Private-Label Pricing for 401k Enginuity

As a Plan Provider or financial advisory firm, 401k Enginuity enables you to be VERY competitive in the 401k marketplace, particularly within the small business 401k market. According to government statistics, nearly 80% of U.S. businesses with 100 or fewer employees do not offer a 401k plan, primarily due to the plans' costs.

• With 401k Enginuity's average wholesale (i.e., cost to you) price as low as $300 per plan and $25 per participant per year, a 20-person plan branded as your own and featuring your investment lineup costs you only $800 annually. At this low wholesale price you can retail the plan at a VERY competitive price with a high profit margin, and continue collecting renewal fees year after year.
• 401k Enginuity's wholesale cost coupled with its automated and self-service administration capabilities assures your firm high margins, recasting administration fees from a break-even proposition to a true profit center; the size of that profit center is yours to determine.
• 401k Enginuity means you offer a complete, per-client-customized 401k via your firm's website, thereby leveraging plan sponsors' and participants' weekly visits into new sales opportunities also offered within that website.

401k Enginuity is run off-site as an ASP. ASP stands for Application Service Provider, and is essentially a third-party data processing business that both hosts and manages web-based software applications for companies that do not want to run the software themselves. With 401K Enginuity's ASP solution, you can offer the power and affordability of 401k Enginuity, branded as your own, and available to through your firm's website.

• 401k Enginuity's ASP solution means your plan sponsor customers (and their employees) can securely access your custom-branded version of 401k Enginuity from your firm's website, from any point on the globe, around the clock, every day of the year.
• Our ASP facility runs 401k Enginuity for you, with consistent 24/7 reliability. We handle the data back-ups, and maintenance of your branded version of 401k Enginuity. You pay for usage only, and avoid the on-going costs associated with maintaining software in-house, including staffing, hardware, and software upgrade expenses.

The advantages of 401k Enginuity distributed via ASP on behalf of the Plan Provider include:

• Quick customization and branding of 401k Enginuity to the Plan Provider's specifications
• Quick implementation and introduction of the Provider's version of 401k Enginuity in the marketplace
• No on-going computing hardware and software expenses or system upgrades
• No labor overhead for running and maintaining 401k Enginuity in-house
• Industrial-caliber Internet security and reliable, professional technical support 24/7
• 401k Enginuity has no maximum capacity owing to its enterprise-caliber scalability.
• 401k Enginuity ASP licensing fees in no way depend on whether a Provider uses 401k Enginuity to enable clients to run their own 401k plans or to interact with Provider personnel running the plans (or both) nor on any fees the Provider sets for its clients.

401(k) Enginuity is a low-cost, open architecture 'end-to-end' 401(k) outsourcing platform and service geared to needs of Plan Providers, including TPAs, and financial advisors. 401(k) Enginuity includes:

• Very low cost to setup and maintain.
• Branded, custom website with secure Plan Sponsor, Plan Participant, Plan Provider* and Plan Advisor Gateways.
• Special secure Plan Advisor Gateway*, proving a detailed, real-time overview of clients' daily activity. Print reports and perform compliance testing at the click of a mouse.
• Access to unlimited selections of no-load mutual funds (with NO hidden fees or charges). Any revenue generated from plans' assets are the sole property of the Plan Provider or financial advisory firm, not Pension Systems Corporation.
• Custody of plan assets at top-tier custodians such as TD Ameritrade and Charles Schwab.
• Management of purchases, sales and distributions via secure encrypted e-file interaction with custodian(s) performed after market close by Pension Systems Corporation.
• Prototype plan document preparation and ongoing mandated amendments available on a plan-by-plan basis for a slight additional fee per plan.
• Technical support for plan sponsors, including annual tax form preparation assistance, on a plan-by-plan basis for a slight additional fee per plan.
• Secure access to value-added investment advisory services such as Mastery Point, Clear View, and Financial Engines
• At the discretion of the Plan Provider or financial advisor, both Pension Systems Corporation and the asset custodian can invoice the 401(k) plan sponsor directly for service. Plan Providers and financial advisors can bypass the responsibility for collecting recordkeeping or custody fees, or handling plan contributions or distributions.

I. One-Time Set-Up Fee Per Separate Plan Installed on the Plan Provider's Custom Platform*

• New plan setup fee (including plan document preparation): $500.
• Takeover plan setup fee (including plan document preparation): $500 plus $75/hr

II. Reoccurring Annual Fee Per Separate Plan Hosted on the Plan Provider's Custom Platform

• $500 per plan, plus $25 per-eligible participant.

*Running a custom website and plan platform for a Plan Provider, Pension Systems Corporation requires a minimum annual fee is $30,000 ($7,500 quarterly), which is off-set by the annual plan and annual participant fees paid to Pension Systems Corporation. This minimum annual fee is NOT an additional charge, but a dollar-for-dollar offset. This minimum annual charge can be met, for example, with as few as 30 plans with an average head-count of 20 participants per plan:

• Plans: 30
• Participants: 20/plan
• Per Plan Cost: ($500/plan + $25/participant)
• Total wholesale cost: $30,000 per year, complete!

Setting up a new 401(k) plan on the Plan Provider's custom platform is economical and straight-forward. The one-time setup fee for takeover plans is higher than the setup for new plans, because of the complexities involved in converting an existing plan's historical data for inclusion in our database. Pension Systems Corporation has developed a number of easy to use software programs that simplify the data conversion process.

Plan Provider (TPA, Advisor, Payroll Service Provider, etc) pays a one-time website branding fee of $1000 to setup and brand a custom website for its plans. This branded website is linked to the Provider's existing website, so that sponsors and plan participants can login to the Provider's 401(k) directly from the Provider's website. The custom website we build for the Plan Provider is SSL encrypted and password-protected.

The Plan Provider's designated asset custodian (i.e. TD Ameritrade, Matrix, Schwab, etc) typically charges approximately $400-$500 a year for each separate plan on the Provider's platform. These fees are negotiable, and based upon the plan's size and holdings asset s. It is important to note that Pension Systems Corporation does not receive or retain any portion of these, or any other custody or asset-based fees paid by any source. All commissions and asset-based fees generated by the Provider's plans are either returned to the plans to reduce their ongoing costs, or paid-out directly to Provider. Pension Sytems Corporation will not retain for itself any asset-based fees. All fees generated from plan assets are the property of the Plan Provider, Plan Advisor, or Plan itself.

* This feature, Plan Provider Gateway, is optional, at an additional cost.