CONFIDENTIAL – NOT FOR DISTRIBUTION The Manning & Napier Fund, Inc. is managed by Manning & Napier Advisors, LLC (“Manning & Napier”). Manning &...

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Health Care ReformChanging the Health and Retirement Plan LandscapeCONFIDENTIAL NOT FOR DISTRIBUTIONThe Manning & Napier Fund, Inc. is managed by Manning & Napier Advisors, LLC (Manning & Napier). Manning & Napier Investor Services, Inc. and affiliate of Manning & Napier, is the distributor of the Fund shares.1History as a solutions provider

Holistic approach to meeting participant objectives

Investment solutions to drive outcomes

Deep bench of resources and subject matter expertise

Managing Risk Through Changing EnvironmentsManning & Napier: The Investment ManagerFounded in 1970$45.2 billion is assets under management as of 12/31/2012First objectives-based account in 1971Co-fiduciary status to actively manage asset allocation in separately managed accounts and collective investment trust fundsClient Analytics Group of over 20 analysts with approximately 200 years of combined industry experienceManning & Napier Advisors, LLC (Manning & Napier) provides investment advisory services to Exeter Trust Company, Trustee of the Manning & Napier Collective Investment Trust funds. The Collectives are available only for use within certain qualified employee benefit plans.#

Retirement Plan Shift

Poor Employee Retirement Savings ChoicesStrain EmployerBottom Line#Health and wealth have converged to create a savings and spending crisis.Employees and regulators look to employers to help.

3Health Plan Shift

Poor Employee Health Spending ChoicesStrain Employer Bottom Line#Health and wealth have converged to create a savings and spending crisis.Employees and regulators look to employers to help.

4Convergence of Health and WealthEmployers Cannot Afford to Wait.

HEALTH

WEALTH+#Health and wealth have converged to create a savings and spending crisis.Employees and regulators look to employers to help.

5Significance of 2014 Changing the Way Employers Approach Benefits Retirement regulation and health regulations on a parallel pathHealth Care Reform Accelerates ConvergenceImpactCost Impact for Some, Consulting Opportunity For All Retirement industry has a responsibility to help plan sponsors understand retirement plan implications to health decisionsOpportunity Call to Action Plan sponsors must partner with experts to help guide them through the uncertainty#Health Care Reform Timeline2014-2018Phase 2: Strategic ComplianceNew Options, Benchmarks, and Penalty Requirements

2010-2013Phase 1: Tactical ComplianceNew Coverage, Administrative, and Disclosure Requirements2010Passage of the Patient Protection and Affordable Care Act#2014: The New LandscapeBenchmarksPenalties

OptionsEmployer Sponsored Coverage

Public Exchanges

Expanded Medicaid

BenchmarksBroader Access

More Affordable Premiums (for lower earners, high health consumers)

Less Rich Benefits

PenaltiesIndividual Mandate

Employer Mandate (for Employers with 50+ full time employees)

Cadillac Tax #

Importance of a Holistic Benefits Perspective1. In 2014, do you plan to offer health plan coverage? Health ConsiderationHealth Care Reform cost impact

Retirement Implication Competitive total benefits offering

2. Are you making changes to administrative processes?3. Are health benefits part of your current executive compensation package?

Health Consideration Health Care Reform establishes new administrative requirements

Retirement Implication Health plan administration may differ from retirement plan administrationHealth Consideration Health Care Reform imposes new nondiscrimination requirements on health plans

Retirement Implication Competitive total executive benefits offering#9Health Plan Termination Drop Coverage Maintain CoverageThis prompts the question:Do you plan to drop or maintain health plan coverage?

Did You KnowCiting a Deloitte report published in June 2012, The Wall Street Journal reported that an estimated 1 in 10 employers will stop offering health coverage because of the new health care reform law.11Source: The Wall Street Journal. Deloitte: One in 10 U.S. Employers to Drop Health Coverage. 24 July 2012. Web.

#Health Plan AdministrationThis prompts the question:Have you evaluated your administrative procedures and processes to comply with health care reform requirements?

Did You KnowBeginning in 2014, employers that employed an average of 50 full-time employees during the previous calendar year must offer health coverage that meets minimum essential coverage requirements or pay a fine. The Joint Committee on Taxation estimates employers will pay $52 billion over 10 years in penalties for noncompliance.1 Yes No1Source: U.S. Chamber of Commerce. Critical Employer Issues in the Patient Protection and Affordable Care Act. Web. #Health Plan NondiscriminationThis prompts the question:Prior to health care reform have you used health benefits as part of your executive compensation package?

Did You KnowHealth Care Reform expanded the application of rules prohibiting health benefits discrimination in favor of highly compensated employees (HCEs). As a result, it is more difficult for employers to use health benefits as part of their executive compensation package.

Yes No#Total Outcomes StrategyAllocation of Benefits DollarsHealth Care Reform Impact may shift employer investment away from core health Reallocate Benefits Spend to enhance employer contribution to retirement, employee engagementTotal Rewards align benefits allocation with benefits valued by employeesPlan DesignCoordinate health and retirement incentives for holistic financial healthUse Plan Designs that facilitate behavior changes and maximize participant outcomesEmployee EngagementUnderstand Employee Demographics to nudge behavior in the right directionEmpower Employees to be better consumers of health care and save more

TotalOutcomesAllocation of Benefit DollarsPlan DesignEmployee Engagement#Manning & Napier Can HelpResourcesRead Manning & Napier White Papers available at www.manning-napier.com Helping Employers and Employees Navigate the Health/Wealth ConvergenceAn Evolving Landscape: Regulatory Impacts on Health/Wealth Choices

WebinarFor a more in-depth discussion on this, sign-up for our upcoming webinar at [email protected]

Partnering to Drive OutcomesOur investment solutions are designed to manage the real world risks facing plan sponsors and participants. To learn more about our solutions, talk to you retirement advisor or service provider.

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