"83% of 401(k) participants incorrectly think they are paying no fees to participate in their plan" - AARP

1. "Plan participants have filed multiple lawsuits against plan sponsors, claiming that the decision to pay excessive investment and administrative fees was imprudent and a breach of the fiduciary duty of care." - CFO Magazine "The fiduciaries found liable were not only the employer plan sponsor but also members of the plan investment and benefits committees, the vice president of human resources, and the manager of the sponsor's Human Resources Service Center." - CFO Magazine

2. "In 2010, the DOL added nearly 1,000 employees, with the majority focused on encouraging and enforcing compliance among plan sponsors…last year the DOL found serious problems with over 73% of plans audited and collected over $1 billion in fines, penalties, and restitution." - U.S. Department of Labor "Because of the increased number of DOL enforcement staff in 2010, the chance that the DOL could audit your plan is increasing; there is every indication the DOL is escalating audits of small plans." - Columbia Management

3. "83% of 401(k) participants incorrectly think they are paying no fees to participate in their plan" - AARP "For plans with total assets under $10 million, the average all-in fee per person is a whopping 1.90%" - New York Times

4. "A 1 percent difference in fees and expenses could reduce your account balance at retirement by 28%." - U.S Department of Labor "Because of the drastically reduced value of their retirement accounts…50% of workers plan to remain employed after they retire, with more than a third having to work past 70 or never retire." - CNBC

5. Managing Fiduciary Risks With the Department of Labor's New 401(k) Regulations September 2011

6. We are a highly specialized wealth management team with UBS Financial Services in St. Louis, MO Our team is comprised of 5 financial advisors -- Rick Fister -- Gary Einig, CFP -- Dick Lautner -- Mike Mauzy, CRPS -- Don Vogel, CRPC Our practice is focused on two very specific areas: Providing unparalleled investment management and financial planning for individual clients Assisting companies with the design, implementation, ongoing management, and benchmarking of corporate retirement plans Together, we have well over 125 years experience working with individual and corporate clients and are entrusted with managing over $425 million in assets The FLF Investment Group Left to right:: Mike, Rick, Dick, Sarah, Gary, Don, & Michele

7. With New Focus on 401(k) Fees • "Industry Eyes Lawsuits Over Pension Investments"– Financial Times • "401(k) Fees Gain a Bit of Clarity"– The New York Times • "What Your 401(k) Really Costs You"– U.S. News & World Report • "Shining a Light on Murky 401(k) PlanFees"– The Wall Street Journal • "Cracking Down on 401(k) Fees"– CNBC • "7 Conflicts of Interest in Your 401(k) Plan"– U.S. News & World Report Severe Lack of Understanding • "83% of 401(k) participants incorrectly think they don't pay any plan fees" – AARP • "73% of plan sponsors believe participants have a clear understanding of their plan's fees" – Transamerica • "50% of plan sponsors are unsure they're covering their fiduciary duties"– Fidelity • "73% of retirement plans audited last year were required to restore losses or take another type of corrective action, resulting in over $1 billion in restoration, fines and penalties" – U.S. Department of Labor

8. Today's Agenda • Introduction to the FLF Investment Group • Overview of the DOL's New Regulations • Plan Sponsor Risks & Reducing Your Fiduciary Liability Exposure • Uncovering Fees & Conflicts of Interest in Retirement Plans • The Importance of Benchmarking • Questions / Comments

9. Department of Labor's New 401(k) Disclosure Regulations 404(a) – Participant Disclosure Regulations 408(b) – Plan Provider Disclosure Regulations

10. 404(a) Participant Disclosure Regulations Plan Sponsor's Responsibility – Disclose Fees to Participants, Determine Reasonableness • All retirement plan expenses must be clearly shown to participants • Plan administrative expenses • Investment related expenses • Individual management and advisory fees • Participants must be shown how plan-level fees are allocated to their individual accounts • Plan sponsors must be sure to identify all the fees, decide whether they're reasonable, and document their process for doing so. All individuals involved in plan management on behalf of the Plan Sponsor are now being held personally liable for any issues

11. 408(b) Provider-level Disclosures Plan Provider's Responsibility – Clearly Disclose All Fees to Plan Sponsors • All retirement plan providers will be forced to provide detailed plan information • Descriptions of all services provided • All direct and indirect compensation received • All revenue paid through plan assets to other service providers (Revenue Sharing) • Expense information regarding plan's investments • All service providers (administrator, advisor, investment managers) will have to clearly disclose their fiduciary status

12. Reducing Fiduciary Risks Under the New Regulations • Choose an appropriate level of fiduciary liability, identify all fiduciaries, and understand your responsibilities • Maintain an Investment Policy Statement • Avoid plan providers with proprietary fund requirements • Maintain a Due Diligence File – document everything • Understand all plan fees and revenue sharing arrangements • Remove advisor conflicts of interest • Benchmark fees and services Last year the DOL found serious problems with over 73% of plans audited and collected over $1 billion in penalties Don't let this happen to you!!!

13. Uncovering Fees & Conflicts of Interest in Retirement Plans 12b-1 An annual marketing or distribution fee on a mutual fund. The 12b-1 fee is considered an operational expense and, as such, is included in a fund's expense ratio. It is generally between 0.25-1% (the maximum allowed) of a fund's net assets. The fee gets its name from a section in the Investment Company Act of 1940. Sub TA Mgmt

14. Uncovering Fees & Conflicts of Interest in Retirement Plans 12b-1 An annual marketing or distribution fee on a mutual fund. The 12b-1 fee is considered an operational expense and, as such, is included in a fund's expense ratio. It is generally between 0.25-1% (the maximum allowed) of a fund's net assets. The fee gets its name from a section in the Investment Company Act of 1940. Sub TA Fees paid to record keeper by the mutual funds available on their platform in order to reimburse for participant/sponsor level services which are provided by the record keeper. Mgmt

15. Uncovering Fees & Conflicts of Interest in Retirement Plans 12b-1 An annual marketing or distribution fee on a mutual fund. The 12b-1 fee is considered an operational expense and, as such, is included in a fund's expense ratio. It is generally between 0.25-1% (the maximum allowed) of a fund's net assets. The fee gets its name from a section in the Investment Company Act of 1940. Sub TA Fees paid to record keeper by the mutual funds available on their platform in order to reimburse for participant/sponsor level services which are provided by the record keeper. Mgmt These fees are for managing investment assets and are usually deducted directly from the investment return (as part of the annual expense ratio associated with the particular mutual fund)

16. Fee Comparisons

17. Open Book Accounting 12b-1 Fees Sub-TA Fees Advisor Fees Recordkeeping Fees Administrative Fee Credit Account Legal Fees Audit Fees Participant Accounts

18. The Importance of Benchmarking • According to the new regulations, it's your fiduciary responsibility to: • Identify all fees • Decide whether or not they're reasonable • Document your process for doing so • The only effective way to assess "reasonableness" is to benchmark your plan against similar companies across several key areas: • Fees charged by each service provider (administrator, advisor, investment manager) • Services offered • Participant success measures • Quality of investment options • We will provide a complimentary report through Fiduciary Benchmarks, an independent industry leader in retirement plan benchmarking, to help ensure: • You fully understand all hidden fees and revenue sharing • You are prepared to answer employee questions on plan fees • You satisfy your fiduciary obligation under the new regulations Stop by our booth to request your complimentary report today

19. Thank you for your attendance! Please stop by our booth with any questions or comments Or feel free to email us at flfgroup@ubs.com