Capabilities PresentationPrepared for:

Your Diocese By:

Philip C. BushnellJanuary 13, 2011

The Complex World

■The economy is in constant flux

■The political environment is changing

■Social Security and Medicare are no longer sure bets

■Americans have not saved enough for retirement

■Technology is driving new delivery possibilities

■Increased regulatory environment

■Healthcare costs continue to rise

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Diocese Benefits Program Challenges

■ Maintaining comprehensive packages because of increasing healthcare costs

■ Limited staff

■ Decentralized billing and payroll functions

■ Aging population with escalating health issues

■ Dealing with lack of marketplace understanding of differences between ERISA, church plan status and state regulation.

■ Maintaining a benefit plan that is in compliance with the “Ethical and Religious Directives for Catholic Health Care Services”

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■ Founded 1927■ Traded under NYSE symbol: AJG, since 1984■ 9800+ Employees

■Operations in 15 countries and network of correspondent brokers and broker consultants in more than 100 countries

■One of the world’s largest insurance brokerages■ Listed among Forbes’ Platinum 400 as one of the best big

businesses in America

Arthur J. Gallagher & Company

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■Full-range of employee benefit services

■Founded in 1961

■2000+ Employees in over 80 offices

■Recipient of 2010 Business Insurance Readers Choice Award for Best Employee Benefit Consultant

■Subsidiary of Arthur J. Gallagher & Co.

About GBS

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Mission■To build the best benefit service practice with brokers and consultants

who understand the value of building relationships and partnerships, trust, and inspiring confidence in our clients

■To provide superior, cost-effective benefit products and services with the highest professional excellence

■To measurably help our clients manage and grow their businesses

Values■Unwavering ethical standards and transparency

■Culture of honesty, integrity, and mutual respect

■The Gallagher Way

Our Mission & Values

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Key Consulting Service Areas

• Individual Investment Planning• Non-qualified Plans• Life Insurance and Disability

Planning• Estate and Wealth Transfer• Business Succession Planning

• Business Strategy Development• Strategic Plan Design• Workforce Planning• Compensation Design• Executive Compensation• HR Efficiency and Compliance

• Fiduciary Risk Mitigation and Management

• Qualified Plan Consulting• Non-qualified Plan Consulting• Institutional Investment Advisory

Services• Actuarial Services• Plan Design, Benchmarking,

and Monitoring• Compliance Assistance

• Multi-Year Financial Projections• Medical Management• Vendor Audits• Healthcare Informatics• Customized Benchmarking• Network Evaluation• Actuarial Consulting Software

• Strategic & Annual Planning• Vendor Marketing, Due

Diligence, & Negotiations• Benefit Plan Design &

Implementation• Administration Support• Compliance Support• Employee Communications• Wellness & Disease

Management

Retirement ServicesHealthcare Analytics

Human Resources

Health & Welfare

Executive Benefits

• Integrated Approach• Balanced with Core Offerings• Managed Implementation• Enrollment Capabilities• Education-based

Communication

Voluntary Benefits

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Strength in Numbers

Seattle

TacomaYakima

Larkspur

San Francisco

Pleasanton

EncinoLos Angeles

Orange County

Denver

Dallas (4)

Houston

Austin

Sioux City ChicagoItasca

Lake Charles

Baton RougeMetairie

Thibodaux

Oklahoma City

Springfield

Lafayette

St. Louis

Grand Rapids

Troy

Bingham Farms

Nashville

Atlanta

Alpharetta

Charlotte

Jacksonville

Tulsa

Orlando

Tampa

West Palm Beach

Boca RatonFort Lauderdale

Ambler

Philadelphia (2)

Boston (2)

Miami

PrincetonMarlton/Mt. Laurel

White Plains

Parsippany

New York

Fairfield

East Hartford

St. Clair Shores

Des Moines

Kansas CityFresno

Odessa

Minneapolis

Indianapolis

Garden City

SacramentoPittsburgh

Salt Lake City

Roosevelt

San Antonio (2)

Waukegan

Waco

Holladay

Rochester

Buffalo

Cranford

Coral Springs (2)

San Jose

Visalia

Milwaukee

The Woodlands

Ft. Worth

Searcy

Louisville

Syosset

Media

Sugar Land

Phoenix

Spencer

Houma

Dublin

St. Paul

*as reported in Business Insurance May 2010

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At Your Service

Your Diocese

Your Diocese

Mike DiCenso, Retirement

Scott Hamilton, Human Resources

Mike Thomas,Pharmacy

Jim Murray, Health & Welfare

Tony Hernandez,Technology

Mike Miele, Healthcare Analytics

Darla HerringAccount Coordinator

Rachel Meyers,Branch Manager

Arnie MunsonCompliance

Michael GormanUnderwriting

Phil BushnellArea VP

Angie TaylorAccount Manager

Sharon Foster, Compliance

Ali PayneWellness Consultant

Lynn KaminskySpecial Projects

Peter PersuittiReligious Practice

Group Leader

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Full-Service Approach

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Your Diocese

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GBS Viewpoints

• Customized and branded employee surveys

• Gauge employee satisfaction• Personalized e‐mail invitations to employees

• Multi‐lingual options• Supports multiple question types• Based on industry leading Vovicitechnology

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HCR PlannerLegislative UpdatesFinancial Impact Study

Healthcare Reform Consulting

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GBS Insider

• An online, comprehensive, and interactive reporting system

• Benchmark report designed to meet the needs of small to mid‐size GBS clients as well as national employers

• Cost and utilization data from over 40 different medical service categories

• Illustration of how your client’s plan performed relative to benchmarks

• Ability to assess where, how, and to what end healthcare dollars are being spent

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GBS Directions

GBS Directions is an electronic newsletter, which includes:•Monthly compliance newsletters•Technical Bulletins•National compliance webinars  

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GBS Insight

•HR Self‐Service – HReSource•Detailed plan information•HIPAA secure communications•Document management•Latest insurance news

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HReSource

HReSource is a powerful search engine and information repository powered by BNA that delivers human resource, employee benefits, compensation, risk management and safety, employment and regulatory issue information.

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Employee Communication Solutions

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Connect2MyBenefits

• Basic employee communication website

• Company intranet• Life events• Health news• Calculators

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SmartBen

• Basic employee communication website

• Company intranet• Life events• Health news• Calculators

■Over 200 religious clients■75 Gallagher advisors serving Houses of Worship, Faith-based Schools and

Colleges, Dioceses, Religious Orders, Denominations, Faith-based Hospitals and Nursing Homes, Related Nonprofit Entities

■Active participant in the Diocesan Fiscal Management Conference and the National Association of Church Personnel Administrators

■Working with faith-based organizations to overcome challenges, such as:– Maintaining comprehensive packages because of increasing healthcare costs– Balancing fiscal responsibility with intense public scrutiny– Overcoming a lengthy approval processes– Limited staff to handle decentralized billing and payroll function– Adhering to appropriate compliance and know the distinction between ERISA,

church plans and state regulation– Dealing with an aging population of employees with escalating health issues

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Gallagher Religious / Nonprofit Practice Group

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A Dedicated Partner

■ Innovative and proactive approaches ■ High-level consulting services■ Industry leading carrier RFP and selection process■ Experts in finance, legal and regulatory issues ■ Extensive technical and compliance resources ■ Day-to-day plan administration support ■ Strategic partnerships with service providers■ Committed to our client’s values and serving their needs■ Full revenue disclosure

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The Difference

Commitment to Excellence

Commitment to Excellence

Innovation & Creativity

Innovation & Creativity

Gallagher DifferenceGallagher Difference

Let Gallagher evaluate the effectiveness of your program

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Next Steps

Program Effectiveness Audits

Compensation AuditCompensation Audit

Workforce EvaluationWorkforce Evaluation

GBSInsiderGBSInsider

Payroll AuditPayroll Audit

Eligibility AuditEligibility Audit

Wellness Program AuditWellness Program Audit

Post Enrolled Plan Design AuditPost Enrolled Plan Design Audit

FAS 106FAS 106

GASB 45 AuditGASB 45 Audit

TPA AuditTPA Audit

Rx AuditRx Audit

Retirement Plan Forensic AuditRetirement Plan Forensic Audit

Executive Benefits Program AuditExecutive Benefits Program Audit

Employee Satisfaction SurveysEmployee Satisfaction Surveys

HR Policies AuditHR Policies Audit

Report to ManagementReport to Management