Juniata CollegeRetirement Plan Update

Spring 2011

Presented By:

Jeffrey Savino

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Today’s Agenda

• Legislative changes impacting Juniata’s 403(b) Plan

• Review Retirement Plan Committee role

• 2011-2012 Education Plan

• Answer your questions

3

Legislative Changes

• Trend of Defined Contribution Plans- business failures drove legal changes.

• 1999 - the IRS audited 500 non-profit retirement plans. 100% of them were found to be out of compliance.

• 2004 – IRS proposed new regulations. Adopted in 2006; effective January 1, 2009

• Juniata now has legal and fiduciary responsibility for managing and monitoring the plan.

• Failure to comply could lead to significant penalties and/or immediate taxation of all benefits.

4

Juniata’s Objectives

• Identify changes necessary to meet the new fiduciary standards.

• Improve overall retirement plan services offered to participants by:

– Creating a more formal governance process.

– Providing improved and targeted education and tools available for individual retirement planning,

– Utilizing technology to streamline, automate and simplify plan administration for participants and the College,

– Maintaining significant investment choice.

5

Juniata’s Response

• Creation of the Retirement Plan Committee that reports to the Audit Committee of the College.

Retirement Plan Committee Members

Donald Braxton James Donaldson

Carole Gracey Christina Miller

Tracie Patrick Jeffrey Savino, Chairman

Gail Leiby Ulrich Robert Yelnosky

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Juniata’s Response

• Since it was created in 2010 we:

– Have met 6 times (the Committee will meet 4 times per year)

– Prepared an Investment Policy Statement

– Reviewed all current investment options

– Conducted Plan Audits with ParenteBeard

– Provided guidance on the upcoming communication and education campaign

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Investment Policy Statement

• Our Investment Policy Statement (IPS) provides the general investment goals and objectives for the Plan.

• Specific information in the document includes a description of the roles of all the service providers, the types of investments available, appropriate investment benchmarks to evaluate performance and the criteria used to either put a manager on a “Watch List” or terminate and replace them.

• A formal review of all investment managers and their performance is conducted at least semi-annually.

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Plan Audit Results

• Our plan was independently audited this year by ParenteBeard and we proved to be in good shape. Upon their advice/consultation, Human Resources will be coordinating having all employees complete a new retirement contribution election form.

• By having all new election forms, this will ensure we are making the most up-to-date, accurate employee contributions to the plan and comply with industry Best Practices.

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Core Fund Menu - Investment OptionsEQUITIES TICKER MULTI-ASSET TICKERVARIABLE ANNUITY VARIABLE ANNUITYCREF Equity Index Account N/A CREF Social Choice Account N/ACREF Global Equities Account N/A MUTUAL FUND CREF Growth Account N/A TIAA-CREF Lifecycle 2010 Fund TCLEX CREF Stock Account N/A TIAA-CREF Lifecycle 2015 Fund TCLIX MUTUAL FUND TIAA-CREF Lifecycle 2020 Fund TCLTXTIAA-CREF Equity Index Fund TIQRX TIAA-CREF Lifecycle 2025 Fund TCLFXTIAA-CREF Growth & Income Fund TRGIX TIAA-CREF Lifecycle 2030 Fund TCLNXTIAA-CREF International Equity Fund TRERX TIAA-CREF Lifecycle 2035 Fund TCLRXTIAA-CREF International Equity Index Fund TRIEX TIAA-CREF Lifecycle 2040 Fund TCLOXTIAA-CREF Large-Cap Growth Fund TILRX TIAA-CREF Lifecycle 2045 Fund TTFRXTIAA-CREF Large-Cap Growth Index Fund TRIRX TIAA-CREF Lifecycle 2050 Fund TLFRXTIAA-CREF Large-Cap Value Fund TRLCX TIAA-CREF Lifecycle Retirement Income Fund TLIRXTIAA-CREF Large-Cap Value Index Fund TRCVX TIAA-CREF Managed Allocation Fund TITRXTIAA-CREF Mid-Cap Growth Fund TRGMX TIAA-CREF Mid-Cap Value Fund TRVRX REAL ESTATE TICKERTIAA-CREF Real Estate Securities Fund TRRSX VARIABLE ANNUITY TIAA-CREF S&P 500 Index Fund TRSPX TIAA Real Estate Account N/ATIAA-CREF Small-Cap Blend Index Fund TRBIX TIAA-CREF Small-Cap Equity Fund TRSEX FIXED INCOME TICKERTIAA-CREF Social Choice Equity Fund TRSCX VARIABLE ANNUITY

CREF Bond Market Account N/AMONEY MARKET TICKER CREF Inflation-Linked Bond Account N/AVARIABLE ANNUITY MUTUAL FUND CREF Money Market Account N/A TIAA-CREF Bond Fund TIDRXMUTUAL FUND TIAA-CREF Bond Plus Fund TCBRXTIAA-CREF Money Market Fund TIEXX TIAA-CREF High-Yield Fund TIHRX

TIAA-CREF Inflation-Linked Bond Fund TIKRXGUARANTEED ANNUITY TICKER TIAA-CREF Short-Term Bond Fund TISRXTIAA Traditional Account N/A

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Core Fund Menu - PerformanceFund Name

FundCategory

MedMkt Cap

$MMBeta3 Yr

Tot Ret 3 Mo

Tot Ret YTD

Tot Ret12 Mo

Tot RetAnnlzd

3 Yr

Tot RetAnnlzd

5 Yr

Tot RetAnnlzd

10 Yr

% RankCat

12 Mo

% RankCat3 Yr

% RankCat5 Yr

% RankCat

10 Yr

StdDev3 Yr

Sharpe Ratio3 Yr

Manager Tenure

Expense Ratio

TIAA-CREF Large-Cap Value Idx Retire Large Cap Value 35,764 1.00 10.51 15.20 15.20 -4.67 1.01 - 13 55 55 - 26.41 -0.21 6.4 0.34

TIAA-CREF Large-Cap Value Retire Large Cap Value 27,876 1.08 11.83 17.94 17.94 -2.63 2.18 - 7 24 35 - 28.92 -0.12 8.1 0.77

CAI MF:Lg Cap Value Style Large Cap Value 42,576 - 10.44 12.65 12.65 -4.34 1.16 2.46 - - - - 24.99 -0.21 - 0.94

Russell 1000 Value 39,678 - 10.54 15.51 15.51 -4.42 1.28 3.26 - - - - 26.47 -0.20 - -

TIAA RASRA-CREF:Equity Index Large Cap Core - 1.03 11.44 16.46 16.46 -2.37 2.34 1.77 20 40 51 40 25.63 -0.12 - 0.38

TIAA RASRA-CREF:Stock Large Cap Core - 1.09 10.55 15.73 15.73 -2.69 3.13 2.47 23 45 35 22 27.33 -0.13 - 0.44

TIAA-CREF Equity Index R Large Cap Core 20,366 1.03 11.54 16.58 16.58 -2.22 - - 19 39 - - 25.58 -0.12 6.1 0.34

TIAA-CREF Growth & Income Retire Large Cap Core 39,651 0.94 10.62 12.90 12.90 -2.51 5.14 - 60 41 6 - 23.60 -0.14 5.8 0.77

TIAA-CREF S&P 500 Index Retire Large Cap Core 46,525 1.00 10.65 14.72 14.72 -3.10 2.00 - 30 51 54 - 24.85 -0.16 6.4 0.34

TIAA-CREF Social Choice Eq Retire Large Cap Core 22,968 1.03 11.11 15.55 15.55 -0.96 2.84 - 25 17 40 - 25.75 -0.07 6.3 0.47 CAI MF:Lg Cap Broad Style Large Cap Core 39,777 - 11.02 13.33 13.33 -3.01 2.48 1.38 - - - - 25.22 -0.15 - 1.00

S&P 500 46,203 - 10.76 15.06 15.06 -2.85 2.29 1.41 - - - - 24.91 -0.15 - -

TIAA RASRA-CREF:Growth Large Cap Growth - 1.01 11.40 14.99 14.99 -1.85 3.08 -1.06 47 52 51 71 25.64 -0.10 - 0.43

TIAA-CREF Large-Cap Gr Idx Retire Large Cap Growth 30,905 1.00 11.76 16.28 16.28 -0.79 3.41 - 37 38 45 - 25.41 -0.06 6.4 0.34

TIAA-CREF Large-Cap Growth R Large Cap Growth 37,365 1.00 10.04 12.82 12.82 -3.68 - - 72 72 - - 25.64 -0.17 4.8 0.77

CAI MF:Lg Cap Growth Style Large Cap Growth 35,734 - 11.52 14.38 14.38 -1.50 3.17 -0.45 - - - - 25.70 -0.10 - 1.00

Russell 1000 Growth 35,166 - 11.83 16.71 16.71 -0.47 3.75 0.02 - - - - 25.45 -0.05 - -

TIAA-CREF Mid-Cap Value Retire Mid Cap Value 5,094 0.95 12.11 20.86 20.86 -0.61 4.54 - 58 63 32 - 29.27 -0.05 8.3 0.81

CAI MF:Mid Cap Value Style Mid Cap Value 5,483 - 12.41 21.67 21.67 1.25 3.28 7.13 - - - - 27.86 0.02 - 1.18

Russell Midcap Value 6,219 - 12.24 24.75 24.75 1.01 4.08 8.07 - - - - 30.56 0.01 - -

TIAA-CREF Mid-Cap Growth Retire Mid Cap Growth 5,634 1.02 13.64 28.20 28.20 0.22 5.10 - 37 53 50 - 31.04 -0.02 4.6 0.79

CAI MF:Mid Cap Growth Style Mid Cap Growth 5,459 - 14.30 27.01 27.01 0.82 5.11 2.02 - - - - 29.49 0.00 - 1.24

Russell Midcap Growth 6,581 - 14.01 26.38 26.38 0.97 4.88 3.12 - - - - 30.45 0.01 - -

TIAA-CREF Small-Cap Blend Idx Retire Small Cap Broad 1,060 1.00 16.09 26.40 26.40 1.96 4.25 - 47 48 54 - 29.15 0.04 6.4 0.40

TIAA-CREF Small-Cap Equity Retire Small Cap Broad 1,074 0.98 15.42 27.21 27.21 2.61 3.55 - 39 42 64 - 28.81 0.06 6.1 0.84

CAI MF:Sm Cap Broad Style Small Cap Broad 1,251 - 15.73 26.10 26.10 1.88 4.62 6.82 - - - - 30.05 0.03 - 1.30

Russell 2000 996 - 16.25 26.85 26.85 2.22 4.47 6.33 - - - - 29.29 0.05 - -

TIAA-CREF International Eq Idx Retire International Large Cap Core 28,054 1.00 6.41 7.41 7.41 -7.15 2.25 - 62 42 46 - 30.94 -0.26 6.4 0.41

TIAA-CREF International Eq Retire International Large Cap Core 16,541 1.05 11.73 19.81 19.81 -7.45 3.88 - 1 49 11 - 33.04 -0.25 8.3 0.84

CAI MF:Intl Lg Cap Core International Core 33,062 - 6.73 8.10 8.10 -7.60 2.08 2.79 - - - - 30.91 -0.28 - 1.35

MSCI EAFE 34,558 - 6.61 7.75 7.75 -7.02 2.46 3.50 - - - - 30.96 -0.25 - -

TIAA RASRA-CREF:Global Equities World Stock - 1.00 9.14 12.24 12.24 -4.88 2.44 1.67 47 61 77 84 28.71 -0.20 - 0.46

CAI MF:Gl Equity Style Global Equity 31,678 - 8.19 12.09 12.09 -4.36 3.51 3.81 - - - - 27.41 -0.19 - 1.34

MSCI ACWI 33,323 - 8.82 13.21 13.21 -3.76 3.98 3.69 - - - - 28.66 -0.16 - -

Performance quoted is past performance and is no guarantee of future results.Data was obtained from Callan Associates as of December 31, 2010

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Core Fund Menu - PerformanceFund Name

FundCategory

MedMkt Cap

$MMBeta3 Yr

Tot Ret 3 Mo

Tot Ret YTD

Tot Ret12 Mo

Tot RetAnnlzd

3 Yr

Tot RetAnnlzd

5 Yr

Tot RetAnnlzd

10 Yr

% RankCat

12 Mo

% RankCat3 Yr

% RankCat5 Yr

% RankCat

10 Yr

StdDev3 Yr

Sharpe Ratio3 Yr

Manager Tenure

Expense Ratio

TIAA RASRA-CREF:Social Choice Balanced Allocation - 1.09 5.54 11.94 11.94 1.60 3.90 3.66 57 11 58 55 16.27 0.05 - 0.40

TIAA-CREF Managed Allc R Balanced Allocation - 1.19 6.11 13.29 13.29 -0.52 - - 33 78 - - 17.85 -0.07 4.8 0.68

CAAM:Risk Based Balanced - - 6.03 12.28 12.28 0.48 4.10 3.75 - - - - 17.10 -0.02 - 1.24

60% S&P 40% BC Agg Asset Allocation - - 5.86 12.12 12.12 1.14 4.08 3.53 - - - - 14.90 0.02 - -

TIAA-CREF Lifecycle 2050 Retire Target Date 2050+ - 1.01 9.81 15.03 15.03 -3.47 - - 45 61 - - 25.38 -0.17 3.2 0.71

Lipper:Mixed-Asset Tgt 2050+ Target Date 2050 - - 9.45 14.80 14.80 -3.17 1.86 - - - - - 26.35 -0.15 - 1.21

CAI Tgt Dt Idx 2050 - - 9.17 14.98 14.98 -1.78 3.69 - - - - - 24.00 -0.11 - -

TIAA-CREF Lifecycle 2045 Retirement Target Date 2045 - 1.00 9.72 15.10 15.10 -3.39 - - 50 74 - - 25.21 -0.17 3.2 0.72

Lipper:Mixed-Asset Tgt 2045 Target Date 2045 28,159 - 9.53 15.10 15.10 -2.30 1.55 - - - - - 25.54 -0.12 - 1.09

CAI Tgt Dt Idx 2045 - - 9.17 14.98 14.98 -1.78 3.69 - - - - - 25.07 -0.10 - -

TIAA-CREF Lifecycle 2040 Retire Target Date 2040 - 1.01 9.87 15.21 15.21 -2.92 2.68 - 33 65 29 - 24.98 -0.15 4.8 0.72

Lipper:Mixed-Asset Tgt 2040 Target Date 2040 28,349 - 8.96 14.64 14.64 -2.63 2.20 1.89 - - - - 25.57 -0.13 - 1.19

CAI Tgt Dt Idx 2040 - - 9.03 14.87 14.87 -1.62 3.74 4.08 - - - - 24.65 -0.10 - -

TIAA-CREF Lifecycle 2035 Retire Target Date 2035 - 1.04 9.70 15.02 15.02 -3.02 2.39 - 35 80 42 - 25.01 -0.15 4.8 0.72

Lipper:Mixed-Asset Tgt 2035 Target Date 2035 28,396 - 8.95 14.59 14.59 -1.96 1.90 - - - - - 24.62 -0.11 - 1.07

CAI Tgt Dt Idx 2035 - - 8.78 14.68 14.68 -1.42 3.80 4.14 - - - - 24.08 -0.09 - -

TIAA-CREF Lifecycle 2030 Retirement Target Date 2030 - 1.02 8.68 14.39 14.39 -2.75 2.36 - 34 73 52 - 23.45 -0.15 4.8 0.71

Lipper:Mixed-Asset Tgt 2030 Target Date 2030 71,744 - 8.00 13.61 13.61 -1.99 2.42 2.50 - - - - 24.03 -0.12 - 1.15

CAI Tgt Dt Idx 2030 - - 8.18 14.27 14.27 -1.10 3.93 4.21 - - - - 22.98 -0.08 - -

TIAA-CREF Lifecycle 2025 Retirement Target Date 2025 - 1.00 7.77 13.88 13.88 -1.82 2.77 - 38 71 42 - 21.30 -0.12 4.8 0.69

Lipper:Mixed-Asset Tgt 2025 Target Date 2025 23,890 - 7.50 13.43 13.43 -1.11 2.57 - - - - - 21.95 -0.08 - 1.04

CAI Tgt Dt Idx 2025 - - 7.31 13.66 13.66 -0.49 4.15 4.32 - - - - 21.21 -0.06 - -

TIAA-CREF Lifecycle 2020 Retire Target Date 2020 - 1.00 6.89 13.15 13.15 -0.99 3.17 - 35 58 40 - 19.17 -0.09 4.8 0.67

Lipper:Mixed-Asset Tgt 2020 Target Date 2020 23,202 - 6.17 12.26 12.26 -0.58 2.77 2.12 - - - - 19.86 -0.07 - 1.10

CAI Tgt Dt Idx 2020 - - 6.37 12.94 12.94 0.29 4.44 4.53 - - - - 19.03 -0.03 - -

TIAA-CREF Lifecycle 2015 Retire Target Date 2015 - 1.01 5.83 12.36 12.36 -0.14 3.58 - 38 48 33 - 16.97 -0.06 4.8 0.67

Lipper:Mixed-Asset Tgt 2015 Target Date 2015 22,135 - 5.63 11.53 11.53 -0.17 2.99 2.11 - - - - 17.90 -0.06 - 1.04

CAI Tgt Dt Idx 2015 - - 5.37 12.05 12.05 1.07 4.70 4.76 - - - - 16.70 0.02 - -

TIAA-CREF Lifecycle 2010 Retire Target Date 2010 - 1.03 4.90 11.53 11.53 0.57 3.78 - 30 50 41 - 14.79 -0.01 4.8 0.65

Lipper:Mixed-Asset Tgt 2010 Target Date 2010 22,070 - 4.67 10.77 10.77 0.60 3.62 3.53 - - - - 16.35 -0.01 - 0.99

CAI Tgt Dt Idx 2010 - - 4.31 11.04 11.04 1.80 4.89 4.96 - - - - 14.26 0.07 - -

TIAA-CREF Lifecycle Retire Inc Retire Retirement Income - 1.13 3.75 10.44 10.44 1.89 - - 44 50 - - 11.37 0.10 3.2 0.65

Lipper:Income Retirement Income - - 3.44 10.20 10.20 1.91 4.12 4.14 - - - - 13.16 0.08 - 1.17

40% S&P 60% BC Agg Asset Allocation - - 3.44 10.41 10.41 2.90 4.78 4.42 - - - - 9.95 0.21 - -

Performance quoted is past performance and is no guarantee of future results.Data was obtained from Callan Associates as of December 31, 2010

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Core Fund Menu - PerformanceFund Name

FundCategory

MedMkt Cap

$MMBeta3 Yr

Tot Ret 3 Mo

Tot Ret YTD

Tot Ret12 Mo

Tot RetAnnlzd

3 Yr

Tot RetAnnlzd

5 Yr

Tot RetAnnlzd

10 Yr

% RankCat

12 Mo

% RankCat3 Yr

% RankCat5 Yr

% RankCat

10 Yr

StdDev3 Yr

Sharpe Ratio3 Yr

Manager Tenure

Expense Ratio

TIAA-CREF High-Yield R High Yield Bond - 0.78 2.45 14.33 14.33 9.06 - - 42 14 - - 15.75 0.53 4.8 0.65

CAI MF:High Yield Style High Yield - - 3.38 14.14 14.14 8.06 7.29 7.50 - - - - 18.40 0.40 - 1.00

Barclays Capital High Yield Intermediate - - 3.28 14.47 14.47 9.91 8.58 8.40 - - - - 20.16 0.45 - -

TIAA RASRA-CREF:Bond Market Intermediate Term Bond - 0.91 -1.23 6.72 6.72 4.96 5.00 5.35 21 62 72 23 3.68 1.13 - 0.40

TIAA-CREF Bond Plus R Core Bond - 0.90 -1.08 8.09 8.09 5.02 - - 14 61 - - 4.57 0.93 4.8 0.60

TIAA-CREF Bond R Core Bond - 0.99 -1.30 6.64 6.64 5.14 - - 22 60 - - 3.87 1.12 7.1 0.60

CAI MF:Intermediate Style Intermediate Core - - -1.03 5.36 5.36 5.71 5.48 4.95 - - - - 4.17 1.12 - 0.80

Barclays Capital Aggregate Bond - - -1.30 6.54 6.54 5.90 5.80 5.83 - - - - 3.90 1.31 - -

TIAA-CREF Short-Term Bond R Short-Term Bond - 1.12 -0.58 4.51 4.51 4.08 - - 19 31 - - 2.57 1.28 4.8 0.55

CAI MF:Defensive FI Style Defensive Fixed Income - - -0.08 3.37 3.37 3.23 3.79 3.56 - - - - 2.69 0.90 - 0.60

Barclays Capital 1-3yr Govt/Credit - - -0.07 2.80 2.80 3.86 4.53 4.34 - - - - 2.02 1.52 - -

TIAA RASRA-CREF:Infl-Linked Bond TIPS - 0.92 -0.99 5.89 5.89 4.46 4.83 6.57 44 49 46 36 5.54 0.66 - 0.40

TIAA-CREF Inflation Link Bd R TIPS - 0.92 -1.04 5.79 5.79 4.32 - - 51 55 - - 5.57 0.63 2.4 0.59

Lipper:TIPS Funds TIPS - - -0.96 5.82 5.82 4.44 4.81 6.30 - - - - 5.66 0.63 - 0.75

Barclays Capital US TIPS - - -0.65 6.31 6.31 4.97 5.33 7.02 - - - - 5.95 0.70 - -

TIAA RASRA-CREF:Real Estate Acct Real Estate - 0.06 5.69 13.29 13.29 -11.04 -1.80 3.32 100 98 90 97 12.38 -0.96 - 1.06

TIAA-CREF Real Estate Sec Retire Real Estate 5,335 1.00 8.41 30.73 30.73 -0.14 1.95 - 12 57 64 - 41.55 -0.02 5.1 0.84

Lipper:Real Estate Real Estate 6,528 - 6.97 27.43 27.43 0.15 2.47 9.86 - - - - 41.96 -0.02 - 1.41

DJ US Real Estate - - 6.99 26.93 26.93 -0.17 1.99 9.66 - - - - 41.45 -0.02 - -

TIAA Traditional Account (GSRA) Cash & Equivalents - - 0.74 3.00 3.00 3.89 3.74 5.19 1 1 1 1 - - - -

TIAA Traditional Account (RA) Cash & Equivalents - - 0.99 4.00 4.00 4.64 4.50 5.79 1 1 1 1 - - - -

TIAA Traditional Account (SRA) Cash & Equivalents - - 0.74 3.00 3.00 3.89 3.74 5.19 1 1 1 1 - - - -

Lipper:Instl Money Mkt Taxable Money Market - - 0.01 0.04 0.04 0.99 2.54 2.32 - - - - 0.64 0.30 - 0.42

Citi 90 Day T-Bill - - 0.04 0.13 0.13 0.69 2.30 2.26 - - - - 0.45 -0.22 - -

TIAA RASRA-CREF:Money Market Cash & Equivalents - 0.89 0.00 0.00 0.00 0.84 2.41 2.22 94 71 66 67 0.62 0.08 - 0.38

TIAA-CREF Money Market R Cash & Equivalents - - 0.00 0.00 0.00 - - - - - - - - - 11.1 0.40

Lipper:Instl Money Mkt Taxable Money Market - - 0.01 0.04 0.04 0.99 2.54 2.32 - - - - 0.64 0.30 - 0.42

Citi 90 Day T-Bill - - 0.04 0.13 0.13 0.69 2.30 2.26 - - - - 0.45 -0.22 - -

Performance quoted is past performance and is no guarantee of future results.Data was obtained from Callan Associates as of December 31, 2010

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Education and Communication Program

• A formal education plan is being developed. It will include:

– Using the TIAA-CREF website

– What new employees should know about saving for retirement

– Holding a “Lunch and Learn” panel discussion with recent retirees

– Encouraging participation in an upcoming survey to be developed by the Committee to determine future educational needs.

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Questionand

Answer Session

15

Participant Action Steps

• Get informed.

• Visit the HR website for Questions, Answers and related materials at: http://www.juniata.edu/services/hresources/benefits/retirement.html

• If you have questions or comments about the retirement plan, please send them to: Gail Leiby Ulrich at ulrichg@juniata.edu

• This presentation and many other materials are available at: http://www.juniata.edu/services/hresources/benefits/retirement.html

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Disclosures

Cornerstone Advisors Asset Management, Inc. has exercised reasonable care in the preparation of this presentation. Several portions of this presentation are obtained from third party sources. While we have attempted to verify all

information within, we disclaim all responsibility for any errors that may occur due to third party information and data.

The information is provided solely for informational purposes and therefore should not be considered an offer to buy or sell a security. Except as otherwise required by law, Cornerstone shall not be responsible for any trading

decisions or damages or other losses resulting from, this information, data, analyses or opinions or their use. Please read the prospectus carefully before investing.