Transamerica TPA Forum Recordkeeping for TPA Services Shawn

Transamerica TPA Forum Recordkeeping for TPA Services Shawn Atin, Director Partner Management The Ritz-Carlton, Huntington Hotel & Spa , Pasadena, California The. Ritz-Carlton, Huntington Hotel & Spa, Pasadena, California April 9 -11, 2003 September 30 th, 2003

Overview • Transamerica Recordkeeping (TA East) Overview • Plan Sponsor Services • Participant Services • Service Guarantees TPA SERVICES PARTNER SERIES 2

TA East Overview • 100+ Benefits professionals located in New York • Recordkeeping over 3, 500 plans • Defined contribution, daily valuation proprietary recordkeeping system • 24 Hour Telephone Voice Response System • Participant Call Center - Monday through Friday, 8 am to 7 pm EST • Participant and Plan Sponsor Transactional Websites TPA SERVICES PARTNER SERIES 3

TA East Contact TPA Single Point of Contact at TA East: Suzanne Sementilli 1 -800 -350 -0995 E-mail: sxs@transamericaeast. com TPA SERVICES PARTNER SERIES 4

Plan Sponsor Services What does TRS provide for your plan sponsors? TPA SERVICES PARTNER SERIES 5

Plan Sponsor Services • Employee Enrollment • Contribution Processing • Distribution Processing • Loan Administration • Daily Reconciliation • Audit Packages • Quarterly Statements • Trans. Access TPA SERVICES PARTNER SERIES 6

Employee Enrollment • On-line Enrollment or Enrollment by Form • Select Deferral Percentage (Maintained by Sponsor) • Select Investment Allocations (Future changes via VRS / Web) • Stop Pre-tax & Catch-up Contributions • Designate Beneficiary (Maintained by Sponsor) TPA SERVICES PARTNER SERIES 7

Contribution Processing • Data Remittance Methods • Trans. Access (via the Internet) preferred method • 3 -1/2” Diskette • Contribution Remittance Methods • Automatic Clearing House ACH) – Collection or Payment, preferred method • Wire Transfer • Check TPA SERVICES PARTNER SERIES 8

Contribution Processing • Contributions invested in “Default” fund in the event of missing or incomplete participant investment elections • Default fund selected by Sponsor during Installation TPA SERVICES PARTNER SERIES 9

It’s easy for your plan sponsor to upload their payroll TPA SERVICES PARTNER SERIES 10

System will perform validations TPA SERVICES PARTNER SERIES 11

Trans. Access approves the file and provides a detailed breakdown of the contribution TPA SERVICES PARTNER SERIES 12

As soon as the “ok” button is clicked an On-Line confirmation pops up Transamerica TPA Forum The Ritz-Carlton, Huntington Hotel & Spa, Pasadena, California April 9 -11, E-mail confirmation will follow immediately An 2003 .

Distribution Processing • Distributions must be authorized by the plan sponsor or designated trustee • Distribution forms are available on employer and participant web sites • Beneficiary designations maintained by Plan Sponsor • 1099 R Forms produced • Tax notices included with distribution forms TPA SERVICES PARTNER SERIES 14

Distribution Processing Cont. Distribution Events: • Total Distributions • Forced Distributions • In-service Withdrawals • Required Minimum Distributions • QDRO • Forfeitures TPA SERVICES PARTNER SERIES 15

Distribution Processing - cont. • Participant Terminations • • Lump Sum Installment Annuity Joint & Survivor Provisions • Retirement • Death Benefit • TAE Requires Death Certificate • Disability • TAE Requires SSA Documentation TPA SERVICES PARTNER SERIES 16

Distribution Processing - cont. Forced Distributions < $5, 000 • Rollover amounts may be excluded from calculation effective 1/1/02 • Plan sponsor sends via priority mail: Letter, distribution form and tax notice to terminated participant with account balances less than $5, 000 • Letter from Sponsor to TAE for notification of forced distributions after 30 days for participants with confirmed receipt of notification TPA SERVICES PARTNER SERIES 17

Distribution Processing - cont. In Service Withdrawals • Hardships – Trustee responsibility for proof of hardship • Age 59 ½ Withdrawals • Rollover Account • After-Tax Account TPA SERVICES PARTNER SERIES 18

Distribution Processing - cont. Minimum Required Distributions • TAE calculates MRD • 4 th Qtr mailing to Plan Sponsors or TPA • Plan Sponsor provides participants with MRD forms • MRD processed for returned forms TPA SERVICES PARTNER SERIES 19

Distribution Processing - cont. QDRO • Model QDRO can be obtained via TRS • TRS or TPA reviews all DRO, Plan Administrator will determine if qualified • Pending DRO – Restrictions Prohibiting Distributions & Loans • Signed copy to TRS of final QDRO • Immediate Distribution or • Account Segregation (default) TPA SERVICES PARTNER SERIES 20

Forfeitures • Forfeitures taken according to terms of the plan document • Forfeitures used after the close of the plan year: • Pay Plan Expenses • Reduce Employer Contributions • Reallocate to employees • Plan sponsor directs TAE in writing • Forfeitures invested in fund chosen by Sponsor TPA SERVICES PARTNER SERIES 21

Loan Administration Loan Requests: • Plan design determines number of loans, recordkeeping system limit is 20 loans • Request loans via form or paperless • Paperless requests only for General Purpose loans, and no J&S requirements • Paperless loan requests initiated by 4: 00 pm EST processed next day. Check received within 5 days TPA SERVICES PARTNER SERIES 22

Loan Administration Cont. Loan Payments: • Interest & principal applied to loan payment (interest amount calculated according to amortization schedule) • Loans can be paid off anytime, partial payments not permitted • Loan delinquent report generated for participants that have not made a loan payment in the last 90 days TPA SERVICES PARTNER SERIES 23

Loan Administration Cont. Loan Payments Continued: • Deemed distribution no loan payment received by the last day of the quarter following the quarter in which the last payment was made. • Loan payments suspended for up to 12 months during leave of absence (re-amortize to payoff in same time period) • Loan payments are suspended during a Military leave TPA SERVICES PARTNER SERIES 24

Quarterly Reports • Participant Statements mailed to homes • Plan Sponsor summary reports mailed to sponsor • Mailed within 15 business days of the end of the quarter • TPA automatically receives a copy of all sponsor summaries TPA SERVICES PARTNER SERIES 25

Trans. Access Plan Sponsor Website Participant Detail • View/change participant indicative data • View participant transaction history Plan Detail • View plan balances TPA SERVICES PARTNER SERIES 26

Trans. Access Plan Sponsor Website Cont. Plan Detail • Programmed Plan Reports – (TPA Download) • Employer Investment Report • Participant Statements • Loan Balance Report • Contribution Detail Report • Employee Disbursement Report • Forfeiture Balance Report • Eligibility Report • And More… TPA SERVICES PARTNER SERIES 27

What does TRS provide to the plan participants? TPA SERVICES PARTNER SERIES 28

Participant Services PIN Letter and Card • Mailed within 5 business days of completed plan set-up • Includes Participant Website instructions • Includes Participant Voice Response System instructions (VRS) TPA SERVICES PARTNER SERIES 29

Participant Services - cont. Trans. Direct • 24 hrs / 7 Days a Week Internet & Toll Free 800# • On-Line Enrollment (if plan sponsor chooses) • Change PIN • Account Balance Information • By Investment Fund • By Account Type • Investment Direction Information • Change current Investment Elections • Transfer existing balances TPA SERVICES PARTNER SERIES 30

Participant Services - cont. • Loan Information – Outstanding loan balance – Loan modeling • Amount available for withdrawal • Obtain Investment Performance • English and Spanish speaking service professionals TPA SERVICES PARTNER SERIES 31

Participant Services - cont. • Advice. Solutions • Quarterly Participant Statement • Quarterly Worth A Look Newsletter TPA SERVICES PARTNER SERIES 32

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Our Services are guaranteed…. . or… Your plan sponsor doesn’t pay for that service! TPA SERVICES PARTNER SERIES 35

Service Standards versus Actual Performance January 1, 2003 through June 30, 2003 Service Standard Actual Performance Contribution allocated/ACH requested within 3 Business Days 98. 13% (39, 838 contributions processed) Participant Distributions/Loans processed within 5 Business Days 99. 33% (21. 092 distributions processed) Participant Activity Statements mailed within 15 Business Days 96. 33% (378, 394 statements produced) Process Financial Transactions requested via Website and VRU same Business Day 100% (38, 488 financial transactions) TPA SERVICES PARTNER SERIES 36

Q&A TPA SERVICES PARTNER SERIES 37

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