Changes to Union College Retirement Plan AGENDA:

1. Changes to Union College Retirement Plan AGENDA: • Retirement Plan Committee Presentation (25 minutes) • TIAA-CREF Presentation (25 minutes) • Fidelity Investments Presentation (25 minutes) • Wrap Up and Reminder about Help Desks • * Each presentation will be followed by a 10-15 minute • Q&A session

2. Changes to Union College Retirement Plan • Why the change? Answer: New 403(b) regulations • How has Union responded to these regulations? • What principles guided the changes? • Description of the new plan • Description of the transition to the new plan

3. Why the change? Answer: New 403(b) regulations • New regulations place a “fiduciary” obligation on plan sponsors • Plan sponsor must have a process for regularly reviewing all aspects of the plan including investments, fees and service providers • Greatly heightened audit risk • Key words: ‘prudent’ and ‘fees’

4. Union’s response to the new regulations • Formed a Retirement Plan Committee • Hired a third party consultant to help Union fulfill the new obligations • Conducted a RFP to several providers who specialize in the non-profit/higher education sectors • Evaluated current and alternative providers and investment options • Conducted two focus group meetings with participants

5. Principles guiding the committee • Minimize disruption to participants • Offer exposure to key asset classes • Minimize cost • Minimize the frequency of changes in the menu of investment options • Provide reliable record-keeping, customer service and participant education

6. Description of the new plan • TIAA-CREF and Fidelity remain record-keepers • Key asset classes available from both TIAA-CREF and Fidelity • Investment options largely limited to low-cost index funds • The number of options reduced from 170 to 31 • Self-directed brokerage account available

7. The new investment menu of Union College Retirement Plan

8. Comparison of fees in the new and old plans Average expense ratios of investment options in the new and old plans *Under the old arrangements $12 annual fee was applied to each participant account. Under the new arrangement this fee is covered by Fidelity’s revenue from the record-keeping portion of the expense ratio of Fidelity funds. As long as this revenue is at least $136 per participant (it is currently over $200), no per participant fee will be applied. 8

9. The transition to the new plan • After March 1st contributions can only be directed to investment options included in the new investment menu • Existing balances in all Fidelity funds and TIAA-CREF annuities that are not included in the new menu will remain in participant accounts • Existing balances in TIAA-CREF mutual funds that are not included in the new menu will be transferred to appropriate alternatives in the new menu

10. Example of the personalized transition information WHAT CHANGES WILL OCCUR TO MY ACCOUNT IF I TAKE NO ACTION BEFORE MARCH 1 ? *The existing balances in these investments can only be moved by your direction.

11. Self-directed brokerage account • access to any mutual fund • greatly minimizes disruption to current Fidelity participants • no set-up or maintenance fees • no transaction fees for 5,000 mutual funds (brokerage and possibly load charges for other mutual funds) • employees will sign a waiver before opening an account • potential liability is uncertain (has not yet been contested in courts) • our committee will monitor the provider but not the investments • limited utilization is expected 11

12. QUESTIONS? 12