"Navellier Blue Chip"
401(k) Advisors- Vendor Search Services “Creating Ongoing Successful Retirement Plan Experiences For Employers and Employees” WW Benefits, LLC 890 Lamont Street, Suite 201 Novato, CA. 94945 415 898-6100 Rick@wwbenfits.com 401(k) Provider Analysis: Background & Purpose 1 The purpose of this report is to allow you, the 401(k) plan sponsor and decision-maker, to make a time efficient and well-informed 401(k) provider selection. Vast financial resources are being directed to many 401(k) products offered by both new and established 401(k) plan providers. At the same time, the 401(k) provider graveyard of firms (see Appendices: Exhibit A), who no longer offer services, continues to grow at an accelerated rate. As your dedicated plan consultant, 401(k) Advisors will identify the 401(k) provider(s) who deliver the highest quality products and services at the most competitive total cost. Changing providers is cumbersome and time consuming. Therefore, it is imperative that we identify providers who have the financial resources, experience, and balanced commitment to excellence with all the essential 401(k) plan components identified on the following page. Your 401(k) Advisors team of dedicated and experienced consultants has thoroughly evaluated the products and services offered by several dozen 401(k) providers. We have quantified, measured, and compared the most relevant criteria for each plan component. We have also included a qualitative overview, based on our decades of experience – and interaction with hundreds of clients – who have been the recipients of 401(k) services delivered by many different plan providers. 401(k) provider selection is a multiple step process that begins with a 401(k) provider financial analysis and moves to an evaluation of product and service capabilities, delivery system compatibility, and finally, demographic compatibility. Simply stated, the objective of the 401(k) Advisors Provider Analysis™ is to identify plan providers who have the greatest likelihood of delivering product and service excellence to organizations with similar characteristics to yours. Financial Strength Product Excellence Delivery System Demographic Rock solid financials Ability to deliver Compatibility Compatibility and future marketplace excellence with all plan Provider delivery Provider committed to commitment components system a good fit plans like yours 2 Understanding Plan Components The diagram and table below illustrate the essential 401(k) components that collectively define plan services that are delivered to you, the plan sponsor. 401(k) Advisors only seriously considers plan providers who deliver product excellence in all areas. Component Description Participant-level recordkeeping/accounting Administration Administration & Employee and employer reports & Recordkeeping Tracking investment allocations/changes and Recordkeeping contribution changes Services that enhance plan efficiency, productivity, understanding and value Technology State-of-the-art technology Services Web-based participant investment tools Compliance & Technology Web-based employer tools Legal Services Materials describing plan design and investing Documentation Employee Enrollment kits Communication Payroll stuffers, posters, memos Newsletters All documentation and testing to keep the plan in 401(k) compliance Plan document Plan Compliance & Legal Summary Plan Description Documentation Annual 5500 and pertinent schedules ERISA plan audit (if applicable) Discrimination testing Employee All available investment offerings including cash, Communication Cost Investment income, hybrid, and equity investments Management Proprietary, sub-advised, retail, and index investments Hard dollar fees that are a specific amount – paid by the employer or employees, including participant recordkeeping, compliance, loan administration, hardship, and distribution fees Investment Cost Soft dollar fees that are a specific percentage – Management generally paid by employees for investment management expenses and to subsidize some or all of the administrative fees Understanding 401(k) Delivery Systems 3 Once the essential plan components of a 401(k) plan are evaluated, the next important step is the analysis of how these plan components are delivered. The two primary 401(k) delivery systems are: Bundled and; Unbundled. Bundled providers deliver all essential plan components under one integrated approach. Some providers package their product as a bundled offering; however, upon closer scrutiny, outsource one or more essential plan components to an outside firm. With an unbundled system, two (or more) organizations deliver plan services. Typically a third party administrator (TPA) is responsible for plan compliance services and limited recordkeeping (for loans and financial hardship withdrawals). There are many hybrid combinations of unbundled delivery systems, including multiple providers who deliver employee communications, recordkeeping, and even technology services to the same plan sponsor. It is not uncommon to discover several different organizations collectively delivering all essential plan components to one plan sponsor. Some plan providers have the ability to deliver their product either bundled or unbundled. Through the 401(k) Advisors Plan Provider Analysis™ and our many years of practical consulting and experience, we have concluded that both bundled and unbundled delivery systems work effectively under the appropriate circumstances, demographics, and conditions. Bundled Unbundled Delivery Delivery System System All plan Investment TPA components Provider Compliance delivered by Technology & one provider Investments Limited EE Comm Recordkeeping Recordkeeping Plan Sponsor Plan Sponsor Although most plan sponsors initially choose their 401(k) provider based on investments, the primary drivers for changing providers are administration, recordkeeping, compliance, and employee communications. This phenomenon suggests that it is of paramount importance that plan sponsors understand the ability of all potential plan providers to deliver value with each and every essential plan component (administration, recordkeeping, compliance, technology services, and employee communication services), and not just investment management. Understanding Investment Services 4 Prior to any objective quantitative or qualitative investment analysis, it is essential to understand the philosophical distinctions and methodology amongst plan investment providers. The two primary investment delivery approaches are: Asset Manager and; Asset Gatherer. Asset managers are primarily focused on offering their own proprietary funds. These are investments that they manage – from the hiring of the investment manager to the focus, direction, and security selection of the fund. Asset managers may offer plan sponsors a limited number of non- proprietary funds (investments not managed by that particular provider); however, their focus is delivering their own investment management expertise. Asset gatherers are focused on delivering a multi-manager investment approach, with funds that are primarily managed by firms other than themselves. Two primary types of funds managed by outside investment managers are retail mutual funds and sub-advised accounts. A sub-advised fund is a proprietary, private-labeled investment (offered by one particular provider) managed by an outside individual or firm, typically with proven expertise. The table below illustrates the types of equity fund investment management services that are offered in today’s 401(k) marketplace: Retail Institutional Sub-Advised Proprietary Outside Money Manager with Mutual Funds Only Available to Qualified Plans Expertise in a Specific Asset Class Non-Proprietary Some 401(k) providers offer several of the above fund types. Below is an example of two funds with identical investment objectives, both managed by the same mutual fund company. One is a retail fund and therefore also available to individual investors. The other is a sub-advised account, available only to (institutional) investors, and (in this example), only to plan sponsors who have chosen Manulife as their 401(k) investment provider: MFS Munder Net Fund Internet Technology Fund - Retail mutual account - Sub-advised account - Managed by Munder Capital - Managed by Munder Capital - Aggressive growth objective - Aggressive growth objective - Available to customers of Manulife - Available to customers of Manulife - Available to individual investors - Not available to individual investors 5 Combining Delivery Systems: The End User Product Once the distinctions between bundled/unbundled and asset manager/asset gatherer are understood, the table below illustrates the available 401(k) product delivery systems for your organization: Asset Gatherer Asset Manager Bundled All services delivered by one All plan components, including organization, with multiple investment management, delivered by investment managers one organization Unbundled Plan services delivered by a TPA, Plan services delivered by a TPA with with multiple investment one investment provider, primary managers under one investment emphasis on one investment fund provider family 6 Vendors For Your Consideration There are hundreds of providers offering 401(k) services and investments. Only a select few have demonstrated clear and consistent recordkeeping and technology expertise and superior investment offerings. Fewer still are the 401(k) providers that focus on delivering products and services to firms your size. Below are the finalists who demonstrate the highest quality services and investments, at the most competitive total plan costs. Merrill Lynch Principal Financial Fidelity Advisor Cigna/Prudential Vanguard Mass Mutual Yrs in 401(k) Business 21 23 21 19 22 24 Full Service Plans in each market (1) -Fewer than 100 ee’s 15,866 22,165 7,344 3,841 716 NA -100-999 5,315 3,238 4,045 1,617 975 NA -1,000 to 4,999 154 206 353 NA 947 294 -5,000 or more ee’s 48 21 99 NA 345 39 Total Participants in 2.6 million 2 million 9,100,000 823,950 2.5 million 700,000 Full Service Plans Total 401(k) Plan Customers at Year End End of 2003 21,383 25,630 12,681 2,458 2,143 4,500 End of 2002 20,840 26,479 12,556 2,773 2,126 4,500 End of 2001 17,855 25,993 12,048 2,437 2,065 4,400 Converted in 2003 4,257 NA NA 95 97 366 Assets in Full Service Plans Internally Managed $29.3 billion $30.9 billion $11.4 billion $9.1 billion $93.9 billion NA Externally Managed $49.2 billion $10.8 billion $ 9.2 billion $10 billion $51.1 billion NA Total Assets $78.5 billion $41.8 billion $20.6 billion $19.1 billion $145 billion $28.3 billion Average Client 7 14 7 10 5 7 Relationship (Years) Participant Reps Avg. 2 4 2 2 5.4 6 Years of Service Relationship Mgrs. 7 8 5 12 9 7 Avg. Yrs. of Service Number of ERISA 6 6 20 6 11 7 Attorney (1) According to CFO Magazine 2004 Guide to 401k Providers, Merrill Lynch provides “full services” to more than 21,000 plans. This includes a large number where recordkeeping is provided by BYSIS. PlanSponsor reports Merrill provides “recordkeeping to 1,940 plans as of 7/2004” 7 Plan Service Highlights Merrill Lynch Principal Financial Fidelity Advisor Cigna/Prudential Vanguard Mass Mutual Balanced Funds No Risk tolerance questionnaire LifeTime Funds Asset allocation funds Goal Manager Fidelity Freedom Funds GoalMaker LifeStrategy Called Journey and Russell LifePoints Asset allocation customized based No No No Cruise Control ($0 on plan sponsor fund selection cost) Lifetime funds Multi-Manager asst allocation funds No Russell LifePoints No No No No Internet based investment advice Merrill Lynch Advice Morningstar Clear Firm providing services Ibbotson Assoc. Fidelity Portfolio Planner Financial Engines Financial Engines Access Future Additional cost if employer paid Included NA $0 $0 $3,000 (one time) $0 Additional cost if employee paid $0 .50% assets-varied $0 $25 $0 $25 per participant Integrated and pre-populated (between provider and investment advice provider) Acceptance of fiduciary liability for investment advice Hard copy customized asst. alloc. Retirement accumulation project. Financial planning software Investment re-balancing Automatic investment re-balancing One touch loan processing Employee report timing 10 days 7 days 10 days 10 days 15 days 15 days Color Investment allocation graphics Personalized investment return Custom messaging Newsletters Allocation by money type and source YTD contributions Detailed transaction listings Available in Spanish Vesting printed on employee statement Sent to participant’s home On demand employee reports Standard employee report frequency Quarterly Quarterly Quarterly Quarterly Quarterly Quarterly Voice response phone system Available in Spanish Availability 24/7 24/7 24/7 24/7 24/7 24/7 Live customer service 7:30 am – 8 pm (CST), 7:30 am – 8 pm (CST), 7 a.m. – 9 pm CT M-F 8 am – 8 pm (EST), M-F 8 am – 8:30 pm all time 8 am – 8 pm (EST), Availability M-F M-F 8 am – 5 pm Sat. 9 am – 3 pm, Sat zones M-F Paperless Enrollment Data Submission Requirements Internet Internet Internet VRS, IFT, Internet VRS, Internet Internet (TRS) Plan Contribution Submission Wire or ACH Check or ACH Wire or ACH ACH, Wire,Check ACH, Wire,Check Check, wire, or online Flexibility To Accommodate Other No No Formats and Systems Local and national enrollment assis. No No No Yes Local compliance assistance No No No No No Spokane, Washington or Westlake,Tx. Marborough, Springfield, Recordkeeping Location Bloomington, Mn. Dubuque, Iowa Malvern, Pa. Des Moines, Iowa Mass, Covington, KY, Massachusetts Recordkeeping System Owned (Custom OMNI) Owned FPRS (proprietary) Owned Owned (VISTA) Owned (REFLEX) 8 Investment Program Analysis Choosing 401(k) providers based on the available investments is a difficult task. The schedule below examines the total number of funds offered and available to plan sponsors, the names of the fund manager or family, the different types of funds, and approaches to combined investment portfolios that offer balances between conservative, moderate and aggressive investing. Merrill Lynch Principal Financial Fidelity Advisor Cigna/Prudential Vanguard Product Advantage Investor & Access Advisor Premium Full Service Product Vanguard Advantage Total Number of Funds 58 Approximately 109 120 in core offering 70+ 130+ Number of Funds That Plan New Customers: 19 20 20 20 Sponsor Can Offer Guaranteed + 20 Generally a 70-30 Generally a 70-30 Generally a 70-30 Traditional Acct. & Fund Requirement Guaranteed/Stable Value proprietary to non- proprietary to non- proprietary to non- Money Mkt. proprietary mix proprietary mix proprietary mix Type of Guaranteed Fixed Account with 2-5 Account None year maturities-floating one None Guaranteed Interest Fund None year window Stable Value Account Yes, at $3 million in total Yes Yes Yes Yes plan assets Money Market Account Yes Yes Yes Yes Yes Fund Types - Proprietary Institutional Yes Yes Yes Yes Yes - Sub-Advised No Yes No Yes Yes - Non-Proprietary Retail No Yes Yes Yes Yes - Non-Prop. Institutional Yes No Yes No No Money Managers American Washington Principal, AIM, American Funds, Fidelity, Dreyfus, AIM, Alliance Bernstein, ABN AMRO/Montag & Caldwell, Mutual, Eaton Vance, Fidelity Fidelity Advisor, Frank Russell, Evergreen, Blackrock, American Century, Artisan, American Century, Calvert, Adv, Hotchkiss & Wiley, INVESCO, MFS, Putnam, Federated, Janus, AIM, Brinson Partners, BlackRock, Lord Abbett, MFS, Franklin, Cohen & Steers, Davis, Fidelity, Neuberger Berman, Citizens, Credit Suisse, Alliance Calvert, Credit Suisse, Davis Goldman Sachs, JP Morgan, Franklin, Goldman Sachs, Harri, American Century Bernstein, GAM, Gartmore, Janus, Lord Abbett, Morgan Funds, Dreyfus, Evergreen, PIMCO, Columbia, Dreyfus, Liberty Acorn, Loomis Federated, Lord Abbott, Mainstay, Scudder Dreman, Smith Stanley, Oppenheimer, State Sayles, Nations Marisco, Barney Street, T. Rowe, Templeton, Neuberger Berman, One Turner, Victory Group, RS, State Street, Van Kampen, Wells Fargo Index Funds 4 Index Funds S&P 500, S&P 400, S&P 3 Index Funds 3 Index Funds Bond Index, S&P 500, 600, Total Stock Market MidCap Index, Small Cap Index Balanced Funds 4 balanced funds 2 balanced funds 4 balanced funds 5 balanced funds 4 balanced funds Asset Allocation Funds 2 Asset Allocation Asset Allocation Funds Goal Manager 2 Asset Allocation Funds 5 Asset Allocation funds funds Lifetime Funds NA 6 Lifetime Portfolios 13 Lifetime funds 13 Lifetime funds 6 Lifetime funds Manager of Managers Funds N/A 5 Russell LifePoints N/A N/A N/A All the above information is subject to change at anytime. Product offerings are at the sole discretion of each provider. 9 Investment Program Analysis Choosing 401(k) providers based on the available investments is a difficult task. The schedule below examines the total number of funds offered and available to plan sponsors, the names of the fund manager or family, the different types of funds, and approaches to combined investment portfolios that offer balances between conservative, moderate and aggressive investing. Mass Mutual Product RMAP Total Number of Funds Approximately 69 Number of Funds That Plan 26 Sponsor Can Offer Fund Requirement Guaranteed Type of Guaranteed Portfolio Account Stable Value Account No Money Market Account Yes Fund Types - Proprietary Retail Yes - Proprietary Institutional Yes - Sub-Advised Yes - Non-Proprietary Retail Yes - Non-Prop. Institutional Yes Money Managers David L. Babson, Oppenheimer, American Century, MFS, Janus, Fidelity, Davis, Harris, MAS, T. Rowe Price, Waddell & Reed, Stewart Ivory, Wellington, AIM, Alliance, Navellier, PIMCO Index Funds S&P 500, Value index, Growth Index, OTC Balanced Funds 3 balanced funds Asset Allocation Funds 4 Journey Series Portfolios Lifetime Funds Destination Retirement Manager of Managers N/A Funds All the above information is subject to change at anytime. Product offerings are at the sole discretion of each provider. 10 Administration-Based Fees The following matrix compares the administration-based fee schedules of the vendors. Costs are based on the latest proposal submitted, and are subject to change by the plan provider at any time. In most instances, some or all of the costs below may be paid for by plan participants as part of the overall investment-related fees, or by being deducted directly from investment return. Plan Assumptions 2 Plans, approx. 748 participating employees, $39,000,000 in total plan assets (including loan balances) Merrill Lynch Principal Financial Fidelity Advisor Prudential/Cigna Vanguard Delivery Bundled Bundled Bundled Bundled Bundled Third-Party Administrator NA NA NA NA NA Plan Design and $0 $0 $0 $0 $0 Implementation Services Annual Admin - Base - Per Participant $12 per participant None/Waived None/Waived None/Waived $33 per participant = $6520 (1.7 bps) =$23,100 (5.9 bps) $750 Employer (waived) $120 per participant -Self Directed Brokerage $125/Account $75 per participant + $14.95 for up to the first plus $1,500/employer Acct. 1,000 shares plus $.015 Fees/commissions on $20 per order $25 per trade (ee) Plus .25% asset fee for each add. share trading done in the (stocks) $25 (bonds) (Online) see attd schedule brokerage account Estimated Annual Direct Costs $6,520 (1.7 bps) None None None $23,100 (6 bps) Miscellaneous Fees -Trustee Services Included Included Included Included Included - Distributions $25 Included Included Included Included - Hardship Withdrawals Included $0 Included Included Included - Loan Setup (First Year Only) $50 $40 $150 per loan-1 time only $25 $40 - Loan Administration $50 $10.50 per quarter None None $25 - QDROs $50 each Included Included $30 each $50 each - Documents: - Basic Prototype Included Included Included Included Included - Custom $700 - Plan Amendments Included Included Non Standard- Included Included Included Custom $300 - Annual Document Subscription NA NA NA NA NA Fee - Annual Deferral Reconciliation $250/hr term calcs NA NA NA NA - Mid-Yr Deferral Test Included Included in Fees Above Included Included Included - Statements to Home Included Included in Fees Above Included Included Included - 5500 Completion Included Included in Fees Above Included Included Included - Summary Annual Report Included Included in Fees Above Included Included Included - SPD Wording Included Included in Fees Above Included Included - SPD Booklets Included Included in Fees Above Included Included Included - IRS Filing Fee (Optional) Paid to IRS Paid to IRS Paid to IRS Paid to IRS Paid to IRS - Tiered Allocation NA Included Available Included Included - Additional Takeover Fees NA N/A N/A NA NA 1. Fees and services are subject to change at any time. See proposal for actual pricing. 2. Final pricing, services, and contractual provisions are at the sole discretion of each plan provider. 11 Administration-Based Fees The following matrix compares the administration-based fee schedules of the vendors. Costs are based on the latest proposal submitted, and are subject to change by the plan provider at any time. In most instances, some or all of the costs below may be paid for by plan participants as part of the overall investment-related fees, or by being deducted directly from investment return. Plan Assumptions 2 Plans, approx. 748 participating employees, $39,000,000 in total plan assets (including loan balances) Mass Mutual Delivery Bundled Third-Party Administrator NA Plan Design and Implementation $0 Services Annual Admin - Base $0 - Per Participant $1500 Trustee Fee -Self Directed Brokerage $100 Per participant Estimated Annual Costs $0 Miscellaneous Fees -Trustee Services NA -Distributions $40 per distribution -Installments Payment setup $100 one time only -Annuity Setup $175 one time only - Hardship Withdrawals $40 per distribution - Loan Setup $50 Elect. $100 Paper - Loan Administration $0 - QDROs $40 - Documents: - Basic Prototype N/A - Regional Prototype N/A - Custom N/A - Plan Amendments N/A - Annual Document Subscription Fee Included - Annual Deferral Reconciliation Included - Mid-Yr Deferral Test Included - Statements to Home Included - 5500 Completion Included - Summary Annual Report Included - SPD Wording Included - SPD Booklets Included - IRS Filing Fee (Optional) N/A - Tiered Allocation N/A - Additional Takeover Fees N/A 3. Fees and services are subject to change at any time. See proposal for actual pricing. 4. Final pricing, services, and contractual provisions are at the sole discretion of each plan provider. 12 Investment-Based Fees Merrill Lynch Principal Financial Group Fidelity Advisor Cigna/Prudential Vanguard Contract Incumbent FIA Contract Full Service Product MidMarket Full Svs Standard Services Contract Termination Participant Fee .45% netted from Guar. Acct. INVESTMENT CONTRACT COST - IF ANY, APPLIED TO ALL FUNDS 0.02% 0.00% 0.00% 0.00% 0.06% EXPENSE ANALYSIS OF PROPRIETARY MANAGED DOMESTIC STOCK FUNDS Avg. Expense 1.38% 0.98% 0.89% NA 0.45% Total Cost 1.40% 0.98% 0.89% NA 0.51% EXPENSE ANALYSIS OF PROPRIETARY SUB-ADVISED DOMESTIC STOCK FUNDS Avg. Expense NA 1.13% NA 1.11% NA Total Cost NA 1.13% NA 1.11% NA EXPENSE ANALYSIS OF NON-PROPRIETARY MANAGED DOMESTIC STOCK FUNDS (Retail Mutual Funds) Avg. Expense 1.33% 1.26% 1.38% 1.16% 1.34% Total Cost 1.35% 1.26% 1.38% 1.16% 1.40% EXPENSE ANALYSIS OF ASSET ALLOCATION FUNDS Avg. Expense 1.07% 1.07% 0.82% 1.03% 0.23% Total Cost 1.09% 1.07% 0.82% 1.03% 0.29% EXPENSE ANALYSIS OF INDEX STOCK FUNDS Avg. Expense 0.36% 0.41% 0.26% 0.31% 0.26% Total Cost 0.38% 0.41% 0.26% 0.31% 0.32% 13 Investment-Based Fees Mass Mutual Contract RMAP Contract Termination None Participant Fee None INVESTMENT CONTRACT COST - IF ANY, APPLIED TO ALL FUNDS 0% EXPENSE ANALYSIS OF PROPRIETARY MANAGED DOMESTIC STOCK FUNDS Avg. Expense .77% Total Cost .77% EXPENSE ANALYSIS OF PROPRIETARY SUB-ADVISED DOMESTIC STOCK FUNDS Avg. Expense .97% Total Cost .97% EXPENSE ANALYSIS OF NON-PROPRIETARY MANAGED DOMESTIC STOCK FUNDS (Retail Mutual Funds) Avg. Expense 1.13% Total Cost 1.13% EXPENSE ANALYSIS OF ASSET ALLOCATION FUNDS Avg. Expense .95% Total Cost .95% EXPENSE ANALYSIS OF INDEX STOCK FUNDS Avg. Expense 0.61% Total Cost 0.61% 14 Investment Program Analysis Merrill Lynch Value Blend Growth American Washington Mutual Investors Calvert Social Investment Equity ABN AMRO Growth Eaton Vance Large Cap Value Davis New York Venture American Century Ultra Fidelity Advisor Equity Income Eaton Vance Tax Managed Growth American Growth Fund of America Large Hotchkis & Wiley Large Cap Value Federated Capital Appreciation Franklin Capital Growth Lord Abbett Affilated Thornburg Value Oppenheimer Capital Appreciation MFS Value Victory Diverse Fed Stock Smith Barney Large Cap Growth Franklin Managed Trust ABN AMRO Mid Cap AIM Capital Development Goldman Sachs Mid Cap Value AIM Mid Cap Core Equity Alger Mid Cap Growth Hotchkis & Wiley Mid Cap Value Ariel Appreciation Delaware Trend JP Morgan Mid Cap Value Davis Opportunity Evergreen Mid Cap Growth Medium Lord Abbett Mid Cap Value TCW Galileo Value Opportunity Federated Kaufman PIMCO PEA Renaissance Victory Special Value Goldman Sachs Growth Columbia Small Cap Value Munder Small Cap Value Evergreen Select Special Equity Dreyfus Premier Small Cap Value Oppenheimer Main Street Small Cap Fidelity Advisor Small Cap Evergreen Special Value Pioneer Small Cap JP Morgan Dynamic Small Cap Goldman Sachs Small Cap Value Safeco Small Cap Value Salomon Brothers Small Cap Growth Small Scudder Dreman Small Cap Value State Street Aurora State Street Research Emerging Smith Barney Small Cap Value Growth Managers Special Equity Growth Specialty Managed Portfolios World/Foreign Equity Cash Hybrid Income American Capital World AIM International Growth American Century International Growth Oppenheimer International American New Perspective MFS Global Equity PIMCO RMC International Growth Equity A Oppenheimer Global Templeton Growth Templeton World 15 Principal Financial Group Value Blend Growth AIM Basic Value AIM Premier Equity AIM Constellation American Fund Fundamental Inv. Frank Russell Diversified Equity American Century Growth Am. Funds investment Co. of Am. Frank Russell Quantitative Equity American Century Select Am. Funds Washington Mutual INVESCO Core Equity American Century Ultra Citizens Value MFS Capital Opportunities American Funds Growth Fund of Am. Fidelity Adv. Equity Income Neuberger Berman Focus Citizens Core Growth Frank Russell Equity Income Putnam Research Fidelity Adv. Equity Growth Frank Russell Select Value Principal Large Cap Index Frank Russell Select Growth INVESCO Core Equity Principal Total Market Index MFS Massachusetts Inv. Growth Large MFS Strategic Value Principal Partners Large Cap Blend Putnam New Opportunities MFS Value Principal Partners Large Cap Blend I Putnam Voyager Putnam Equity Income Vanguard Growth & Income Principal Large Company Growth Principal Large Company Value Principal Partners Large Cap Growth Principal Partners Large Cap Value Principal Partners Large Cap Growth I Vanguard Equity Income Principal Partners Large Cap Growth II Vanguard Windsor Vanguard Morgan Growth Vanguard US Growth American Century Equity Frank Russell Special Growth AIM Aggressive Growth American Century Value Principal Medium Company Blend American Century Heritage Principal Medium Company Value Principal Mid Cap Index American Century Vista Principal Partners Mid Cap Value Principal Partners Mid Cap Blend Fidelity Adv. Mid Cap Strong Multi Cap Fidelity Adv Mid Cap I INVESCO Dynamics Medium Strong Adv Common Stock INVESCO Leisure Strong Opportunity MFS Mid-Cap Growth Principal Medium Company Growth Principal Partners Mid Cap Growth Strong Discovery Am. Cent. Small Cap Value Principal Small Company Blend AIM Small Cap Growth Principal Small Company Value Principal Small Cap Index Fidelity Adv. Small Cap Principal Partners Small Cap Value T. Rowe Price New Horizons INVESCO Small Co. Growth Fidelity Adv Value Strategies I Neuberger Berman Millennium Principal Small Company Growth Small Principal Partners Small Cap Growth I Principal Partners Small Cap Growth II Vanguard Explorer 16 Investment Program Analysis Principal Financial Group (cont’d) Specialty Managed Portfolios World/Foreign Equity Cash Hybrid Frank Russell RE Secs. 5 Russell LifePoints funds AIM Intl Core Equity Principal Guaranteed Am. Funds Am. Balanced Putnam Utilities Grw & Inc 6 Principal LifeTime funds Am. Century Intl Growth Principal Money Market MFS Total Return Principal Real Estate Am. Funds EuroPacific Principal Stable Value Principal Bond Emphasis Vanguard Healthcare Am. Funds New Persp Principal Stock Emphasis T. Rowe Price Sc & Tech Citizens Global Equity T. Rowe Price New Era Fidelity Adv. Global Equity Fidelity Advisor Overseas I Frank Russell Emerg. Mkts. Frank Russell Int’l Secs. MFS Emerging Mkts. Equity Neuberger Berman Intl. Putnam Intl Growth Putnam Global A Principal Int. Emer Mkts. Principal International II Principal Int. Small Co. Principal International Stock Strong Overseas T. Rowe Price International T. Rowe Price Euro Stock Vanguard Intl Growth Vanguard Intl Value All funds, availability, investment styles, costs, etc. subject to change and cannot be guaranteed. 17 Investment Program Analysis FIDELITY ADVISOR Value Blend Growth AIM Basic Value Domini Social Equity AIM Constellation Credit Suisse Large Cap Value Dreyfus S&P 500 Index Fidelity Advisor Equity Growth Evergreen Capital Growth Federated Max-Cap Index Fidelity Advisor Large Cap Fidelity Advisor Cyclical Industry Fidelity Advisor Consumer Fidelity Advisor Dynamic Cap Fidelity Advisor Equity Income Fidelity Advisor Dividend Growth Nations Marisco Focused Equity Large Fidelity Advisor Grow & Income Nations Marisco Growth & Income Fidelity Advisor Growth Opportunity Van Kampen Emerging Growth Fidelity Advisor Strategic Growth Fidelity Advisor Leverage Company Dreyfus Premier Midcap Stock AIM Aggressive Growth Fidelity Advisor Mid Cap Strategy Federated Mid-Cap Index Federated Kaufmann Liberty Select Value Fidelity Advisor Mid Cap Fidelity Advisor Mid Cap State Street Research Mid Cap Value Liberty Acorn Fidelity Advisor Aggressive Growth Gartmore Millennium Growth Janus Adviser Mid Cap Growth Medium Neuberger Berman Manhattan One Group Mid Cap Growth RS Emerging Growth Van Kampen Aggressive Growth Credit Suisse Small Cap Value Federated Mini-Cap Index AIM Small Cap Growth Dreyfus Premier Small Cap Value Fidelity Advisor Small Cap Evergreen Growth Evergreen Small Cap Value Gartmore Value Opportunities RS Diversified Growth One Group Small Cap Value Loomis Sayles Small Cap Value RS Emerging Growth Small Neuberger Berman Fasciano RS Smaller Company RS Partners Van Kampen Small Cap Value 18 Investment Program Analysis FIDELITY ADVISOR (continued) Specialty Managed Portfolios World/Foreign Equity Cash Hybrid Income Focus Biotechnology Freedom Income Diversified International Prime Fund Fidelity Advisor Balanced Em. Mkts Income Focus Consumer Industries Freedom 2010 Emerging Asia Treasury Fund AIM Balanced Floating Rate High Income Focus Cyclical Industries Freedom 2020 Europe Capital Appr Alliance Bernstein Bal High Income Focus Developing Comm Freedom 2030 Global Equity Janus Advisor Balanced High Income Advantage Focus Electronics Freedom 2040 Int’l Capital Appreciation Inflation Protected Bond Focus Fin Srvs State Street Research International Small Cap Intermediate Bond Focus Health Care Asset Allocation Japan Fund Investment Grade Bond Focus Natural Resources Wells Fargo Outlook 2010 Korean Fund High Income Focus Technology Wells Fargo Outlook 2020 Latin American Fund Short Fixed Income Focus Telecom & Utilities Wells Fargo Outlook 2030 Overseas Fund Strategic Income Wells Fargo Outlook 2040 Dreyfus Premier WW Gr Blackrock Core Bond Evergreen Global Leaders Blackrock GNMA Inv Evergreen Int’l Equity Federated Limited Term Federated Int’l Sm Co Janus Adviser Flex Income GAM International Loomis Sayles Bond Fund Janus Adviser Int’l I Dreyfus Premier Core Bond Janus Adviser Worldwide I Federated Bond One Group Int’l Equity Fidelity Advisor Government Inv Fidelity Advisor Mort Secs One Group Bond All funds, availability, investment styles, costs, etc. subject to change and cannot be guaranteed. 19 Investment Program Analysis CIGNA Value Blend Growth Large Cap Value-Wellington Large Cap Blend- Invesco American Century Ultra Adv. Large Cap Value-Barrow Hanley S&P 500 Large Cap Growth/Dresdner Large Cap Value-John Levin Calvert Social Investment Large Cap Growth/Goldman Sachs Large Cap Value- LSV Invesco Core Equity Large Cap Growth/Morgan Stanley Alliance Growth & Income A T. Rowe Price Blue Chip (R) Fidelity Adv. Equity Growth Large Davis NY Venture A Victory Diversified (A) Janus Adv Growth Fidelity Adv. Equity Income Waddell & Reed Adv. Accumulative A Oppenheimer Capital Appreciation A Lord Abbett Affiliated P T. Rowe Price Equity Income (R) Mid Cap Value- Wellington Fidelity Adv. Value Strategies Mid Cap Growth- Artisan American Century Equity Income I Morgan Stanley Inst. Fund Trust AIM Constellation Strong Opportunity Adv. American Century Heritage Medium Invesco Dynamics Turner Mid Cap Growth Small Cap Value/ Berger Small Cap Blend/WHV Small Cap Growth/Granahan Franklin Balance Sheet A Small Cap Growth/Times Square Strong Adv Small Cap Value A AIM Small Cap Growth A Small Invesco Small Company W&R Small Cap Growth Y Specialty Managed Portfolios World/Foreign Cash Hybrid Income Equity Cohen & Steers Equity Balanced I- Wellington Global Value/Morgan Guaranteed Retirement Goal Income Core Bond Income Alliance Balanced Stanley Retirement Goal 2010 Government Securities Invesco Technology Balanced-Dresdner RCM Templeton Growth Retirement Goal 2020 High Yield Bond-Caywood Balanced-Morgan Stanley Global Growth/Marvin & Retirement Goal 2030 Times Square High Grade Janus Adv Balanced Palmer Retirement Goal 2040 Bond Janus Adv Worldwide CIGNA Lifetime 20 Times Square Short Term Oppenheimer Global CIGNA Lifetime 30 International Blend-Bank of CIGNA Lifetime 40 Ireland CIGNA Lifetime 50 International Growth- CIGNA Lifetime 60 Putnam American Century International Growth 20 Investment Program Analysis Vanguard Group Value Blend Growth Vanguard Windsor II Vanguard 500 Index Vanguard Morgan Growth Vanguard Equity Inc. Vanguard Dividend Growth AIM Large Cap Growth Vanguard US Value Vanguard Growth & Inc AIM Weingarten American Century Income & Growth AIM Premier Equity AllianceBernstein Premier Growth Davis New York Venture American Century Equity Growth American Century Growth American Century Ultra Lord Abbett Affiliated Columbia Common Stock Mainstay All Cap Growth Mainslay All Cap Value Gabelli Growth MFS Massachusetts Inv Growth Neuberger Berman Partners Trust INVESCO Core Equity Stock Oppenheimer Quest Value MFS Massachusetts Investors Oppenheimer Capital Appreciation Large The Putnam Find for Growth & Income MFS Research Oppenheimer Growth SAFECO Equity Provident Invesment Counsel T. Rowe Price Equity Income Growth Van Kampen Comstock Putnam New Opportunities Putnam Voyager Scudder Growth Van Kampen Emerging Growth Hotchkis and Wiley Mid Cap Value Vanguard MidCap Index Vanguard Mid Cap Growth Vanguard Capital Value Fund Vanguard Strategic Equity Vanguard Cap Opport Inv. Vanguard Selected Value AllianceBernstein Mid Cap Growth AIM Aggressive Growth Columbia Mid Cap Value AIM Constellation Gabelli Asset Baron Asset Mainstay MAP BlackRock Small Cap Growth Equity Rainer Small/Mid Cap Equity Credit Suisse Emerging Growth Medium Federated Kaufmann Franklin Small/Mid Cap Growth INVESCO Dynamics MSIFT Mid Cap Growth T. Rowe Price Mid Cap Growth Turner Mid Cap Growth Turner Small Cap Value Vanguard Small Cap Index Fund Vanguard Explorer Small 21 Investment Program Analysis Vanguard Group (cont’d) Specialty Managed Portfolios World/Foreign Equity Cash Hybrid Income Vanguard Target Vanguard International Stable Value Vanguard Retirement Retirement Lifecycle Funds Explorer Fund Savings Fund (Six options) Vanguard International Vanguard Total Bond Mkt Vanguard Asset Allocation Growth Index Vanguard Star VG Inter. Value Vanguard Wellesley Inc. Vanguard Global Eqty Vanguard Int Term Bond William Blair International Vanguard Int Term US Growth Fund Govt. Vanguard ST Bond Vanguard Short Govt. 22 Investment Program Analysis Mass Mutual Value Blend Growth MM Core Value Equity (Babson) American Century Equity Growth MFS Emerging Growth MM Value Equity (Fidelity) MM Indexed Equity DLB Core Growth (Babson) Oppenheimer Quest Value T. Rowe Price Spectrum Growth DLB Enhanced Index Core (Babson) Oppenheimer Quest Value Opp. Oppenheimer Total Return American Century Growth Investors DLB Value (Babson) Oppenheimer Main Street Gr. & Inc. American Century Ultra MM Large Cap Value (Davis) Oppenheimer Capital Appreciation Oppenheimer Growth Large DLB Enhanced IndexValue (Babson) MM Growth Equity (MFS) MM Aggressive Growth (Janus) MM OTC 100 DLB Enhanced Index Grow (Babson) MM Focused Value (Harris Ass.) Oppenheimer Enterprise MM Mid Cap Growth (T. Rowe) Oppenheimer Mid Cap Growth Medium MM Mid Cap Growth (MAS) DLB Small Cap Value (Babson) MM Small Cap Equity (Babson) T. Rowe Price New Horizons DLB Small Co. Opport. (Babson) Oppenheimer Discovery MM Small Cap Gr. (JPM/Wad&Reed) Small MM Emerging Growth (RS Investment) Specialty Managed Portfolios World/Foreign Equity Cash Hybrid Income MM Conservative Journey MM Int. Equity (Oppen) MM Money Mkt (Babson) MM Balanced (Babson) MM Gov. Money Market MM Moderate Journey MM Overseas (Am. Cent) JCC Balanced (Janus) MM STerm Bond (Babson) MM Aggressive Journey DLB Int (Stewart Ivory) Oppenheimer Quest Bal Va MM Core Bond (Babson) MM Ultra Aggressive Oppenheimer Global MM Div. Bond (Babson) Journey Oppen Global Gr. & Inc. Oppen. Strategic Income Oppenheimer High Yield Foundation Contract funds shown. All funds, availability, investment styles, costs, etc. subject to change and cannot be guaranteed 23 Notes Regarding Final Plan Pricing and Product Offerings 1. The pricing models in this proposal presented by 401(k) Advisors have been taken directly from written material prepared by each provider. 2. The plan providers presented in this proposal prohibit 401(k) Advisors (and all other outside entities) from authorizing and/or guaranteeing final contractual pricing or services presented in this proposal. 3. Final pricing, services, and contractual provisions are at the sole discretion of each plan provider. 4. Upon acceptance of the proposal by the plan sponsor, 401(k) Advisors will make every reasonable effort to secure pricing and services that are identical to those presented in this proposal. 5. In the event that final plan pricing is not acceptable, the plan sponsor will be under no contractual obligation to choose that particular provider’s products and services, and therefore is free to choose proposals, products, and services offered by other plan providers. 6. Factors that impact final plan pricing include, but are not limited to: a. Differences between the number of total, eligible, or participating employees assumed in this proposal, and the actual number; b. Differences between the annual recurring plan contributions and/or plan assets assumed in this proposal, and actual plan contributions; c. Differences between the underlying menu of investment options used for pricing purposes and the actual investment options chosen by the plan sponsor; and d. Additional plan services not included and quoted in this proposal. 7. The specific timing and execution of investment deletions and additions with the same plan provider, and/or any new plan provider (as a result of a plan conversion), are at the discretion and control of the plan provider. 8. Once hired (through retainer agreement and/or broker of record letter) by the plan sponsor, 401(k) Advisors has a fiduciary interest in protecting the financial interests of the plan sponsor (as they relate to this particular qualified retirement plan), and acting as the broker, agent, and consultant of the plan sponsor. Hence, the plan sponsor is the customer of 401(k) Advisors, and as such, 401(k) Advisors has a vested interested in securing exceptionally competitive product, service, and pricing options for the plan sponsor, as well as securing the most timely, accurate, and efficient transition with respect to investment additions, deletions, and plan provider conversions. 24 Defined Contribution Provider Graveyard Firm Name Action Successor Provider Year Wyatt (Daily Valuation) Sold to State Street 1996 Benefit Concepts, Inc. Sold to USI Insurance Services 1996 Wells Fargo Masterworks Sold to Barclays 1996 Mercer Sold to ADP 1997 Buck Consultants Sold to Mellon Bank 1997 Coopers & Lybrand/Kwasha Merged with Price Waterhouse 1998 Barclays ( DC Business) Outsourced Recordkeeping to Merrill Lynch 1998 Howard Johnson Sold to Merrill Lynch 1998 Wyatt (Balance Forward) Sold to First Data Investor Service 1999 First Data Investor Service Sold to PNC Bank Corp 1999 Williams, Thatcher & Rand, NY (Balance Forward) Sold to USI Insurance Services 1999 Benefits Advisors of New England (Balance Forward & Daily) Sold to USI Insurance Services 1999 Bankers Trust Sold to Metropolitan Life 1999 Nations Bank Exited The Business 1999 Chase Manhattan Exited The Business 1999 Huntington Bank Exited The Business 2000 Merrill Lynch (Small Market) Outsourced Recordkeeping to Bisys 2000 Prudential (Small Market) Outsourced Recordkeeping to Bisys 2000 Strong (Small Market) Outsourced Recordkeeping to Universal Pensions 2000 T. Rowe Price (Small Market) Outsourced Recordkeeping to Trustar 2000 Wachovia Sold to First Union 2001 Wachovia Outsourced Recordkeeping to INVESCO 2001 John Hancock Financial Services Sold to Universal Pensions 2001 Allmerica Financial Sold to Minnesota Life 2001 Fleet Outsourced Recordkeeping to INVESCO 2001 AON Sold to INVESCO 2001 Morgan Stanley Dean Witter Outsourced Recordkeeping to ADP 2001 LaSalle National Bank Outsourced Recordkeeping to Chicago Title & Trust 2001 Universal Pensions Sold to Bisys 2001 PaineWebber Outsourced Recordkeeping to MFS 2001 Metropolitan Life Insurance (MET Life) Outsourced Large Plans Hewitt Associates 2001 Nippon Life Insurance Company of America Exited the Business 2002 American Skandia Exited the Business 2002 SunTrust Exited the Business 2002 Key Sold to The Principal Group 2002 Trustar Retirement Services Exited the Business 2002 State Street Research & Management Exited the Business 2002 Guardian Life Exited the Business 2002 Emplanet Exited the Business 2002 Bank of New York Exiting the Business PFPC 2002 National City Outsourced Hewitt Associates 2002 Provident Mutual Life Merging Nationwide Financial 2002 AMG Purchased Lincoln Financial 2002 Spectrum Banking Outsourcing Bisys 2002 Mercantile Bank Outsourcing Bisys 2002 US Bank Outsourcing Universal Pensions 2000 American Century 401(k) Division Sold to JP Morgan 2003 GE Asset Management Outsourced Recordkeeping to Bisys 2003 Great West Life Two employee salary decreases in 6 months 2003 Northern Trust Division Sold to Hewitt 2003 Pan American Life Closed most sales offices 2003 Prudential Securities Sold to Wachovia 2003 Scudder Outsourced Recordkeeping to ADP 2003 25 401(k) Provider Overview Asset Asset Provider Name Bundled Unbundled Manager Gatherer Marketplace Product Challenge ADP S, M, L Recordkeeping, Technology, Funds American Funds S, M Recordkeeping, Technology, Asset Mgr. AUL S Technology, Funds Charles Schwab M, L Recordkeeping, Technology, Fees CIGNA L Large Focus, Local Service Citistreet L Large Focus Delaware S, M Market Penetration Diversified L Large Focus Fidelity Advisor S, M, L Flexibility, Asset Manager Great West S, M Recordkeeping, Technology, Focus Hartford S Recordkeeping, Funds Hewitt L Large Focus ING/Aetna S, M Recordkeeping, Service INVESCO L Large & Asset Mgr Focus Lincoln National S, M Recordkeeping, Technology, Service Manulife Financial S, M Mass Mutual M, L Merrill Lynch S, M, L Recordkeeping, Technology MetLife M, L Recordkeeping, Technology, Large Focus MFS S, M, L Asset Manager Mutual of Omaha S Market Penetration Nationwide S, M Distribution, Recordkeeping, Technology New York Life L Large Focus Pan American S Market Penetration Principal Financial S, M, L Prudential M, L Large Focus Putnam M, L Performance, Customer Satisfaction Scudder/Kemper S, M Record, Asset Mgr Focus Standard S Market Penetration T. Rowe Price M, L Recordkeeping, Technology, Asset Mgr. Transamerica S, M Recordkeeping, Technology Vanguard L Large Focus & Asset Manager Wells Fargo L Large Focus 26 PLANSPONSOR, 2004 DC Survey ($5 m to $50 m Mkt.) Participant Services Top Rated or Commended Merrill Lynch Principal Financial Group Fidelity Advisor Communication Materials Participant Education Clarity of Statements Accuracy of Reporting Timeliness of Reporting Loan/Withdrawal Turnaround Participant Internet Services Participant Call Center Range of Investment Options Retiree Services 27 PLANSPONSOR, 2004 DC Survey Sponsor Services Top Rated or Commended Merrill Lynch Principal Financial Group Fidelity Advisor Sponsor Internet Services Reporting Compliance Fairness of Fees Fee Disclosure Account Rep Expertise Responsiveness Legislation/Regulation Updates 28 PLANSPONSOR, 2004 DC Survey ($5 m to $50 m Mkt.) Participant Services Top Rated or Commended Cigna/Prudential Vanguard Mass Mutual Communication Materials Participant Education Clarity of Statements Accuracy of Reporting Timeliness of Reporting Loan/Withdrawal Turnaround Participant Internet Services Participant Call Center Range of Investment Options Retiree Services 29 PLANSPONSOR, 2004 DC Survey Sponsor Services Top Rated or Commended Cigna/Prudential Vanguard Mass Mutual Sponsor Internet Services Reporting Compliance Fairness of Fees Fee Disclosure Account Rep Expertise Responsiveness Legislation/Regulation Updates 30 PLANSPONSOR, 2004 DC Survey Merrill Lynch- Notable comments from Survey Results “Merrill Lynch continues to impress at the micro end of the market (Micro plans (less than $5 million in DC assets) and larger end of the market with an impressive 26 Best in Class awards, but seems to struggle with small plans ($5 million-$49 million)” (Micro) “some grumbling about the quality of information coming from call centers and inaccuracies with 5500‟s and discrimination tests” (Small) “Good service in everything except participant education” “respondent asked Merrill to „not assume everyone has a good understanding of investing concepts” (Mid) Respondents uniformly gave Merrill high marks for participant services, although there were some call-center gripes. 31 PLANSPONSOR, 2004 DC Survey Principal Financial Group- Notable comments from Survey Results “Response levels for Principal are up 40% and Best in Class award designations, 19 in total, have more than doubled in both the micro and small plan levels.” (Micro- less than $5 million in DC assets) “Internet services, in particular, were lauded for being “hassle free” and user friendly. New business has been handled well, Principal service reps have been very attentive in their efforts before, during and after the plan transition. (Small- $5 million-$49 million) “My rep is extremely knowledgeable, courteous and very quick to resond to questions” (Mid- $50 million -$199 million) “I am very impressed with the services provided” 32 PLANSPONSOR, 2004 DC Survey Fidelity- Notable comments from Survey Results “Competence is the order of the day here, across every single market category” (Micro- less than $5 million in DC assets) “Fidelity is always improving service to participants” “Fidelity needs to decide if it really wants the under $3 million plan” (Small- $5 million-$49 million) “Awesome” (Mid- $50 million -$199 million) “Their serviceis technologically advanced, providing very good access to a wide range of information and administrative services” 33 PLANSPONSOR, 2004 DC Survey Prudential/Cigna - Notable comments from Survey Results “Prudential wins 24 Best in Class awards, and the categories in which it excels give an indication of the impact that the takeover of CIGNA‟s retirement business has had” . (Small- $5 million-$49 million) “Easier access to account reps” “My number one complaint is difficulty in using the automated phone system” “Quick to respond to any shortcomings “Prompt and thorough” (Mid- $50 million -$199 million) “Responsiveness and quick turnaround in answering queries” (Large- $200 million >) “Prudential never says no” “First tries to deliver what is requested and only says no to impossible requests” 34 PLANSPONSOR, 2004 DC Survey Vanguard- Notable comments from Survey Results “Wins 14 Best in Class awards, and like its fees, clients comments are tended to be lean and terse: Service often described as “Overall very good” and areas in need for improvement as “nothing.” (Micro- less than $5 million in DC assets) “Problem include fiscal year end reporting and timeliness of statements” (Small- $5 million-$49 million) “Most reviews were simply „very good‟ or „excellent‟ ” “Larger companies take longer to respond to problems, and Vanguard is no exception” (Mid- $50 million -$199 million) “The recordkeepoing services are excellent and the reps are very well informed about upcoming regulations” “The education program seems to remain the same year after year” (Large- $200 million >) “Consistently accurate information” 35 PLANSPONSOR, 2004 DC Survey Mass Mutual- Notable comments from Survey Results “Mass Mutual‟s growing presence in the DC world is echoed here, with enough responses in three client categories tro qualify for ratings” (Micro- less than $5 million in DC assets) “Fees are always a mystery to me” (Small- $5 million-$49 million) “Mass Mutual provides the highest quality of service I‟ve experienced in my career as a plan sponsor” “In less than a year, I‟ve had the pleasure of working with a fifth account manager” (Mid- $50 million -$199 million) “Excellent Web site and quick processing of info to participants” 36 Merrill Lynch Communications Seal 2004 Defined Contribution Plan Participant Statement 2001 Millennium Retirement Plan Statement How bright will your future be? 2000 Priority Client Statement 1999 CMA Brokerage Statement Service Award 2000 Annuity Service Award 1999 Annuity Service Award 1998 Annuity Service Award 1997 Annuity Service Award 37 Principal Financial Communications Seal 2004 Defined Contribution Plan Participant Statement Defined Benefit Plan Participant Statement Variable Annuity Statement Mutual Fund Quarterly Statement 2003 Retirement Plan Statement 2002 Participant Web site 2001 Investment Performance Results Brochure Retirement Plan Statement 2000 Retirement Plan Statement 38 Fidelity Crystal Pyramid 2004 Excellent in Financial Professionals' Opinion of Mutual Fund Regional Firm Channel 1999 Financial Professional Opinion of Mutual Fund Market Leaders Excellence in General Opinion BANK STUDY Bank Manager Opinion of Mid-Size Variable Annuity Companies Excellence in Investment Management BANK STUDY Trust Officers Opinion of Investment Management Companies Excellence in Marketing Support BANK STUDY Communications Seal 2003 Fidelity.com/annuities 2001 Correspondent Brokerage Statement Service Award 1999 Financial Intermediary Service Award 1998 Mutual Fund Service Award Financial Intermediary Service Award 1997 Financial Intermediary Service Award 1992 Mutual Fund Service Award 1991 Mutual Fund Service Award 1990 Mutual Fund Service Award Key Honors 39 Prudential Communications Seal 2005 Defined Benefit Plan Participant Statement Total Retirement Statement Defined Contribution Plan Participant Statement 2004 Defined Contribution Plan Participant Statement (Won as CIGNA Retirement & Investment Services but was acquired by Prudential Financial effective 4/1/04) Defined Benefit Plan Participant Statement (Won as CIGNA Retirement & Investment Services but was acquired by Prudential Financial effective 4/1/04) 2003 Reitirement and Investment Services Defined Contribution Statement (Won as CIGNA Retirement & Investment Services but was acquired by Prudential Financial effective 4/1/04) Retirement and Investment Services Defined Benefit Statement (Won as CIGNA Retirement & Investment Services but was acquired by Prudential Financial effective 4/1/04) 2001 Prudential.com 2000 Check Statements Whole Life Value Statement 1999 Billing Statements Service Award 2003 Annuity Service Award 2002 Annuity Service Award 2001 Annuity Service Award 1999 Annuity Service Award Key Honors 2002 Mutual Fund Key Honors Recipient 2000 Annuity Key Honors Recipient 40 Vanguard Crystal Pyramid 2001 #1 in General Opinion of Financial Professionals Distibutor Priced Mutual Fund Firms FINANCIAL PROFESSIONAL PROGRAM 41 MassMutual Crystal Pyramid 2003 Excellent in Financial Professionals' Opinion of Mid-Size Variable Annuity Firms Communications Seal 2004 Defined Contribution Plan Participant Statement Defined Benefit Plan Participant Statement Taft-Hartley Plan Participant Statemet 2003 Defined Contribution Statement Defined Benefit Statement Taft Hartley Statement Total Retirement Statement Panorama Premier Variable Annuities Quarterly Statement Panorama Passage Variable Annuity Quarterly Statement Transitions Variable Annuities Statement Evolution Variable Annuity Statement 2002 MassMutual Retirement Services Journey DC Participant Web site. Panorama Passage Quarterly Statement Panorama Premier Quarterly Statement MassMutual Annuities Transitions Quarterly Statement MassMutual Annuities Transitions Transaction Confirmation 2001 Panorama Passage Quarterly Statement Panorama Premier Quarterly Statement 2000 Total Retirement Statement Defined Benefit & Cash Balance Statement 1999 Panorama Premier Quarterly Statement Panorama Passage Quarterly Statement Statement Plus 401(K) Statement 42