP generated reports  Phase 4a – cycle automation  Integrate cp20 logic into ARC  Integrate report generation with SchARP report cycle events  Phase 4b – publish statements to the web  Provide the ability for you to securely publish the participant and sponsor reports to the web and send email alerts  Phase 5 – allow the Sponsor/Advisor to request reports Multi Phased Approach

17. 17 Reporting Strategy  Cp20 Dynamic Database Linking – Dbase (cp20), Access, SQL  New data elements for cp20 – Custom Statement Generator  Underlying IPM Detail  Cycle and YTD ROR  Email  Salary  CUSIP  TICKER  RKDB Identity Values  … Phase 1 – Reporting Library

18. 18 Reporting Strategy Phase 1 – Reporting Library

19. 19 Reporting Strategy Phase 1 – Reporting Library – Participant Statements

20. 20 Reporting Strategy Phase 1 – Reporting Library – Plan Summary

21. 21 Reporting Strategy Phase 1 – Reporting Library – Plan Analysis

22. 22 Reporting Strategy Phase 1 – Reporting Library – Financial Advisor Report

23. 23 Reporting Strategy  Foundation for the Automation Report Center (ARC) - schedule generic Crystal Reports on SchARP.  Step 1- Registering Reports  Copy cp50.INI to the database/admin tool UI  Organize Crystal Reports by User Defined Categories  Add new Crystal Reports and Categories as needed Phase 2 – Schedule and monitor Off-Cycle Reports

24. 24 Reporting Strategy Phase 2 – Schedule and monitor Off-Cycle Reports

25. 25 Reporting Strategy Phase 2 – Schedule and Monitor Off-Cycle Reports

26. 26 Reporting Strategy  Foundation for the Automation Report Center (ARC) - schedule generic Crystal Reports on SchARP.  Step 2 - Scheduling Reports via SchARP ARC.  Allows for the integration of custom Crystal reports into existing workflows (trading etc)  For re-occurring jobs – 1) avoid hard coded dates 2) RPT changes that impact schedule parameters will require that the SchARP job be modified.  Note – these crystal reports will be stored in a specified location on the network, not in the database.  “Special” parameters:  @PlanSelect - generates one report per plan  @Planlist – multiple plans for a given report (the new PSR Detail report)  @Plangroup – generates one report per plangroup  @Invest – for SDBA investment selection  @Provider – for SDBA provider selection Phase 2 – Schedule and monitor Off-Cycle Reports

27. 27 Reporting Strategy Phase 2 – Schedule Off-Cycle Reports

28. 28 Reporting Strategy Phase 2 – Schedule Off-Cycle Reports

29. 29 Reporting Strategy Phase 2 – Schedule Off-Cycle Reports

30. 30 Reporting Strategy  Foundation for the Automation Report Center (ARC) - schedule generic Crystal Reports on SchARP.  Step 3 - Monitoring Jobs  In addition to the ability to view report output via the via the standard SchARP monitor, all reports generated by the ARC Business Activity will be presented to the user from the ARC dashboard.  ARC will display any previously executed reports. If the historical reports are still available in the specified location, the SchARP user can access them as well. Phase 2 – Schedule Off-Cycle Reports

31. 31 Reporting Strategy Phase 2 – Schedule Off-Cycle Reports

32. 32 Reporting Strategy Phase 2 – Schedule Off-Cycle Reports

33. 33 Reporting Strategy Phase 2 – Schedule Off-Cycle Reports

34. 34 Reporting Strategy  Provide the ability for the you to securely and efficiently publish documents to the web  Publish documents via ARC  Allow for publishing of Non SchARP generated documents  If the documents use a naming convention with the plan ID in them, that can be utilized to know which sponsors and/or advisors to publish the document to. Or you can specify it.  Option to send email to Sponsor and Advisor upon approval. Phase 3 – Publish Sponsor and Advisor reports to the web

35. 35 Reporting Strategy Phase 3 – Publish Sponsor and Advisor reports to the web  Leverage the current Plan Sponsor Links feature and add:  Grouping of reports via categories  Multiple/Historical reports can be published

36. 36 Reporting Strategy  Integrate cp20 logic into ARC  Within ARC – Crystals can be scheduled that will execute the cp20 logic. (Crystal Reports that access calculated statement data)  System level and Plan level Crystals for both participant and sponsor statements  Integrate report generation to SchARP Report cycle events.  Allow for logical plan grouping. Assign reporting cycles to this grouping.  Allow for a plan statement cycle and a participant statement cycle.  SchARP will generate a report event based on the cycles and report jobs will be executed for the events. Phase 4a – Cycle Automation

37. 37 Reporting Strategy  Provide the ability for you to securely publish the participant statements to the web and send email alerts  Participant can opt out of paper statements  ARC option to run for paper participants only and those without emails  Optional approval process  Once approved (if required)  the statements will be stored securely  an email will be sent alerting them that the statement is available  a new cycle/link will be available on the participant site Phase 4b – publish participant statements to the web

38. 38 Reporting Strategy  Allow the Sponsor/Advisor to have access to a limited view of the Automation Report Center  They would have the ability to schedule reports that have been registered on the system  Need to control the security around this – at the report level? Phase 5 – allow the Sponsor/Advisor to request reports

39. Break 3:00 – 3:10pm

40. Product Update Ben Lee Director, Product Strategy, Schwab Retirement Technologies

41. Peer Networking Session Kris Studioso Director, Schwab Retirement Technologies

42. Closing Remarks Daren Free Vice President, Plan Administrator Services Charles Schwab