1. 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?

2. 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.)

3. 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

4. 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

5. 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

6. 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

7. 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

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

9. 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

10. 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

11. 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

12. 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).

13. 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).

14. 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!

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