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BASIC INFORMATION 1. Why did I get this Notice? You have been identified as a trustee, sponsor, fiduciary or administrator of a 401(k) or 401(a) plan that now contracts or previously contracted with ILIAC for certain administrative services. This notice is being sent to current and former trustees, sponsors, fiduciaries, and administrators of employee pension benefit plans covered by the ERISA subject to Internal Revenue Code ("IRC") sections 401(a) or 401(k) that used ILIAC at any time from February 23, 2005 through February 7, 2013, pursuant to the terms of a group variable annuity contract or group funding agreement. You are receiving this Notice because you have a right to know about the proposed Settlement of a class action lawsuit in which you are a Class Member before the Court decides whether to approve the Settlement. Everyone who meets the following description is a Class Member: all administrators of employee pension benefit plans covered by the Employee Retirement Income Security Act of 1974 subject to Internal Revenue Code §§ 401(a), (k) with which ILIAC has maintained a contractual relationship based on a group annuity contract or group funding agreement and for which, since February 23, 2005 and until February 7, 2013, ILIAC has received revenue sharing payments (e.g., asset-based sales compensation, service fees under distribution and/or servicing plans adopted by funds pursuant to Rule 12b-1 under the Investment Company Act of 1940, administrative service fees and additional payments, and expense reimbursement) from any mutual fund, investment advisor or related entity. Excluded from the Settlement Class are Defendant, any administrators of employee pension benefit plans for which Defendant's directors, officers or employees are beneficiaries, all plan administrators of employee pension benefit plans with which Defendant had a contract and which were invested through Separate Account "C" and those members of the previously certified class that opted out of the certified class and which are identified in the Settlement Agreement as Excluded Class Members. This Notice summarizes the lawsuit, the Settlement, your legal rights, what benefits are available, who is eligible for them, and how to get them. The lawsuit is pending in the United States District Court for the District of Connecticut. It is known as Healthcare Strategies, Inc., et al. v. ING Life Insurance & Annuity Co., No. 3:11-cv-00282 (WGY)(D.Conn) and is brought against ILIAC. 2. What is this lawsuit about? On February 23, 2005, HSI filed a lawsuit against ILIAC, alleging that ILIAC had breached fiduciary duties under ERISA and engaged in prohibited transactions under ERISA by contracting with mutual fund companies to receive "revenue sharing" payments. On September 27, 2012, the United States District Court for the District of Connecticut (the "Court") certified a proposed class and on December 26, 2012, TDC was added as a party plaintiff and class representative. Following certain additional proceedings, notice of class certification and an opportunity to opt -out was provided to the certified class on July 12, 2013. The class definition was modified slightly with the agreement of the parties and a trial commenced in this Action on September 9, 2013. The trial with respect to liability concluded on October 3, 2013 and, to accommodate the Parties' continuing settlement discussions, the Court agreed not to rule on liability for a period of two weeks and then granted extensions of that time period so that the parties could continue and conclude their settlement discussions that resulted in this Settlement. ILIAC has denied and continues to deny any wrongdoing or liability, and would continue to vigorously defend the lawsuit if the proposed Settlement is not approved. 3. What is a class action lawsuit? In a class action lawsuit, one or more people called "class representatives" sue on their own behalf and on behalf of other people who have similar claims. One court resolves all the issues for all class members in a single lawsuit. HSI and TDC are the class representatives in this lawsuit. 1 122