BPAS Firm Update and Conference Objectives

1. BPAS Firm Update and Conference Objectives Barry Kublin President, BPAS

2. BPAS Firm Update and Conference Objectives • Welcome, BPAS Partners Conference • Thank You! • YOU – for partnering with us to provide retirement plan services to our mutual clients • YOU – for joining us in a 3-day learning experience to improve our businesses and the effectiveness of the services we provide • YOU – for engaging in a critical discussion of our industry and re-examining how we might partner to improve the retirement income readiness of working households • Guest speakers, for sharing your knowledge • BPAS Marketing staff, for a first-class effort

3. BPAS Firm Update and Conference Objectives • Conference Objectives • Update on BPAS Firm Capabilities • Strategies to compete in today’s 401k/403(b) marketplace • Business opportunities beyond the traditional 401k/403(b) marketplace • Regulatory updates • Contemporary Investment Management Issues • Interactive sessions to discuss best practices among Partners

4. BPAS Firm Profile • BPAS was founded in 1973 (41 years old) • If you knew of us, you might not know us today! • 9 offices (3 Upstate NY, NYC, NJ, Phil, Pitt, Houston, San Juan) • 240 professionals • 3,600 clients • 350,000 participants • $16 billion assets under custody

5. BPAS Firm Profile • Defined Benefit Plans • Mid-market traditional and cash balance • Small-market cash balance • Advanced DC Plan Administration • ESOP, KSOP • 401(k), 403(b), 457 municipal • 457, 409A non-qualified • Taft-Hartley, Prevailing Wage • MEP, MET • 1081 (Puerto Rico)

6. BPAS Firm Profile • VEBA/HRA • Voluntary Employee Beneficiary Association/ Health Reimbursement Accounts • Funded post-retirement medical benefits • Taft-Hartley (IBEW, USWA) • Public Sector (Northwest Firefighters Association) • UAW VEBA is the largest direct holder of GM stock (8.8%) • Health and Welfare Benefits • Actuarial valuation of post-retirement benefits other than pensions, ASC715, GASB45

7. BPAS Firm Profile • IRA • EGTRRA Rollovers • $5k cash-outs from DC AND DB plans • Significant savings in DB related to admin and PBGC expenses • Orphan plan accounts (Dewey) • Voluntary Rollovers • Platform for Advisors for BPAS participant clients

8. BPAS Firm Profile • MyPlanLoan Administration • Non-payroll deduct loan administration for terminated participants or active participants where payroll deduction is not available • Reduce leakage amongst participants who avail themselves of a 72p transaction that is offered in a prudent manner

9. BPAS Firm Profile • Employee Benefit Trust Services ($16 billion) • Collective Investment Funds • Unitization of managed accounts for use in multiple plans • Transfer Agent, 3(38) status • CIFs are available on all major trading platforms

10. BPAS Firm Profile • BPAS Trust Company of Puerto Rico • Directed trustee for PR 1081 plans • Participant directed DC • Keogh (smaller P/S and MP plans • Mid-market DB plans • Small cash balance plans • Market Leadership • PR CPA society (CEU, Master Trust) • PBGC, Mendez

11. BPAS Firm Profile • BPAS Fiduciary Services • 3(38) services to participant-direct DC plans sold and serviced by registered representatives and directed trustees, neither of whom provide a potentially desirable service for the plan sponsor • 3(38) services to cash-balance plans sold by individuals/institutions that cannot provide discretionary investment management services • Under this model, BPAS Partners provide sales, relationship management, participant education and plan consulting services and receive 12(b)(1) or bp fee income

12. BPAS Firm Update CBSI/CBNA ranked as 4th best bank amongst top 100 publics in U.S. by Forbes in 2014 CBNA, is a regional bank with $7.4 B in assets and 190 facilities in Upstate, NY and NE, PA BPAS is an autonomous business unit and a material segment of CBSI, operating as a national practice

13. The BPAS Organization

14. Strategies to Compete • Defining Value in a crowded DC Provider Space • Measuring plan level success • Marketing the message • Managing a profitable practice under 408(b)(2) • Reducing Plan Leakage • Retaining assets in the Plan • Increasing Plan Participation and Savings Rates

15. Business Opportunities Beyond 401k/403(b) Cash Balance Plans VEBA/HRA Holistic Financial Planning Capturing IRA Rollovers

16. Regulatory Updates 408(b)(2) v2 Expanded definition of fiduciary State initiatives, which potentially compete with private sector offerings, intended to increase coverage Municipal bankruptcies and retirement benefits Act 40 Funds, CIFs and fiduciary liability

17. Contemporary Investment Management Issues • Stable Value Offerings • QDIA • Target • Risk-based • Participant Education • Retirement Income Products • Guaranteed income products • Longevity Risk products • Installment payment arrangements

18. Advocacy • BPAS Appeal to Get Involved • ASPPA • American Society of Pension Professionals and Actuaries • NAPA • National Association of Pension Advisors • http://savemy401k.com/ • PAC

19. Conclusion and Beginning Thank you for attending We look forward to your feedback and opportunities for program improvement We look forward to the continued success and growth of our partnership

20. Questions?

21. Contact Barry Kublin President BPAS bkublin@bpas.com