Sample Full Service Proposal

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Sample of our FULL Service Retirement Plan Provider Program

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Sample Full Service Proposal

  1. 1. FULL SERVICE 403(b) SERVICE 403( ) THRIFT PLAN PLAN Prepared for:: SAMPLE PROPOSAL January 2009 Abe J. Garcia Account Executive REGIONAL OFFICE: MUTUAL OF AMERICA 118-35 QUEENS BOULEVARD, 16 FLOOR TH FOREST HILLS, NEW YORK 11375 (718) 520-8998 ext. 202 HOME OFFICE: MUTUAL OF AMERICA LIFE INSURANCE COMPANY 320 PARK AVENUE NEW YORK NEW YORK 10022 1-800-468-3785 WWW.MUTUALOFAMERICA.COM
  2. 2. CONTENTS PAGES MUTUAL OF AMERICA – ABOUT US 1 SCOPE OF SERVICES 2-8  Consulting / On-Site Employee Meetings  Document Services  Recordkeeping and Administrative Services CUSTOMER SERVICE PLATFORMS 9-24  Regional Offices  Electronic Service Platforms  System Service Performance Metrics INVESTMENT SERVICES 25-32  Investment Managers, Investment Options, Equities Style Matrix, and Investment Performance FEE SCHEDULES 33-37  Administrative Fees  Separate Account Schedules WHY CHOOSE MUTUAL OF AMERICA? 38
  3. 3. ABOUT US Since 1945, Mutual of America has specialized in providing pension and employee benefit plan services and annuity contracts to organizations and their employees to assist them with retirement and pension needs. Mutual of America provides services to over 16,000 pension and retirement savings plans, including: − 401(k) − 403(b) − 401(a) Defined Contribution − 401(a) Defined Benefit − Governmental 457 plans 1
  4. 4. SCOPE OF SERVICES We provide the following services: – Consulting/On-site employee meetings – Document service (full service) – Recordkeeping and administrative services – Investment services – Individual financial planning 2
  5. 5. CONSULTING/ON-SITE EMPLOYEE MEETINGS • Salaried consultants and service representatives • Both available for: – Visits to client locations and meeting with plan participants – Group and Individual meetings – Telephone consultations • Personal Service – Via 34 Regional Offices and 2 Satellite Offices located in major cities across the country 3
  6. 6. DOCUMENT SERVICES – Contract – Plan Document – Amendments/Legislative or employer initiated – Summary Plan Descriptions 4
  7. 7. RECORDKEEPING AND ADMINISTRATIVE SERVICES – Monitoring of salary deferral limits – Processing, administration and billing of participant loan requests – Retirement benefit estimates upon request by participant via Hotline Plus – Minimum distribution notifications to participants and calculations upon request – Processing and distribution of benefit payments – Designated Roth employee contributions (after-tax contributions) available for inclusion in your plan 5
  8. 8. RECORDKEEPING AND ADMINISTRATIVE SERVICES – Signature-ready 5500 – Online ACP discrimination testing via Hotline Plus – Tax withholding/Tax reporting for plan distributions – Quarterly statements to the employer listing contributions received during the quarter for all participants 6
  9. 9. RECORDKEEPING AND ADMINISTRATIVE SERVICES – Quarterly Capital Management Report provides participants with background on investment- related subjects – Mutual of America Investment Corporation Semi-Annual and Annual Reports – Independent auditor’s report of Mutual of America’s Separate Account – Statement on Auditing Standards No. 70 Report (SAS 70) 7
  10. 10. RECORDKEEPING AND ADMINISTRATIVE SERVICES – Daily valuation of all investment alternatives – Daily transfers and allocations among investment alternatives – Toll-free investment transfers, allocations and information – Quarterly statements to each plan participant – Toll-free 800 number and interactive Voice Response System 8
  11. 11. CUSTOMER SERVICE PLATFORMS MUTUAL OF AMERICA REGIONAL OFFICES – 36 locations – Provide personal service by salaried consultants and customer service representatives – Provide onsite group and individual meetings – Available to meet with management and boards 9
  12. 12. REGIONAL OFFICE LOCATIONS Regional Offices Milwaukee Philadelphia Minneapolis Indianapolis Tarrytown Seattle Southfield Rochester Pitts- Pitts- burgh Boston Hartford Akron Chicago Denver Cincinnati NY North St. Louis NY South San Francisco Long Island Nashville Phoenix Queens Parsippany Los Angeles Dallas Baltimore Atlanta Houston Washington, DC San Diego Richmond Anchorage New Orleans West Palm Beach Tampa Bay Honolulu 10
  13. 13. ELECTRONIC SERVICE PLATFORMS • Electronic Service Platforms – Hotline Plus – Internet – 800 Line – Voice Response System 11
  14. 14. ELECTRONIC SERVICE PLATFORMS • Hotline Plus - An Internet-based administration system linked to Mutual of America’s computer database provides clients with: – Control over benefits administration – Efficiency and accuracy – Information resource – Security – Contribution processing – Maintenance of employer and employee records 12
  15. 15. ELECTRONIC SERVICE PLATFORMS HOTLINE PLUS WEB SITE 13
  16. 16. ELECTRONIC SERVICE PLATFORMS • Internet - Participants have direct access to their account information 24/7, with the ability to: – Check account balances – Transfer among investment alternatives – Change investment allocation – View investment account information – View quarterly statements and documents online – View market quotations and financial headlines and articles 14
  17. 17. ELECTRONIC SERVICE PLATFORMS PARTICIPANT WEB SITE 15
  18. 18. ELECTRONIC SERVICE PLATFORMS PARTICIPANT ACCOUNT 16
  19. 19. ELECTRONIC SERVICE PLATFORMS PARTICIPANT ACCOUNT 17
  20. 20. ELECTRONIC SERVICE PLATFORMS • 800 Line Services - Representatives are available from weekdays 9:00 a.m. to 9:00 p.m. ET to: – Transfer funds among investment alternatives – Process reallocations – Provide account balance information – Answer general questions on products and services 18
  21. 21. ELECTRONIC SERVICE PLATFORMS • Voice Response System - Available to plan participants 24/7 for: – Account balance information – Loan Balance information – Locating nearest Regional Office 19
  22. 22. SERVICE SYSTEM PERFORMANCE METRICS REGIONAL OFFICE SERVICE PERFORMANCE Service Category 2002 2003 2004 2005 2006 2007 Average Weekly Unapplied Bills 4.22 items/week 6.19 items week 5.15 items/week 5.09 items/week 5.51 items/week 5.24 items/week Average Days to Resolve Unapp. Bills 2.85 days/item 2.58 days/item 2.38 days/item 2.19 days/item 1.36 days/item 1.82 days/item Average Days to Resolve Service Requests 1.80 days/item 1.58 days/item 1.42 days/item 1.34 days/item 1.27 days/item 2.20 days/item Client Visits 4,989 5,685 5,252 5,414 5,377 4,219 Regional Training Completion Rates1 100.0% 99.3% 98.5% 100% 100% 98% Customer Satisfaction Ratio2 10.3:1 11.1:1 11.6:1 11.2:1 15.4:1 12.0:1 Customer Satisfaction 3 94.7% 95.0% 94.9% 94.8% 96.1% 94.8% Average Weekly Unapplied Bills Average Days to Resolve Unapplied Bills 6.19 5.51 2.85 5.24 5.09 5.15 2.58 2.38 2.19 4.22 1.82 1.36 2002 2003 2004 2005 2006 2007 2002 2003 2004 2005 2006 2007 C lie nt Visits Average Days to Resolve S ervice Requests 5,252 5,414 5,377 5,685 4,989 4,219 2.20 1.80 1.58 1.42 1.34 1.27 2002 2003 2004 2005 2006 2007 2002 2003 2004 2005 2006 2007 1 143 completed courses. 2 Measures the ratio of favorable to unfavorable responses; includes Field Administration/NY responses. 3 Percent of survey respondents who indicate that service provided met, exceeded or greatly exceeded their expectations. 20
  23. 23. CUSTOMER SATISFACTION SURVEYS REGIONAL OFFICE SERVICE Regional Office Service Total Surveys Mailed: 12,507 Total Responses: 2,007 Response Rate: 16% Participant Ratings – All Questions 2002 2003 2004 2005 2006 2007 ] ] ] ] ] ] Greatly Exceeded Expectations 27.8% 94.7% 27.9% 28.2% 28.5% 30.0% 30.1% 95.0% 94.9% 94.6% 96.1% 94.8% Exceeded Expectations 32.9% 33.9% 33.5% 33.2% 33.0% 33.2% Met Expectations 34.0% 33.2% 33.2% 33.1% 33.1% 31.5% Barely Met Expectations 2.1% 2.4% 2.4% 2.2% 1.7% 2.5% Failed Expectations 3.2% 2.6% 2.7% 3.0% 2.2% 2.7% Regional Office Rating S ummary 2002-2007 Rating Summary 96.1% 95.0% 94.7% 94.9% 94.6% 94.8% Year Met, Exceeded, Greatly Exceeded Expectations 2002 94.7% 2003 95.0% 2004 94.9% 2005 94.6% 2006 96.1% 2007 94.8% 2002 2003 2004 2005 2006 2007 21
  24. 24. CALL CENTER SERVICE PERFORMANCE 800 LINE SERVICE PERFORMANCE Service Category 2002 2003 2004 2005 2006 2007 Call Volume 142,522 124,373 126,979 116,296 117,047 129,170 Per Call Processing Time 1:31 min./call 1:26 min./call 1:31 min./call 1:31 min./call 1:43 min./call 1:36 min./call Average Speed of Call Answer 4.20 sec./call 4.60 sec./call 7.50 sec./call 11.0 sec./call 17.0 sec./call 17.0 sec./call Average Longest Wait Prior to Ans 4 0:31 seconds 0:47 seconds 1:07 minutes 1:20 minutes 1:43 minutes 1:58 minutes Call Abandonment Rate 0.52% 0.53% 0.87% 1.26% 2.41% 2.22% Telephone Service Factor 5 94.50% 94.00% 89.00% 85.0% 82.0% 79.0% Customer Satisfaction 99.4% 98.9% 98.4% 98.9% 98.0% 97.9% Call Abandonment Rate (% ) Average Speed of Call Answer (sec.) 2.41% 17.00 17.00 2.22% 1.26% 11.00 0.87% 7.50 4.20 4.60 0.53% 0.52% 2002 2003 2004 2005 2006 2007 2002 2003 2004 2005 2006 2007 4 Measures the longest queue wait prior to agent answer each hour of the day. 5 TSF = percentage of calls answered within 20 seconds. 22
  25. 25. CALL CENTER SERVICES PARTICIPANT RATINGS 800 LINE SERVICE Total Surveys mailed: 2,508 Total Responses: 502 Response Rate: 20% Year Met, Exceeded, Year Met, Exceeded, Greatly Exceeded Expectations Greatly Exceeded Expectations 1996 97.3% 2002 99.4% 1997 98.5% 2003 98.9% 1998 98.4% 2004 98.4% 1999 97.7% 2005 98.9% 2000 No surveys sent 2006 98.0% 2001 99.3% 2007 97.9% Rating Summary – “Overall, how would you rate Mutual of America’s toll-free service in comparison to other 800 service departments?” Call Center Rating Summary (1996-2007) Year Mutual of America’s Toll-Free Service “Better” 1996 69.3% 86.5% 1997 74.5% 82.9% 78.5% 82.6% 80.7% 81.7% 77.6% 74.5% 74.6% 75.7% 1998 74.6% 69.3% 1999 75.7% 2000 No surveys sent 2001 82.6% 2002 82.9% 2003 86.5% 2004 80.7% 2005 81.7% 2006 77.6% 2007 78.5% 1996 1997 1998 1999 2001 2002 2003 2004 2005 2006 2007 23
  26. 26. NEW YORK PROCESSING CENTER HOME OFFICE ADMINISTRATION/NEW YORK 2004 2005 2006 2007 Call Volume 2,964 20,526 29,416 *7,365 Per Call Processing Time 1:54 min./call 1:55 min./call 1:58 min./call 1:56 min./call Average Speed of Call Answer 7.0 sec./call 4.0 sec./call 6.0 sec./call 4.0 sec./call Average Longest Wait Prior to Answer 0:23 seconds 0:44 seconds 0:32 seconds 0:31 seconds Call Abandonment Rate 7.15% 2.48% 1.10% 2.61% Telephone Service Factor 83.0% 91.0% 93.0% 93.0% * The reduction in the Call Volume for 2007, was due to a decrease in the number of calls and the number of days calls were taken by Home Office Administration. 24
  27. 27. INVESTMENT SERVICES – Interest Accumulation Account (no surrender, withdrawal or transfer fees) – 35 Separate Account Investment Alternatives (no surrender, withdrawal or transfer fees) – Detailed investment information available on Web site 25
  28. 28. INVESTMENT SERVICES – Mutual of America Capital Management Corporation representatives available to meet regularly with senior management – Prepare detailed Individual Financial Plans for senior management – Hold group financial planning seminars for employees - a value added service (no additional cost) 26
  29. 29. INVESTMENT MANAGERS 27
  30. 30. INVESTMENT OPTIONS INTEREST ACCUMULATION ALTERNATIVE RETIREMENT FUNDS Mutual of America Retirement Income Fund Mutual of America Interest Accumulation Account Mutual of America 2010 Retirement Fund EQUITY FUNDS Mutual of America 2015 Retirement Fund Mutual of America 2020 Retirement Fund Mutual of America Equity Index Fund Mutual of America 2025 Retirement Fund Mutual of America All America Fund Mutual of America 2030 Retirement Fund Mutual of America Small Cap Value Fund Mutual of America 2035 Retirement Fund Mutual of America Small Cap Growth Fund Mutual of America 2040 Retirement Fund Mutual of America Mid Cap Value Fund Mutual of America 2045 Retirement Fund Mutual of America Mid-Cap Equity Index Fund Mutual of America International Fund ASSET ALLOCATION FUNDS Fidelity VIP Mid Cap Fund Portfolio Mutual of America Conservative Allocation Fund Fidelity VIP Equity-Income Fund Portfolio Mutual of America Moderate Allocation Fund Fidelity VIP Contrafund Portfolio Mutual of America Aggressive Allocation Fund Oppenheimer Main Street Fund/VA Vanguard VIF Diversified Value Portfolio BALANCED FUNDS Vanguard VIF International Portfolio DWS Capital Growth VIP Portfolio Mutual of America Composite Fund DWS International VIP Portfolio Fidelity VIP Asset Manager Fund Portfolio American Century VP Capital Appreciation Fund Calvert Social Balanced Fund Portfolio FIXED INCOME FUNDS Mutual of America Money Market Fund Mutual of America Mid-Term Bond Fund Mutual of America Bond Fund DWS Bond VIP Portfolio 28
  31. 31. EQUITIES STYLE MATRIX VALUE CORE/BLEND GROWTH LARGE Fidelity Equity-Income Portfolio Equity Index Fund DWS Capital Growth Portfolio Vanguard Diversified Oppenheimer VIF Value Portfolio Main Street Fund/VA Fidelity Contrafund All America Fund MID Mid Cap Value Fund Mid-Cap Equity American Century Cap Index Fund Appreciation Fund Fidelity Mid Cap Portfolio SMALL Small Cap Value Fund * Small Cap Growth Fund *The Small Cap Core/Blend Style can be replicated by allocating assets to a blend of the Small Cap Value Fund and the Small Cap Growth Fund. 29
  32. 32. INVESTMENT PRINCIPLES The Risk/Time Horizon 25% Relationship 75% 5 Years Fixed Income to Retirement... Equities 40% 60% 15 Years to Retirement... These charts illustrate one method of allocating your 25% assets based on your projected retirement date, assuming a moderate risk 75% tolerance, but are not 30 Years intended as a specific recommendation to Retirement... or investment advice. 8/06 15 MUTUAL OF AMERICA LIFE INSURANCE COMPANY 30
  33. 33. SEPARATE ACCOUNT NO. 2 - TOTAL RETURN PERFORMANCE DATA for PERIODS ENDED 06/30/08 Annualized INVESTMENT ALTERNATIVES (1) DATE OF Prior 3 Year-To- Prior 1 Prior 3 Prior 5 Prior 10 INCEPTION (2) Months Date Year Years Years Years* EQUITY FUNDS Mutual of America Equity Index Fund 02/05/93 -3.05% -12.49% -14.32% 3.04% 6.20% 1.51% Mutual of America All America Fund (3) 01/01/85 -1.86% -11.66% -14.49% 3.17% 6.25% 1.46% Mutual of America Small Cap Value Fund 07/01/05 -0.48% -9.58% -21.12% 2.26% N/A 2.26% Mutual of America Small Cap Growth Fund 07/01/05 4.56% -9.77% -13.84% 3.72% N/A 3.72% Mutual of America Mid Cap Value Fund 07/01/05 0.35% -6.01% -13.20% 4.55% N/A 4.55% Mutual of America Mid-Cap Equity Index Fund 05/03/99 5.11% -4.59% -8.65% 6.05% 11.14% 7.75% Mutual of America International Fund 11/05/07 -3.42% -11.23% N/A N/A N/A -13.97% Fidelity VIP Mid Cap Portfolio (4) 07/01/05 3.03% -7.21% -5.03% 10.63% N/A 10.63% Fidelity VIP Equity-Income Portfolio (4) 05/01/95 -5.62% -14.99% -20.99% 2.74% 6.62% 2.84% Fidelity VIP Contrafund Portfolio (4) 05/01/95 -0.84% -12.61% -6.19% 8.11% 11.68% 6.33% Oppenheimer Main Street Fund/VA 07/01/05 1.62% -10.07% -12.79% 3.81% N/A 3.81% Vanguard Diversified Value Portfolio 07/01/05 -3.24% -15.46% -20.93% 1.44% N/A 1.44% Vanguard International Portfolio 07/01/05 -2.06% -10.73% -7.31% 14.96% N/A 14.96% DWS Capital Growth Fund 01/03/89 0.19% -6.45% -1.99% 6.10% 7.70% 1.21% DWS International Fund 01/03/89 2.31% -7.43% -4.25% 14.80% 15.79% 3.30% American Century VP Capital Appreciation Fund (4) 01/03/89 8.67% -7.61% 7.21% 21.61% 17.71% 8.46% FIXED INCOME FUNDS Money Market Fund 01/01/85 0.23% 0.77% 2.61% 3.17% 2.05% 2.37% current yield as of 06/24/08 was 0.77%** Mutual of America Mid-Term Bond Fund 02/05/93 -1.85% 0.93% 6.25% 3.00% 1.91% 3.56% Mutual of America Bond Fund 01/01/85 -1.08% 0.28% 4.17% 2.68% 2.48% 3.76% DWS Bond Fund 01/03/89 -0.49% -2.19% 0.28% 1.23% 1.98% 3.35% RETIREMENT FUNDS Mutual of America Retirement Income Fund 11/05/07 -1.21% -2.28% N/A N/A N/A -2.38% Mutual of America 2010 Retirement Fund 11/05/07 -0.82% -4.06% N/A N/A N/A -4.87% Mutual of America 2015 Retirement Fund 11/05/07 -0.89% -5.45% N/A N/A N/A -6.72% Mutual of America 2020 Retirement Fund 11/05/07 -1.12% -6.68% N/A N/A N/A -8.27% Mutual of America 2025 Retirement Fund 11/05/07 -0.92% -7.70% N/A N/A N/A -9.67% Mutual of America 2030 Retirement Fund 11/05/07 -0.64% -8.08% N/A N/A N/A -10.27% Mutual of America 2035 Retirement Fund 11/05/07 -0.46% -8.76% N/A N/A N/A -11.23% Mutual of America 2040 Retirement Fund 11/05/07 -0.14% -8.57% N/A N/A N/A -11.18% Mutual of America 2045 Retirement Fund 11/05/07 -0.28% -8.88% N/A N/A N/A -11.59% ASSET ALLOCATION FUNDS Mutual of America Conservative Allocation Fund 05/20/03 -1.83% -2.55% 0.42% 3.06% 3.21% 3.43% Mutual of America Moderate Allocation Fund 05/20/03 -0.96% -4.69% -3.84% 3.57% 5.14% 5.69% Mutual of America Aggressive Allocation Fund 05/20/03 -0.41% -7.35% -8.90% 3.73% 6.49% 7.39% BALANCED FUNDS Mutual of America Composite Fund 01/01/85 -2.01% -6.62% -4.93% 3.40% 4.65% 2.11% Fidelity VIP Asset Manager Portfolio (4) 05/01/95 7.94% 2.28% 9.35% 8.87% 7.32% 3.83% Calvert Social Balanced Fund (5) 05/13/91 -1.38% -7.04% -8.18% 1.67% 4.35% 1.74% (CONTINUED ON NEXT PAGE) 31
  34. 34. *Or since inception if the Fund has been in existence for less than 10 years. ** Please note that the current yield quotation more closely reflects the current earnings of the Money Market Fund than the total return performance data. The performance data shown above represent past performance, which is not a guarantee of future results. Investment returns and unit values will fluctuate so that units, when redeemed, may be worth more or less than their original cost. Investment Fund total return performance currently may be lower or higher than the figures stated above. More recent performance is published online within seven business days after each month’s end and can be obtained by visiting www.mutualofamerica.com or by calling 1-800-468-3785. The total return performance data are based on a hypothetical investment of $1,000, which is redeemed at the end of the periods shown. The total return figures reflect the reinvestment of investment income and capital gains and losses, and are net of expenses (contract fee, an expense risk fee, administrative charges, a distribution expense charge and Underlying Fund fees and expenses). Please consider carefully the investment objectives, risks, charges and expenses of the Separate Account investment alternatives before investing. For this and other information about Mutual of America’s products and their Separate Account investment alternatives, investors should obtain the applicable contract brochure or prospectus and prospectuses of the Underlying Funds by calling the toll-free number, 1-800-468-3785 or by visiting www.mutualofamerica.com. Please read them carefully before investing. Investments in the Money Market Fund (and in the other Funds) are neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Mutual of America Life Insurance Company is a Registered Broker-Dealer. The total return figures for periods extending beyond a year are average rates of return and do not reflect the Funds' actual year-to-year results, which varied over the periods shown. Contributions or withdrawals made within a period would experience different rates of return based on the unit values on the dates of such transactions. (1) Some of the Underlying Funds have arrangements with their respective investment adviser and/or other service provider under which certain expenses could be reimbursed. Without such reimbursements, the performance returns of the corresponding Separate Account Funds would have been lower. Please refer to the prospectuses of these Underlying Funds for more information on such expense reimbursements. (2) In accordance with a current SEC staff position, Date of Inception shown for an Investment Fund is the date the Underlying Fund became available to the Separate Account. An Underlying Fund may have begun operations at an earlier date. (3) Effective July 28, 2005, the Underlying Fund no longer has a subadviser, and the entire portfolio is managed by the investment adviser. (4) The investment adviser for the American Century VP Capital Appreciation Fund reimburses Mutual of America Life Insurance Company for certain administrative expenses, and the transfer agent and distributor for the Fidelity VIP Portfolios reimburse Mutual of America for certain services Mutual of America provides. We pass these reimbursements to our contractholders, and, as such, the administrative charges for the corresponding Separate Account Funds are reduced to the extent Mutual of America receives such reimbursements. (5) Prior to March 2002, the Underlying Fund’s investment objectives differed somewhat from its current objectives. Effective March 2002, two new subadvisers assumed responsibility from the previously appointed subadviser for the management of the equity securities of the Underlying Fund in which the Separate Account invests. Effective June 2004, a new subadviser assumed responsibility from a previously appointed subadviser for managing a portion of the equity securities of the Underlying Fund in which the Separate Account invests. 32
  35. 35. FEE SCHEDULES ADMINISTRATIVE FEES Fees for services provided by Mutual of America under its full service 403(b) Thrift group annuity contract for an employer’s 403(b) Thrift plan are outlined below. There are no separate fees for the specimen plan document, employee seminars, Hotline Plus, or other similar services as outlined earlier. Mutual of America reserves the right to change the services provided, as well as the fees associated with these services, and fees associated with the Separate Account and the Underlying Funds. EMPLOYER PAID AMOUNT Monthly Contract Fee 1 $100.00 Monthly Active Participant Charge 1 $4.00 for each of the first 50 participants $2.00 for each of the next 50 participants $1.00 for each of the next 100 participants Sales Charges Front-end load None Back-end load None Forfeiture Processing Fee 2 $50 one-time charge deducted from each forfeiture when a non-vested or partially vested participant terminates employment New Case Start-up Fee None Conversion Fee None 33
  36. 36. ADMINISTRATIVE FEES EMPLOYEE PAID AMOUNT $2.00, but not to exceed 1/12 of 1% of the Monthly Participant Charge, deducted from each participant's account balance, regardless participant’s account value. No charge if the of the number of funds utilized.3 account value is under $300 or if employee participates in eDocuments. Separate Account and Underlying Funds Fees The contract prospectus and the prospectuses of the Underlying Funds provide complete information about the investment alternatives available, including all charges and expenses. Employees should read the prospectuses carefully before investing. NOTES: 1. The monthly contract and monthly active participant fees are capped at $500 per month and both are waived for each month plan assets exceed $1 million at the end of the month. 2. The forfeiture processing fee is capped at $2,500 per year. 3. The monthly employee-paid participant charge is waived if the plan has 500 lives or $5 million in plan assets under Mutual of America’s contract. The employer may elect to pay the $2.00 monthly employee charge, if the charge applies. Regardless, the employee-paid monthly participant charge will be waived for plan participants who sign-up for our eDocuments program. Under eDocuments, participant quarterly statements and other documents are provided to plan participants at our Internet site instead of by mail. 34
  37. 37. STANDARD FEE SCHEDULE (A) 35
  38. 38. ANNUAL EXPENSES1 – STANDARD SEPARATE SEPARATE ACCOUNT No.2 UNDERLYING FUNDS EXPENSES EXPENSES ACCOUNT TOTAL EXPENSE ACQUIRED NO. 2 EXPENSE RISK ADMIN DISTRIBUTION MGM’T OTHER FUND FEES & DEDUCTIONS FEES2 EXPENSES 3 CHARGES EXPENSES EXPENSES EXPENSES EQUITY FUNDS Mutual of America Equity Index Fund .15% .40% .35% .08% .12% N/A 1.10% Mutual of America All America Fund .15% .40% .35% .40% .15% N/A 1.45% Mutual of America Small Cap Value Fund .15% .40% .35% .75% .14% N/A 1.79% Mutual of America Small Cap Growth Fund .15% .40% .35% .75% .14% N/A 1.79% Mutual of America Mid Cap Value Fund .15% .40% .35% .55% .20% N/A 1.65% Mutual of America Mid-Cap Equity Index Fund .15% .40% .35% .08% .14% N/A 1.12% 5&7 Mutual of America International Fund .15% .40% .35% .08% .14% .18% 1.30% .30% 8 Fidelity VIP Mid Cap Fund .15% .35% .56% .11% N/A 1.47% 8 Fidelity VIP Equity-Income Fund .15% .30% .35% .46% .09% N/A 1.35% .30% 8 Fidelity VIP Contrafund .15% .35% .56% .09% N/A 1.45% Oppenheimer Main Street Fund/VA .15% .40% .35% .64% .01% N/A 1.55% Vanguard VIF Diversified Value Fund .15% .40% .35% .37% .03% N/A 1.30% Vanguard VIF International Fund .15% .40% .35% .40% .05% N/A 1.35% DWS Capital Growth VIP Fund .15% .40% .35% .37% .13% N/A 1.40% DWS International VIP Fund .15% .40% .35% .74% .20% N/A 1.84% .15% 8 A.C. VP Capital Appre. Fund .15% .35% 1.00% 0.00% N/A 1.65% FIXED INCOME FUNDS Mutual of America Money Market Fund .15% .40% .35% .15% .13% N/A 1.18% Mutual of America Mid-Term Bond Fund .15% .40% .35% .40% .16% N/A 1.46% Mutual of America Bond Fund .15% .40% .35% .40% .13% N/A 1.43% DWS Bond VIP Fund .15% .40% .35% .39% .18% N/A 1.47% RETIREMENT FUNDS Mutual of America Retirement Income Fund6&7 .15% .40% .35% .05% 0% .42% 1.37% 6&7 Mutual of America 2010 Retirement Fund .15% .40% .35% .05% 0% .37% 1.32% 36
  39. 39. ANNUAL EXPENSES1 – STANDARD SEPARATE SEPARATE ACCOUNT No.2 UNDERLYING FUNDS EXPENSES EXPENSES ACCOUNT TOTAL EXPENSE ACQUIRED NO. 2 EXPENSE RISK ADMIN DISTRIBUTION MGM’T OTHER FUND FEES & DEDUCTIONS FEES2 EXPENSES 3 CHARGES EXPENSES EXPENSES EXPENSES EQUITY FUNDS Mutual of America Equity Index Fund .15% .40% .35% .08% .12% N/A 1.10% 6&7 Mutual of America 2015 Retirement Fund .15% .40% .35% .05% 0% .37% 1.32% Mutual of America 2020 Retirement Fund6&7 .15% .40% .35% .05% 0% .38% 1.33% Mutual of America 2025 Retirement Fund6&7 .15% .40% .35% .05% 0% .36% 1.31% Mutual of America 2030 Retirement Fund6&7 .15% .40% .35% .05% 0% .35% 1.30% Mutual of America 2035 Retirement Fund6&7 .15% .40% .35% .05% 0% .34% 1.29% 6&7 Mutual of America 2040 Retirement Fund .15% .40% .35% .05% 0% .35% 1.30% Mutual of America 2045 Retirement Fund6&7 .15% .40% .35% .05% 0% .37% 1.32% ASSET ALLOCATION FUNDS Mutual of America Conservative Allocation Fund4 .15% .40% .35% 0% 0% .46% 1.36% 4 Mutual of America Moderate Allocation Fund .15% .40% .35% 0% 0% .37% 1.27% Mutual of America Aggressive Allocation Fund4 .15% .40% .35% 0% 0% .36% 1.26% BALANCED FUNDS Mutual of America Composite Fund .15% .40% .35% .40% .15% N/A 1.45% 8 Fidelity VIP Asset Manager Fund .15% .30% .35% .51% .12% N/A 1.43% Calvert Social Balanced Fund .15% .40% .35% .70% .20% N/A 1.80% CONTINUED ON NEXT PAGE 37
  40. 40. Please consider carefully the investment objectives, risks, charges and expenses of the Separate Account investment alternatives before investing. For this and other information about Mutual of America’s products and their Separate Account investment alternatives, investors should obtain the applicable contract brochure or prospectus and prospectuses of the Underlying Funds by calling the toll-free number, 1-800-468-3785 or by visiting www.mutualofamerica.com. Please read them carefully before investing. Investments in the Money Market Fund (and in the other Funds) are neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. 1. The table shows the current annual Separate Account expenses and the fees and expenses that you may pay if you buy and hold shares of the Underlying Funds, based on the Funds’ management fees as of May 1, 2008 and the Funds’ actual other expenses incurred during 2007. In general, an annual contract fee paid in a monthly amount of $2.00 may also be imposed. The prospectuses contain complete information on all charges and expenses, including those of the Separate Account and the Underlying Funds, and the annual contract fee. Please see the May 2008 prospectuses for such information. 2. Management fees have been rounded to the second decimal place. 3. Reflects the actual expenses other than management fees incurred by the funds for the year ended December 31, 2007. 4. The Allocation Funds do not directly incur a management fee or other expenses. The shareholders of the Allocation Funds indirectly bear the expenses of the Mutual of America Investment Corporation (“Investment Company”) Funds in which they invest (“acquired funds”). The estimates shown reflect the weighted average management fees and other expenses incurred by the acquired funds based on the management fees in effect as of May 1, 2008 and the actual other expenses incurred by the acquired funds during 2007. The estimates shown assume that target allocations are maintained throughout the year. The Allocation Funds’ actual indirect expenses may be higher or lower based on the actual allocations of their assets among Investment Company Funds. The Allocation Funds invest in shares of other series of the Investment Company. Each Allocation Fund may have its own operating expenses, as do the Investment Company Funds in which it invests. An investment in an Allocation Fund therefore may have a higher cost than investment directly in such Investment Company Funds. The Annual Fund Operating expenses can be different if target allocations are not maintained. The operating expense ratios of the acquired funds within the Aggressive Allocation Fund range from .20% to .89%; in the Moderate Allocation Fund the range is from .20% to .56%, and in the Conservative Allocation Fund the range is from .20% to .56%. 5. In addition to direct management fees and operating expenses, the shareholders of the International Fund indirectly bear the expenses of any Exchange Traded Funds (ETFs) in which the Fund invests. The estimates shown reflect the weighted average management fees and other expenses incurred by the ETFs during 2007. The estimates shown assume that the Fund maintains a consistent level of ETF investment throughout the year. The Funds’ actual indirect expenses may be higher or lower based on the actual percentage of assets invested in ETFs. The operating expense ratios for the ETFs in which the International Fund invests ranges from .12% to .34%. The Fund may have its own operating expenses, as do the ETFs in which it invests. An investment in the Fund therefore may have a higher cost than investment directly in such ETF. 6. The Retirement Funds invest in shares of other series of the Investment Company (“acquired funds”). In addition to direct management fees, the shareholders of the Retirement Funds indirectly bear the expenses of the acquired funds in which they invest. The estimates shown assume that target allocations are maintained throughout the year. The Retirement Funds’ actual indirect expenses may be higher or lower based on actual allocations of their assets among the Investment Company Funds. The expense ratios of the acquired funds range from .20% to .89%. Each Retirement Fund may have its own operating expenses, as do the acquired funds in which it invests. An investment in a Retirement Fund therefore may have a higher cost than investment directly in such Investment Company Funds. 7. These funds commenced operations on November 5, 2007. 8. The investment adviser for the American Century VP Capital Appreciation Fund reimburses us at an annual rate of .25% for administrative expenses, and the transfer agent and distributor for the four Fidelity VIP Portfolios reimburse us at an annual rate of .10% for certain services we provide. We reduce the . 40% administrative charges for the corresponding Separate Account Funds to the extent we receive reimbursements, so that the administrative charge for the American Century VP Capital Appreciation Fund is .15% and for the Fidelity VIP Funds is .30%. 38
  41. 41. WHY CHOOSE MUTUAL OF AMERICA? Servicing our clients is the most important job we have. What distinguishes Mutual of America from our peers is the range of service we provide to our clients and their employees, and the personal way the services are provided. The delivery of services through our interactive Internet site, 800 Line, Voice Response System and Hotline Plus demonstrates our commitment to technology. While we believe technology will improve the quality, scope and convenience of the services provided, we have not lost sight of the fact that there is no substitute for personal service provided by knowledgeable, courteous, salaried consultants and customer service representatives. 39

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