1. [insert your name] [insert your title and company] [insert presentation date] A focus on ERISA §408(b)(2) Regulatory developments affecting covered plans, such as defined contribution plans This presentation is provided by John Hancock USA and John Hancock New York for informational purposes only, and while every effort is made to ensure the accuracy of its contents, it should not be relied upon as being tax, legal or financial advice. Neither John Hancock USA nor John Hancock New York, or any of its affiliates, representatives, employees, or agents provides tax, financial or legal advice. The information within reflects events as of March 1, 2012. For Plan Sponsor use only. Not for distribution with participants or the public.

2. PS19151-GE 03/12-204772For Plan Sponsor use only. Not for distribution with participants or the public. Agenda Why ERISA §408(b)(2)? What will change? My team is here to support you

3. PS19151-GE 03/12-204773For Plan Sponsor use only. Not for distribution with participants or the public. Why ERISA §408(b)(2)? Service providers can provide services to a plan if: –Services are necessary for the establishment or operation of the plan –Compensation is reasonable for the services provided –The arrangement or contract is reasonable

4. PS19151-GE 03/12-204774For Plan Sponsor use only. Not for distribution with participants or the public. Plan fees 101 Plan administration fees: –e.g., recordkeeping, accounting, legal, trustee services, participant support, etc. Investment fees: –Management fees for a plan’s investments –Sales charges for transactions –Other fees deducted from a plan’s investments

5. PS19151-GE 03/12-204775For Plan Sponsor use only. Not for distribution with participants or the public. What is your role in your plan? A plan fiduciary’s responsibilities include the following: –Act in participants’ best interests –Pay only reasonable plan expenses –Carry out duties prudently

6. PS19151-GE 03/12-204776For Plan Sponsor use only. Not for distribution with participants or the public. Changes to §408(b)(2) – effective July 1, 2012 Generally, as of July 1, 2012, covered service providers are required to provide information about their fees and services to the responsible plan fiduciary of a covered plan.

7. PS19151-GE 03/12-204777For Plan Sponsor use only. Not for distribution with participants or the public. Who is a “covered service provider”? “Covered service provider” is someone who reasonably expects to receive at least $1,000 in compensation for providing one or more of the following services to a covered plan: –Services as a fiduciary or a registered investment advisor –Certain recordkeeping or brokerage services –Certain other services (e.g., third party administration, consulting, recordkeeping, etc.) for which the service provider receives indirect compensation

8. PS19151-GE 03/12-204778For Plan Sponsor use only. Not for distribution with participants or the public. Examples of information required to be provided under §408(b)(2) A description of services A statement of the services provider’s fiduciary status, if applicable A description of the compensation expected, including: –Compensation to be received directly from the covered plan –Compensation to be received indirectly from other parties –Compensation paid among related parties –Compensation to be received in connection with the termination of contract/arrangement Identification of the payer of indirect compensation and a description of the arrangement Manner in which compensation is to be received

9. PS19151-GE 03/12-204779For Plan Sponsor use only. Not for distribution with participants or the public. Investment-related information required for participant-directed accounts Investment-related information includes: –Identifying information –Performance –Benchmark –Fees and expenses –Website –Glossary

10. PS19151-GE 03/12-2047710For Plan Sponsor use only. Not for distribution with participants or the public. How and when should you expect to receive this information? In writing Before entering into an arrangement Electronically Disclosure of compensation has no format; can be disclosed as: –Monetary amount –Formula –Percentage of assets –Estimate if methodology and assumptions are provided Changes to disclosed information must be provided within 60 days, with one exception –Changes to investment- related information, can be provided at least annually Requested information must be provided before the required reporting and disclosure timelines

11. PS19151-GE 03/12-2047711For Plan Sponsor use only. Not for distribution with participants or the public. Your responsibility as a plan fiduciary Review information to determine if arrangement is reasonable Protect yourself from the prohibited transaction rule by satisfying the class exemption requirements

12. PS19151-GE 03/12-2047712For Plan Sponsor use only. Not for distribution with participants or the public. Criteria for class exemption for plan fiduciaries Did not know that service provider failed to provide the required information Reasonably believed that such information was provided Make written request for required information from covered service provider upon discovery of disclosure failure –Covered service provider must respond within 90 days of your written request Notify the DOL within 30 days of the earlier of: –The covered service providers failure to comply; or –90 days after the written request A sample notice from the DOL is available to you in order to report the non-compliance AND …

13. PS19151-GE 03/12-2047713For Plan Sponsor use only. Not for distribution with participants or the public. Acting prudently, make a determination whether to terminate or continue the contract –If information requested relates to future services and is not disclosed promptly after the 90-day period, “terminate as expeditiously as possible, in a prudent manner” Class Exemption cont…

14. PS19151-GE 03/12-2047714For Plan Sponsor use only. Not for distribution with participants or the public. ERISA §408(b)(2) empowers you with information You’ll have the information to: Understand your service provider’s compensation and services, and Identify potential conflicts of interest

15. PS19151-GE 03/12-2047715For Plan Sponsor use only. Not for distribution with participants or the public. My team is here to support you John Hancock’s pre-sale documents: Recordkeeping Agreement Supplemental Information Guide Understanding Your Administrative Services Guide Fund Information Guide Revenue sharing document Investment Comparative Chart

16. PS19151-GE 03/12-2047716For Plan Sponsor use only. Not for distribution with participants or the public. My team is here to support you John Hancock’s disclosure: Contract paperwork Plan sponsor website:  ERISA §408(b)(2) Supplemental Disclosure  Revenue sharing document  Investment Comparative Chart

17. PS19151-GE 03/12-2047717For Plan Sponsor use only. Not for distribution with participants or the public. Other resources available to you From the DOL Meeting Your Fiduciary Responsibilities www.dol.gov/ebsa/publications/fiduciaryresponsibility.html Tips for Selecting and Monitoring Service Providers for Your Employee Benefit Plan www.dol.gov/ebsa/newsroom/fs052505.html Understanding Retirement Plan Fees and Expenses www.dol.gov/ebsa/publications/undrstndgrtrmnt.html From John Hancock Legislative and Regulatory Information page (Plan Sponsor website) Fiduciary Toolkit Navigating the Waters

18. PS19151-GE 03/12-2047718For Plan Sponsor use only. Not for distribution with participants or the public. Questions?

19. PS19151-GE 03/12-2047719For Plan Sponsor use only. Not for distribution with participants or the public. Important notice John Hancock Life Insurance Company (U.S.A.) (John Hancock USA) and John Hancock Life Insurance Company of New York (John Hancock New York) herein collectively referred to as “John Hancock.” Both John Hancock Life Insurance Company (U.S.A.) and John Hancock Life Insurance Company of New York do business under certain instances using the John Hancock Retirement Plan Services name. Group annuity contracts and recordkeeping agreements are issued by: John Hancock Life Insurance Company (U.S.A.), Boston, MA 02210 (not licensed in New York) and John Hancock Life Insurance Company of New York, Valhalla, NY 10595. Product features and availability may differ by state. Neither John Hancock nor its representatives is in a position to provide you with legal, tax, plan design or investment advice. If legal or other expert assistance is required, you should consult your legal or other expert advisors. This material is intended for informational purposes only and is not intended or offered as legal, tax, plan design or investment advice, nor should it be construed as such. NOT FDIC INSURED | MAY LOSE VALUE | NOT BANK GUARANTEED | NOT INSURED BY ANY GOVERNMENT AGENCY © 2012 All rights reserved. GA03081210671