Helping Employees Retire Timely! Employers need their employees to retire at Normal Retirement Ages to save budget dollars! How can you help them do that?

Presented by Ellie Lowder; TGPC Industry consultant Volunteer; ASBO Retirement Plan Council Member: Subcommittee; Educational Materials Project Author: Section 403(b) Compliance Guide for Public Education Employers (Rowman & Littlefield/ASBO, Intl.)

Thank You! PlanMember Services made it possible for me to be here! Thank you to Pat Lynn, Business Development Officer Take a bow! 4/20/2019

Why Implement Education Programs? Your peers told ASBO that help is needed for employee education – they expressed a need for objective 3rd party resource materials Concerns increasing that: Studies show employees plan to continue to work (65% of workers age 60 can’t afford to retire and will put it off (Harris Interactive/Career Building study November, December 2010) Expensive for employers if higher paid employees can’t retire; what to do? 4

Another Important Study Employee Benefit Research Institute, study of April 2011 says: employees worried about social security & state pensions poor economy (36% cited this as a reason for delayed retirement) need to make up for losses in the stock market delaying retirement bottom line – would retire if affordable! 4/20/2019

Conclusion: Need to encourage employees to participate in their voluntary retirement plans – 403(b) and/or 457(b) – savings they control. What can employers do to increase participation? Educate them! But, who and how? employers generally don’t have retirement plan expertise employees need help in calculating pension benefit, and social security benefit, if any help is needed in identifying the “gap” – how much is needed to supplement, and, realistically, how to meet that goal? 4/20/2019

Enter: ASBO Resource Materials Recently completed and announced: Guidelines – how to implement an educational program (including how such a program helps satisfy meaningful opportunity to participate under universal availability requirements) sample power point presentation to use in employee meetings Highlights later! 4/20/2019

Shortly After Announcing New Materials ASBO reports: within first two days; 1,500 opened the link! unprecedented interest Great solution for employers See www.asbointl.org; click on 403(b) resources And, ask for help in getting started! 8

Who Can Help Implement Program? Your TPA; your consultant; product providers; legal counsel can each help coordinate the process Power point presentation can reflect your own plan features Presenters required to provide list of approved product providers; contact information for “even playing field”. Different presenters for multiple meetings! 4/20/2019

Multiple Meetings Fall, early Spring; late Spring (pick times “less busy” in your districts) If one of the product providers is assisting you, make it clear – presentation must be strictly generic – and assure the product providers that presenters will be varied over time Multiple meetings much more likely to satisfy “meaningful opportunity” requirement in the final regulations 4/20/2019

Guidelines; Power point Included in the ASBO provided materials is information on steps to take; who can help you with successful programs Measuring that success: is participation, or increased contributions improving following scheduled education meetings? Note that the power point presentation is geared to inserting your own plan features & requirements 4/20/2019

Some Important Data to Know Employee seminars very likely to increase participation and encourage employees already participating to increase current contributions Access to “face to face” Advisors important in that process Schwab 401(k) survey: 70% receiving advice nearly doubled savings rate; 51% prefer individualized advice vs. 23% online & 4% brochures ING Retirement Research institute reveals those spending “some time” with advisor save more than twice as much as those spending “little time”. Those spending “a lot of time” save 3 times more. And, those using financial advisors are better diversified (8 investment options used vs. 4 with little advisor help).

Employers Should Develop Solicitation Rules Provides control of how access to financial advisors is provided under your own rules! With reduced number of providers, easier to manage than in the past And, rules could specify that lower income employees receive benefit of the personalized service, (too many do not focus on them).

Questions? elowder@gainbroadband.com Copies of the cited studies? Follow up questions? See me at booth 57 for private conversation Talk to PlanMember about their generic Financial Literacy Programs available at your school Thank You! elowder@gainbroadband.com 520-290-0534

Come See Me (Personal Discussion) Will be available at booth 57 after these sessions Additional confidential questions? Glad to help! 4/20/2019