1. Welcome to D300’s 403(b) and 457(b) Presentation!
Presented by StanCorp Equities, Inc., member FINRA/SIPC

2. 403(b) rules have changed!
Recently passed IRS legislation requires more
oversight and responsibility for D300
Contracts must be maintained in accordance to the plan document
D300 must approve investment providers
Contract exchanges restricted to approved providers
No new incidental life insurance allowed
The topics of discussion during this session will be

3. New 403(b) rules impact you!
Starting on 1/1/2008, as an active participant you will no longer be able to make payroll contributions to your current investment providers.
Your payroll contributions must go to D300’s approved investment provider: The Standard.
To make contributions to D300’s 403(b) plan in 2008 you must enroll with The Standard.
The topics of discussion during this session will be

4. Why did D300 select a single investment provider?
To provide the best value for our participants
To consolidate the buying power of our group
To reduce administration costs
To improve due diligence of investment options
The topics of discussion during this session will be

5. Why The Standard? Unbiased fund selection process
Complete fee transparency
Ability to eliminate surrender charges
Reputation for excellent customer service
The topics of discussion during this session will be

6. Plan Provisions and Contribution Limits
Everyone is eligible!!!
403(b) Deferral Limits
$15,500
$5,000 Catch Up (50+)
457 Deferral Limits
$15,500
$5,000 Catch Up (50+)
Combined Maximum Contribution
$31,000
$10,000 Catch Up

7. Key Differences between
403(b) and 457(b)
403(b)
457(b)
Registered Annuity Contract – Prospectus Required
Unregistered / Broader universe of Mutual Funds
Special catch-up deferrals available if greater than 15 years of service with separate $3,000 maximum
Special catch-up deferrals available within 3 years of Retirement for previous missed contributions
Distributions at Death, Disability, Retirement, Severance, at age 59 ½, and Hardship
Distribution for severance, including Death and Retirement, age 70 ½ , unforeseen emergency provision and small amount involuntary cash outs
10% Early Withdrawal Provision
No 10% Excise Tax, unless distribution is of amounts rolled into a 457 Plan from a 401(a), 403(b), or IRA
After my brief introduction to the world of investing, some of you are probably ready to jump right in. In fact, you might already be in the pool telling the rest of us that the water’s fine. For others, investing may seem a little overwhelming and intimidating. Let’s see a show of hands -- how many of you feel that way?
Fortunately, there’s room enough for everyone in the investing universe. And your plan just happens to offer you two different ways to invest.
On one hand, there is the person who feels confident enough to build his own portfolio. As you can see from the slide, this investor needs to determine an asset allocation, which is essentially how money is allocated among the investment options in the retirement plan. Then, he must monitor his portfolio to ensure that it is performing according to his personal investment strategy. A natural part of this process is periodically rebalancing to keep assets aligned with his investment directives.
To help with the process, the investor can select The Standard’s Automatic Rebalancer service to perform this function twice a year, in May and November.
On the other hand is the person who may desire some direction in the investing arena -- or simply doesn’t have time to deal with one more thing in an already busy schedule. The Standard is there for you with six different Asset Allocator Portfolios. Created by professionals at StanCorp Investment Advisers, the portfolios are designed for specific investment styles. There’s no “one size fits all” component to this approach. This investor may also select the Automatic Rebalancer to keep his portfolio in balance.
And if he wants to take it one step further, there’s the hands-off Portfolio Progression option designed to eliminate some of the worry surrounding investing. This smart, hassle-free solution allows you to put your portfolio on auto-pilot while you take on life’s other challenges.

8. Understand the Basics
Because this is your future

9. It Pays to Start Saving Early Years to save before retirement
Start today
It Pays to Start Saving Early
If you start contributing $125 (6%) per month at age
your account value at age 60* will be…
$874,688 20 30 40 50
$372,130
$147,798
$50,177
10 years
20 years
30 years
40 years
Years to save before retirement
*Assumes $25,000 salary, 3 percent annual salary increases and 8% annual return. This is a hypothetical example for illustrative purposes only and is not representative of any specific investment. Investments are subject to market risk and fluctuate in value. Past performance is no guarantee of future results and individual results will vary.

10. Close your retirement gap
Nancy Doe, a teacher age 35, plans to retire in 25 years.
Annual Salary $50,000.
Assumed annual salary increases average of 3%
Final pre-retirement income in $104,689
Percent pre-retirement income needed 80% $ 83,751
Projected TRS Pension Benefit $ 74,009
Additional annual income needed “retirement gap” ($ 9,742)
Nancy needs to start saving $233 a month or approx 5.5%.
This is assuming an average rate of return of 5%*
*This is a hypothetical annual rate of return and has been selected only for the proposes of estimating retirement needs. This rate of return is neither guaranteed nor projected, and is not intended to represent the future performance of any actual financial product

11. Close your retirement gap
Nancy Doe, a teacher age 35, now plans to work until age 65
Annual Salary $50,000
Assumed annual salary increases average of 3%
Final pre-retirement income in $121,363
Percent pre-retirement income needed 80% $ 97,090
Projected TRS Pension Benefit $ 87,797
Additional annual income needed “retirement gap” ($ 11,293)
Nancy needs to start saving $194 a month or approx 4.6%.
This is assuming an average rate of return of 5%*
*This is a hypothetical annual rate of return and has been selected only for the proposes of estimating retirement needs. This rate of return is neither guaranteed nor projected, and is not intended to represent the future performance of any actual financial product

12. Waiting widens the gap
Nancy Doe, a teacher age 35, plans to retire in 30 years.
Annual Salary $50,000. (10 years of service at D300)
Nancy needs to start saving $194 a month or about 4.6% of her pay.
Mary Doe, a teacher age 45, plans to retire in 20 years.
Annual Salary $60,000 (20 years of service at D300)
Mary needs to start saving $349 a month or about 6.9% of her pay.
Doris Doe, a teacher age 55, plans to retire in 10 years.
Annual Salary $70,000. ( 30 years of service at D300)
Doris needs to start saving $796 a month or about 13.6% of her pay.
Assumed annual salary increases an average of 3% and an 80% pre-retirement replacement ratio.
This is also assuming an average annual rate of return of 5% on investments*
*This is a hypothetical annual rate of return and has been selected only for the proposes of estimating retirement needs. This rate of return is neither guaranteed nor projected, and is not intended to represent the future performance of any actual financial product

13. Investing 101 Pay attention to the markets Diversify*
Use the power of time
Understand that investments are subject to market risk and fluctuate in value
Most of you don’t need to be convinced about the importance of saving for retirement. You know that if you don’t start saving NOW, your money won’t have as much time to grow. And you don’t need Donald Trump to explain how your dreams for retirement -- travel, golf, vacation home, hobbies, nice things for the grandkids -- all require money. Combine this with the uncertainty of Social Security’s future and you get the picture that YOU have to save for your own retirement.
But for most people the hardest choice isn’t to save -- it’s how to INVEST their money. Investing can be a little confusing to even the most savvy of investors.
At a high level, I’ve included some basic steps to successful investing. The first is to evaluate your needs now AND in retirement. What kind of demands will your lifestyle make on your pocketbook? You should also take time to determine how comfortable you are with risk and when you plan on retiring.
Second, it’s wise to understand how investments fit into your portfolio and how they compare with others of similar return potential. To do so, your third step should be to keep an eye on the markets so you can be aware of economic trends and respond to changing conditions. The fourth step is to protect your portfolio against a single, devastating loss by diversifying the investments in your portfolio. While it doesn’t ensure against loss, it can help reduce your risk.
The fifth step is to use time to your advantage. Compounding earnings -- the earnings paid on amounts previously earned -- can be a big contributor to your bottom line. Your sixth step is to realize that there’s no magic formula for successful investing. Building wealth requires time, discipline and a basic understanding of the fundamental principles of investing.
* Diversification does not ensure against loss.

14. Risk Tolerance
Your “tolerance for risk” is a key element in determining the mix of stocks, bonds and stable value investments that is right for your situation.
Conservative investors can hold growth investments, but should consider limiting such investments to a small percentage of the overall portfolio.
Moderate investors normally take advantage of the higher historical returns of growth investments and balance them with bonds and stable value investments.
Aggressive investors tend to look for high long-term returns from growth investments, usually stocks. 10

15. Asset Class Performance
Based on Index Returns
Ranked in order of highest to lowest annual return (1996 to 2006)
Annualized returns
Mid Value
14.24%
Small Value
13.99%
Mid Blend
12.74%
Large Value
11.93%
Small Blend
10.06%
Large Blend
9.67%
Mid Growth
9.39%
International
7.55%
Large Growth
6.94%
Core Bond
6.00%
Small Growth
5.44%
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Large Growth
23.12%
Large Value
35.18%
38.71%
Mid Growth
51.29%
Small Value
22.83%
14.02%
Core Bond
10.25%
Small Growth
48.54%
Mid Value
23.71%
International
13.54%
26.34%
Large Blend
22.96%
34.37%
28.58%
43.09%
19.18%
8.44%
-9.64%
Small Blend
47.25%
22.25%
Mid Blend
12.65%
23.48%
21.64%
33.36%
19.93%
33.16%
11.63%
2.49%
-11.43%
46.03%
20.25%
21.37%
31.78%
17.86%
27.03%
8.25%
2.33%
-15.52%
42.71%
20.22%
12.10%
20.26%
30.49%
15.63%
21.26%
7.01%
-5.59%
-15.94%
40.06%
18.33%
7.05%
18.37%
19.00%
29.01%
10.09%
21.04%
-3.02%
-5.62%
-16.19%
38.59%
16.49%
5.26%
15.79%
17.48%
22.54%
8.63%
18.23%
-9.10%
-9.23%
-20.48%
38.07%
15.48%
4.91%
15.26%
22.36%
5.08%
7.35%
-11.75%
-11.89%
-22.10%
30.03%
14.31%
4.71%
13.35%
11.26%
12.95%
1.23%
-0.11%
-14.19%
-20.15%
-27.41%
29.75%
10.88%
4.55%
10.66%
6.05%
9.65%
-2.55%
-0.82%
-22.42%
-20.42%
-27.88%
Large Blend
28.68%
6.30%
4.15%
9.07%
3.63%
1.78%
-6.45%
-1.49%
-22.43%
-21.42%
-30.26%
4.10%
4.34%
2.43%
4.33%
As you can see from this chart, the asset class with the top returns has changed almost every year the last 11 years. The erratic performance of each asset class that’s illustrated in this chart is exactly why you need to diversify your holdings. You can’t expect one type of investment to perform consistently and still provide substantial growth opportunities for your retirement savings.
Past performance is no guarantee of future results. Investments are subject to market risk and fluctuate in value. See the next slide for indexes representing the asset classes shown. The indexes are unmanaged and do not take into consideration transaction charges. It is not possible to invest directly in an index.

16. Asset class performance: index descriptions

17. Impact on Variability of Returns
The importance of diversification
ASSET ALLOCATION IS A MAIN DRIVER OF PORTFOLIO PERFORMANCE
Asset Allocation
Security Selection
Impact on Variability of Returns 0%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
91.5%
91.5% of performance variance is determined by asset allocation decisions.*
Consider studies conducted by Brinson, Beebower, et al, which concluded that a portfolio’s performance depends mainly on three factors: security selection, market timing, and asset allocation. Their study found that these factors are not equal in their contribution to performance. Specifically, they concluded that:
More than 91% of performance could be attributed to asset allocation decisions.
Security selection and market timing accounted for less than 9% of performance.
In other words, over time, your asset allocation strategy (for example, 60% stocks, 40% bonds) is likely to affect your portfolio’s performance much more than which stocks or bonds you bought or sold and when you bought or sold them.
An important lesson to learn from this is that it is important to make smart asset allocation decisions and stick with them.
Transition: “Unfortunately, many investors tend to place emphasis on security selection and market timing – both consciously and unconsciously – which means they have often ended up chasing returns.”
8.5% of performance variance can be attributed to security selection and market timing.*
8.5%
* Source: Brinson, Hood, and Beebower, "Determinants of Portfolio Performance," Financial Analysts Journal, July-August 1986; Brinson, Singer, and Beebower, "Determinants of Performance II: An Update," Financial Analysts Journal, May-June 1991.

18. How will you invest?
In developing your asset allocation – the way your portfolio is divided among investments – you have 3 choices:
Build it yourself
Diversification (which does not ensure against loss) should be a main goal in developing a portfolio that suits your strategy.
Select a risked based Guided Portfolio
Take the Investor Profile Quiz. It will point you to a pre-mixed portfolio that meets your investment temperament.
Select an age based Fidelity target dated fund
Fidelity Freedom Funds are portfolios allocated for a projected retirement date with moderate risk for that time frame.

19. Where should you invest?

20. Moderately Aggressive
Guided Portfolios
Moderately
Conservative
Moderately Aggressive
Conservative
Moderate
Aggressive
Cash Equivalents 30%
Bonds 50%
Lg Cap Stocks 13%
Sm/Mid Cap 4%
Int’l Stocks 3%
Cash Equivalents 20%
Bonds 40%
Lg Cap Stocks 26%
Sm/Mid Cap 8%
Int’l Stocks 6%
Cash Equivalents 10%
Bonds 30%
Lg Cap Stocks 39%
Sm/Mid Cap 12%
Int’l Stocks 9%
Cash Equivalents 0%
Bonds 20%
Lg Cap Stocks 52%
Sm/Mid Cap 16%
Int’l Stocks 12%
Cash Equivalents 0%
Bonds 0%
Lg Cap Stocks 65%
Sm/Mid Cap 20%
Int’l Stocks 15%

21. Disclosures
Asset Allocator pie charts are for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Small company investing involves specific risks not necessarily encountered in large company investing, such as increased volatility. International investing involves certain risks, such as currency fluctuations, economic instability and political developments. Funds that invest in bonds are subject to certain risks including interest-rate risk, credit risk and inflation risk. As interest rates rise, the prices of bonds fall.

22. Fidelity Freedom Funds?
Simply pick a fund closest to the time you plan to retire or when you feel you will need these funds.
Information available at or will be available in January 2008 on your personal savings center website at
The topics of discussion during this session will be

23. Get Ready Get Started . . .
Enroll online if you are ready and have your PIN

24. Enroll online The steps are easy: Go to http://retirement.standard.com
Select “Register Account” You’ll need your SS# and PIN
Create and enter your login and password
Click on the “Enrollment Tab” then click the “Enrollment box”
The topics of discussion during this session will be

25. Select a % of pay to contribute
There are advantages to selecting a % of pay versus a flat dollar amount:
A flat dollar contribution will not keep step with future pay increases, but a % of pay will, and it moves you along to close your retirement gap. Plus you will not need to make changes when future pay increases occur – your increased contribution will be “automatic”!
Only a % of pay contribution will work with the retirement planning tools available through The Standard website.
You will not be able to enroll or make changes online with a flat dollar amount. Enrolling online has the added benefit of maintaining the security of your personal information.
The topics of discussion during this session will be

26. Converting a flat dollar to a percentage of pay
Simply divide your dollar amount of your contribution by your gross pay for the period. Here are some examples:
Sue’s current gross pay per pay period is $750 and she is contributing $30 each pay period the 403b plan.
$30 divided by $750 = 4% of pay contribution
Nancy’s current gross pay per pay period is $1,150 and she is contributing $75 each pay period to the 403b plan.
$75 divided by $1,150 = 6.52% of pay
(Nancy will need to round off to either 6% or 7% of pay for her contribution)
Don’t get caught short at retirement by contributing a “flat dollar” amount!
The topics of discussion during this session will be

27. Stay Informed
Keep track of your savings goals with easy to read quarterly statements
Or go online to view your account at
Or call INFOLINE at

28. Why should I transfer my 403b funds to The Standard?
We are now all under a group contract and have buying power.
Assets
Expenses
Total The Standard Fee The Standard Fee
Plan Assets with ATB after ATB is recovered
$0.0M - $8.0M % %
$8.0M - $12.M 1.20% %
$12M - $16.M 1.15% %
$16M - $20.M % %
These asset based fees are the same for both the 403b and the 457b.
The topics of discussion during this session will be

29. Uncovering Your Current Expenses
Take these steps to uncovering costs associated with your current provider.
Determine your investment product by the name provided on your account statements.
Contact your advisor or provider to request a breakdown of all investment and contract related expenses. Ask if there any surrender charges and request a current calculation be provided.
Visit This website will provide a breakdown of fees and expenses associated with your variable annuity or mutual fund product. A link to the website will be available at

30. Variable Annuity Surrender Charges
A "surrender charge" is a type of sales charge you must pay if you sell or withdraw money from a variable annuity during the "surrender period"-a set period of time that typically lasts six to eight years after you purchase the annuity. Surrender charges will reduce the value of-and the return on-your investment.
- US Security and Exchange Commission

31. Rollovers and Transfers
You cannot begin rolling over your existing funds to The Standard until January 2008
Instructions and the procedure will be placed on D300 website or call Infoline
Any variable annuity surrender charges you may incur will receive full credit from The Standard until July 1, 2008

32. 4 Key Reasons to rollover your money
The more assets in this plan the lower your internal costs!!
The lower your internal costs…the higher your return!!
It’s easier to manage all of your money when it’s all in one place.
Your investment options can be monitored by an Advisor.
But most importantly……

33. Plan sponsors and participants should carefully consider the investment objectives, risks, charges and expenses of the investment options offered under the retirement plan before investing. The prospectuses for the individual mutual funds and The Standard Group Variable Annuity Contract and each underlying investment option in both the group variable annuity and group annuity contain this and other important information. Prospectuses may be obtained by calling Please read the prospectus carefully before investing.
StanCorp Equities, Inc., member FINRA/SIPC, distributes group variable annuity and group annuity contracts issued by Standard Insurance Company, and may provide other brokerage services. Third party administrative services are provided by Standard Retirement Services, Inc. Investment advisory services are provided by StanCorp Investment Advisers, Inc., a registered investment advisor. StanCorp Equities, Inc., Standard Insurance Company, Standard Retirement Services, Inc., and StanCorp Investment Advisers, Inc. are subsidiaries of StanCorp Financial Group, Inc. and all are Oregon companies.
© 2007 StanCorp Financial Group, Inc.

34. This presentation will be available on the
D300 Benefit Website
ID: District300
Password: benefits

35. Start building a better future with District 300’s 403(b) and 457(b) plans today!!