**ProManage, LLC and ProManage Vision Methodology Document**

The ProManage Vision software along with the ProManage PROgram™ managed account service are designed to assist you in your retirement planning. Vision considers various savings and investment strategies which may help you achieve your retirement goals by analyzing hundreds of combinations of retirement levers and goals (savings rates, investment decisions, retirement age and retirement income). For each combination of these four retirement levers and goals, Vision determines the statistical likelihood that the strategy will fund the desired level of retirement income (along with annual post-retirement increases due to expected inflation) from retirement age through life expectancy.

The ProManage Vision investment and Monte Carlo models are based on generally accepted investment theories and mathematic formulas which use historic investment returns, correlations of different asset classes as well as other economic and non-economic assumptions. This document describes the approach used by Vision. In addition, the user is encouraged to also read the ProManage PROgram™ brochure and the ProManage, LLC ADV 2A brochure and ADV 2B brochure supplement. All documents and brochures can be found via links on the Vision website.

ProManage Vision uses information supplied by Concordia Plans, the plan(s) recordkeeper(s) and from you, as a participant of the retirement plan(s). Although we try to ensure the accuracy of this information, the official records of your employer, the plan sponsor(s) and the plan(s) documents supersede any participant, account or plan specific information shown in Vision and will control in case of any discrepancy or conflict. Each time you use Vision or its output, it is your responsibility to verify the accuracy and appropriateness of the inputs, assumptions and other information used in the analysis. You should also review all the information included on the tabs: Tradeoffs, Your Info and Your Assumptions.

Please note that your results may vary with each use of ProManage Vision and over time due to updates, plan data, participant input information or changes to the underlying Vision assumptions and historical asset data. If you choose to implement the results of your Vision analysis, it is advisable that you return to Vision periodically, no less than annually, to review the updated analysis and, if you choose, implement newer results. ProManage reserves the right to reset participant-entered data/information to the default settings if not updated within the past twelve months.

Remember, in choosing a particular savings and asset allocation strategy, you (whether as a participant or beneficiary) should also consider other assets affecting your individual situation, beyond your interest in the retirement plan(s) (for which data was supplied automatically to ProManage Vision by Concordia Plans and plan(s) recordkeeper). Other assets may include additional income and investments such as IRA investments, personal savings accounts, and interests in other qualified and non-qualified plans.

The ProManage Vision analysis assesses your probability of a successful outcome, using a range of retirement ages and income objectives, by performing calculations which analyze different combinations of when you may retire, how much income you may generate in retirement, how much you may save in the plan(s) for retirement, and how you may invest your retirement plan(s) assets. The range of possible scenarios is based on the assumptions set in Vision and from the preferences and data supplied by you. The result is a suggested savings and investment strategy that has a probability (referred to in Vision as “Chance of Meeting Your Goals”) of allowing you to retire at a specified age with a specific amount of income per year lasting for the period of your expected retirement. This can produce hundreds, even thousands of scenarios for Vision to analyze which may take some moments to reveal.

For each scenario, a probability calculation is performed using a Monte Carlo simulation which evaluates 1,000 possible investment outcomes per year from now through your life expectancy. A successful simulation is one where you have retirement funds available to support your retirement income needs at a stated level for this expected retirement period. In ProManage Vision, a successful simulation is one that results in at least a 90% probability (or chance) of meeting your retirement goals. In other words, at least 900 of the 1,000 simulated outcomes indicate you will have enough funds to carry you through your expected retirement. As with probabilities, the model can only provide you with an estimate to assist you in your retirement planning.

On the Tradeoffs tab, you can also set your acceptable ranges and the importance of the four retirement levers and goals. You can rate each from 1 to 5, where 1 is the least important and 5 the most. If, for example, you indicate a higher preference to retire earlier and save less, than to retire with more retirement income while taking less investment risk, then ProManage Vision will favor available scenarios with those outcomes, if available.

Each user starts with retirement levers and goals selected for you by ProManage Vision. Also, Vision assumes you do not have a preference among the four retirement levers and goals (e.g., assigns a neutral “3” score for each). These assumptions offer a starting point that does not require your input to generate Vision results. The Tradeoffs tab is where you can customize your retirement levers and goals and express their importance. Once you set your levers and goals and rank their importance, your inputs will be used to conduct all future Vision analysis until changed by you or they are reset to the Vision default values.

It is possible that no combination of retirement age, retirement income, savings, and investment strategy falling within the acceptable ranges will produce at least a 90% chance of meeting your retirement goals. When this occurs, ProManage Vision determines the highest possible retirement income that will produce at least a 90% chance of success within the acceptable ranges of retirement age, savings rate, and investment risk.

ProManage Vision also gives users a “What If” tool to analyze a retirement scenario selected by you for a specific retirement age, income, savings rate, investment portfolio and current salary level. The “What If” analysis will show you the chance of meeting your selected hypothetical retirement scenario. This tool can be found on the What If tab. Any hypotheticals you model on this tab will not carry over to any other tab.

In addition to the information on the retirement levers, goals and priorities as discussed above, ProManage Vision uses additional data and assumptions as discussed below.

Concordia Plans and plan recordkeeper(s) provide data automatically to ProManage Vision based on various records they maintain. This can include some or all of the following: your name; date of birth; gender; salary (prior year); account balance by fund investment; pre-tax, catch-up, Roth and after-tax savings rates; future investment direction (percent and fund elections); and other retirement plan benefits, such as pensions you have earned from your current employer.

If you have earned a retirement plan benefit in the Concordia Retirement Plan (CRP), ProManage Vision has included it on the Your Assumptions tab. The CRP is 100% employer-funded. The projected monthly income is reported by Concordia Plans and is calculated assuming continued employment at a participating LCMS ministry up until the retirement age of 67, a 2% annual salary increase and vested status. These general assumptions are used to estimate and may not reflect your specific employment situation or retirement plans. The Supplemental Retirement Account, the Retiree Medical Supplement and the Retirement Cash Account are not included in the displayed estimate.

In the Vision simulations, if eligible, a projected CRP benefit has also been included in the estimate of your projected income replacement at retirement, which assumes the current plan provisions will not change in the future, you continue to work at a LCMS ministry employer until retirement and your salary will increase each year at the wage increase rate(s) as discussed below. This estimate includes the Primary Retirement Benefit, the Supplemental Retirement Account and the Retirement Cash Account. It does not include the Retiree Medical Supplement.

Information about your current employer-sponsored retirement plan(s) used in ProManage Vision is based on the plan documents and the plan’s administrative practices. Vision assumes the current plan(s) provisions will not change in the future.

IRS regulations limiting the amount of contributions are maintained by Vision. The maximum percentage of salary that you may contribute to your plan also is governed by plan documents. Vision limits your contributions each year to the limit in your plan, or the applicable IRS limit, whichever is less. Vision projections increase IRS limits by an adjustment that approximates historical IRS practice.

If provided by your plan(s) and supplied to ProManage Vision, employer non-matching (profit sharing) contributions are the percentage of salary that your employer is estimated to make on your behalf each year without regard to any contributions you may make. If provided by your plan(s) and supplied to Vision, employer matching contributions are made by your employer based on your level of contributions. If employer contributions are discretionary, it may not have been included in the analysis since the employer is not obligated to contribute in any given year. Vision considers whether your plan(s) has set a maximum employer match. Some plans limit the dollar value of the match while others limit it to a specific employee savings percentage.

You may modify certain assumptions about you on the Your Assumptions tab. Life expectancy and a wage increase rate(s) are initially set to assumed values by ProManage Vision. Social Security benefits are estimated based on a formula that approximates the Social Security Administration’s online calculator using future dollars. Other outside retirement assets and pensions (from non-current employer sources) are initially set to zero.

Your life expectancy is determined from Social Security Life Expectancy at the 75th Confidence Level actuarial tables and is the age people of your gender and current age are expected to live with this assumption. Vision uses life expectancy to determine if you might have retirement funds available to support your retirement income needs at the stated level to this age. You can adjust the life expectancy age Vision assumes for you. For example, if you expect to live longer than the age shown, you would increase this age.

The wage increase rate(s) is the percentage by which your salary is assumed to annually increase during your working years. If you choose to make a new entry, it will used to annually increase your salary during your working years. For this analysis, ProManage Vision has used the following set of wage increase rates to project your salary to retirement based on your Roster Status. Note: These values are based on a 0.93% inflation rate

Annual Wage Increase Assumptions at Indicated Ages

Age Ranges	Ordained Ministers	Commissioned Ministers	Lay Workers
20 - 24	5.00%	5.00%	5.00%
25 - 29	5.00%	5.00%	4.75%
30 - 34	5.00%	5.00%	4.50%
35 - 39	4.50%	4.50%	4.25%
40 - 44	4.25%	4.00%	4.00%
45 - 49	3.75%	3.50%	3.75%
50 - 54	3.50%	3.25%	3.50%
55 - 59	3.00%	2.75%	3.00%
60 - 64	2.50%	2.50%	2.50%
65 and up	2.50%	2.50%	2.50%

Your monthly Social Security Benefit is estimated in future dollars for your “normal retirement age” (or your current age, if later), as defined by the Social Security Administration. It uses your date of birth, current salary and wage increase rate(s) to determine this estimate. In simulating results for different retirement ages, ProManage Vision adjusts the estimated “normal retirement age” payment to the retirement age being analyzed to approximate the adjustments performed by the Social Security Administration. You can input a new value but remember it should reflect the anticipated value at the time you start collecting from Social Security.

Retirement assets, pension benefits and annuity contracts from sources other than your current employer-sponsored retirement plans (i.e., the CRP and CRSP) already provided to ProManage Vision can be entered by you; for example, IRAs, or other retirement accounts you have with a prior employer. When your other retirement assets are included in the analysis, Vision assumes those assets will be invested like your CRSP account or the investment allocation suggested by Vision. If your other retirement assets will not be invested like that, Vision’s results will likely vary.

Pensions that you enter are amounts that you expect to receive from other employers or annuity contracts. Your entries will designate the name for the pension plan or contract, the life annuity monthly dollar amount you expect to receive as a life annuity, and the age the payment is to begin. You may also designate whether the payment will be automatically adjusted annually for inflation after you retire.

Investment assumptions include an inflation rate and a Capital Asset Pricing Model (CAPM) which specifies the investment rate of return, standard deviation (risk) and correlations for a prescribed set of asset classes.

The inflation rate used in the CAPM is 0.93%. And represents an estimate by which the cost of goods and services is expected to increase each year. ProManage Vision uses the inflation rate to estimate how much your retirement income must increase during retirement to keep pace with expected future inflation. The inflation rate is also used in the computation of IRS limits in future years, Social Security benefits and inflation-adjusted pension benefits. Since the forecast market returns are connected to the inflation rate used by Vision, you cannot change the inflation rate assumption.

The CAPM is a 10-year forecast of investment returns, standard deviation (risk) and asset correlations; it is generally updated once a year. The investment return and risk data are estimated based on independent investment professionals’ forecasts using historical data. This information is used in determining the risk of your current investments, the risk of potential suggested investments, and the potential returns in each year for each scenario simulated by ProManage Vision.

The CAPM reflects (1) an investment return assumption which is the average return an investment produces, (2) a risk assumption which is the standard deviation of investment returns and measures how widely returns can vary around the average return, and (3) a correlation assumption which determines the degree to which different types of investments move in tandem with each other.

The CAPM used in ProManage Vision is for asset classes not individual investments. The data includes a wide range of asset classes and investment styles and are intended to provide forward looking information for different asset classes. An asset class is a grouping of investments with similar characteristics like stocks of large U.S. companies or U.S. government bonds.

NOTE: ProManage Vision’s results are only estimates. Assumptions can be wrong. No model can guarantee that you will meet your retirement goals. The assumed drawdown of your plan assets during retirement in the model assumes you will only withdraw a monthly payment to provide the scenarios expected income replacement at retirement (including the annual increase for the estimated inflation). It does not contemplate any large or “one-time” withdrawals will be made during retirement. Models cannot consider all of life’s exigencies or everyone’s individual circumstances. Past performance is not a guarantee of future results. Neither ProManage, LLC nor the supplier of the capital market assumptions used in ProManage Vision make any representation or warranty of any kind as to the reliability, accuracy, or suitability of these assumptions for investment decisions.