Northern Capital Retirement Services Inc

Item 5 – Fees and Compensation

A. Compensation for Advisory Services and Fee Schedule
NCRS is compensated by charging a management fee based on the amount of assets that we manage.
This is called our “advisory fee” or “management fee.” NCRS does not participate in revenue sharing
arrangements.

Fee Schedule - Standard
Our standard annual rate is tiered with no minimum:
   • 0.50% on the first $1,000,000
   • 0.35% on assets between $1,000,000.01 and $10,000,000
   • 0.20% on assets between $10,000,000.01 and $50,000,000
   • 0.15% thereafter

For Plans Managed by Investment Objective Models the fee will be based on the Investment Objective
assigned. For all Investment Objective models the standard annual rate noted above will apply except
for the following:
     • For portfolios assigned a Pure Preservation Investment Objective the fee schedule is 0.5%
         annually on the first $500,000 of billable assets and 0.0% thereafter.
     • For portfolios assigned a Cash Only Investment Objective no fee will be assessed.

Fee Schedule – Washington State Medical Association (WSMA) membership (new clients only)
Our fee schedule for new clients (after November 6, 2024) with a Washington State Medical Association
membership (WSMA member) is an annual rate, tiered with no minimum:
   • 0.450% on the first $1,000,000 in billable assets;
   • 0.315% on billable assets between $1,000,000.01 and $10,000,000;
   • 0.180% on billable assets between $10,000,000.01 and $50,000,000;
   • 0.135% thereafter with no minimum

For Plans Managed by Investment Objective Models the fee will be based on the Investment Objective
assigned. For all Investment Objective models the WSMA Member annual rate noted above will apply
except for the following:
    • For portfolios assigned a Pure Preservation Investment Objective the fee schedule is 0.45%
        annually on the first $500,000 of billable assets and 0.0% thereafter.
    • For portfolios assigned a Cash Only Investment Objective no fee will be assessed.

Other Fee Schedule Considerations
The fee schedules can vary based on factors such as account type, investment objective, account size
or other special circumstances. Non-standard fee schedules are negotiable and subject to approval by
the Chief Operations Officer.

When NCRS charges a fixed percentage with graduating tiers, the fixed percentage drops at specified
breakpoints as levels of assets under management are reached. Our firm can also elect to charge a fixed
percentage without the graduating tiers.

For additional information on Investment Objective models see Item 8 – Methods of Analysis Investment
Strategies and Risk of Loss.

NCRS considers cash (e.g., money market and cash sweep funds) to be an asset class and includes cash
positions in our fee calculation when the balance is within a portfolio that is assigned an Investment
Objective other than Cash Only or a menu of investment options. In times of low interest rate
environments, it’s possible our fee will exceed the yield generated by this asset class. However, as noted
above, when the cash position is held within a portfolio assigned a Cash Only Investment Objective, the
position will not be assessed a fee.

                                                                    Northern Capital Retirement Services, Inc. Page 6

B. Calculating Your Fee and Paying Your Bill
For most accounts, fees are charged every six months on a lagging basis including new accounts that
have not been fully funded for the entire six-month period. The fee is calculated based upon the assets
as of the billing date, without regard to additions or withdrawals during the prior six-month period. If
the custodian cannot accommodate a six-month billing period NCRS will charge fees based on the
custodian’s allowed billing frequency. The billing period will be specified in the Financial Advisory
Agreement.

When calculating the fee, illiquid securities are generally valued at $0 due to a lack of marketability and
difficulties in obtaining and verifying an accurate current price.

Methods of payment include:

    •   Automatic Fee Deduction:
        The plan sponsor can elect to have fees deducted automatically. Plans authorize the third-party
        administrator to process requests from NCRS to automatically deduct fees from the plan or
        participant accounts. NCRS will provide you with an itemized statement that includes a
        description of how the fee was calculated and the total fees deducted. Fees deducted can be
        verified by using independent brokerage statements from the trust company or qualified
        custodian and third-party administrator reports. Authorization can be revoked at any time and
        the plan sponsor can request to pay by check instead.

    •   Pay by Check:
        Plan sponsors that have elected to pay by check will receive an itemized bill that includes a
        description of how the fee was calculated, the total amount due and a request for payment on
        each billing cycle.

C. Additional Fees and Expenses
In addition to our fees, clients are responsible for the fees and expenses charged to the plan by third
parties such as trustee custodians or qualified custodians, recordkeepers, and third-party administrators,
etc. These fees can include custodial fees, brokerage commissions, fees and expenses charged by
mutual funds and exchange traded funds, plan menu change fees and clearing fees. Advisory clients pay
these fees and expenses in addition to the management fee we charge.

Item 7 - Types of Clients

NCRS provides services to the following types of clients:
   • Defined Contribution Plans such as Profit Sharing, 401(k), 403(b), 457
   • SIMPLE IRA Plans/SEP Plans
   • Defined Benefit Plans (e.g., Cash Balance Plan)

There is no minimum plan size or account size for new clients.