1. Rensselaer Defined Contribution Retirement Plan Fund Option Enhancements November 2010 Curtis Powell, SPHRScott A. Wertheim, CEBS, AIF® Vice President for Human ResourcesVice President Rensselaer CAPTRUST Financial Advisors Ewart A. MckayDarren J. Lopes Managing Consultant Senior Managing Director TIAA-CREFFidelity Investments Peter Crehan Consultant – Field Consulting Group TIAA-CREF

2. Agenda I.Introduction II.Rensselaer’s Retirement Committee and their Fiduciary Responsibilities III.Purpose for the Fund Line-Up Enhancements IV.Process of Reviewing Current Fund Options V.CAPTRUST Representative will provide an overview of how enhanced fund options will benefit plan participants VI.Fidelity and TIAA-CREF Representatives will provide an overview of Rensselaer’s enhanced fund line-up VII.Question and Answer Session Division of Human Resources November 2010 2

3. Introduction Scott A. Wertheim, CEBS, AIF® Vice President CAPTRUST Financial Advisors Darren J. Lopes Senior Managing Director Fidelity Investments Ewart A. Mckay Managing Consultant | Institutional Relationships TIAA-CREF I Financial Division of Human Resources November 2010 3

4. Rensselaer’s Retirement Committee Roles & Responsibilities Division of Human Resources November 20104

5. Rensselaer’s Retirement Committee Retirement Committee Members: Curtis N. Powell, SPHR, Chair, Vice President for Human Resources Virginia Gregg, Vice President for Finance & CFO William Wallace ’61, Yamada Corporation Professor, ISE Arturo Estrella, Professor and Department Head, Economics Eileen G. McLoughlin, Director of Financial Planning and Budget Iftekhar Hasan, Cary L. Wellington Professor and Acting Dean, Lally School of Management and Technology Division of Human Resources November 2010 5

6. Rensselaer’s retirement plans are governed by the Employee Retirement Income Security Act (ERISA). Rensselaer’s Retirement Committee members fiduciary responsibilities are to: Administer Rensselaer’s qualified pension plans in accordance with the plan document Establish funding options for participants to direct their 1% and 8% contributions Monitor fund options based on Rensselaer’s Investment Policy Statement Review reasonableness of plan fees, expenses, and administrative cost to participants Conduct quarterly meetings to review and to administer the plan in accordance with Department of Labor and Internal Revenue Service regulatory and legal requirements Retirement Committee Roles & Responsibilities Division of Human Resources November 20106

7. Division of Human Resources November 20107 Fiduciary Duties and Responsibilities  Duty to be Prudent …”Fiduciary liability is not determined by investment performance, but rather on whether prudent investment practices were followed.”…  Duty of Loyalty and Impartiality …”Fiduciaries must ensure that all decisions are made based solely and exclusively on the interests of plan participants and beneficiaries.”…  Duty to Diversify …”Fiduciaries are required to diversify plan investments so as to minimize risk of large losses; Each plan option should be considered as part of the whole plan portfolio.”… Retirement Committee Roles & Responsibilities con’t Note: Excerpts from the Department of Labor

8. Division of Human Resources November 20108 Fiduciary Duties and Responsibilities  Duty to Monitor and Supervise …” Evaluate investment managers at least quarterly against appropriate benchmarks, relative to their peer group, and to determine if there were any significant changes to their style or the organization; Evaluation of service providers every few years is also important.”…  Duty to Ensure Reasonable Plan Costs …“ Analyze and document total plan costs; compare to the market for similar size plans every 3 – 5 years; and evaluate revenue sharing arrangements to determine if they are fair and reasonable.”…  Duty to Avoid - Prohibited Transactions …“ A fiduciary has a responsibility to act in the sole interest of plan participants and should avoid any decision or transaction that directly or indirectly benefits the Plan Sponsor.”… Retirement Committee Roles & Responsibilities con’t Note: Excerpts from the Department of Labor

9. Purpose of the Fund Line-Up Enhancements Division of Human Resources November 20109

10. New Internal Revenue Service (IRS) - Pension Protection Act of 2006 - that took effect in 2008, now place much more responsibility on the employer to monitor plan investment options, and to ensure reasonable fees and administrative costs. Pension Protection Act Division of Human Resources November 201010

11.  Regulations place more responsibility on Rensselaer to proactively monitor the plan investment options, manage administrative costs and offer a diversified investment menu.  In the Fall 2008, Rensselaer retained CAPTRUST as a third-party investment consultant to assist in the review of the current fund options offered to participants by Fidelity and TIAA-CREF. Pension Protection Act Employer Requirements Division of Human Resources November 201011

12. The strategy of Rensselaer is to provide a simplified, highly valued and competitive retirement plans for faculty and staff. The retirement plans are to be robust, diversified and includes a menu of diverse money managers and fund options that will assist our participants in meeting their retirement savings goals in the most cost efficient manner. The Strategy for our Participants Division of Human Resources November 201012

13. Fund Evaluation Process Division of Human Resources November 201013

14. Process of Review – Evaluative Criteria Division of Human Resources November 201014 CAPTRUST conducted an independent analysis of Rensselaer’s retirement plan funds. Results: CAPTRUST recommended the enhancements to our fund options by either adding, eliminating, and combining asset classes and funds. The following five evaluative factors were used to review funds: 1.Fees All investments must charge “reasonable” fees to investors. 2.Style Consistency Investment managers should have demonstrated a consistency in investment style and performance. 3.Volatility and Diversification Investment managers will be expected to maintain a broadly diversified portfolio, avoiding unreasonable overweighting in a given investment, industry or sector.

15. Process of Review – Evaluative Criteria Division of Human Resources November 201015 4.Performance Investments should rank in the top 50% of their given peer group for the three or five year annualized period at the time of their selection. 5.Management & Organization Manager tenure, industry experience and the strength and expertise of the fund’s sponsoring organization.

16. Fidelity Rensselaer’s current assets with Fidelity is $28 Million Fund Asset Breakdown as of June 30, 2010: 554 Participants in 28 Funds 68% in 14 Funds 14% in Target Date Funds 18% 13 Funds Division of Human Resources November 201016

17. TIAA-CREF Rensselaer’s current assets with TIAA- CREF is $59 Million Fund Asset Breakdown as of June 30, 2010 676 Participants in 20 Funds 92% of Assets in 11 Funds 2% of Assets in Target Date Funds 6% of Assets in 17 Funds Division of Human Resources November 201017

18. Division of Human Resources November 201018 Plan Contributions: NO CHANGE  Employee Contribution: 1% pre tax  Rensselaer Contribution: 8% Investment Fund Options: CHANGE  Enhanced lineup effective November 19, 2010 (close of market) Plan Impact Rensselaer ‘s annual contribution for plan year ending June 30, 2010 was … $7.3 million

19. How will the enhancements affect YOU? Division of Human Resources November 201019

20. Scott Wertheim, Vice President, Financial Advisor Division of Human ResourcesNovember 201020 LEGAL DISCLAIMER Individual investors have particular needs in planning for retirement. No single solution fits every investor. This presentation is intended as a visual component to a broad educational program presented by CAPTRUST Financial Advisors. This presentation is not individual investment advice. If you have questions or concerns regarding your own individual retirement needs, please contact a CAPTRUST representative for further assistance. CAPTRUST does not render legal, accounting, or tax advice. This material has been prepared solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Any performance data quoted represents past performance. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Past performance is no guarantee of future results.

21. What happens to the money I already have in the Investment Options that are being replaced or frozen from Fidelity or TIAA-CREF platforms?  The money invested in funds being replaced will be mapped to the corresponding replacement fund within the current platform you are using.  The following TIAA-CREF investment options will not be available for future contributions effective November 19, 2010 : CREF Bond MarketCREF Bond Market CREF GrowthCREF Growth CREF Global Equities CREF Global Equities  Balances in those funds will remain until you transfer them in the future to the new investment options Division of Human ResourcesNovember 201021 How will the enhancements affect me?

22. What if I am currently invested in an investment option that will no longer be offered after November 19, 2010?  Example: If current contributions are going to a bond fund that will no longer be an option, then future contributions will begin to go to its replacement effective after close of business on November 19, 2010 Fidelity Ginnie Mae  PIMCO Total Return AdmnFidelity Ginnie Mae  PIMCO Total Return Admn CREF Bond Market  PIMCO Total Return ACREF Bond Market  PIMCO Total Return A  Example: If current contributions are going to a fund that is being replaced by two new investment options, then future money will be split 50/50 CREF Global Equities  Thornburg International (50%) CREF Global Equities  Thornburg International (50%)  American Funds Europacific (50%)  American Funds Europacific (50%) NOTE: No fees will be associated with these changes Division of Human ResourcesNovember 201022 How will the enhancements affect me?

23. Do I have to make a change by November 19, 2010?  You can make changes within your account at any time  You do not need to make any changes if you are satisfied with how your money is invested or will be invested in the new options.  These changes will occur automatically Division of Human ResourcesNovember 201023 How will the enhancements affect me?

24. Do I have to make a change by November 19, 2010?  If you wish to create a new investment mix, you can contact TIAA-CREF or Fidelity directly.  NOTE: No fees will be associated with these changes* *Within the Fidelity platform there are short-term trading fees associated with certain funds (which were detailed in the Fidelity announcement you received in the mail) for not holding them for the required time frame (30, 60 or 90 days depending on the fund). These fees will be paid by Rensselaer and will not be deducted from your accounts. Division of Human ResourcesNovember 201024 How will the enhancements affect me?

25. What happens if I do nothing?  Your future contributions, effective with contributions following November 19, will be automatically mapped to the “new” investment options  Under Fidelity and TIAA-CREF your current monies invested in investment options scheduled for replacement will automatically transfer to the new fund that has a similar investment approach and style  Under TIAA-CREF your current monies invested in the “frozen” investment options, will remain there until you transfer them in the future to the new investment options Division of Human ResourcesNovember 201025 How will the enhancements affect me?

26. What should I do next?   Review your retirement plan goals & objectives   See your handout for dates for one on one sessions with the Fidelity and TIAA-CREF representatives.   Evaluate your current investment strategy   Making any necessary changes or updates Division of Human ResourcesNovember 201026 How will the enhancements affect me?

27. How do I make changes to my current account?  Check your account balance: Call a TIAA or Fidelity representative Call a TIAA or Fidelity representative Visit TIAA’s or Fidelity’s website Visit TIAA’s or Fidelity’s website See your handout for contact information See your handout for contact information  Increase or decrease your contribution amount to the salary reduction plan: Call Louis A. Padula, Director, Benefits, Retirement & HRIS at 518-276-6164 Call Louis A. Padula, Director, Benefits, Retirement & HRIS at 518-276-6164 Complete the necessary HR paperwork Complete the necessary HR paperwork Division of Human ResourcesNovember 201027 How will the enhancements affect me?

28. How do I make changes to my current account? For help with understanding your investment options, or creating a balanced, diversified portfolio: Meet with a representative from TIAA-CREF or Fidelity representative to discuss and revise your retirement plan strategy. Meet with a representative from TIAA-CREF or Fidelity representative to discuss and revise your retirement plan strategy. Representatives on campus twice per month in Division of Human Resources Office. Representatives on campus twice per month in Division of Human Resources Office. Visit TIAA’s or Fidelity’s website to research and revise your retirement plan strategy Visit TIAA’s or Fidelity’s website to research and revise your retirement plan strategy Division of Human ResourcesNovember 201028 How will the enhancements affect me?

29. Fund Line-Up Review by Retirement Vendors Division of Human Resources November 201029

30. Fidelity Investments Darren J. Lopes, Senior Managing Director Darren J. Lopes, Senior Managing Director Division of Human Resources November 2010 30 Retirement Providers

31. Fidelity New Investment Fund Lineup November 19, 2010 Division of Human Resources November 201031

32. Fidelity New Investment Fund Lineup November 19, 2010 Division of Human Resources November 201032

33. TIAA-CREF Ewart A. McKay, Managing Consultant Division of Human Resources November 2010 33 Retirement Providers

34. TIAA-CREF New Investment Fund Lineup November 19, 2010 Division of Human Resources November 201034

35. TIAA-CREF New Investment Fund Lineup November 19, 2010 Division of Human Resources November 201035

36. Important Contact Information Division of Human ResourcesNovember 201036 Change Your Contribution Amount General Plan Questions Louis A. Padula, Director, Benefits, Retirement & HRIS: 518-276-6164 Check Your Plan Balance Change Your Investments Rollovers 800-343-0860rkrk www.fidelity.com/atwork Check Your Plan Balance Change Your Investments Rollovers 800-842-2252 www.tiaa-cref.org

37. Division of Human ResourcesNovember 201037 Questions and Answer Session