RecordkeeperDirect-Multifund 1 Better 401(k) to meet your ...

Focus:

Retirement plan services

RecordkeeperDirect?-Multifund

Advisor summary

Better 401(k)

plans are built

on solutions

focused on

client priorities.

RecordkeeperDirect-Multifund1 is a flexible retirement plan solution designed

to meet your clients¡¯ needs and to help you succeed on your own terms.

Compensation

? Meet the service needs of your plans: compensation flexibility

? Earn more in year 1 and get a raise in year 4: alternative compensation options

? Customize your fee-based arrangements: unit classes without 12b-1 fees

Investments

? Create diversified menus more easily: open architecture2 with target-date conversion

? Make it easier for participants to invest wisely: target date funds

? Meet risk-averse participants¡¯ needs: a guaranteed Fixed Account 3

Support

? Support fiduciary needs: independent ERISA 3(21)/3(38) investment services

? Help improve participant outcomes: on-site enrollment and education services

? Deliver valued service more effectively: resources, tools and service specialists

Pricing

? Know exactly what fees pay for: straightforward approach

? Show that price matters: flat-rate recordkeeping fees

? Win and keep more plans: automatic repricing

To sell RecordkeeperDirect-Multifund, which is offered through a group annuity contract, you

must be state licensed to sell insurance and appointed with the contract issuer, Great-West Life &

Annuity Insurance Company or, in New York, Great-West Life & Annuity Insurance Company of New

York. Georgia and Pennsylvania require pre-appointment before presenting RecordkeeperDirectMultifund to a prospect. For more appointment information, call (800) 421-9900.

2

Assumes sponsor selects standard conversion method, with opt-out option, by mapping to the

American Funds Target Date Retirement Series. If not, American Funds would serve as a core

manager and additional solution requirements would apply.

3

The Fixed Account is offered through a group annuity issued by Great-West Life & Annuity Insurance

Company or, in New York, by Great-West Life & Annuity Insurance Company of New York. The Fixed

Account provides a guarantee of principal and a guaranteed quarterly interest rate. The entire

general account assets of the insurer back these guarantees.

1

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so

they may lose value. However, assets in the Fixed Account (available only in RecordkeeperDirect-Multifund)

are guaranteed by Great-West Life & Annuity Insurance Company, Corporate Headquarters: Greenwood

Village, CO; or, in New York, by Great-West Life & Annuity Insurance Company of New York, Home Office:

White Plains, NY, and payments on investments are subject to the insurer¡¯s claims-paying ability.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is

contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be

read carefully before investing. For an investment offered through a group annuity, some of this information may differ and can be

obtained from a financial professional.

Multiple Perspectives. One Approach.SM

For financial professionals, third-party administrators and institutional consultants only

1

Compensation

Select a compensation plan

to support your service level

RecordkeeperDirect-Multifund provides eight unit classes and a flexible approach to

compensation. Choose a traditional option (See Option 1 in table below), which offers a

constant rate of compensation, or Option 2 for a higher upfront payout in the first year,

plus, something most providers won¡¯t offer: a raise in the fourth year.

$ 50,000

The American Funds difference:

More compensation

for your services1

Annual advisor compensation

40,000

30,000

20,000

10,000

0

2

4

Years

6

8

10

Advisor compensation

Option 1

1

This illustration shows total annual

advisor compensation for a hypothetical

RecordkeeperDirect-Multifund plan,

using Unit Class 4, with $2.5 million in

transfer assets and $250,000 in annual

contributions from 30 participants. It

also assumes an 8% average annual

total return and does not represent

the performance of any specific

investment. There is no guarantee that

an 8% average annual total return can

be achieved. Compensation is based

on the following alternative schedule:

0.75% on first-year contributions

(including transfer assets); 0.25% in

years 2 and 3, and 0.50% in year 4 and

beyond as asset-based compensation.

2

Unit class

1

2

3

4

5

6

7

8

2

Annual

0.75%

0.65

0.60

0.50

0.40

0.25

Paid separately; set by

fee-based advisor and plan

sponsor

Option 22

Year 1

Years 2¨C3

Years 4+

1.00%

0.40%

0.75%

Not available

1.00

0.75

0.50

0.20

0.25

0.20

0.60

0.50

0.40

Not available

First-year commission is paid on conversion and new contributions. Successive years¡¯ commission

is paid as asset-based trail. A commission chargeback may apply if within the first 24 months the

plan terminates, moves from RecordkeeperDirect-Multifund to another American Funds solution,

to another provider, or changes unit classes.

Investments

Investment flexibility and choice

to help build a diversified plan menu

RecordkeeperDirect-Multifund is an open architecture1 solution (with a standard

target date conversion) that offers investments from a large collection of well-regarded

managers, our American Funds Target Date Retirement Series?, and a Fixed Account 2

with a guaranteed interest rate.

¡°Few, if any, other

target-date series have as

many highly regarded

underlying holdings.¡±

?¡ª Morningstar

Target-Date Fund Series Report, 3/31/2013

The American Funds Target Date Retirement Series ¨C different by design

? Managed through retirement. The funds in the series are actively managed

30 years past the target retirement date.

? ¡°A glidepath within a glidepath.¡± We factor dividends into our target date equity

allocations. This enables us to maintain a substantial equity allocation (seeking to

improve results), while increasingly emphasizing dividend-producing equities

(seeking to reduce volatility) over time.

? Experienced managers. The average manager tenure for the underlying funds is

more than twice the industry average.3

? Competitive expenses. Underlying fund expenses are lower than the average of our

Morningstar? peers.

Although target date funds are managed for investors on a projected retirement date

time frame, the fund¡¯s allocation strategy does not guarantee that investors¡¯ retirement

goals will be met. American Funds investment professionals actively manage the

Target Date Fund¡¯s portfolio, moving it from a more growth-oriented approach to a

more income-oriented focus as the fund gets closer to its target date. The target date

is the year in which an investor is assumed to retire and begin taking withdrawals. Our

investment professionals continue to manage each fund for 30 years after it reaches its

target date.

Assumes the sponsor selects standard conversion method, with opt-out option, by mapping to

the American Funds Target Date Retirement Series. If not, American Funds would serve as a core

manager and additional solution requirements would apply.

2

The Fixed Account is offered through a group annuity issued by Great-West Life & Annuity Insurance

Company; or, in New York, by Great-West Life & Annuity Insurance Company of New York.

The Fixed Account provides a guarantee of principal and a guaranteed quarterly interest rate.

The entire general account assets of the insurer back these guarantees.

3

Source: Morningstar, 5/2012, based on investment prospectuses as of 12/31/2012

1

3

Support

Support to help your plans

run more smoothly

We offer support services and, along with the plan¡¯s third-party administrator, take on

much of the heavy lifting for the plan. We provide everything from educational literature

to online support ¡ª so you can focus your time on servicing the plan¡¯s other important

needs. Our support model includes:

Fiduciary services ¡ª independent, flexible, affordable and optional

? Flat-dollar fees based on participants, not assets

? Service delivered by an independent fiduciary

? Flexible program features

ucation

ducation services

American Funds makes available investment-related fiduciary services through Wilshire

Associates Incorporated for a low flat-dollar fee based on participants, not assets.

ERISA 3(21)

ERISA 3(38)

Nondiscretionary

investment advisor

Discretionary

investment manager

$ 300

$ 600

26¨C300

500

750

301¨C500

600

1,000

501¨C1,000

750

1,250

1,001+

1,000

2,000

Plan participants

1¨C25

Personalized sales and service

tools

ources

Participant education

Motivational education services

?

?

?

?

?

Prospecting and selling strategies

In-person assistance with finalist presentations

Targeted and powerful proposals

Information you need about our retirement plan solutions

Responsive and reliable ongoing plan service, including investment and plan reviews

Business-building resources

?

?

?

?

?

Personalized value propositions

A variety of unit classes and compensation rates

Customized plan proposals

Help with designing plan investment lineups

Hypothetical examples to address client concerns and encourage clients to

focus on the long term

? Support with plan reviews and reports

On-site and Web participant services

es

tanding by to help

? On-site assistance to educate participants and guide them through enrollment

? A comprehensive system of online, electronic and print literature to help encourage

employees to enroll in the plan, invest more wisely and make sound decisions when

leaving the plan

Resources and tools

Web-based resources

and tools

4

Pricing

Plan pricing to help you

win and keep more business

? Straightforward pricing. Your clients will

know exactly how much they¡¯re paying and

Gross annual recordkeeping fees

what they¡¯re paying for.

(standard ongoing fees)

? Flat-rate fees. Recordkeeping fees are

Base fee:

$2,500

based on the number of participants ¡ª

not plan assets. This means recordkeeping

Per participant:

50

cost won¡¯t increase as plan assets grow.

? Automatic repricing as assets grow.

RecordkeeperDirect-Multifund generates

a plan credit that offsets plan expenses, as illustrated below.

Net plan expenses as % of plan assets

1.30 %

1.20

The American Funds difference:

As assets rise, net plan cost falls1

1.10

1.00

$1,500,000

$2,500,000

$3,500,000

$4,500,000

$5,500,000

Plan assets

1

This illustration shows net plan cost (as

a % of plan assets) for a hypothetical

RecordkeeperDirect-Multifund plan

(Unit Class 4, 30 participants). Net plan

cost considers investment expenses

and plan-level recordkeeping fees/

credits ($2,500 plus a $50 charge for

each participant, offset by an asset-based

credit that varies by unit class). The

investment-related cost illustrated is for a

¡°sample¡± menu of investments available

in RecordkeeperDirect-Multifund with

an average expense ratio of 1.21%. The

expense ratios of all available investments,

as of each underlying fund¡¯s prospectus

available as of 12/31/2012, range from

1.04% to 2.24% for Unit Class 4. Expense

ratios reflect applicable fee waivers and

expense reimbursements, without which

expenses would be higher. A plan¡¯s actual

expense ratio depends on the investments

selected for the plan and participant

allocations.

Hypothetical example of a plan¡¯s annual pricing

? 30 participants

? $2.5 million in plan assets

2

Unit class

Gross annual

recordkeeping fee

1

$4,000

$11,250 / 0.45%

$(7,250)

2

4,000

8,750 / 0.35

(4,750)

3

4,000

7,500 / 0.30

(3,500)

4

4,000

6,250 / 0.25

(2,250)

5

4,000

5,000 / 0.20

(1,000)

6

4,000

3,750 / 0.15

250

7

4,000

3,750 / 0.15

250

8

4,000

0 / 0.00

4,000

?

Annual credit 2

Amount / Rate

=

Net recordkeeping

fee (credit)

Credits are based on plan assets and applied quarterly.

5

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