OUR DIFFERENCE. YOUR ADVANTAGE. SAVE TIME, MONEY, HEADACHES, AND RISK Pete Swisher, CFP ©, CPC, TGPC Senior Vice President, Pentegra Retirement Services A New Way to Look at your Retirement Plan

THE BIG PICTURE

THE ENTRY DATE STORY

THE SOURCES AND SIGNATURES STORY

THE BACK ALLEY LIVER TRANSPLANT STORY

THE CONSCIENTIOUS FIDUCIARY STORY

50 CHORES Overall operational compliance Document compliance, mandatory interim amendments, restatements Form 5500 Audit New hire processing ERISA bond ACA (automatic enrollment) administration ACI (automatic contribution increases) administration Default investment administration Determination of vesting and amount of distribution ERISA section 105 employee benefit statements Reasonableness of fees Prudent selection and monitoring of service providers Benefit determinations and disputes Administration of beneficiary rules Worker classification Nondiscrimination testing Summary Annual Report (SAR) Definition of compensation Allocation of unallocated monies by plan year-end IRC section 72(p) loan administration Contribution calculations and limitations Protected benefits Acceptance or rejection of rollovers or transfers Annual notices Segregation of assets by source Coverage testing and corrections Involuntary distributions Episodic notices Distributions Hardship distributions Qualified Domestic Relations Orders (QDRO) Lost/missing participants and unclaimed benefits Grandfathered plan provisions Plan termination and partial termination Spousal consents QJSA and QPSA Summary Plan Descriptions and Summaries of Material Modifications (SPD and SMM) Timely remission of deferrals and loan repayments Timeliness of other required contributions Diversification requirements for plans with employer securities Blackout procedures Defined benefit plan duties Annual and quarterly fee disclosure (404a-5) Fiduciary fee disclosure (408b-2) Records retention under ERISA Sections 107 and 209 Responding to participant inquiries Top-heavy minimum benefit Overpayments Personal liability under ERISA Section 409

STATISTICS AND SURPRISES  Over 25,000 DVFCP filings  10,002 Forms 5500 audited  5,973 VCP agreements  3,472 DOL civil investigations closed  75% resulted in payment  Average $397,000  255 cases referred for litigation by DOL, 75 convictions  8,860 ERISA lawsuits Sources: 2011 data from IRS, DOL, and federal court system websites

THE IRS TOP TEN LIST  Failure to amend for tax law changes  Incorrect definition of compensation  Failure to include eligible employees or exclude ineligibles  Loan errors  Impermissible in-service withdrawals  Required Minimum Distribution errors  Employer eligibility failure  ADP/ACP failure not timely corrected  Failure to provide minimum top heavy benefit  Exceeding maximum contribution limits From the IRS Website

THE NATURE OF THE BURDEN

FIDUCIARY OUTSOURCING

HOW IT WORKS

WHAT IT COSTS

WHO PAYS FOR IT

WHERE DO YOU GET IT?

OUR DIFFERENCE. YOUR ADVANTAGE. THANK YOU! Pete Swisher, CFP ©, CPC, TGPC Senior Vice President, Pentegra Retirement Services