Db 3(16) directed trustee nuvision federal cu

Pentegra’s proposal for 3(16) Plan Administrator, Directed Trustee, Administration and Recordkeeping Services for

NuVision Federal Credit Union

Defined Benefit Plan

Prepared by: Ken Jackson

Pentegra Retirement Services May 2016

Pentegra Retirement Services 3

TABLE OF CONTENTS

The Pentegra Advantage 7

Fiduciary Outsourcing 11

Investments 13

Participant Services 17

Fees 19

Next Steps 23


EXECUTIVE SUMMARY NuVision Federal Credit Union Defined Benefit Plan

PROPOSAL FOR: 3(16) Plan Administrator, Diirected Trustee, Administration and Recordkeeping Servces PREPARED BY: Ken Jackson, Regional Director

3(16) Fiduciary Outsourcing Fiduciary outsourcing allows employers to get out of the business of retirement plan fiduciary oversight and focus on what they do best by outsourcing their three principal fiduciary roles to Pentegra:

– Principal Named Fiduciary – 3(16) Plan Administrator – Directed Trustee

Advantages Pentegra can provide you and your employees

Having been created by the Federal Home Loan Bank System in 1943, Pentegra was formed as a not for profit cooperative, neither owned nor controlled by an investment management, mutual fund, bank or insurance company - providing you with independent oversight.

Financial Institution Focus As a financial institution retirement plan specialist, we are keenly aware of the challenges you face today. And it is that concentration and expertise that has made us the retirement plan provider of choice for financial institutions nationwide. Pentegra’s qualified retirement plan solutions have been selected as the exclusive Preferred Partner for credit unions by NAFCU Services Corporation.

Outsourcing of Fiduciary Roles, Responsibilities and Liabilities

Outsourcing is the hiring of a professional to provide a service more efficiently and effectively than utilizing resources within the company. Organizations outsource many services, including: payroll, building maintenance, and legal defense producing cost savings, better outcomes, and increased productivity.

Additional benefits with fiduciary outsourcing include: – Reduced liability – Independent objectivity – Fewer conflicts of interest – Increased service standards

Actuarial and Consulting Services

With a complete staff of enrolled actuaries and certified consultants, we provide you complete actuarial support for your pension plan. We will work with you to provide realistic assessments of the impact of workforce demographics on your retirement plan, funding requirements and retiree benefits adequacy.

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THE PENTEGRA DIFFERENCE FOR YOUR BUSINESS

WHAT MAKES US DIFFERENT We provide services that are unique - fiduciary liability relief to credit

unions and their board members. Pentegra’s qualified retirement plan

solutions have been selected as the exclusive Preferred Partner for

credit unions by NAFCU Services Corporation.

WHO WE ARE Founded in 1943 to provide actuarial services.

We are an independent regulated financial institution – Pentegra Trust Company.

Provide administration and recordkeeping to over 3,600 plans nationwide.

Based on our annual client survey, we consistently have equaled or exceeded the expectations of 97%

of clients.

WHAT WE DO Provide integrated investment and actuarial teams.

Relieve plan sponsors of fiduciary responsibility

by assuming all three ERISA roles – Named

Fiduciary, Trustee and 3(16) Administrator.

Discretionary trustee services.

PLAN TYPES WE SUPPORT Defined Contribution

– 401(k) plans – Profit Sharing Plans – KSOPs – ESOPs – SERPs – 403(b) plans – 457 (b) plans

Defined Benefit

– Traditional Pension plans – Cash Balance plans – DB/DC Combination plans

Non-qualified Executive Benefit

Benefits Financing Strategies

Third Party Administrative Services


PENTEGRA’S SERVICE MODEL

PLAN ACTUARIAL SERVICES

Annual actuarial valuation report

Development of maximum and minimum funding requirements

Determination of required quarterly contribution requirements

Summary of valuation results and comments for the current year

Calculation of the PBGC premium payment due each year

Preparation of ASC 715 valuation

Annual response in connection with plan audit

CALL CENTER

Through our Call Center, your

employees can speak with our

Customer Service Representatives.

All calls, correspondence and

records are tracked through a fully

integrated customer service system,

ensuring continuity of service and

allowing any Customer Service

Representative to work with any of

your employees, at any time.

Hours: 9:00 am to 8:00 pm EST,

Monday through Friday

Call Center Compliance YOUR

ORGANIZATION

Fiduciary Relief

Benefit Payments

Actuarial Services

Trustee Services

ERISA Attorney

Employee Communication

CUSTOMER SERVICE CENTER When and where it’s convenient for your employees 866-633-4015

INVESTMENT TEAM Investment policy statement and investment manager oversight

PLAN CONSULTANT

The primary point of

contact and technical resource

ACTUARY

Provides annual valuation

and funding contribution recommendation

PLAN SPONSOR


PENTEGRA DEFINED BENEFIT PLAN SERVICES

Service Included

Annual actuarial valuation report Development of minimum funding requirements Determination of required quarterly contribution requirements Maximum allowable deduction and funding level recommendations

Summary of valuation results and comments for the current year

Annual meeting to discuss actuarial results and any regulatory updates Analysis and reconciliation of the present value of accumulated benefits in

accordance with SFAS

Calculation and reporting of Net Periodic Benefit Cost for the fiscal year Calculation of the PBGC premium payment due each year and preparation of

Schedule A Preparation of FAS-87 valuation results Annual response in connection with plan audit

FAS 132 and FAS 158 year-end disclosures Development of an investment policy statement

Plan performance, including risk adjusted performance, on a quarterly basis A process to monitor these funds relative to benchmarks and investment policy on an ongoing basis and recommend replacement managers An asset/liability analysis to help determine the appropriate asset allocation, risk management and investment selection

Custody and investment of plan assets Participant-distribution checks and benefit payments, including lump sum distributions and periodic payments

Certified plan financial information from plan auditors State income tax withholding services for mandatory states Tax reporting (IRS Form 1099R) For a non-frozen plan, benefit statements every year and for frozen plans, benefit statements once every three years.


PENTEGRA ONLINE

Plan sponsors can access plan and account information via Pentegra.com.

PLAN SPONSOR WEBSITE

Access plan-level data and activity

Access plan-level reports

Review participant information

Add participants to your plan, change existing member information and submit information regarding

member termination or retirement

Access forms used to administer your plan

Download participant enrollment and education materials

View plan documents, Summary Plan Descriptions and Summary Annual Reports

View Actuarial Valuation Reports

View information about legislative and regulatory issues affecting


PARTICIPANT ANNUAL BENEFIT STATEMENT


PLAN FEES NuVision Federal Credit Union Defined Benefit Plan The pricing outlined in this proposal is valid for 90 days.

ONE-TIME PLAN TRANSITION FEES

Base Transition Fee Waived – NAFCU Member

ANNUAL FEES FOR RELIEVING YOU OF BEING THE:

Principal Named Fiduciary 3(16) Plan Administration Directed Trustee

Base Fee $ 8,500 Per Participant Fee

1 – 100 participants $60 101 – 250 participants $50

Asset-Base Fee Schedule - Basis points (bps) assets up to $ 10 million 5 bps (0.05%) assets above $ 10 million 2 bps (0.02%) Calculated rate based on current assets3: 5 bps

SERVICES INCLUDED IN ANNUAL FEE

ACTUARIAL VALUATION AND REPORT Development of actuarial value of accrued liability and assets, determination of minimum funding requirements and maximum tax deductible contributions; determination of funded ratios and of any benefit restrictions; preparation of Actuarial Certification Funding Target Attainment Percentage (AFTAP); preparation of Schedule SB of Form 5500 actuarial certification.

ANNUAL REPORTING AND DISCLOSURE Preparation of IRS Form 5500, PBGC Form-1 filing, and Annual Funding Notice to Plan participants.

COMPLIANCE TESTING AND REPORTING 401(a)(26) Minimum participation test, 404 maximum deductible contribution calculations, 410(b) Coverage testing, and 415 Annual Benefit Limitations.

PAYMENT OF FEES

The employer may choose to pay any of the fees or have them debited from the plan, with the exception of settlor fees (e.g., plan design or plan termination studies).


ADDITIONAL PLAN SERVICES Additional, out of scope consulting services $150 - $450 per hour

Additional Consulting Services such as actuarial cost studies, benefit goal setting, plan design studies, merger and acquisition studies, early retirement window studies, special presentations, plan amendments, plan documents, IRS submissions due to faulty data and any other projects requiring written responses are charged on an hourly basis. We will provide a fee quote upon request for any additional consulting services.

Optional Benefit Modeling Service (annually) $ 1,500 Annual Participant Benefit Statements Included

FAS ASC715 Year-end Reporting and Annual Expenses $ 2,500

Non-discrimination testing for non-Safe Harbor formulas Hourly rate

Monthly retirement benefit calculation (per calculation) $ 250 Calculation of monthly retirement benefits (deferred/immediate) under optional payment methods as prescribed by plan document with benefits illustration

Additional dates of commencement or termination $ 125 Must be requested at time of original calculation

Monthly retirement benefits for frozen benefits $ 150

Terminated vested / Pre-retirement death / Cashout packages (each) $100 per package in addition to benefit calculation fee

Retirement processing services (one time set up fee) $ 175

Retirement benefit payment processing $50 per retiree per year

Post-retirement death benefit processing $ 175


COMMENTS

Pentegra Retirement Services assumes that the plan document will include provisions to conform to our administrative practices. For terms of service, including the details of the scope of Pentegra’s Fiduciary Outsourcing Program, see the Service Agreement. Pentegra assumes that the transfer of plan participant data will be received via electronic format in the prescribed record layout provided by Pentegra. Pentegra will bill installation services following the completion of a signed Consulting Agreement. Annual actuarial administrative recordkeeping will be billed at the beginning of each year or may be billed quarterly. Payment is due within 30 days of billing date and interest charges for late payment may apply. Pentegra retains the right to increase its fees periodically, but not more frequent than annually. Notice will be provided prior to any increase.


SEAMLESS PLAN TRANSITION We ensure accurate and timely transition by a team of professionals who have successfully transitioned hundreds of plans with varying demographics and parameters from a variety of providers.

Pre TransitionSubmit Plan Documents for review

Weeks 1 - 2Call to review timeline and Service Agreement

Weeks 3 - 4Review and execute plan document

Weeks 5 - 6Investment Policy Statement Call

Weeks 7 - 8Submit new enrollments and contributions


PENTEGRA REGIONAL OFFICES CORPORATE HEADQUARTERS

108 Corporate Park Drive

White Plains, New York, 10604

NORTHEAST

Shelton, Connecticut

Hamilton Square, New Jersey

Belle Mead, New Jersey

Wyckoff, New Jersey

Hopewell Junction, New York

Montpelier, Vermont

SOUTHEAST

Asheville, North Carolina

Charlotte, North Carolina

Greenville, South Carolina

SOUTH

Atlanta, Georgia

Tampa, Florida

Baton Rouge, Louisiana

MIDWEST

Louisville, Kentucky

Chicago, Illinois

Minnetonka, Minnesota

Cincinnati, Ohio

Columbus, Ohio

Toledo, Ohio

CENTRAL

Dallas, Texas

San Antonio, Texas

WEST

San Diego, California

San Francisco, California

Orange County, California

Phoenix, Arizona

Denver, Colorado