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Press Release

RolloverSystems Achieves Milestones, Continues Aggressive Growth

(January 24, 2008) Charlotte, NC – RolloverSystems Inc. (RSI), a company that specializes in helping retirement plan sponsors optimize their plans, manage fiduciary responsibilities and reduce administrative burden and excess costs, achieved two significant milestones in 2007 that greatly benefited sponsors and participants.

First, RSI processed more than 112,000 plan participant transactions, double the number the company handled in 2006. Second, RSI succeeded in keeping nine out of every 10 participants invested in retirement. In aggregate, RSI processed approximately $2 billion in rollover transactions.

RSI’s ability to keep terminated participants invested in retirement counters industry trends that show a large percentage of participants typically cash out their retirement savings when exiting a plan. Of those participants that stayed invested in retirement by working with RSI, 5 percent moved to their new employer plan, 54 percent stayed in their existing plan, 13 percent opened up new IRAs, and 19 percent were automatic rollovers into IRAs. RSI processed 21,000 automatic rollovers in 2007 into safe harbor IRA’s.

RSI’s retirement center, which is staffed by specially-trained, licensed professionals and actively works with terminated employees to help them understand their retirement options, played an important role by providing access to a variety of retirement solutions and facilitating the retirement transaction for the employee.

“Increasingly, we’re finding that plan sponsors are concerned about the large number of terminated and low-balance accounts that their plans are carrying, as well as the propensity for participants to cash out rather than roll over when leaving the plan,” said Spencer Williams, CEO. “We’ve been able to demonstrate that, with our approach, plan sponsors can increase plan efficiency and save money, all while keeping their plan participants invested in retirement even as they roll out of the plan.”

Additionally, retirement plan advisors and third party administrators (TPAs) are becoming more cognizant of the benefits of optimizing their clients’ plan performance, added Williams. “Advisors and TPAs can use RSI’s capabilities to grow their own practice by segmenting the participant population by any account size they’d like, making it possible for them to preserve their relationship with participants with the highest account balances while outsourcing to RSI the job of supporting participants with lower account balances,” he said.

Optimizing retirement plan performance is taking on increased importance as a result of emerging trends in the workplace. As the workforce has become more mobile and automatic enrollment has become more popular, plan sponsors have been forced to deal with an increasing number of low-balance and terminated accounts, which can create a drag on overall plan performance and cost plans time and money.

RolloverSystems can help sponsors and their advisors address this phenomenon and enhance the efficiency of their plans through consolidation of active participant assets and removal of terminated accounts by:

  • Rolling in the assets of new participants, which can increase the plan’s average account balance;
  • Rolling out the assets of participants who are no longer employees, have low account balances, and/or can no longer be located, thereby reducing plan costs, eliminating headaches and managing fiduciary risk; and
  • Rolling over the assets of participants who are leaving the plan by providing them with a licensed independent, third-party service provider who will hold their hand throughout the rollover process and provide them with a choice of high-quality, low-cost IRAs.

By optimizing their plan performance, plan sponsors can enjoy streamlined administration, fewer headaches, higher average account balances, and plan cost savings.

For more information, visit www.RolloverSystems.com.

About RolloverSystems Inc.

Charlotte-based RolloverSystems, Inc. (RSI) is an independent provider of rollover services. Partnering with plan service providers, advisors and investment firms, RSI empowers plan sponsors to optimize plan performance by implementing rollover features that ease administrative burdens, reduce fiduciary liability, manage and improve costs, and help participants stay invested in retirement.