Conversion and Enrollment by BPAS

1. Conversion and Enrollment by BPAS Thoughts on the process

2. Alternative # 1: Traditional “mapover” method • All existing balances are mapped into new menu of funds as of conversion date (some funds may stay the same) • Participants complete enrollment form after enrollment meeting to tell us how new contributions should be invested beginning with the conversion date • BPAS completes conversion • At end of blackout, PINs are mailed to participants • Initial User ID = full SSN w/out dashes • Initial Password = date of birth entered as mmddyyyy • At this point, participant can re-align account into any mix of funds as desired. Enrollments during conversion process

3. Alternative #2: The “single fund” conversion method • Useful for plans coming from a very complicated investment menu, individual brokerage accounts, or where prior recordkeeping may have been “questionable” • As of conversion date, all existing balances are liquidated, single wire is sent to BPAS (entire plan balance) • All balances are invested in a single fund (money market, stable value or balanced fund, etc). In some circumstances, existing account balances can be re-allocated according to investment elections provided on enrollment forms after the conversion is over. • Participants complete enrollment form after enrollment meeting. This is used to invest new contributions only starting on the conversion date. • At end of blackout, PIN letters are mailed. • From that point forward, participants can re-align account into any mix of funds as desired using web / VRU. Enrollments during conversion process

4. Alternative #3: Special approach to streamline the process for HR and participants • Maintain existing fund menu: sometimes that is the employer’s specific goal (keeps participants in the same mix of funds) • We can map over investment elections (for new contributions) if the prior recordkeeper will provide an electronic file of the information. • Deferral rates can be entered or changed online (attractive for larger plans) • Existing participants don’t need to take any action unless they want to A) change deferral rate, B) change mix of funds, or C) change beneficiary designation • This approach can minimize the disruption to a plan, especially when the conversion is being driven by the trustee’s recommendationto change recordkeepers Enrollments during conversion process

5. Employers report new employees to BPAS on the first payroll/census file after hire date. • BPAS determines eligibility by source for each plan we administer • We notify HR of new employees becoming eligible for each money source through the ‘Action Items’ tab of the sponsor website (see slides 10 & 11 for illustration) • Employers should use this report to provide participants nearing eligibility with an enrollment kit. The information contained in the enrollment kit will vary, depending on what enrollment type is used • Fact sheets and forms are provided in enrollment booklets. All fact sheets and prospectuses are also provided at all times through participant website (e-delivery, most recent copy available, etc) Enrollment of new participants over time

6. Traditional Enrollment Option • Participant selects deferral rate and investment elections for new contributions on a paper enrollment form. • HR enters deferral rate into payroll system and sends a copy to BPAS to enter investments elections into the system • A PIN letter is mailed to the participant once the first contribution is posted to their account. Please note: the participant will not have access to his/her account until their first contribution has been posted This method is typically not recommended due to the numerous problems and hidden liabilities inherent in using paper forms Enrollment of new participants over time

7. Basic Online Enrollment Option • As soon as a new employee is reported to BPAS on a census/payroll file after their hire date, a PIN letter is mailed to the employee’s home. • The PIN letter will provide instructions for accessing the participant website or VRU. • Participant will access their account and make investment elections for new contributions online or by using the VRU. • Participant selects deferral rate by completing a paper form and submits to HR for entering into the payroll system. Enrollment of new participants over time

8. Full Online Enrollment Option • As soon as a new employee is reported to BPAS on a census/payroll file after their hire date, a PIN letter is mailed to the employee’s home. • The PIN letter will provide instructions for accessing the participant website or VRU to select a deferral rate and investment elections. • Participant will select a deferral rate and investment elections for new contributions online or by using the VRU (see slide 12 for illustration) • All new and existing deferral rate changes are reported to HR by a report in the “Action Items” tab of the sponsor website. HR is responsible for reviewing this report prior to each payroll period to update the payroll system accordingly. Because all deferral rate elections for new employees and deferral rate changes for existing employees must be made online, no paper forms can be accepted by BPAS. Enrollment of new participants over time

9. New provider announcement and mapover memo (two versions; Trustee Toolbox: E8 and E9) • Memo regarding fact sheets and prospectuses (Trustee Toolbox: E11) • Conversion Has Ended Notice (Trustee Toolbox: E15) • Other education / communication tools (see Education tab of Trustee Toolbox) Communication memos

10. This is the ‘action items’ tab of the sponsor website. It includes a number of reports to prompt or remind HR of various actions to be taken. In the eligibility section are specific reports for employees becoming eligible by money type (401k, match, profit sharing, etc), for the current and next entry date.

11. Here is a sample of the “next quarter pre-tax eligibles” report. This report is updated every Saturday and posted to the sponsor web. It provides a list of the specific participants becoming eligible for that source of money for the current (or next) entry date.

12. Here is a sample of the “enrollment tab” within the participant website. It gives participants the information and resources they need to enroll in the plan.

13. The needs of a 20 participant plan and a 3,000 life plan vary dramatically • Working with the trustee, we have the flexibility to support many different scenarios • Save considerable work for the HR department and streamline life for participants • Our communication memos can be modified to suit the unique situation preferred by the client • A winning solution! Flexibility