Archdiocese of Cincinnati 401(k) Plan Business Administrator Training

1. Archdiocese of Cincinnati 401(k) PlanBusiness Administrator Training Helping Fulfill the Mission of our Organization Regarding Retirement Benefits October 4, 2010

2. Welcome and opening comments What’s changing and why Our partnership with Fifth Third Bank Your dedicated client service management team How these changes affect employees Help you understand your role as business administrator Review Plan highlights and common tasks you’ll perform Discuss upcoming payroll and data audit Next steps Today’s Agenda

3. Calls us to witness to God’s love through service to others. We care deeply about the needs and expectations of those who serve the Church. In this spirit we strive to deliver retirement benefits that protect and promote the financial security of our current and retired employees. 1

4. The mission of the Archdiocese of Cincinnati regarding retirement benefits is to protect and promote the financial security for all retirees and eligible employees. We fulfill this mission through the following actions: • Designing and administering prudent, cost-effective retirement programs; • Promoting an environment of caring, understanding and empathy for each employee and their unique financial circumstances; • Providing excellent communications that generate overall awareness and programs that help educate employees; and • Responding promptly and courteously to employee questions. 2

5. Effective December 31, 2010, the Lay Employees Pension Plan and the 403(b) Plan will be frozen. Effective January 1, 2011, new 401(k) retirement benefit is offered in partnership with Fifth Third Bank. Additional changes intended within the next year for the Priest Retirement Fund. What is changing? 3

6. Why are these changes being made? • The decision to freeze the Defined Benefit Plan • and the 403(b) plan were made to: • Reduce risk • Comply with tax laws Components of Risk Liability Assets 4

7. Does not affect current terminated or current retirees. Current employees who have not yet vested in the Pension Plan can still become vested by achieving the required vesting period through continued employment. Active employees enrolled in the Pension Plan as of December 31, 2010 automatically become a participant in the new 401(k) Plan. Employees contributing to the 403(b) plan can continue to contribute through the remainder of the year. How does this affect employees? 5

8. Why partner with Fifth Third Bank? • A valued partner of AOC for many years. • More than 150 years of history in Cincinnati. • Widely recognized as one of the strongest top-performing banks in the nation. • Local service supported by a large and well resourced organization. • The ability and willingness to meet the challenge of effectively communicating this new benefit to thousands of employees throughout the nineteen counties. • Demonstrated expertise and commitment to investment and retirement plan education and administration. 6

9. Your dedicated client service management team David Flautt Senior Client Consultant arch401k@53.com 513-534-5853 • Average of 17 years of experience. • Understanding of your business. • Knowledge of local issues. • Compliance, recordkeeping, education, and investment experts. • We listen to needs and apply our expertise. Barbara Vieth Senior Client Service Manager arch401k@53.com 513-534-0309 Michelle Hodgeman Senior Client Service Manager arch401k@53.com 513-579-6241 7

10. We’re here to help! • Loan processing • Distribution processing • Contribution processing • Compliance • Technical support • Account corrections • General help • Plan interpretations • Best practices 8

11. What do I need to do? • You’re responsible for: • Understanding the significance of being a fiduciary. • Providing employees access to outstanding care. • Managing the day to day administration of your retirement plan. As a business administrator, you play an important role in helping fulfill the mission of our organization regarding retirement benefits. 9

12. The significance of being a fiduciary • A fiduciary is typically any individual exercising discretion in the administration of the plan. • As an administrator, you control eligibility into the retirement plan, contribution funding and assist in managing the day to day operations – therefore, you are a fiduciary and are responsible for: • Acting solely in the interest of plan participants and their beneficiaries and with the exclusive purpose of providing benefits to them; • Carrying out their duties prudently; and • Following the plan documents. 10

13. Providing employees access to outstanding care • Promote advocacy to employees regarding the retirement plan. • Help employees understand the importance of saving for retirement. • Understand the benefits offered and how the new 401(k) Plan works. • Offer guidance and support for employee questions. 11

14. Managing the day-to-day administration of your retirement plan • A closer look at the new 401(k) Plan • Participation • Contributions • Vesting • Loans • Distributions • Enrollment • Investments Salary Tax Deductions Salary After Tax 401(k) Contribution Archdiocesan Employer Contributions Fifth Third Bank Plan Investments The 401(k) Process 12

15. Who is eligible to participate? Active employees who: • Are properly enrolled in the Pension Plan as of December 31, 2010 • Are at least 21 years of age • Are employed with AOC or a participating AOC employer for at least 30 days • Work at least 20 hours per week; or • Are board-certified or provide primary instructional control of a classroom working at least 12 class hours (4-½ hours for the Athenaeum of Ohio) per week for a normal work year Enrollments into the Plan occur quarterly on January 1, April 1, July 1 or October 1 after eligibility requirements are met. 13

16. Employee contributions 14

17. Stopping or changing contributions 15

18. Archdiocesan employer contributions Example: Jane Doe has annual compensation of $20,000 in 2011 or $5,000 for each calendar quarter during the year. For 2011, the Archdiocese's base contribution will be $200 ($5,000 x 4%) for each quarter, or $800 for the year. 16

19. Vesting 17

20. Loans 18

21. Approving loan requests 19

22. Distributions Distribution Exceptions: If withdrawn before age 59½, distribution is subject to tax and 10% withdrawal penalty. If married, spouse is automatically beneficiary unless spousal consent provided. 20

23. Approving distribution requests 2 Simple Ways to Request a Distribution: Retire.53.com Participant Services Line @ 1-866-258-4777 21

24. January 1, 2011 enrollment 2 Simple Ways to Enroll: Retire.53.com Participant Services Line @ 1-866-258-4777 22

25. Resources for managing the Plan • Plan Service Center: Sponsor.53.com • View all participant accounts for your location, manage distributions via To-Do List, process contributions. • catholiccincinnati.org • A central location storing all prior plan related communications and retirement plan resources. • Business administrator HardCard • Business administrator services phone number • Dedicated Local Service team accessible by phone and arch401k@53.com 23

26. Features of Plan Service Center • One provider for 401(k) contributions. • Call center and dedicated local support. • Online access with following features: • Divisional access and reporting. • Forms are online and easy-to-use. • Extensive ability to customize reports to your needs. • To-Do List simplifies organization. • Payroll bridge and automated data interchange reduces administrative time. 24

27. Using Plan Service Center 25

28. Your available resources Business Administrator Plan Services Escalation PSC Support 8:30 am – 8:00 pm ET 866-827-2211 Fifth Third Client Service Management Team David Flautt 513-534-5853 General Plan/Participant Information 9:00 am – 8:00 pm ET 866-827-2211 Barbara Vieth 513-534-0309 Arch401k@53.com Compliance 9:00 am – 8:00 pm ET 866-827-2211 Michelle Hodgeman 513-579-6241 If you need assistance accessing, navigating, and or processing transactions on PSC, contact PSC Technical Support. 26

29. Processing payroll Step 1 Transmit payroll to Paycor Step 2 Enter date and contribution total Step 3 Validate file Step 4 Confirm contribution total and complete transaction Once complete, we will process an ACH directly from your checking account 27

30. Payroll Data Interchange (PDI) • Keeping information uniform between your payroll and your Plan, reducing errors and paperwork • PDI is the central collection point for plan data. • PDI will allow you to automatically: • Enroll, monitor and support participants. • Calculate participant vesting levels and balances. • Add and update participant information. • Gather compliance testing information. • Generate employee savings illustrations for enrollment. • Provide loan modeling and initiation to participants. 28

31. Paycor Eligibility and Data AuditOctober 2010 33

32. Who is eligible to participate? Active employees who: • Are properly enrolled in the Pension Plan as of December 31, 2010 • Are at least 21 years of age • Are employed with AOC or a participating AOC employer for at least 30 days • Work at least 20 hours per week; or • Are board-certified or provide primary instructional control of a classroom working at least 12 class hours (4-½ hours for the Athenaeum of Ohio) per week for a normal work year Enrollments into the Plan occur quarterly on January 1, April 1, July 1 or October 1 after eligibility requirements are met. 34

33. Retirement Plan eligible field 35

34. Birthdate 36

35. Reviewing other employee data • Full Name • Complete Address • Hire Date • Gender • Marital Status To ensure accurate and timely data reporting please complete review no later than October 29, 2010 37

36. Fund lineup Conservative Aggressive T. Rowe Price Retirement Income T. Rowe Price Retirement 2015 T. Rowe Price Retirement 2020 T. Rowe Price Retirement 2025 T. Rowe Price Retirement 2030 T. Rowe Price Retirement 2035 T. Rowe Price Retirement 2040 T. Rowe Price Retirement 2045 T. Rowe Price Retirement 2050 T. Rowe Price Retirement 2055 ----------------------------------------------------------------------------- Year of Birth or Age Range from ----------------------------------------------------------------------- 1900 - 1947 1948 - 1952 1953 - 1957 1958 - 1962 1963 - 1967 1968 - 1972 1973 - 1977 1978 - 1982 1983 - 1987 1988 to Present 29

37. Investments 30

38. T. Rowe Price Retirement Funds • Each Retirement Fund is composed of other mutual funds, offering: • One-step convenience, so participants don’t need to mix and match them with other options. • Professional diversification that may help reduce the impact of the market’s ups and downs on their account. • Stock exposure that can help their retirement account outpace inflation and maintain its buying power throughout retirement. • Automatic rebalancing among stocks and bonds helps the funds’ allocations stay on track. 31

39. Communication and education milestones 32

40. Questions? 38