The document summarizes Barry Kublin's presentation at the 2014 BPAS Partner Conference. The presentation provided an update on BPAS's capabilities, strategies for competing in the 401k/403b marketplace, and business opportunities beyond traditional plans. It also covered regulatory updates, contemporary investment issues, and advocacy efforts. BPAS has expanded significantly since being founded in 1973, now with 9 offices, 240 professionals, 3,600 clients, and $16 billion in assets under custody. The presentation concluded by thanking partners and looking forward to feedback to improve their partnership.

1. Partner Conference 2014
BPAS Firm Update
and Conference Objectives
Barry Kublin
President, BPAS

2. Partner Conference 2014
BPAS Firm Update
and Conference Objectives
• Welcome, BPAS Partners Conference
• Thank You!
– YOU – for partnering with us to provide retirement plan services
to our mutual clients
– YOU – for joining us in a 3-day learning experience to improve
our businesses and the effectiveness of the services we provide
– YOU – for engaging in a critical discussion of our industry and
re-examining how we might partner to improve the retirement
income readiness of working households
– Guest speakers, for sharing your knowledge
– BPAS Marketing staff, for a first-class effort

3. Partner Conference 2014
BPAS Firm Update
and Conference Objectives
• Conference Objectives
– Update on BPAS Firm Capabilities
– Strategies to compete in today’s 401k/403(b) marketplace
– Business opportunities beyond the traditional 401k/403(b)
marketplace
– Regulatory updates
– Contemporary Investment Management Issues
– Interactive sessions to discuss best practices among Partners

4. Partner Conference 2014
BPAS Firm Profile
• BPAS was founded in 1973 (41 years old)
– If you knew of us, you might not know us today!
• 9 offices (3 Upstate NY, NYC, NJ, Phil, Pitt, Houston, San Juan)
• 240 professionals
• 3,600 clients
• 350,000 participants
• $16 billion assets under custody

5. Partner Conference 2014
BPAS Firm Profile
• Advanced DC Plan
Administration
– ESOP, KSOP
– 401(k), 403(b), 457 municipal
– 457, 409A non-qualified
– Taft-Hartley, Prevailing Wage
– MEP, MET
– 1081 (Puerto Rico)
• Defined Benefit Plans
— Mid-market traditional and
cash balance
— Small-market cash balance

6. Partner Conference 2014
BPAS Firm Profile
• VEBA/HRA
– Voluntary Employee Beneficiary Association/ Health
Reimbursement Accounts
• Funded post-retirement medical benefits
• Taft-Hartley (IBEW, USWA)
• Public Sector (Northwest Firefighters Association)
• UAW VEBA is the largest direct holder of GM stock (8.8%)
– Health and Welfare Benefits
• Actuarial valuation of post-retirement benefits other than
pensions, ASC715, GASB45

7. Partner Conference 2014
BPAS Firm Profile
• IRA
– EGTRRA Rollovers
• $5k cash-outs from DC AND DB plans
– Significant savings in DB related to admin and
PBGC expenses
• Orphan plan accounts (Dewey)
– Voluntary Rollovers
• Platform for Advisors for BPAS participant
clients

8. Partner Conference 2014
BPAS Firm Profile
• MyPlanLoan Administration
– Non-payroll deduct loan
administration for terminated
participants or active participants
where payroll deduction is not
available
– Reduce leakage amongst
participants who avail themselves
of a 72p transaction that is offered
in a prudent manner

9. Partner Conference 2014
BPAS Firm Profile
• Employee Benefit Trust Services
($16 billion)
– Collective Investment Funds
• Unitization of managed accounts
for use in multiple plans
• Transfer Agent, 3(38) status
• CIFs are available on all major
trading platforms

10. Partner Conference 2014
BPAS Firm Profile
• BPAS Trust Company of Puerto Rico
– Directed trustee for PR 1081 plans
• Participant directed DC
• Keogh (smaller P/S and MP plans
• Mid-market DB plans
• Small cash balance plans
– Market Leadership
• PR CPA society (CEU, Master Trust)
• PBGC, Mendez

11. Partner Conference 2014
BPAS Firm Profile
• BPAS Fiduciary Services
– 3(38) services to participant-direct DC plans sold and serviced
by registered representatives and directed trustees, neither
of whom provide a potentially desirable service for the plan
sponsor
– 3(38) services to cash-balance plans sold by
individuals/institutions that cannot provide discretionary
investment management services
– Under this model, BPAS Partners provide sales, relationship
management, participant education and plan consulting
services and receive 12(b)(1) or bp fee income

12. Partner Conference 2014
BPAS Firm Update
Community
Bank
System, Inc.
BPAS
Community
Bank, NA
CBSI/CBNA ranked as 4th best bank amongst top 100 publics in U.S. by Forbes in 2014
CBNA, is a regional bank with $7.4 B in assets and 190 facilities in Upstate, NY and NE, PA
BPAS is an autonomous business unit and a material segment of CBSI, operating as a
national practice

13. Partner Conference 2014
BPAS (Inc.)
BPAs, LLC
Daily Val. Plans
IRA
VEBA/HRA
MPL
HB&T Co.
Hand Securities
(Broker Dealer)
CIF Admin
Daily Val.
Custody
BPAS Fiduciary
Services
HCG, LLC
Actuarial
Services
H&W Consulting
Non Daily Val
DC
BPAS Trust Co.
of PR
Directed
Trustee
for Puerto
Rico Plans
The BPAS Organization

14. Partner Conference 2014
Strategies to Compete
• Defining Value in a crowded DC Provider Space
• Measuring plan level success
• Marketing the message
• Managing a profitable practice under 408(b)(2)
• Reducing Plan Leakage
– Retaining assets in the Plan
• Increasing Plan Participation and Savings Rates

15. Partner Conference 2014
Business Opportunities Beyond
401k/403(b)
• Cash Balance Plans
• VEBA/HRA
• Holistic Financial Planning
• Capturing IRA Rollovers

16. Partner Conference 2014
Regulatory Updates
• 408(b)(2) v2
• Expanded definition of fiduciary
• State initiatives, which potentially compete with private
sector offerings, intended to increase coverage
• Municipal bankruptcies and retirement benefits
• Act 40 Funds, CIFs and fiduciary liability

17. Partner Conference 2014
Contemporary Investment
Management Issues
• Stable Value Offerings
• QDIA
– Target
– Risk-based
• Participant Education
• Retirement Income Products
– Guaranteed income products
– Longevity Risk products
– Installment payment arrangements

18. Partner Conference 2014
Advocacy
• BPAS Appeal to Get Involved
• ASPPA
– American Society of Pension Professionals and Actuaries
• NAPA
– National Association of Pension Advisors
• http://savemy401k.com/
• PAC

19. Partner Conference 2014
Conclusion and Beginning
• Thank you for attending
• We look forward to your feedback
and opportunities for program
improvement
• We look forward to the continued
success and growth of our
partnership

20. Partner Conference 2014
Questions?
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21. Partner Conference 2014
Contact
Barry Kublin
President
BPAS
bkublin@bpas.com
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