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Getting Started in Your Workplace Savings Plan

Getting Started in Your Workplace Savings Plan. Key Topics. How much you may need in retirement Benefits of using your retirement saving plan Your Plan details and investment options Creating a budget Identify key ways to save for retirement Next steps. GE Savings and Security Program.

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Getting Started in Your Workplace Savings Plan

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  1. Getting Started in Your Workplace Savings Plan

  2. Key Topics • How much you may need in retirement • Benefits of using your retirement saving plan • Your Plan details and investment options • Creating a budget • Identify key ways to save for retirement • Next steps

  3. GE Savings and Security Program • Beginning January 29, 2007, you will be considered a “terminated employee” under the GE Savings and Security Program and have the following options available to you: • Roll over all or a portion of your account balance into the new Momentive Savings Plan. • Roll over all or a portion of your account balance into another retirement plan or IRA. • Take a taxable cash distribution from the GE Savings and Security Program (all or partial). • Keep your balance in the GE Savings and Security Program. • Any combination of the above. • It is recommended that you consult with a tax advisor to help you with your decision.

  4. GE Savings and Security Program (continued) ACCOUNT BALANCE • If you want to take an action with your existing account balance, you may do so by contacting the GE Transaction Processing Center at 1-800-432-4313 beginning January 29th or anytime thereafter. • GE will begin mailing quarterly S&SP statements in April of 2007 for anyone with an account balance. You will also be able to view your statements on-line at www.benefits.ge.com.

  5. Hit the Target 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 85% Target: of your preretirement income per year

  6. How Large Is the Number? • Let’s assume Maria: • makes $40,000 per year • retires at age 65 • will live another 20 years in retirement • Based on our 85% rule Maria could need $680,000 to get through retirement

  7. Benefits of Saving at Work • Ease and convenience • Potentially lowers taxable income • Tax-deferred growth • Dollar cost averaging • Investment choice

  8. Finding the Extra Money • Essential vs. discretionary expense • Create a budget

  9. REVIEWING YOUR plan details

  10. Open Enrollment Period • The Momentive Savings Plan is being established January 29, 2007 to help you continue saving for your retirement. • There is an Enrollment Window available to employees starting on January 2, 2007. NOTE: Your payroll deduction percentages that are in place with GE prior to January 28, 2007, will NOT be automatically transferred over to the new Savings Plan. • In order to have your contributions deducted from your first paycheck, you must enroll by January 24th. • If you do not enroll by January 24th, your enrollment effective date will occur as soon as administratively possible and you will miss out on the Company matching payment until your effective date.

  11. Enroll • Log on to Fidelity NetBenefits® at www.401k.com or call the Fidelity Retirement Benefits Line at 1-800-835-5095 to enroll in the Plan.

  12. Plan features Many of the basic plan features of the GE Savings and Security Program will remain the same in the new Momentive Savings Plan • Pre-tax and after-tax contributions • Same Company match* • Same loan features* * Refer to Your GE Benefits Handbook.

  13. Enhanced Plan Features • Freedom to switch investments within your account on a daily basis • Greater flexibility for investing company match contributions • Ability to change future contribution elections more frequently • New Fund Lineup

  14. Eligibility • You are immediately eligible upon full-time employment with Momentive Performance Materials.

  15. Employee contributions • Through automatic payroll deduction, you can contribute between 1% and 30% of your eligible pay on a pretax and after-tax basis, up to the annual IRS dollar limits. • IRS Limits • 2007 $15,500 • 2008+ Indexed for inflation in $500 increments • Investment election percentages will now be in whole percentages (1%), versus half percentages (.5%).

  16. Employee contributions (cont) • You can request to change your contribution amount virtually any time by logging on to Fidelity NetBenefits® at www.401k.com or by calling the Fidelity Retirement Benefits Line at 1-800-835-5095. • These changes will generally take effect as soon as administratively possible.

  17. Company contributions The Company contributions will mirror the GE Savings and Security Program. Your company match you currently receive will be applicable under the new Momentive Performance Savings Plan.

  18. Catch-up Contributions If you are expected to reach age 50 or older during the calendar year January 1 to December 31 and are making the maximum plan or IRS pretax contribution, you may make an additional “catch-up” contribution each pay period. • IRS Limits • 2007 $5,000

  19. Vesting You are immediately 100% vested in your own contributions to the Plan, as well as in any of the Company's matching contributions and any earnings on them.

  20. Loans • You may borrow from your account for any reason. • The Plan allows you to borrow up to 50% of your vested pretax and after-tax account balance. • The minimum loan amount is $500 and a loan must not exceed $50,000. • You may have two loan outstanding at a time. Be sure you understand the plan guidelines and impact of taking a loan before initiating a loan from your plan account.

  21. GE Savings and Security Program (continued) LOANS • Should you have an existing loan within the GE Savings and Security Program, it will not be transferable to the new Momentive Performance Materials Savings Plan. • Once you have been “terminated” on the GE Savings and Security Program, loan coupons will be provided by GE as the payment method. • Should you decide to transfer your existing account balance while you still have an outstanding loan, you must keep your account active (with at least one dollar in your account) in order to avoid defaulting on the loan.

  22. Withdrawals Withdrawals from the Plan are generally permitted when you terminate your employment, retire, if you become permanently disabled, attain age 59-1/2, upon your death or if you have severe financial hardship as defined by your Plan. Please be sure you understand the tax consequences of any withdrawal from the plan.

  23. YOURINVESTMENT options

  24. New Investment Options • The investment options offered in the new Momentive Performance Materials Savings Plan are shown below. • You can access www.401k.com for fund descriptions and more detailed information about these options.

  25. Investment options Categories to left have potentially more inflation risk and less investment risk Categories to right have potentially less inflation risk and more investment risk Money Market International/Global Equity Growth& Income Balanced/ Hybrid Growth Bond American Funds® EuroPacific Growth Fund® –Class R4 Fidelity Balanced Fund Spartan® U.S. Equity Index Fund – Investor Class Davis New York Venture Fund, Inc. – Class A Loomis Sayles Small Cap Value Fund – Retail Class Fidelity Retirement Money Market Portfolio Fidelity Short-Term Bond Fund Western Asset Core Bond Portfolio – FI Class An investment in a money market fund is not insured or guaranteed by the FDIC or any other government agency. Although money market funds seek to preserve the value of your investment at $1 per share, it is possible to lose money by investing in these funds. This spectrum is based solely on Fidelity’s analysis of the characteristics of the general investment categories of the investment options and not on actual security holdings, which can change frequently. Investment options are listed in alphabetical order within each investment category. Risks associated with the investment options can vary significantly within each particular investment category and the relative risks of categories may change under certain economic conditions. For a more complete discussion of risks associated with mutual fund options, please read the prospectus before making your investment decision. The spectrum does not represent actual or implied performance.

  26. Fidelity Freedom Funds® Funds to left have potentially more inflation risk and less investment risk Funds to right have potentially less inflation risk and more investment risk Fidelity Freedom Income Fund® Fidelity Freedom 2015 Fund® Fidelity Freedom 2005 Fund® Fidelity Freedom 2035 Fund® Fidelity Freedom 2025 Fund® Fidelity Freedom 2045 FundSM Fidelity Freedom 2000 Fund® Fidelity Freedom 2020 Fund® Fidelity Freedom 2010 Fund® Fidelity Freedom 2030 Fund® Fidelity Freedom 2040 Fund® Fidelity Freedom 2050 FundSM The lifecycle funds are represented on a separate spectrum because each fund (except the income fund) will gradually adjust its asset allocation to be more conservative as the funds approach and move beyond their target retirement dates, until ultimately reaching their respective income fund allocations. Generally, within each fund family, those funds with later target retirement dates have greater risk than those with earlier target retirement dates. For lifecycle mutual funds, please see the fund's prospectus for detailed information.

  27. Fidelity Freedom2000 Fund® Fidelity Freedom2005 Fund® Fidelity Freedom2010 Fund® Fidelity Freedom2015 Fund® 5% 11% 10% 27% 6% 5% 5% 37% 40% 40% 47% 31% 1% 35% 35% 32% 3% 10% 10% 12% Fidelity Freedom2040 Fund® Fidelity Freedom2020 Fund® Fidelity Freedom2025 Fund® Fidelity Freedom2030 Fund® Fidelity Freedom2035 Fund® Fidelity Freedom2050 FundSM 7% 8% 8% 8% 10% 10% 9% 5% 10% 20% 23% 20% 17% 17% 16% 55% 58% 66% 66% 68% 70% 14% 14% Fidelity Freedom Funds®A Family of Funds Fidelity Freedom2005 Fund® Fidelity FreedomIncome Fund® 20% 5% 40% 40% 35% 37% 3% Fidelity Freedom2045 FundSM 10% 2% 19% 69% ■Domestic Equity ■ International Equity ■ Investment Grade ■High Yield ■ Short-term Investments The percentages represent anticipated target asset allocation at September 30, 2006. Strategic Advisers, Inc., a subsidiary of FMR Corp., manages the Fidelity Freedom Funds.

  28. Getting to NetBenefitsSM • Set up a Personal Identification Number (PIN) • Enter the following information: • Social Security number • Birth date (mm/dd/yyyy) • Zip code • Security question • PIN - 6 to 12 digit number

  29. Next Steps • Enroll in your plan • Call your plan’s toll-free number, or go on-line to NetBenefitsSM • Create a budget – and find ways to save more • Choose your deferral amount • Increase your amount at least annually

  30. Contact Fidelity 1-800-835-5095 www.401k.com Retirement Benefits Line 8:30 am – 8:00 pm in your local time zone VRS virtually 24 hours

  31. This workshop only provides a summary of the main features of the Plan, and the Plan document will govern in the event of any discrepancies. Unless otherwise noted, transaction requests confirmed after the close of the market, normally 4 p.m. Eastern time, or on weekends or holidays, will receive the next available closing prices. Over time, the value of your account will vary and you may have more or less than the original amount invested. Before investing in any mutual fund, please carefully consider the investment objectives, risks, charges and expenses. For this and other information, call or write Fidelity for a free prospectus. Read it carefully before you invest. 2006 FMR Corp. All rights reserved. Fidelity Investments Institutional Services Company, Inc. • 82 Devonshire St., Boston, MA 02109 420813.1

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