health. wealth. life. Spring 2013

11 REASONS TO HIRE A RETIREMENT PLAN ADVISOR | 8 |

Health Management The HORAN Way | 4 |

Life Insurance Shines Bright | 11 |

In Pursuit of What Matters Most.

- Addison McKee- Dayton Society of Natural History (Boonshoft Museum)- Sheakley Group of Companies- Suburban Pediatric Associates, Inc.- United Way of Greater Cincinnati- Connect Call Global- J&N Auto Electric

- The HealthCare Connection- Ameridian Specialty Services, Inc.- Kenwood Country Club Inc.- itelligence, Inc.- ProScan Imaging- Reladyne- Tedia Company Inc.

PAGE 3 – A Letter from Terry Horan, President and CEO

PAGES 4 & 5 – Meet HORAN’s Health Management Leader, Carol King

PAGE 6 – Health Care Reform - By the Numbers

PAGE 7 – Unraveling the Mystery of Social Security

PAGE 8 – 11 Reasons to Hire a Retirement Plan Advisor

PAGE 9 – Market Insights from HORAN Capital Advisors

PAGE 10 – Q & A with Washington Political Analyst Andy Friedman

PAGE 11 – Why Life Insurance Is Crucial for You and Your Family

PAGE 12 – HORAN in the Community

PAGE 13 – Terry Horan Joins AALU Board of Directors

PAGES 14 & 15 – Client Spotlight: Greenville Technology, Inc.

Please join us in welcoming our new corporate clients!

Spring 2013C O N T E N T S

March 27

2013 Retirement Plan Updates

April 2Health Care Reform Seminar:Counting Employees, Measurement Periods, Pay or Play

April 30Health Care Reform Seminar:General Timeline, Taxes and Fees

May 28Small Business Roundtable

June 11Health Care Reform Seminar: Benefits of Self-Funding in a Reform Environment

E D U C AT I O NC A L E N D A R

| 2 |health. wealth. life.

Cover: Human Spirit, by James Berry, adorns the walls of HORAN’s corporate headquarters in Cincinnati. The bronze sculpture was acquired from the Miller Gallery in historic Hyde Park Square.

For more information on upcoming education, visit www.horanassoc.com

A l

ette

r fr

om T

erry

Hor

anIn Pursuit of What Matters Most.

It is with great pride that I welcome you to the inaugural issue of health.wealth.life.

More than a magazine title or tagline, health.wealth.life. captures the spirit of how we conduct business at HORAN. Our 87 employees rally around two of the biggest challenges facing America today: obtaining access to quality, health care and securing professional counsel to build wealth and sustain it for a lifetime. We believe good health and sustainable wealth create a better quality of life for our clients and their families. At HORAN, we’re in the business of health, wealth and life.

Over 400 companies in the region look to us for guidance on their employee health benefit needs. Individuals and companies utilize our resources to stay on top of health care reform compliance and turn to HORAN for guidance to impact their health care costs by engaging in health management. In this issue we’ll introduce you to our new health management leader, Carol King, as we continue to lead in investment and innovation in this most critical area.

For more than 65 years, we have provided retirement accumulation products for individuals and corporations. Today, our wealth management practice is rapidly growing with over $1 billion in financial assets under management. I believe you’ll enjoy the insights of two associates, Karl Diebold and Michael Napier, on the importance of retirement and financial planning.

HORAN also provides life insurance solutions to many individuals and companies in the surrounding region. At this time we estimate the combined face amount of insurance coverage for our clients exceeds $1.5 billion. On page 11, you’ll see why we believe life insurance is so crucial for our clients and their families.

We hope you enjoy the wide and varied content in the Spring issue of health.wealth.life. and welcome your thoughts and suggestions. Please call or e-mail anytime.

Yours in pursuit of what matters most,

Terence L. Horan, CLU, ChFCPresident and CEO of HORANTerryH@horanassoc.com

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health. wealth. life.

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“ ”One thing that is apparent about the future of health care is the significant change the industry will undergo in the near future. As the Patient Protection and Affordability Care Act (PPACA) is rolling out over the next few years, employers quickly need to make significant decisions about their employee benefits. Many employers are looking for guidance in the decision-making process and are looking for the best ways to control the cost of health care while providing attractive and competitive health plan offerings to their employees.

In response to employers’ new needs, HORAN created the Health Management Leader role and hired Carol King, RN, MSN, MBA, NEA-BC, FACHE, to lead the HORAN Health Management Way. Carol works directly with clients to create customized wellness plans built around their specific organizational and employee needs. She utilizes the HORAN Health Management Way to

provide a focused, strategic approach to help clients manage and improve their employees’ health to positively control the cost of health care.

“The use of health management to address high claimants and the health factors impacting claims is essential for reducing the rising cost of health care,” said Terry Horan, President and CEO of HORAN. “Health management has shifted from being an add-on component of benefits plans to one requiring a strategic action plan. We will be there to help our clients understand how to implement a wellness plan that achieves measurable outcomes.”

Carol comes to HORAN with over

35 years of clinical and executive experience from the region’s leading health care organizations. Her nursing background paired with business knowledge gained from hospital operations and patient care leadership, allows for an understanding of health management from the viewpoint of both the individual employee and the employer.

Carol’s role as HORAN’s Health Management Leader will allow her to help individuals and companies by simultaneously motivating employees and building business strategies. Her three fold client approach provides employers with practical insights for customized solutions, recommendations

– Carol King, HORAN Health Management Leader

By learning and sharing best practice solutions, we can influence lifestyle conditions

that impact bottom-line results.

Carol King Joins HORAN to Lead theHealth Management Way

health

Health ManagementThe HORAN Way

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| 5 |

and strategies to help them execute and achieve measurable outcomes related to employee health and their health care costs. She will help clients navigate through all of the options, programs and vendors to recommend the best service based on their business needs and desired outcomes.

“My role at HORAN allows me to consult with companies to develop client -specific strategies focused on improving employee health and well-being,” said Carol. “Business success depends on the work performance and productivity of its employees. By learning and sharing best practice solutions, we can influence lifestyle conditions that impact bottom- line results.”

Carol earned a Bachelor of Science in Nursing from the College of Mount St. Joseph, a Master of Science in Nursing Administration from the University of Cincinnati College of Nursing and Health and a Master of Business Administration from Xavier University Executive MBA Program.

Wellness is a key focus area for HORAN and we will continue to be leaders in investment, innovation and expertise to help clients achieve their wellness strategies and goals.

Carol King, RN, MSN, MBA, NEA-BC, FACHEHealth Management Leader513.745.0707 CarolK@horanassoc.com

Healthy Habits

123

FooducateFree for iPhone, iPad and Android

A user-friendly food scanner and diet tracker that grades your food (A+, B-, C, etc.) based on nutritional factors. This app provides a complete nutritional breakdown as well as healthy advice.

Sleep CycleFree for iPhone and Android

Our brain rotates through cycles as we sleep and according to science, we are well-rested if we wake at the end of a cycle. This app can be set to Fixed Wake-Up or to Sleep Now, and both offer optimal suggestions for waking or going to sleep so you will wake at the end of a cycle.

Stress CheckFree-Upgrade available ($1.99) for iPhone and Android

An easy and innovative tool for checking stress levels by placing your fingertip over the flash and lens of the camera on your phone. Provides stress facts while using your heart rate to measure stress levels. Maintains a log of all stress checks, allowing the user to note time of day, week or month when stress levels are higher or lower.

Download Your Way to Healthy

Health ManagementThe HORAN Way

| 4 |

Employers with 25 or fewer employees are eligible for small employer tax credits. After 2014 tax credits are only available in exchanges.

An employer must have at least 50 employees and/or full-time equivalent employees to be considered a largeemployer and subject to employer mandate penalties.

Employees working 30 or more hours per week are considered full-time under health reform.

Maximum waiting period an employer can impose before benefits begin is 90 days, effective January 1, 2014.

Applicable per employee penalty is $2,000 on large employers for failure to offer group health coverage to employees, effective 2014 (aka Employer Pay or Play).

Applicable per employee penalty is $3,000 for failure to offer affordable coverage to employees, effective 2014 (aka Free Rider).

Employee contributions must be less than 9.5% of household income. Otherwise coverage is considered unaffordable and large employers may be subject to penalty.

60% excise tax penalty paid by insurance companies and employers for high cost health insurance plans exceeding $10,200 single and $27,500 family, in 2018.

25 employees

50employees

30 hours

90 days

$2,000

$3,000

9.5%

60%By

the

num

bers

.

health. wealth. life.

Shelly Hodges-Konys, CBCBenefits Consultant

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healthAs the health benefits landscape continues to shift due to the Patient Protection and Affordable Care Act (PPACA), HORAN proactively guides our clients to the best possible solution for their unique business situation. Knowing the changes needed over the next several years in advance provides clients the time to be strategic in their benefits planning. It also provides clients the opportunity to address financial concerns and communicate effectively with their employees.

At HORAN we have dedicated health care reform specialists available to help you navigate the new rules and regulations. We offer intensive decision-making support and have in-depth expertise with employers of all sizes — small businesses (fewer than 50 employees), midsize businesses (50-100 employees) and large employers (more than 100 employees). Below is a sampling of “numbers” you need to know as 2013 progresses.

Please contact Shelly Hodges-Konys, CBC, Benefits Consultant, at 513.745.0707 or e-mail ShellyH@horanassoc.com if you wouldlike more information regarding health care reform.

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Unraveling the Mystery:How Your Social Security Benefit Is Determined

Michael Napier, CFP®

Director of Financial Planning

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For those nearing retirement, a big question on your mind might be, “How much can I count on for Social Security during my retirement years?”

The first step is to find out what your estimated Full Retirement Age (FRA) benefit is from your Social Security statement which is now accessible online at www.ssa.gov. The SSA website links to your Experian credit report and will ask for some personal information from this report to verify your identity. You may want to print out a free copy of your Experian credit report from www.annualcreditreport.com before creating your Social Security account so you can answer the questions correctly. (That would also be a good time to check your credit report for accuracy.)

Are You Eligible for Benefits?In a nutshell, if you have worked at a job and paid into the Social Security system (FICA taxes) for at least 10 years and earned more than $4,640 (today’s dollars) per year, you are more than likely eligible to receive benefits. The statement will tell you upfront whether or not you have enough credits (40 credits required).

How Was the Benefit Calculated?Social Security takes the average of your highest 35 years of earnings inflated into today’s dollars. For 2013 and later (up to full retirement age) they assume you will continue to work and make a similar amount as in 2011 and 2012. So, the number is just an estimate, and the closer you are to retirement, the more accurate the estimate will be. You will not know your exact benefit amount until you actually apply for benefits, typically

three months before you wish to collect. Factors that will cause the benefit estimate to change include (1) changes in your future earnings; (2) cost-of-living increases, as the benefit amount listed in your statement is in today’s dollars; (3) changes in the current laws governing benefit amounts; and (4) military service, railroad employment or pensions earned through work on which you did not pay Social Security tax (Windfall Elimination Provision and Government Pension Offset). The yearly earnings used in the calculation are listed on the statement, typically on page three. It is very important that you check these numbers for accuracy. Look closely at those years where $0 in earnings is indicated as they are factored into the 35-year average. If you received multiple W-2s or had self-employment income, make sure the combined total of your earnings was recorded. Mistakes on this earnings page could cost you a lot of money over your retirement years. There is a limit on the amount of earnings on which you pay Social Security taxes. For 2013, this limit is $113,700. Earnings above this limit will not appear on your statement as “taxed social security earnings.” All of your earnings are taxed for Medicare purposes, which is why there are two earnings columns on your statement.

When Should I Retire?Some people will want to retire before their FRA and others will want to wait until after FRA. The earliest retirement age for Social Security is age 62. Retiring at age 62 will shave approximately 25% off of your FRA benefit. For each year that you wait

beyond your FRA to receive benefits, your FRA benefit will increase by 8% per year until age 70. These are called Delayed Retirement Credits (DRC). For example, if you are at your FRA of 67 with a monthly benefit estimate in today’s dollars of $2,000, you would receive 24% more ($2,519) by waiting until age 70. You would also receive the cost-of-living adjustment for each year that you wait on top of the 8% increase. There are many factors to consider when choosing an age to retire.

Can I Continue to Work and Collect my Full Social Security Benefit?There is no limit on the amount one can earn after their FRA. If you decide to collect Social Security before your FRA, your benefit will be reduced if you earn more than $15,150 for 2013. This Annual Earnings Test (AET) can be complicated, so be sure to seek professional advice before deciding to file early if you plan to continue working.

Michael Napier, CFP®, Director of Financial Planning, Registered Representative, can assist you in maximizing your social security benefits using the Social Security Explorer software program. Please call Michael at 513.745.0707 or e-mail him at MichaelN@horanwealth.com. Chris Mihin, CBC, HORAN’s in-house Medicare expert, is also available to assist you and provide guidance in exploring your Medicare options.You can reach Chris at 513.745.0707 or ChrisM@horanassoc.com.

wealth

11 REASONS TO HIRE A

RETIREMENT PLAN ADVISOR

health. wealth. life.

1. Experience reflecting a true specialty in retirement plan consulting.

2. The capability of evaluating funds and service providers objectively — independent of your service provider.

3. Willingness to serve as co- fiduciary by acknowledging this status in writing — and as it relates to the selection and monitoring of investments.

4. ERISA expertise.

5. Plan design expertise.

6. Investment expertise.

7. Knowledge of the provider marketplace and plan fees, expenses and revenue sharing — so that the advisor can properly

benchmark your plan among other service providers.

8. Enrollment and education support.

9. Documentation system to assist with procedurally important items such as meeting minutes, your investment charter, online file storage, etc.

10. Thought leadership and advocacy with respect to industry development, current legislation and relevant trends.

11. Full and open disclosure of all sources of fees, received in writing.

For more information on this subject, please contact Karl Diebold at 513.745.0707 or KarlD@horanwealth.com.

As greater amounts of responsibility are placed upon employees to manage their retirement needs, the percentage of employers that offer access to financial advice continues to grow. Gary Jurney, President of Kainos Partners, a United Benefit Advisors partner firm, recently posted a blog reiterating that a large majority of employers now contract for in-person consultations with financial professionals to help employees review investment options. Kainos says a good advisor has the following attributes:

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wealthKarl Diebold, CFP®

Vice President, Investment & Retirement Plan Consultant

Broadly speaking, diversification rewarded investors as most asset classes generated strong returns in 2012. Positive returns were achieved across equities, fixed income and alternative investments. Most equity indices returned mid to high teens returns, whereas, similar to equities, a diversified fixed-income portfolio was able to generate high single-digit returns or better. Selective alternative investment allocations were able to generate high single digit to low teens performance while recognizing lower volatility than the equity markets.

The total return for the S&P 500 Index was 16% in 2012. U.S. large cap equities were relatively flat for the fourth quarter with most of the calendar gain registered in the first quarter. The broad asset class exposures we chose for our clients enabled them to handsomely participate in the positive returns achieved globally.

As we analyze the capital markets and project expected long-term risks and returns, we believe we are in an environment that favors equities and alternative investments over bonds. Two components of risk, inflation risk and interest rate risk, give us concern about the prospect of positive long-term real returns in diversified fixed-income portfolios. Potential shocks like the debt ceiling debate and sequestration in Washington could be catalysts for a short-term equity market pullback.

Since the financial crisis that saw the S&P 500 Index bottom in March of 2009, investors have allocated more of their investment dollars to bonds versus stocks. Since 2009 the absolute difference has been in excess of $1

trillion. This allocation decision has resulted in investors missing out on the much stronger returns generated by equities. Out of the last four years, only 2011 saw bonds beat stocks in the U.S. investment market. Influencing investor asset allocation decisions has been the long-term decline in interest rates. This secular decline, since the early 1980s, has led investors to forget the consequences in which rising interest rates impact the value of bonds. Also, many investors have been conditioned to the positive returns bonds have been able to provide within the context of a “safer” alternative to equities. Higher interest rates will result in a decline in bond prices. The rotation from fixed income investments to equity investments could be significant and create a tail wind for a broad equity market rally.

Looking ahead into 2013, we feel equity valuations are still attractive on both a historical basis and a relative basis. Economic data have been mixed and many investment analysts are calling for a retracement in broad equity indexes. We do have concerns about some of the recent economic data and the FED’s recent debate surrounding the slowing of its easing program. However, we believe companies can continue to do well in a slow growth environment. Earnings growth for the S&P 500 is estimated at 6% in 2013 and 7% in 2014. With profit margins at their highest levels in decades, we feel compelled to closely follow top-line revenue growth reports as this will likely drive earnings from here (and not cost controls).

There will most certainly be equity volatility going forward; however,

we feel fixed income could be more challenging in light of the past 30-year decline in interest rates. With both a housing rebound under way and slow, but positive, economic growth, we anticipate the bottoming of interest rates and a slow rise higher. We currently favor equities and alternative investment while maintaining flexibility within fixed-income portfolio. Here are other themes that will influence our investment strategy in 2013 and beyond:

-Interest rates cannot be capped forever and fixed income real returns could present challenges.

-Natural resource exploration and discovery could lead to both U.S. energy independence and job growth, as well as a resurgence in competitive manufacturing in the United States due to low-cost energy supplies.

-Tax revenues will very likely go up and government/entitlement expenses down, leading to contractionary pressure for economic growth.

-Technology and labor productivity will continue to dampen the employment market.

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Nicholas C. ReillyPortfolio Manager and Principal

513.745.0707NickR@horancapitaladvisors.com

Future Outlook of the U.S. Economy

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Q: What do you see as the significant impact of the fiscal cliff compromise on estate planning?

A: Now for the first time in really over a decade we have permanent changes to the Internal Revenue Code. Specifically, it permanently extends the existing tax rates for families with taxable income under $450 thousand ($400 thousand for individuals), but the Bush tax cuts will expire for higher income taxpayers. In addition, it permanently “patches” the alternative minimum tax to keep it from affecting more taxpayers in later years. From an estate tax perspective, the bill sets a $5.12 million individual lifetime exemption. So spouses can transfer a total of $10.24 million. It permanently extends the $5 million estate, gift and generation-skipping tax exemptions and increases the estate tax rate to 40% (from 35%). The bill now indexes for inflation the exemption amount. With that inflation adjustment, the 2013 exemption amount is actually $5.25 million. The bill adds that exemption amounts are portable between spouses. So, if the husband dies with $2 million, the wife can pass on $8 million tax-free (her $5 million plus her husband’s unused $3 million). The bill eliminates some arcane elements of pre-death estate planning.

Q: What are key elements the bill did not address?

A: Probably the most important thing it doesn’t do is extend the lower payroll tax rate that has been in effect the last two years that has been imposed at a 4.2% rate—the normal rate is 6.2%. This year we are now reverting back to the 6.2%. This means working Americans saw higher taxes being taken out of their paycheck. It did not reduce the percentage of families who pay no federal income tax and the bill did not reduce government spending. The compromise causes a two-month delay, from January to March, in the implementation of the “sequester” government spending cuts. The bill did not reduce the percentage of American families who pay no federal income tax (currently close to 50%). It also did not prevent the implementation of the new 3.8% health care reform surtax on investment income for families with adjusted gross income over $250K ($200K for individuals). Ultimately, the bill did not reduce tax code complexity; in fact, it added to it.

Q: What do you see as key legislative items for the early part of 2013?

A: Republicans will demand spending cuts (which were almost entirely absent in the fiscal cliff compromise). It is no longer possible to meet that demand by cutting discretionary spending. Democrats will demand that the spending cuts be balanced with additional tax increases; however, it is no longer possible to meet that demand by raising tax rates.

Q: How will Congress address the deficit reduction plan?

A: Right now for the first time since World War II and only the second time in the history of our country, total debt outstanding equals 100% of GDP. Up until now we have tried to address the deficit by cutting discretionary spending. Discretionary spending has two parts: defense spending and domestic spending. We can’t continue to address the deficit by cutting discretionary spending. Two-thirds of spending is mandatory spending and those payments are Social Security, Medicare and interest on our debt. The remaining one-third is discretionary. We are heading for a debate over spending on entitlements, both Social Security and Medicare, as well as additional tax changes. We could cut all defense and discretionary spending by a quarter, but it would only be $300 billion—it’s not going to change the dynamics of trillion dollar deficits.

HORAN was fortunate to host political analyst Andy Friedman, of The Washington Update, earlier this year as a part of an education series for clients and partners. He presented his insights on the fiscal cliff compromise and its effect on the future of the economy.

Andy is known for predicting the outcomes of Washington tax and fiscal deliberations and providing investors and client advisors with strategies to consider in light of the changing political landscape. He has appeared on CNBC’s Squawk Box, the Larry Kudlow Show and the Fox Business Channel, and is quoted extensively in publications ranging from the Wall Street Journal to USA Today.

health. wealth. life.

Q& A

Interview with Andy Friedman of The Washington

Update

life

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Life Insurance Shines Brightunder the new tax laws.

Gregory L. Hoernschemeyer, CLUExecutive Vice President

With higher taxes looming in 2013 and beyond for many taxpayers, permanent life insurance should fare well under this new tax environment. The American Taxpayer Relief Act of 2012 imposed higher taxes on many. The highest marginal bracket was increased from 35% to 39.6% and many will be paying an additional 5% for capital gains and qualified dividends. Various itemized deductions will also be capped and the personal exemption will be phased out for many higher-earning taxpayers. In addition, estate taxes were increased from 35% to 40% even though the higher exemption of $5.25 million remains.

For many taxpayers, finding a way to circumvent these higher taxes will be a priority. Life insurance should not be overlooked as a strategy to accomplish this. Andy Friedman, political analyst of The Washington Update, said, “Life insurance is a fabulous vehicle because there is no tax on the build-up and the earnings within that policy, and when you pass away, all of those earnings and benefits go to somebody in the next generation entirely tax-free.”

Not only do cash values grow tax-deferred, but a policyholder may have tax-free access to those cash values during life via policy loans or his or her withdrawals. There are not many other investment vehicles that offer this type of tax efficiency besides Roth IRAs (which have contribution limits) and municipal bonds.

Some examples of the tax-efficient use of life insurance are illustrated below:

-Higher income taxes will increase the demand for nonqualified deferred compensation arrangements, which defer income for high wage earners until retirement when they may be in a lower tax bracket. Life insurance is a popular method of “informally” funding these types of plans.

-For someone wanting to donate to charity, one strategy might be to donate appreciated securities (instead of cash) to avoid the increased capital gains tax and then use the cash to purchase life insurance, which offers tax deferral and tax-free access to cash value. A charitable deduction could

also be earned to offset the cost of purchasing the insurance policy. The life insurance death benefit could then be used to replace the value of the donated securities for heirs.

-Heirs can use the life insurance death benefit, which is tax-free, to pay estate taxes. Without the life insurance money heirs often have to sell off parts of the estate to pay the tax, which can be difficult for families trying to preserve the family business or property that’s been in the family for generations. It is important to account for the growth of an estate. It may not look like life insurance is needed to protect an estate today, but consideration must be made for potential growth over a lifetime.

Don’t discount the value of life insurance for both tax savings and estate preservation for future generations. Remember, the rate of return on your investments not only depends on performance but what you get to keep after taxes.

To discuss life insurance as an effective financial strategy under the new tax laws, contact Gregory L. Hoernschemeyer, CLU, Executive Vice President at HORAN, Registered Representative, at 513.745.0707 or by e-mail at GregH@horanassoc.com.

health. wealth. life.

HORAN is committed to improving the quality of life in the communities where our employees live and work. We believe we have a responsibility to serve our regional community as a good corporate citizen and work to create strong communities that increase the economic vitality and quality of our neighborhoods. As a company and individually, we support initiatives that educate, enrich and heal. To support our goal, HORAN is proud to offer scholarships to our clients, their employees and their families—the HORAN Free Throw Scholarship at Xavier University and the Jack and Elaine Horan Scholarship at the University of Cincinnati.

HORAN awards three $2,500 scholarships to Xavier full-time students and three $1,500 scholarships to full-time UC students who are dependents of people who work for or who themselves work for clients of HORAN. These scholarships will be for the fall semester in 2013.

The scholarships are chosen by Xavier University and the University of Cincinnati and are based on academic merit and financial need. All of the requirements are listed on the scholarship application. The deadline for scholarship applications is April 12. If you have any questions, please feel free to call Mary Ann Weber at HORAN at 513.745.0707, or e-mail her at MaryannW@horanassoc.com.

HORAN SUPPORTS LOCAL UNIVERSITIES WITH SCHOLARSHIP

OPPORTUNITIES

HORAN Named #6 on United Way’s “Tremendous 25” List

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HORAN was named number six, up from number eight in 2011, on the United Way of Greater Cincinnati’s list of “The Tremendous 25” for the 2012 campaign.

The list contains the top 25 companies giving the highest per capita to the campaign with at least 25 employees and 55 percent employee participation. These companies are not large enough to be included on the list of “Top 25” campaigns. The HORAN campaign began on October 8, 2012, and concluded on October 24, 2012, with a Casino Night-themed fund-raising event.

During the campaign, employees participated in numerous competitions including putt-putt, corn hole and ping pong with entry fees to raise money for this year’s campaign. There were also several raffles and items available for auction, which helped to make 2012’s campaign a great success.

The United Way of Greater Cincinnati raised $61.05 million during this year’s campaign, which began on August 22, 2012. To continue HORAN’s support of United Way, Terry Horan, President and CEO of HORAN, will be leading the 2013 United Way of Greater Cincinnati’s Tocqueville Society.

commitment

HORAN employees are committed to positively impacting the communities where we live and work. We give our time to support many regional charitable organizations, including

-Lighthouse Youth Services-American Heart Association-4C for Children-The Talbert House-Goering Center for Family & Private Business-The Brighton Center-Boys & Girls Club of America

-Agape for Youth-Cincinnati Children’s Hospital Medical Center-Cincinnati Works-Dayton Society of Natural History-Dayton Performing Arts Alliance-Artswave-YWCA

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HORAN SUPPORTS LOCAL UNIVERSITIES WITH SCHOLARSHIP

OPPORTUNITIES

| 12 |

Industry Leadership:Terence L. Horan, CLU, ChFC, Registered Representative, President and CEO of HORAN, joined the Association for Advanced Life Underwriting (AALU) Board of Directors in 2013. The organization, based in Washington, D.C., works in connection with congressional leadership to promote, preserve and protect advanced life insurance planning.

The Board of Directors, a select group of leading insurance professionals, acts as a unified voice for the industry to develop policy positions that will benefit life insurance clients, the life insurance industry and the general public. The three key

issues the AALU focuses on are life insurance and tax reform, estate and gift tax reform and regulation of life insurance agents.

The AALU works to infuse advocacy throughout the organization. They work to increase the knowledge base of political decision makers on issues within the life insurance industry and inform government leaders of the impact their decisions will have on the industry and, ultimately, life insurance policyholders.

The organization was founded in 1957 and is comprised of 2,200 members from across the nation. HORAN is a member of AALU.

HORAN Recognition

Karen L. Mueller, CBCChairman of Butler County United Way

Cheryl Campbell2013 Woman of Distinction, Girl Scouts of Western Ohio

Julie Highley, CBCUnited Way of Greater Cincinnati’s Executive Committee and Board

HORAN goes to Washington

leadership

Twenty-six years ago Greenville Technology, Inc. (GTI) wanted to become a world-class automotive parts supplier; today the subsidiary of Japanese-owned Moriroku Network, GTI finds themselves being one of Honda’s largest core suppliers in North America. GTI’s products are manufactured for Honda’s cars in countries all over the world, including Brazil, Saudi Arabia and Russia, among others.

William (Bill) LaFramboise, Executive Vice President at GTI, attributes the company’s success to their core values developed from a blend of American and Japanese values. These values are adapted from Moriroku Network, celebrating their 350th anniversary in business this year, and include long-term service and positive associate relations.

“So many of our policies, procedures and benefits programs have been established and modified over the years keeping in mind our values. Everyone wears uniforms from the top down, from the very newest person to the longest serving and executives—everyone looks the same much like a baseball team, and that again is to promote the team, unifying spirit on a day-to-day basis,” said LaFramboise. “We have been the beneficiary of having very low turnover over the years, and we think a lot of it has to do with the way that we run the organization and the team spirit that we encourage.”

Every employee working in the facility, including top executives, wears the same uniform to signify company unity. Additionally, GTI’s strengthens their employment relationships with their employee health benefits and retirement planning offerings.

“We see our benefits program as an evolving and critical part of the employment relationship,” said LaFramboise. “We give our benefits program very strong attention

on an ongoing basis and we rely on the outside expertise HORAN provides to keep our benefits strong, vibrant and well-appreciated.”

The 1,000 employees at the Greenville facility rely on HORAN’s guidance for their employee benefits program. LaFramboise says GTI feels pressure to provide the employees with globally competitive benefits and they have had to find more creative solutions, both with plan design and on the preventative side, to control costs due to the rising cost of health care. The solution that GTI has implemented is an employee wellness program, which will soon include mandatory spousal participation in addition to GTI employees.

“Wellness is something that we are very proud of, and we have been very upfront with our people about what our long-term objectives are for wellness and how it connects to the cost of the plan and to individuals’ contributions,” said LaFramboise. “It’s what more companies need to be doing. It takes a little bit of effort and you’ve got to have some backbone, but I really think that’s where the solutions are. One of the things that HORAN has brought to us is a lot of data to show how our plans stack up to those of other companies that we wouldn’t have access to without them.”

GTI uses the statistical data and guidance HORAN provides them to benchmark their health plan based on plan type, region, state, number of employees and industry category. They also track the wellness data they collect from employee health risk assessments and have seen positive trends. LaFramboise believes that wellness is not something that should be done voluntarily because those who need to be engaging in wellness the most will not be the ones to participate in a voluntary program.

INDUSTRYAutomotive parts

manufacturer and supplier

LOCATIONSHeadquartered in

Greenville, Ohio and opening a second location in Anderson, Indiana.

KEY PERSONNELSho Kurita, President and CEO

Moriroku Network

Bill LaFramboise, Executive Vice President

NUMBER OF EMPLOYEES1,000

YEAR FOUNDED1986

health. wealth. life.

GREENVILLE TECHNOLOGY,

INC. OVERVIEW

Client Spotlightclients

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Greenville Technology, Inc. Utilizes Benefits to Strengthen Employee Relations

“We give our benefits program very strong attention on an ongoing basis and we rely on the outside expertise HORAN provides to keep our benefits strong, vibrant and well-appreciated.”

The company has also seen results in another benefit they provide to their employers, their 401(k) program, which is the highest-appreciated benefit they provide to their employees, according to LaFramboise. GTI moved to HORAN for their retirement plan consulting after they noticed an alarming trend among their employees’ retirement savings accounts.

“What we began to see at the end of the last decade were a lot of people who had been with us for many years and deferring at a fairly good rate, had 401(k) balances that were not where they needed to be in another 10 years when they get ready to retire,” said LaFramboise. “Part of this was because many of our employees were putting their money into a stable value option and missing the opportunity to grow their retirement funds at a faster rate. The other part was a lack of one-on-one guidance and instruction. HORAN was willing to provide individual investment guidance to our associates, and it’s had a huge impact.”

Their employees utilize HORAN’s one-on-one advice to make more educated investment decisions and GTI has seen a stronger appreciation for the retirement savings benefits they provide.

“[HORAN’s corporate retirement plan consultants] David Lohre and Karl Diebold come in and meet with individuals who want to spend 15 to 30 minutes and talk about their own personal situation,” said LaFramboise. “We have seen higher deferral levels, higher participation, better diversification of investments and better individual planning.”

GTI is committed to providing their employees with the best possible benefits while also keeping the company’s profitability in mind. Utilizing HORAN’s statistical data and resources for their employee wellness program and educational guidance for retirement planning and investments; GTI has developed a successful benefits program that matches the success they have achieved with their business.

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Rarely are we in a position to

reflect upon a business relationship

so valuable toward our primary

asset, our people. Panini has a

partner in HORAN that reflects

our culture, our values. All

companies strive for customer

service excellence and profitability

growth. Few are successful. We are

fortunate, within this challenging

economic environment, to enhance

and expand the benefits provided

to Panini employees. We have the

privilege of working directly with

Shannon Schumacher (Account

Manager) and Lauren Peter (Service

Representative). They embody our

core values while providing Panini

with service excellence.

Jeff RodgersChief Financial Officer Panini North America

WHAT PANINI NORTH AMERICA

HAS TO SAY ABOUT HORAN

| 14 |

Bill LaFramboise, Executive Vice President at Greenville Technology, Inc., pictured center with other members of the GTI team.

“What matters most, each and every day, is helping our clients address two of life’s greatest challenges–obtaining quality health care and securing professional counsel to build wealth and sustain it for a lifetime.” -Terence L. Horan,

President and CEO of HORAN

4990 East Galbraith RoadCincinnati, Ohio 45236

PERSORTEDFIRST CLASS MAIL

U.S. POSTAGEPAID

CINCINNATI, OHPERMIT NO. 394