Nearly 60% of employees wantmore information and adviceabout retirement and investing,

according to a recent Transamerica1

survey.2 Sistema Universitario Ana G.Mendez has responded to this request,resulting in positive changes for its plan.

Background: SistemaUniversitario Ana G. MendezSistema Universitario Ana G. Mendez(SUAGM) is a university system inSan Juan, Puerto Rico, that employsabout 1,400 people across three campuses and 13 university centers.Participation in the university’sEmployees Savings and InvestmentPlan has been low. With tough economic conditions in Puerto Rico,SUAGM has found it difficult to motivate employees to participate in

the Savings and Investmentplan.

Situation:Educate andincrease participationInvestment education iscritical inPuerto Rico.Normally,SUAGM offersregular minieducation seminars, butrealized they

needed to provide additional educa-tion to accomplish the following goals:� Increase participation

� Expand employees’ knowledge and understanding of investing

� Educate employees about newinvestment funds

� Empower employees to take anactive role in retirement planning

Solution: More information and the personal touchWorking with Transamerica RetirementServices, SUAGM planned a six-day401(k) Day event. SUAGM usedTransamerica’s payroll stuffers andposters to announce the event andgenerate excitement around theSavings and Investment Plan.Approximately 250 employees attended and took advantage of:

� Workshops – Employees attendedenrollment workshops to learnmore about the enrollment process,and AdviceSolutionsSM workshops tolearn how to use Transamerica’sWeb-based planning tool.

� Computer labs – Allowed employeesto enroll online and gave Participantsaccess to their accounts to make changes.

� Computer training – Online Web navigation training walked employeesthrough Transamerica’s enhancedWeb site.

� Seminars – Employees learned aboutinvesting basics and the plan’s new

WORTH A LOOKWORTH A LOOKNews & Investment Insights for Retirement Plan Sponsors • Vol. 8/No. 1/Spring 2005

HOW TO HELP ECHOBOOMERS SAVE2 NEW RETIREMENT

SAVINGS TIPS4

www.TA-Retirement.com

Dear Sponsor:Persuading Participants to start saving for retirement is achallenge. In this quarter’s “Sponsor Exchange” we featureSistema Universitario Ana G. Mendez and highlight theirefforts to increase participation in their retirement plan.

We offer a glimpse into the mindset of Echo Boomers, theyoungest employee group in today’s workforce. Usingdata from the Sixth Annual Transamerica Small BusinessRetirement Survey, we provide you with recommendationson education and resources that will enable Echo Boomersto plan for retirement.

In this edition’s “In Focus,” we highlight our newRetirement Savings Tips, developed to enhance yourParticipant education program and reinforce the benefitsof retirement planning.

And finally, we touch on how you can help Participantsdefend their retirement savings from inflation.

Sincerely,

David ShuteWorth A Look Publisher

Hands-On Education MotivatesEmployees and Promotes Plans

HELP GUARD AGAINSTINFLATION3

(Continued on page 4)

Left to right: Monica Soto, Angie López, RamonSantiago, Amarilys Perez, and Maritza López

SPONSOR

EXCHANGE

1 Transamerica or Transamerica Retirement Services (TRS) refers to Transamerica Financial LifeInsurance Company (TFLIC). TRS markets the products and services of TFLIC and its affiliates.

2 Sixth Annual Transamerica Small Business Retirement Survey, Transamerica Center for RetirementStudies, 2004.

Contrary to popular belief,younger employees do careabout saving for retirement.

In fact, according to the Sixth AnnualTransamerica Small Business RetirementSurvey, 70% of Echo Boomers1 wantmore information and advice fromtheir employers about retirement planning.

But, despite their desire to save, participation among Echo Boomersremains low (37%).2 Sponsors have a golden opportunity to provide theeducation, tools and resources thatEcho Boomers crave so they can adequately prepare for retirement and increase participation.

Focusing onbasics reinforcesimportance ofsaving earlyNinety-three percent of EchoBoomers feel thatemployer-sponsoredretirement plans area very importantbenefit, but morethan half (63%)don’t think they know enough about their plan to participate.

“These workers are very concerned aboutsaving and want more information –especially from their employers. It’simportant that employers find a way toreach their younger workers throughtargeted education,” says CatherineCollinson, retirement and markettrends expert for the TransamericaCenter for Retirement Studies.

You can get Echo Boomers to focus on retirement if you:

� Highlight the features and benefits of the retirement plan and explainretirement basics through targetedcommunication (such as posters orpayroll stuffers) or onsite workshops.

� Encourage the use of Transamerica’sonline tools (www.TA-Retirement.com):

� It’s Payday – illustrates the benefitsof tax-deferred investing.

� Loose Change – shows how asmall contribution impacts apaycheck.

� The Compounding Game – showshow a 1 or 2% contributionincrease grows over time.

Setting realistic savings goals is key Echo Boomers have not accuratelydetermined what they will need toretire – 41% guess, and 26% base

estimates on current living expenses.2

In order for Echo Boomers to understandhow much they’ll need to save, theymust set realistic savings goals. Theycan assess their needs using additionalTransamerica Web site tools:

� Point, Click and Save!SM helps establishretirement goals and create a plan tostart saving.

� The Asset Allocation Questionnairedefines their investor type, evaluatesrisk tolerance and determines anappropriate asset allocation mix.

� AdviceSolutionsSM helps develop aninvestment strategy.

� Saving Up helps determine if a savings plan is on track to meetretirement needs.

In addition, encourage Echo Boomersto read “Put Your Retirement IncomePicture Into Focus” in this quarter’sParticipant version of Worth A Lookto learn how to set realistic goals.

A little information can go a long wayMany Echo Boomers (88%) agree thatthey do not know as much as theyshould about retirement investing andthe majority (71%) would like toreceive more information and advicefrom their company on how to reachtheir retirement goals.2 Transamerica’s“Made Simple Series” of seminars provides education on investing andthe economy:

� “Investments Made Simple” – focuseson investing basics, the fundamentalsof investing for retirement, anddeveloping investment strategies.

� “The Economy Made Simple” – takesthe mystery out of economics byexplaining such concepts as how tospot economic trends and definingBull and Bear markets.

You may also want to consider rein-forcing these seminars by pairing themwith the new “Retirement Savings Tips”described in this issue’s “In Focus.”

Give Echo Boomers what they needNow that you know Echo Boomers aretruly motivated to save, you have theopportunity to give them the right mixof education, tools and resources tohelp them plan for the future.“Employers can ensure that their retirement plan-related communicationefforts address all of their audiencesand not just their older, more experienced workers. Effective communications are key,” saysCollinson.

1 Individuals born between 1979 and 1986.2 Sixth Annual Transamerica Small Business

Retirement Survey, Transamerica Center forRetirement Studies, 2004.

2

Echo Boomers Want to Save, So How Can You Help Them?

Participants need to think aboutbeating inflation since it canerode their retirement savings.

They need your help figuring outhow much to save, and how todefend against inflation.

Help Participants figure outwhat they needData from a recent study conductedby Aon Consulting and Georgia StateUniversity indicates that Participantswill need between 75% and 90% of pre-retirement income to live comfortably.1 But, only 42% of workers have tried to calculate what they will need to save toachieve this.2

Direct Participants to Transamerica’sonline calculators to determine retirement savings goals. The calculatorsautomatically factor in an inflationrate, but allow Participants to changethat percentage to provide more realisticsavings information.

Educate Participants aboutinvestingMore than 70% of Participants do not know as much as they shouldabout retirement investing.3 UtilizeTransamerica’s comprehensiveParticipant education and guidanceprogram to provide tools, resourcesand online workshops. Consider hosting an onsite educational seminarfrom Transamerica’s Made SimpleSeries, such as “Investments MadeSimple,” which focuses on investingbasics, the fundamentals of investingfor retirement and developinginvestment strategies.

Provide Participants with defenses against inflationParticipants will protect their retirementsavings from inflation if they:

� Remain diversified and invest in stockfunds – Historically, stocks outperforminflation by more than 7% annually.4

“Safe” investments, such as U.S. Treasury Bills, barely outpaceinflation over time.5 RemindParticipants that maintaining a mix of investments in all asset classes will help defend their portfolios against the market’s ups and downs.

� Review portfolio regularly and rebalance – As the market moves,Participants may see a shift in theiroriginal asset allocation, so accountrebalancing will be necessary. Life events such as marriage or the birth of a child can also affect savings goals.

� Understand retirement planning is along-term commitment – EncourageParticipants to contribute as muchas possible to the plan, over thelong term. Remind them to stick to their long-term goals and risktolerance, and discourage marketmovements from dictating theirasset allocation.

With your help, Participants will beable to adequately save for retirementand maintain their purchasingpower even as the cost of goods andservices rises over time.

1 Replacement Ratio Study™: A Measurement Tool for Retirement Planning, AonConsulting/Georgia State University,September 2004.

2 2004 Retirement Confidence Survey, EmployeeBenefit Research Institute (EBRI), AmericanSavings Education Council (AESC) andMathew Greenwald & Associates, 2004.

3 Sixth Annual Transamerica Small BusinessRetirement Survey, Transamerica Center forRetirement Studies, 2004.

4 "Beating Inflation," Foundation for InvestorEducation, http://www.pathtoinvesting.org/categories/investingessentials/inflation/inflation_021.htm

5 The Bear-Proof Investor: Prospering Safely inAny Market, John F. Wasik, 2002.

Help Participants Guard Against Inflation

3

4 TRS 3426-0305

WORTH A LOOK is published quarterly by TransamericaRetirement Services. The newsletter’s mission is to provide timely, relevant information that employers canuse to increase retirement plan participation and torespond to the needs of plan Participants as they striveto achieve their investment objectives.

Publisher: David Shute Editor: Annie MuirSponsor Web site: www.TA-Retirement.comTo e-mail us, see “Contact Us” on the Web site.1150 South Olive Street, Los Angeles, CA 90015.©Transamerica, 2004. All rights reserved.

If you are looking for a way to boostParticipant education, Transamericahas just what you need: Retirement

Savings Tips. These brief, high impactvideo presentations are a wonderfulenhancement to any Participant educationprogram. Both highly informative andentertaining, these unique electronic tipsare designed to educate your employeeson the benefits of retirement planning.

You can download these tips from theTransamerica Sponsor Web site(www.TA-Retirement.com) onto yourIntranet site. Much like a payroll stuffer, these tips keep your employeesengaged in planning for their retirementwhile promoting awareness of yourretirement plan.

We are currently offering four differentRetirement Savings Tips:

� The Benefits of Attending anEnrollment Workshop

� The Benefits of Investing in aRetirement Savings Plan

� The Benefits of Rebalancing

� The Tax Benefits of Investing in aRetirement Savings Plan

There are a number of ways in whichthese tips can be used to help bringawareness to your retirement plan andvarious aspects of retirement savings.Below are a few suggestions for howyou can begin using the tips to complement your Participant educationprogram:

E-mail Communications – Create employeeawareness by sending periodic e-mailscontaining a link to the tips on yourIntranet site. Focusing on one tip, youremployees are better able to digest thecore message and apply it to theirretirement planning strategy.

Intranet Access – Post one or more tipsin one location on your Intranet and

distribute an announcement to employees so they can view the tips attheir convenience. You can also postone tip at a time so your employees areintroduced to a new tip every quarter.

Timely Topics – Select a particular tip to help bring awareness to specificretirement planning topics throughoutthe year. For example, you could introduce the Enrollment WorkshopRetirement Savings Tip during yourretirement plan’s open enrollment period, or the Tax Benefits RetirementSavings Tip during tax season.

Benefit Meetings – Show a tip at a benefitsmeeting or educational seminar. Afterthe meeting, send an e-mail to allemployees that includes a link to thetip, so they can take a closer look.

We are confident you will find theRetirement Savings Tips to be a greataddition to your Participant educationprogram. Look for additional tips in the future.

IN FOCUS:IN FOCUS:

investment funds in “InvestmentsMade Simple,” and received anoverview of Transamerica’s onlinetools and resources in “Tools andResources Made Simple.”

� Giveaways – Employees receivedmouse pads, pens and shoppingbags as well as 401(k) Day t-shirtsand pins.

Overall, feedback on their 401(k) Daywas very positive. “Employees are moretrusting of us, having experiencedhands-on education and personalencouragement at the event,” saysAngie López, Benefits Analyst, SUAGM.

Results: Goals AchievedThe Sistema Universitario Ana G.Mendez, Inc. Employees Savings andInvestment Plan has seen a 15%increase in participation.

The average contribution percentageincreased from 1% to 4%, with more

Participants taking full advantage ofthe company match – 35 cents forevery dollar contributed, up to 4%.“We find that the company matchhelps encourage participation,”explains Angie.

Participants made changes to theirinvestment elections after receivinginvestment education and learningabout 22 new investment funds avail-able through the plan. “We decided tooffer more investment funds becauseit will allow Participants to take morecontrol of their retirement planningand their own life. Participantaccounts are more diversified now,”says Angie.

“The 401(k) Day helped increase myknowledge of the plan and invest-ments. As a result, I increased mydeferral percentage. I am very satisfiedwith the plan,” says Maritza López,Benefits Analyst, SUAGM.

What does the future hold?Given the success of the 401(k) Day,SUAGM plans to hold similar eventsin the future to continue increasingPlan awareness and educatingParticipants.

SUAGM continually benefits from itspartnership with Transamerica, tappinginto its expertise to coordinate 401(k)Day and day-to-day Plan administrativeskills. “Working with Transamerica helpsme do my job better. Transamerica’sonline services make it easy forParticipants to manage their accounts,and make it easier for us to managethe Plan,” says Angie.

If you have a Transamerica successstory or any information you’d like toshare, please contact LaTanya Hayes atLaTanya.Hayes@transamerica.com or(213) 742-2526.

New Retirement Savings Tips Can Enhance Participant Education

Sponsor Exchange (Continued from cover)