Chapter Seven Highlights - TA-Retirement

1 Transamerica Signature Service 1105

Chapter Seven Reports Chapter Seven Highlights Transamerica wants you to have all the information you need to administer your retirement plan. We also want your employees to have important information that is relevant to their retirement plan accounts. This is why we have created various reports, summaries, and statements for you and your employees. Some of these communications are mailed either quarterly or annually and describe either plan activity or Participant account activity. This chapter provides brief descriptions of these communications.

Contents Page 7.1 Participant Statements 2-6

7.2 Quarterly Plan Summary Report 7-10

7.3 Activity Statement 11

7.4 Annual Account Statements 12


7.1 PARTICIPANT STATEMENTS

Participant statements are mailed to the Participants on a quarterly basis (mailed within 15 business days after the end of the plan quarter). A sample statement is shown on the following pages.

Participant Statement Information The following information is included in the Participant statement:

❏ Summary of All Contribution Activity

❏ Summary of All Funds

❏ Participant's Total Account Balance as of the Quarter-end Date

❏ Vested Balances

❏ Activity During the Quarter

• By Investment Option

• By Contribution Type

Reading the Participant Statement The Account Summary provides activity by the type of account. There is an account type for each different kind of contribution to the account.

Account Types ❏ Employee 401(k) Account—Any pre-tax employee

contributions made to the plan. (Also referred to as employee deferrals.)

❏ Employer Matching—Contributions that the employer makes to the plan, if any, to match the pre-tax employee contributions.

❏ Rollover—Rollover contributions accepted under your plan document made from other qualified retirement plans or from a rollover/conduit IRA.

❏ Employer Contribution—All employer non-matching (profit sharing) contributions.


7.1 PARTICIPANT STATEMENTS CONT. Account Activity

❏ Beginning Balance — The beginning balance of each type of account for the statement period.

❏ Contributions — The amount paid into each type of account (as described above) during the statement period.

❏ Gain/(Loss) — The amount of gain on the investments, including the interest paid on loan principal, or loss on the investments during the statement period.

❏ Loans — Money that a Participant withdraws from a designated fund for the purpose of a loan will be shown in this column.

❏ Withdrawals — The money withdrawn from each account type during the statement period.

❏ Transfers/Other — Money the Participant has transferred between funds during the statement period. Money that is transferred out of a fund is shown in parentheses to indicate a reduction or decrease. Money transferred into a fund, including any repayment of loan principal, is shown as an increase.

❏ Ending Balance — The ending balance of each account type for the statement period.

❏ Vested Percentage — The portion of each account that the Participant fully owns, expressed as a percentage. The total vested balance is determined by adding the values of the vested percentage in each account. A Participant is always fully vested in an Employee 401(k), Rollover, and After-tax Accounts. Employer Contribution and Employer Matching Accounts vest according to a set schedule specified in the Adoption Agreement or Plan Document.

The Fund Activity section shows activity by Investment Fund. In this section the Activity column for with-drawals also includes loans and transfers.


7.1 PARTICIPANT STATEMENTS CONT.

❏ Forfeiture — A negative amount represents the unvested portion of each account type that has been forfeited. The portion is forfeited if the Participant separates from service, takes a distribution, or incurs a break in service, before becoming fully vested in the plan. A positive amount shows an increase for the Participant’s allocated share of other Participants’ forfeitures, if your plan provides for forfeitures to be reallocated to remaining Participants.

❏ Vested Balance — The total vested value that a

Participant has in each fund as of the last day of the statement period.

For more information about Fund Performance, see the section entitled ‘Important Notes.’ For a more detailed description of any of the above terms, see your plan’s Summary Plan Description. Verification of Statement Accuracy Please remind Participants to review statements for accuracy of reported information. If there are reporting errors, Participants should provide Transamerica with written notification within three weeks from the date the statement was mailed. If notification of an error is not received within the three-week timeframe, the statement will be deemed complete and accurate.

Please remind Participants to review statements for accuracy of reported information. If there are reporting errors, Participants should provide Transamerica with written notification within three weeks from the date the statement was mailed. If notification of an error is not received within the three-week timeframe, the statement will be deemed complete and accurate.


The Sample Company 401(k) Plan BEGIN GAIN/ END BALANCE CONTRIBUTIONS LOSS LOANS DISTRIBUTIONS OTHER BALANCE 35,167.75 786.08 -488.10 688.70 238.65 36,393.08

ACCOUNT 21020117 REPORTING PERIOD

FROM 01-01-2002TO 03-28-2002

John Doe 123 Main St. Anywhere, CA 99123


The Sample Company 401(k) Plan John Doe

Current Account Balance Future Contributions

F1 - TI AIM INTERNATIONAL EQUITY FUND F2 - TI MFS CAPITAL OPPORTUNITIES FUND F3 - TI PBGH TECHNOLOGY & COMMUNICATIONS FUND F4 - TI PUTNAM VISTA FUND

F5 - TRANSAMERICA BOND FUND F6 - TRANSAMERICA HIGH YIELD BOND FUND F7 - TRANSAMERICA GROWTH OPPORTUNITIES FUND F8 - STABLE VALUE FUND F9 - TRANSAMERICA CORE EQUITY FUND

Information about the plan or your account View daily -updated account balances and make requests at www.TA-Retirement.com For other plan information contact Transamerica Participant Call Center (ext.6)

Fund Performance Notes • The fund formerly named Transamerica Small Company Fund is now Transamerica Growth Opportunities fund. • The fund formerly named Transamerica Value Fund is now Transamerica Core Equity Fund. • Performance shown on "Fund Performance" is total Separate Account Returns, net of the Investment Management charge

and of aggregated Administrative Charges which vary by investment account class. There are no Investment Management or Administrative charges applicable to those funds beginning with "TI." Application of the Contract Asset charge and any discontinuance charges or service fees deducted from the account would reduce this return.

• Performance for the Transamerica Equity Fund prior to October 1992 is for Separate Account Fund T-1, which has the same investment adviser, strategies and policies as the Equity Fund.

• The Transamerica Cash Management fund has no Administrative Charges and its return is annualized based on actual number of days.

• The Transamerica Balanced Fund contained a waiver of Investment Management and Administrative Charges on the fund through March 31, 1994. Performance since April, 1994 is total fund returns net of the Investment Management Charge and of aggregated Administrative Charges which vary by investment account class.

• The Transamerica Equity Index Fund is not affiliated with, sponsored, endorsed, sold or promoted by Standard and Poor’s Corporation.

• The Transamerica High Yield Bond Fund had an inception date of September 1, 1990. Since June 30, 1998 the separate account has been investing exclusively in the Transamerica Premier High Yield Bond Fund, a mutual fund. The mutual fund is managed in a substantially similar way in all material respects as the separate account was by Transamerica Investment Services.

• The TI Mutual Qualified Fund historical return prior to November 1, 1996 is based on the performance of the Z class shares of the underlying mutual fund, but is recalculated using all fees and expenses for class I shares.

• Neuberger & Berman Genesis Trust® started operating in August 1993. It invests in the same portfolio as Neuberger & Berman Genesis Fund®, which is also managed by Neuberger & Berman Management Inc®.

• Investment options that start with "TI" are Transamerica Life Insurance Company Separate Accounts that invest exclusively in the mutual fund indicated and were all first offered in 1999; historical performance prior to the Separate Account inception is calculated utilizing actual past performance for the underlying mutual fund.

• Past performance is not a guarantee of future performance. An investment in these Separate Account Funds is subject to market risk and an investor may experience loss of principal.


7.2 QUARTERLY PLAN SUMMARY REPORT

The Quarterly Plan Summary Report provides a compilation of plan activity, including details about Participant balances, contributions, and withdrawals. Quarterly Plan Summary Report Information The following information is included in the summary:

❏ Participant information appears alphabetically, by the Participants’ last names

❏ Participants with account balances appear on this report, even if there was no activity in their account during the quarter.


SAMPLE Participant Account Summary Report SAMPLE COMPANY, INC. 401(k) PLAN DATE 10-08-20002 INVESTMENT ACCOUNT CODES AND NAMES TRANSAMERICA : TRANSAMERICA STABLE VALUE FUND #93137 TRANSAMERICA : TRANSAMERICA BOND FUND #93137 TRANSAMERICA : TRANSAMERICA BALANCED FUND #93137 TRANSAMERICA : TRANSAMERICA EQUITY INDEX FUND #93137 TRANSAMERICA : TA AIM CONSTELLATION FUND #93137 TRANSAMERICA : TRANSAMERICA TEMPLETON FOREIGN FUND #93137 TRANSAMERICA : TRANSAMERICA CASH MANAGEMENT FUND #93137


7.3 ACTIVITY STATEMENTThe Activity Statement includes a summary of plan activity through the plan quarter or year.

Activity Statement Information The following information is included in the statement:

❏ Activity Summary ❏ Investment Funds Performance ❏ Portfolio Value ❏ Deposits ❏ Plan Contributions ❏ Miscellaneous Contributions ❏ Transfers In ❏ Transfers Out ❏ Termination Benefits ❏ Charges and Fees

Statement Frequency This statement is mailed to you on a quarterly basis. If requested, an annual activity statement is provided.


7.5 ANNUAL ACCOUNT STATEMENTS

Annual Activity Statement The Annual Activity Statement is available within 2 months after the plan year-end. A copy of the statement is provided to your auditor upon request. It is produced to assist with plan year-end compliance testing, reporting, and audits. This statement contains the same information as the Activity Statement. The difference is that the Annual Activity Statement is based on an entire plan year as opposed to a quarter.

Annual Investment Summary This statement includes a summary of plan activity for the plan year, as well as details regarding Participant activity, account balance information, contribution, and distribution activity.

Chapter Seven Highlights - TA-Retirement

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