1. National Life Group ® is a trade name representing various affiliates, which offer a variety of financial service products. Form No. 11055(0712) Life Insurance Company of the Southwest™ Nevada Public Employees Retirement System (retirement) Are you saving enough for ALL your tomorrows? What’s YOUR Tomorrow?

2. You Can Work At Controlling Your Future Retirement Questions to Ask Now! Are you planning to live to 100? What percentage of your Final Salary will you be living on? Will you outlive your retirement money? Are you saving enough for all your tomorrows?

3. Longevity: Your Biggest Risk How many retirement years will you enjoy?* Age Life Expectancy (average) 6088 6588.5 7089.5 7590.5 8091.75 8593.5 9096 Example of a female who reaches a certain age… Then the average age she is expected to live * Based on information obtained from AnnuityAdvisors.com

4. Become Familiar with Your retirement Benefit How to determine your retirement benefit Based on your age and years of service under retirement Retirement Factor Final average compensation Survivorship options Source: retirement

5. How to Calculate Your Monthly Benefit Example: A participant retiring at age 62 with 30 years of service. Participants final years salary was $5,000 a month resulting in a final highest three year average salary of $4,800 per month. Calculation: Service# YrsX Factor XSalary=Monthly Benefit 7/83 - 6/0118X2.5%X$4,800=$2,160 7/01 - 6/1312X 2.67% X$4,800=$1,537 Totals30$3,697 Source: retirement

6. Retirement Income Gap Can you live on a fraction of your final salary? $108,366* Income needed in 20 years $60,000 Begin Working Retire at 62 *Assumes a 3% inflation factor 26% reduction of income per month $44,364 Teacher Retirement Income Source: retirement

7. Now Is the Time to Plan & Save Will you outlive your retirement money? Know your retirement expenses –Don’t forget taxes and medical costs Identify your sources of income –You may not receive Social Security Bridge the retirement gap –Buy years of service –Explore saving options through your 403(b) and/or 457 plan –Create an income stream for life

8. Power of a Pre-Tax Savings Plan Pre-tax Savings Gives Lacy More Lacy wants to save $100 a month towards her retirement She needs help to understand the power of a pre-tax savings plan. Post-taxPre-tax Gross Income per Paycheck$4,500 Pre-tax contributions$0$133.33 Standard tax deductions$686.33$653 Post-tax retirement contributions$100$0 Take-home pay$3,713.67 This hypothetical example is for illustrative purposes only. This example is based on a teacher in the state of Nevada claiming single and zero Allowances and in the 15% tax bracket, not considering state or local taxes.

9. How Much Can Be Contributed? The Internal Revenue Code determines an individual's maximum amount that he or she can defer to the plan free of tax for the year. This may be limited by your employer’s plan provisions. If you contribute the maximum basic salary deferral limit, and your plan allows, you can qualify for both the catch-up provisions below. You have the potential to contribute up to $27,000 to your 403(b) plan during 2015. Basic salary deferral limit: $18,000 in 2015. 403(b) 15 years of service cap extension: You may be eligible to defer up to an additional $3,000. Age 50+ Catch-up: If 50 or older, you may be eligible to defer up to an additional $6,000 in 2015. Total 2015 contribution limit on combined employee/employer contributions: 100% of your includible compensation or $53,000, whichever is less.

10. Distributions Generally, because 403(b) plans enjoy tax deferral, elective deferrals in the plan cannot be withdrawn until: –Age 59½ –Death of the participant –Total disability of the participant –On separation from service of the participant –As the result of a QDRO (Qualified Domestic Relations Order), or –As a qualified reservist distribution

11. Hardship Distributions Hardships…Only employee salary deferrals can be withdrawn, not interest or employer contributions. The IRS lists the following as qualifying hardships: –Medical expenses of the participant, participant’s spouse, or dependent –Purchase of the participant’s principal residence –Tuition and related expenses for the next 12 months at a postsecondary institution for the participant, participant’s spouse, or dependant –Prevention of eviction from the participant’s principal residence or foreclosure on the mortgage of the participant’s principal residence

12. What Are Your Next Steps? How I Will Work with You Schedule a work-through to calculate your retirement benefit Determine your “retirement gap” and find ways to bridge that gap Explain your 403(b) plan and your savings options Address any other questions you may have

13. Disclosure This presentation represents our understanding of the tax code and state retirement plan. You should always consult your tax professional or state retirement system for your individual situation Information believed to be accurate as of July 2013.

14. For more information Email: Life Insurance Company of the Southwest™