power choice freedom

Transcription

1 Building power choice freedom to Master Retirement. CAPABILITIES MULTIPLE EMPLOYER PLAN SERVICES

2 TRANSAMERIC A RETIREMENT SERVICES ST ORY: Transamerica Retirement Services 1 ("Transamerica") has more than 70 years 1 of experience in the retirement services business and is one of the top providers 2 of retirement plans. Transamerica is committed to proving that retirement plan providers can make a difference in how well Americans, and the organizations they work for, master their financial future. ABOUT AEGON: Transamerica Financial Life Insurance Company and Transamerica Life Insurance Company are AEGON companies. 1 AEGON is one of the world s leading life insurance and pension groups, and a provider of investment products. AEGON empowers local business units to identify and provide products and services that meet the evolving needs of customers, using distribution channels best suited to local markets. AEGON takes pride in balancing a local approach with the power of an expanding global operation. Canada U.K. The Netherlands Poland Romania Hungary China U.S.A. Czech Republic Slovakia Japan Mexico Brazil Turkey India Spain France Established in 1844 Local Knowledge. Global Power. Among the world s leading life insurance and pension companies Headquarters: The Hague, the Netherlands With headquarters in The Hague, the Netherlands, AEGON companies employ approximately 28,000 people worldwide. AEGON s businesses serve millions of customers in over twenty markets throughout the Americas, Europe, and Asia, with major operations in the United States, the Netherlands, and the United Kingdom. Respect, quality, transparency, and trust constitute AEGON s core values as the company continually strives to meet the expectations of customers, shareholders, employees, and business partners. AEGON is driven to deliver new thinking with the ambition to be the best in the industry.

3 TRANSAMERIC A RETIREMENT SERVICES: YOUR FIRM FOUNDATION Mastering any discipline in life takes focus. At Transamerica the foundation of who we are our people, innovation, expertise, and reliability is focused on giving you the power, choice, and freedom in the design, service, education, and investment selection of your plan. OUR People SEE EQUIPPING YOU WITH A QUALITY RETIREMENT PLAN AS A CAREER MISSION Transamerica looks for passionate, well-educated professionals who are dedicated to providing retirement services. With Transamerica, you have access to: Client relationship managers who are pursuing or holding a Financial Industry Regulatory Authority ( FINRA ) license and an ASPPA certification (American Society of Pension Professionals & Actuaries) 3 Compliance analysts who average more than 20 years of experience Comprehensive business development and consulting support A commitment to assisting you for success OUR Innovation ALLOWS US TO IMPLEMENT CHANGE QUICKLY TO MEET EVOLVING NEEDS Transamerica provides plan services that can adapt to your business needs and has developed the tools, resources, and services to support the plan you offer. Transamerica offers the following tools: Advanced product platform structure with state-of-the-art technology to service both bundled and unbundled plans The Transamerica Investment Monitor 4 process that Lipper, Inc. has reviewed 5 A Fiduciary Management Program SM with Fiduciary Warranty that provides a range of tools to help you satisfy the investment portion of your fiduciary responsibility* A high-tech multimedia studio to create customized commercials and presentations OUR Reliability AND COMMITMENT TO QUALITY ARE MEASURABLE Transamerica s focus on retirement plans leads us to build our reputation and, consequently, our business through continuous improvement. Transamerica: Uses a customer satisfaction index to measure our service quality Manages more than $16.5 billion in plan assets for over 15,500 plans, including more than 200 Multiple Employer Plan Sponsors, with over 6,000 Adopting Employers 6 Maintains an annual Multiple Employer Plan retention rate of 99% 7 Is one of the top pension providers with a 98% recommendation rate from plan sponsors 2 OUR Expertise ENABLES YOU TO FOCUS ON YOUR BUSINESS Transamerica keeps you informed, knowledgeable, and in compliance, so you can make wise decisions for the plan you offer. Transamerica: Works with retirement consultants, financial advisors, third party administrators, and you to deliver a retirement plan that fits your business and your employees Provides specialized knowledge in Employee Retirement Income Security Act (ERISA), Department of Labor ( DOL ), and Internal Revenue Service ( IRS ) compliance either through Transamerica or your local third party administrator 8 Retains dedicated Multiple Employer Plan teams throughout the organization *The Fiduciary Warranty provides that the investment line-up made available by Transamerica provides sponsors with a broad range of investment alternatives to offer to participants, that such investment choices are selected in accordance with applicable prudence standards, and that investment options are suitable for long-term investing. The Fiduciary Warranty does not provide any guarantees regarding the performance of the selected investments and it is still possible that a plan may experience losses despite the protection offered by the Fiduciary Warranty. See the Fiduciary Warranty for complete terms, limitations, and requirements. 1

4 INDUSTRY RECOGNITION Transamerica gives you plan products and services that have received recognition as an industry leader. Our focus helps us to build on our already strong reputation year after year. PLANSPONSOR MAGAZINE 2009 DEFINED CONTRIBUTION SURVEY 2 Recognized as one of the Top Retirement Plan Providers Transamerica was honored with: 43 Best in Class cups for both sponsor and participant services Ranked among top cup recipients out of 46 providers evaluated in the small- and micro-plan markets Overall service scores in the top quartile for sponsor and participant services Survey results stating that nearly 98% of plan sponsors would recommend Transamerica CHATHAM PARTNERS 2009 CLIENT SATISFACTION ANALYSIS 9 Recognized as a Leader in Best Practices Transamerica received: A total of 38 Best in Class ratings with consistent Best in Class ratings for client satisfaction Best Performer in 90 attributes including Best Performer in employee education and Web site Ratings that outperformed Chatham Partners proprietary benchmark in all seven service categories and in all 13 product and service categories BOSTON RESEARCH GROUP 2009 DEFINED CONTRIBUTION PLAN 401(K) PARTICIPANT STUDY 10 Rated number one in Overall Satisfaction; Education, Advice and Guidance; and Investment Experience. In addition, Transamerica met or exceeded the industry norm in 30 out of 35 individual drivers of satisfaction including: Employee Education Account Statements Representative Ability to Help with Needs Knowledge of Plan and Investment Choices Number of Investment Choices Available Provider s Reputation for Providing Quality Investment Choices DALBAR AWARDS 11 Honored for Excellence Transamerica received DALBAR Seals of Excellence in for our sponsor and participant Web sites. 2

5 TRANSAMERIC A PRODUCT SOLUTIONS Transamerica serves the tax-qualified, defined contribution, and defined benefit retirement plan markets. Transamerica provides customized retirement plan solutions for more than 15,500 7 small- and mid-sized businesses, including Multiple Employer Plans. Our defined contribution plan products are diverse in both format and service. We offer both a registered and non-registered investment platform to serve the defined contribution and defined benefit plan marketplace. Transamerica distributes these products and services through financial intermediaries, including life agents, retirement plan consultants, registered representatives, and financial planners, as well as strategic alliance relationships, including wirehouses, regional broker dealers, banks, third party administrators, associations, and professional employer organizations. Transamerica is also a leading provider in the single premium group annuity product market for terminating defined benefit plans. This market is primarily driven by market forces such as mergers and acquisitions, business closures, and the need for plan-related cost savings. TRANSAMERIC A PL AN INVESTMENTS: YOUR CORNERST ONE Transamerica gives you the freedom to take a multi-manager investment approach in forming the investment platform for the Transamerica retirement plan that you offer. You may choose from a selection of more than 170 investment choices 12 and more than 35 leading investment management companies.* PERFORMANCE RATINGS FROM MORNINGSTAR, LLC Plan sponsors and their advisors can look to Morningstar, a leading global investment research firm, for an Overall Morningstar Rating TM of each Transamerica investment choice as the first step in evaluating their investments. 13 *Your plan s investment management companies may vary based on your choice of retirement plan product. This is a representative list that may change at any time. Transamerica Asset Management Group and Transamerica Investment Management, LLC are affiliated with Transamerica Retirement Services. 3

6 FIDUCIARY MANAGEMENT PROGRAM SM Transamerica provides a range of tools to help satisfy the investment portion of your fiduciary responsibility which can give peace of mind to your plan s fiduciaries. Fiduciary Warranty* Fiduciary Management Investment Questionnaire Third party review of investment choice selection Fiduciary Management Program SM Investment Policy Statement Quarterly Investment Scorecard Due Diligence Investment Review Transamerica Investment Monitor Annual Retirement Plan Review and Ongoing Plan Support *The Fiduciary Warranty provides that the investment line-up made available by Transamerica provides sponsors with a broad range of investment alternatives to offer to participants, that such investment choices are selected in accordance with applicable prudence standards, and that investment options are suitable for long-term investing. The Fiduciary Warranty applies to the general due diligence of the firm and does not apply to the performance of the underlying investment choices and it is still possible to lose money despite this warranty. See the Fiduciary Warranty for complete terms, limitations, and requirements. FIDUCIARY RISK MANAGEMENT When it comes to managing your fiduciary responsibilities, you are not alone. We offer top-tier investments as a key component to assist companies with fulfilling their fiduciary responsibilities to their participants. For the Retirement Options, Transamerica Life Insurance Company ( TLIC ) has discretionary authority over the investment objectives, which makes TLIC a fiduciary regarding: Monitoring of portfolio managers and/or underlying investment Retaining/changing of portfolio managers and/or changing the underlying investments To fulfill its fiduciary responsibilities regarding the Retirement Options, TLIC financial experts: Perform continuous, in-depth manager search and screening procedures for these investment choices Conduct quarterly and annual monitoring of these investment choices, including analysis of the investments objectives Perform annual performance reviews of investment choices Obtain objective investment analysis Regarding the Retirement Accounts offered by Transamerica Financial Life Insurance Company ( TFLIC ), all of the Retirement Accounts invest in Retirement Options of TFLIC s affiliate TLIC, where TLIC has fiduciary responsibility over the Retirement Options as described. You can find an additional description of our Retirement Options and Retirement Accounts, and Transamerica Life Insurance Company s fiduciary position, on page 12 of this document. 4

7 FIDUCIARY WARRANT Y AND DUE DILIGENCE Transamerica s FIDUCIARY WARRANTY* provides extra support for your plan s fiduciaries. Our Fiduciary Warranty provides specific covenants that your investment line-up will satisfy the applicable requirements set forth by the U.S. Department of Labor under section 404(c) of ERISA, that plans offer a broad range of investment alternatives, will meet the prudence requirement of section 404(a)(1)(B) of ERISA, that the investment choices be selected according to prevailing industry practices and generally accepted investment theories, and will be appropriate for long-term investing. Conditions and limitations will apply. TRANSAMERICA FIDUCIARY MANAGEMENT WARRANTY PROGRAM SM The INVESTMENT QUESTIONNAIRE helps you determine an investment model that can be the basis of your plan s investment menu. In addition, Transamerica will work with you to create an investment policy statement appropriate to your plan. The DUE DILIGENCE INVESTMENT REVIEW is a complete fiduciary packaging tool used to document your fiduciary process. By creating a Due Diligence Investment Review you may have the added advantage of collecting your most important fiduciary documents and bundling them into a convenient package for future use and reference. Our ANNUAL RETIREMENT PLAN REVIEW provides an annual analysis and report for your plan s fiduciaries. The TRANSAMERICA INVESTMENT MONITOR 4 is our proprietary due diligence process for selecting and monitoring all of the investment choices available to your plan. The quarterly INVESTMENT SCORECARD 4 shows the results of our due diligence process on six different quantitative/qualitative factors, grading each investment choice available to your plan. An independent evaluation by LIPPER, INC. 5 determined that Transamerica s investment choice roster and the Transamerica Investment Monitor pass Lipper s rigorous standards, and can help you build an investment line-up to meet your participants varied investment needs. *The Fiduciary Warranty provides that the investment line-up made available by Transamerica provides sponsors with a broad range of investment alternatives to offer to participants, that such investment choices are selected in accordance with applicable prudence standards, and that investment options are suitable for long-term investing. The Fiduciary Warranty applies to the general due diligence of the firm and does not apply to the performance of the underlying investment choices and it is still possible to lose money despite this warranty. See the Fiduciary Warranty for complete terms, limitations, and requirements. 5

8 PASS PL AN ADMINISTRATION SERVICE SUPPORT 14 Retirement plan sponsors are spending more and more time handling administrative responsibilities allowing less time to focus on business growth. Plan Administration Service Support (PASS) by Transamerica, can help enhance a plan sponsor s business focus and efficiencies. Determine if a Retirement Plan Provider is Measuring Up. There are certain questions every business owner should ask about a retirement plan provider when it comes to plan administration: Is my current provider reducing my administrative burdens so the business may focus on revenue-producing activities? Does my current provider send out notices to participants and monitor employee eligibility, entry dates, and enrollment? Does my current provider verify deferral calculations, manage my payroll processing, and monitor payroll suspensions? Does my current provider process loans and distribution requests? How many hours does my staff spend on administrative tasks related to my plan? Why PASS is Important to a Plan Sponsor s Business. PASS allows plan sponsors to save time and money by retaining Transamerica to provide significant support for certain administrative tasks. Transamerica s professional PASS administrators work with the plan sponsor to establish guidelines, and operate, at the sponsor s direction, in helping to alleviate administrative burdens. What Administrative Duties Can You PASS on to Transamerica? Under guidance from the sponsor or sponsor s Third Party Administrator (TPA), Transamerica can assist with a full suite of administrative duties. The sponsor has complete flexibility to choose which services are most meaningful to them. Reduced Plan Sponsor Tasks with PASS Plan Sponsor Tasks without PASS Investment Choices Plan Design Trustee Duties Fiduciary Payroll Hardships Notices Recordkeeping Terminations Loans Qualified Domestic Relations Orders Filings Eligibility Employee Communications Summary Plan Documents Required Minimum Distributions Rollovers Distributions Participant Support Enrollment Employee Education Materials Investment Choices Plan Design Trustee Duties Fiduciary Transamerica Supports 80% of Administrative Tasks with PASS Payroll Hardships Notices Recordkeeping Terminations Loans Qualified Domestic Relations Orders Filings Eligibility Employee Communications Summary Plan Documents Required Minimum Distributions Rollovers Distributions Participant Support Enrollment Employee Education Materials 6 Transamerica s PASS administrator acts on behalf of the plan, and institutes a centralized retirement plan administration hub within Transamerica on behalf of the sponsor at the sponsor s direction.

9 THE POWER OF A SUPERIOR PRODUCT PL ATFORM The key to our exemplary Multiple Employer Plan support starts with our sophisticated recordkeeping platform. Our ability to track Adopting Employers by Sub-ID within the framework of one single contract allows for easy administration. Plan Administration Service Support (PASS) 14 Recordkeeping: Via Sub-ID Forfeitures: Real Time Allocation Reporting: Quarterly Reports Annual Audit Online Participant Enrollment Transamerica Platform Web Access: Available for Each Adopting Employer Flexible Provisions: Vesting, Eligibility, Profit Sharing, Matching, Others Eligibility Tracking Online Plan Adoption PASS is an optional feature that may have additional costs. PERSONALIZED TEAM SUPPORT You can rely on the power of an expert team to support the success of your Multiple Employer Plan. Multiple Employer Plan Service Team Financial Advisor Special Markets Sales and Marketing Support ADOPTING EMPLOYER MULTIPLE EMPLOYER PLAN SPONSOR Bilingual Education Consultants Plan Design and Compliance Analysts from Transamerica or your Third Party Administrator Installation and Conversion Specialists from Transamerica or your Third Party Administrator 7

10 TRANSAMERICA S ONGOING PL AN COMMUNICATIONS Award-winning 11 plan sponsor Web site, where you can access your plan-specific information 24/7 High-tech, customized presentations created in our state-ofthe-art multimedia studio (such as e-tips brief, high-impact, television-worthy commercials that can be customized for your company and delivered to your employees via or your company s intranet site) Easy-to-understand quarterly plan sponsor statements The RECOVER Plan by Transamerica, a proactive way to help your employees gain better control of their current financial situation and continue working toward their retirement goals. This 40-minute multimedia presentation and workbook will help create a tangible, action-based plan for riding out the long term with confidence. Your customized Annual Retirement Plan Review describes specific tools for your enrollment and educational program, based on a current assessment of your plan. It also describes an action plan based on objectives for your plan. Monthly E-News, electronic newsletter for plan sponsors 8

11 TRANSAMERIC A S PL AN EDUC ATION AND ENROLLMENT SERVICES: YOUR LANDSC APE FOR THE FUTURE PLAN ENROLLMENT RESOURCES Transamerica makes enrollment fast and easy: Simple Solutions Enrollment Workbook contains detailed information about the plan, including a list of the investment choices selected for the plan, as well as sample allocation models TransDirect interactive voice response system for enrollment by phone Best in Class award for participant ease of enrollment from Chatham Partners independent survey of plan sponsors 9 An online enrollment workshop accessible from a desktop home or office 24/7 at Employees will learn about the value of retirement planning, tax-free deferral savings contributions, asset diversification, asset allocation, and more. An assortment of online retirement planning tools, including various calculators, and strategy tools to supplement participant knowledge of the 401(k) plan you offer and its investment choices. PLAN EDUCATION AND RESOURCES Transamerica gives plan sponsors a wealth of resources that can help empower their plan participants to better manage their investments, including: An online, interactive portfolio optimizer designed to help participants build an asset allocation strategy and create a sample portfolio A series of Made Simple educational seminars (Available in Spanish) Educational brochures and participant newsletters (Available in Spanish) Various retirement planning Web calculators and tools to empower participants PLAN PERFORMANCE MONITORING To help keep participants on course with saving for retirement, Transamerica enables plan sponsors and their plan participants to monitor and better manage their investment choices with: Investment performance reports Quarterly participant statements Participant Web site at 9

12 TRANSAMERIC A IS READY T O ASSIST: Let Transamerica Retirement Services help you distinguish your company with a retirement plan solution designed to deliver the power, choice, and freedom to change the landscape of the future for your business and your employees. TRANSAMERIC A. MASTER RETIREMENT. POWER CHOICE FREEDOM For more information on Transamerica Retirement Services capabilities, please contact Special Markets at (866) , option 1 + option 1, send an to MEPSponsorSales@transamerica.com, or visit 10

13 DISCLOSURES The separate account investment choices offered are exempt from registration with the SEC; therefore, no prospectuses are filed for them. However, certain of the separate account investment choices invest in mutual funds which are subject to SEC registration. Prospectuses for these mutual funds can be ordered directly from the fund company or obtained upon request from Transamerica Retirement Services at All investments involve risk, including loss of principal and there is no guarantee of profits. Investors should carefully consider their objectives, risk tolerance and time horizon before investing. The prospectus for each fund contains this and other information about that fund. Read each prospectus carefully before investing. In addition, comprehensive information on all the investment choices is available on the investment fact sheets. Transamerica Retirement Services and its representatives cannot give ERISA, tax, or legal advice. This material is provided for informational purposes only based on our understanding of material provided and should not be construed as ERISA, tax, or legal advice. Clients and other interested parties must consult and rely solely upon their own independent advisors regarding their particular situation and the concepts presented here. Although care has been taken in preparing this material and presenting it accurately, Transamerica Retirement Services disclaims any express or implied warranty as to the accuracy of any material contained herein and any liability with respect to it. 1 Transamerica Retirement Services ("Transamerica"), a marketing unit of Transamerica Financial Life Insurance Company ("TFLIC"), 440 Mamaroneck Avenue, Harrison, NY 10528, and Transamerica Life Insurance Company ("TLIC"), 4333 Edgewood Road NE, Cedar Rapids, Iowa 52499, and other TFLIC and TLIC affiliates, specializes in the promotion of retirement plan products and services. This product is available from Transamerica Retirement Services under contract form number TA-AP-2001-CONT, a group variable annuity contract underwritten by TFLIC, or under contract form number CNT-TLIC 10-05, a group variable annuity contract underwritten by TLIC. TFLIC is not authorized and does not do business in the following jurisdictions: Guam, Puerto Rico, and the U.S. Virgin Islands. TLIC is not authorized in New York and does not do business in New York. Fees and charges may apply. For complete information, contact your Transamerica representative. Transamerica Financial Life Insurance Company and Transamerica Life Insurance Company are affiliates of Diversified Investors Securities Corp. 2 Transamerica Retirement Services received 43 "Best in Class" cups for sponsor and participant services in PLANSPONSOR Magazine s annual Defined Contribution Survey of retirement plans. The 43 "Best in Class" designations 23 in the micro (<$5 million) and 20 in the small ($5 million to $50 million) markets rank Transamerica Retirement Services among the top cup recipients of the 46 providers evaluated in the micro- and small-plan markets. The results of the Defined Contribution Survey were announced in the November 2009 issue of PLANSPONSOR Magazine. The survey polled nearly 5,635 clients of 48 defined contribution plan providers. "Best in Class" cups are awarded to plan providers who score in the top quartile of a specific category. See the November 2009 issue of PLANSPONSOR Magazine for complete results. 3 Service level may vary depending on the amount of plan assets. All plan sponsors will have access to TRSConnect SM phone service every business day. Plans that have between $500K to $2MM in plan assets will also receive an assigned specialist on the TRSConnect SM phone line. Plans that have $2MM and over in plan assets will be assigned a Client Relationship Manager who provides personalized service to the plan. 4 The Transamerica Investment Monitor (TIM) is our proprietary due diligence process for selecting and monitoring the investment choices offered for our retirement plans. The Investment Scorecard is the result of TIM's quarterly review of each of our investment choices. To achieve an overall rating, each investment choice is rated on quantitative (Performance Measurement, Style Consistency, and Fees & Expenses) and qualitative (Investment Process & Portfolio Composition, Management Tenure, and Organization) factors. Although the investment choice may meet the "significantly exceeds," "meets/exceeds," or "below" criteria, there are no guarantees of a profit and it is still possible to lose money by investing in it. Transamerica reserves the right to modify, eliminate, or add criteria at any time. 5 The analysis has been specially prepared by Lipper, Inc., a Thomson Reuters Company ("Lipper") for Transamerica, who provides this to you. This analysis may be distributed to Transamerica's clients (Plan Sponsors), but may not be distributed to its clients' plan participants. "Lipper" is a trademark of Thomson Reuters and has been licensed for use by Transamerica. None of the information provided to Transamerica by Lipper is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Lipper makes no representation or warranty, express or implied, to Transamerica's clients, investors, or any member of the public regarding the advisability of, or the results that may be obtained from, investing in securities generally or in any product, retirement plan, hedge fund, or mutual fund particularly. Past performance is not necessarily a guide to future performance and investors should remember that past performance is not a guarantee of future results. Neither Lipper nor any member of the Thomson Reuters Group shall be acting, or deemed to be acting, as a "fiduciary" (as defined under the Employee Retirement Income Security Act of 1974) to any of Transamerica's clients or any of Transamerica's clients' plan participants. There is no agreement or understanding whatsoever that Lipper will provide individualized advice to any of Transamerica's clients or any of Transamerica's clients' plan participants. LIPPER AND EACH INFORMATION PROVIDER OR OTHER THIRD PARTY SUPPLIER EXPRESSLY DISCLAIMS ANY CONDITION OF QUALITY AND ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. ALTHOUGH LIPPER MAKES REASONABLE EFFORTS TO ENSURE THE ACCURACY AND RELIABILITY OF THE INFORMATION PROVIDED TO TRANSAMERICA, NEITHER LIPPER NOR ANY INFORMATION PROVIDER OR OTHER THIRD PARTY SUPPLIER GUARANTEES SUCH ACCURACY OR RELIABILITY. LIPPER, ITS EMPLOYEES, AGENTS, CONTRACTORS, SUBCONTRACTORS, INFORMATION PROVIDERS, AND OTHER THIRD PARTY SUPPLIERS WILL NOT BE HELD LIABLE FOR ANY DAMAGES OF ANY KIND IN CONNECTION WITH THE INFORMATION CONTAINED IN THIS DOCUMENT, INCLUDING LOST PROFITS, REGARDLESS OF WHETHER SUCH DAMAGES COULD HAVE BEEN FORESEEN OR PREVENTED. 6 As of December As of December

14 DISCLOSURES C O N T I N U E D 8 Transamerica Retirement Services and its representatives cannot give ERISA, tax, or legal advice. This material is provided for informational purposes only based on our understanding of material provided and should not be construed as ERISA, tax, or legal advice. Clients and other interested parties must consult and rely solely upon their own independent advisors regarding their particular situation and the concepts presented here. Although care has been taken in preparing this material and presenting it accurately, Transamerica Retirement Services disclaims any express or implied warranty as to the accuracy of any material contained herein and any liability with respect to it. 9 Chatham Partners' 2009 Client Satisfaction Analysis Survey, December Chatham Partners, LLC is an independent, third party research firm. Questions were asked of 804 Transamerica Retirement Services' clients. Quantitative questions were rated on a 7-point scale with "6" and "7" representing the highest levels of satisfaction. A "Best in Class" rating was received when over 85 percent of the respondents selected a "6" or "7" for a specific area. Transamerica received a total of 38 "Best in Class" rankings in Chatham's 2009 analysis. 10 The Boston Research Group 2009 Defined Contribution Plan 401(k) Participant Study is a nationwide study of 29 plan providers with a sample of 7, (k) participants actively contributing to the plan. The survey is a 14-minute online survey and all providers participants weighted equally in calculating norms. 11 Transamerica Retirement Services' communication materials have received awards from various organizations, including the Awards for Publications Excellence ("APEX") in ; Communicator Awards in ; DALBAR, Inc. in ; Hermes Creative Award in ; Mutual Fund Education Alliance ("MFEA") Star Award in 2009; Profit Sharing Council of America ("PSCA") in 2009; MarCom Awards in ; and the Insurance and Financial Communicators Association ("IFCA") in For more information please refer to the Web site 12 All investment choices are Transamerica Life Insurance Company ( TLIC ) or Transamerica Financial Life Insurance Company ( TFLIC ) separate account investment choices that are either managed (or invest in underlying investment vehicles managed) by affiliated or nonaffiliated investment managers, except for the Transamerica Stable Value Advantage Option and the Transamerica Stable Value Advantage Account. The Transamerica Stable Value Advantage Option and the Transamerica Stable Value Advantage Account are not separate account investment choices; they are an investment in the TLIC or TFLIC general account. Some limitations on the number of investment choices based on first-year deposits or on total plan assets may apply. Maximum number of investment choices is Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. For each investment choice with at least a three-year history, Morningstar determines a Morningstar Rating TM based on a proprietary Morningstar Risk-Adjusted Return measure that accounts for variation in monthly performance, placing more emphasis on downward variations and rewarding consistent performance. Although Transamerica's investment choices are not included in Morningstar's open-end mutual fund database, Morningstar Ratings TM are derived by comparing the Morningstar Risk-Adjusted Returns for each investment choice to the funds in its respective Morningstar category within the open-end database. The top 10% of funds in each Morningstar category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating TM for each investment choice is derived from a weighted average of the performance figures associated with its three-, five-, and ten-year (if applicable) Morningstar Rating TM metrics. 14 Plan Administration Service Support (PASS) is an optional menu of varying services that the plan sponsor (and the plan's third party administrator, if any) can select. PASS allows Transamerica to perform non-discretionary administrative services for the plan at the direction of the Plan Administrator under guidelines established by the Plan Administrator in its sole discretion, and is available depending upon the plan's assets. Additional fees will apply for the PASS services that you choose. The plan's third party administrator (if any) may determine availability of these services. Transamerica Life Insurance Company ( TLIC ) investment choices (other than the Stable Value Advantage Option) are separate accounts established by TLIC. TLIC investment choices with names ending in Ret Opt (short for Retirement Option ) correspond to investment choices for which Transamerica retains investment discretion over the assets. Transamerica Financial Life Insurance Company ( TFLIC ) investment choices (other than the Stable Value Advantage Account) are separate accounts established by TFLIC. TFLIC investment choices with names ending in Ret Acct (short for Retirement Account ) correspond to accounts which invest in TLIC Retirement Options for which TLIC retains investment discretion over the assets. The separate accounts investment choices in your contract are subject to asset-based charges that may consist of one to three components: (1) Administrative charges of the TLIC separate account; (2) Investment management charges of the TLIC separate account; or (3) Expenses and charges imposed by the underlying investment vehicles. Please see your proposal for more details on fees. FIDUCIARY POSITION TLIC acknowledges it is a fiduciary within the meaning of the Employee Retirement Income Security Act of 1974, as amended, ( ERISA ) with respect to the Ret Opt separate accounts and Ret Acct sub-accounts as described below. For TLIC Investment Choices with names ending in Ret Opt (short for Retirement Option ), TLIC has discretionary authority over (1) the selection, oversight, and de-selection of the advisors and/or sub-advisors who manage the underlying portfolio of assets (where applicable) and (2) selecting, monitoring and de-selecting underlying investment vehicles for these accounts. TLIC, by virtue of its discretionary authority to make changes to the investment direction of these investment choices, acts as a fiduciary with respect to manager selection, oversight, and de-selection. TFLIC Investment Choices with names ending in Ret Acct (short for Retirement Account ), invest in TLIC Retirement Options. As described above, TLIC acts as a fiduciary with respect to manager selection, oversight, and de-selection of the underlying investments of the retirement accounts. Transamerica Financial Life Insurance Company and Transamerica Life Insurance Company are affiliates of Diversified Investors Securities Corp., Transamerica Investment Management, Inc., and Transamerica Asset Management Group. 12

15 TRANSAMERIC A. MASTER RETIREMENT. POWER CHOICE FREEDOM S I D E P O C K E T CONTACT SPECIAL MARKETS AT (866) , option 1 + option 1, SEND AN TO MEPSPONSORSALES@TRANSAMERICA.COM, OR VISIT FOR MORE INFORMATION.

16 TRANSAMERIC A. MASTER RETIREMENT. TRS POWER CHOICE FREEDOM