1. Next Generation Default Options for 403(b) Retirement Plans
Every Move Counts!
Next Generation Default Options for 403(b) Retirement Plans

2. Franklin University Founded in 1902 as a YMCA Institution
Private, Non-Profit University 33
Undergraduate Degree Programs 9
Masters Degree Programs 3
Doctoral Degree Programs
$70 Million Operating Budget
$90 Million Investment Pool
Only 5% Restricted
8,000 Students
6,000 Non-traditional Students
2,000 Traditional Students

3. Franklin University Randy Snyder, Vice President Financial Services
Innovative Culture – Employee Outcomes Focus
Revised 403(b) plan to include both TIAA and other investment options
Allow for a six-month automatic rebalancing of asset allocation mix by participants with the help of PK Financial Group Inc. and TIAA. This provides a pathway for participants to take control of their investment decisions and select an asset allocation mix that is in line with their risk tolerances.
Randy Snyder, Vice President Financial Services
University Enterprise
403(b) Governance
Committee Co-Chair
openclipart.org

4. PK Financial Group Inc. Pete Kaplan, President Brian Petros, CEO
Consultant Agreement with TIAA
21 Licensed Advisors and 3 Administrative Support Staff Members in Ohio
Part of a national network of 6000 licensed advisors throughout the United States known as SagePoint Financial, Inc. (part of the Advisor Group)

5. PK Financial Group Inc. PK Financial Group Inc. provides:
One-on-one meetings as needed
Group seminars and on-going educational activities
Account reviews as needed
Top Level support for the Retirement Plan Committee
An independent, unbiased education designed to help you realize your retirement savings goals.
We are compensated on a “fee-based” arrangement.

6. Case Study: Franklin University
Old Plan
New Plan
(GRA)/(RA)
Funded with mandatory 5% of compensation from employees and Franklin match
Defined Contribution
(GSRA)/(RA)/(SRA)
Funded with voluntary employee contributions in excess of 5% of compensation from employee per IRS limits
Tax Deferred Annuity
Retirement Choice (RC)
Funded with mandatory 5% of compensation from employee and Franklin match
Defined Contribution
Retirement Choice Plus (RCP)
Funded with voluntary employee contributions in excess of 5% of compensation from employees per IRS limits
Tax Deferred Annuity

7. Five Custom Model Portfolios
Meet the Portfolios:
Model 1 - Conservative
Model 2 - Moderate Conservative
Model 3 - Moderate
Model 4 - Moderate Aggressive
Model 5 - Aggressive
Constructed with the “Default Option” in Mind
Age to Risk Hybrid
Appropriately allocates default participants based on age
Automatically moves participants to the appropriate model as they age

8. Custom Model Portfolio Participation
Franklin Enterprise
Franklin
346 Active Participants in Total Plan
238 Active Participants in Model Portfolios
Urbana
97 Active Participants in Total Plan
71 Active Participants in Model Portfolios
80% Participation

9. Conservative Portfolio
Performance
Benchmark
Model 5-Aggressive
Benchmark: Morningstar Aggressive
TRI

10. Moderate Conservative Portfolio
Performance
Benchmark
Model 5-Aggressive
Benchmark: Morningstar Aggressive
TRI

11. Moderate Portfolio Performance Benchmark Model 5-Aggressive
Benchmark: Morningstar Aggressive
TRI

12. Moderate Aggressive Portfolio
Performance
Benchmark
Model 5-Aggressive
Benchmark: Morningstar Aggressive
TRI

13. Aggressive Portfolio
Performance
Benchmark

14. Implementing Best Practices
Clarity of roles is essential
Plan sponsors should clearly designated and document who is responsible and accountable for each aspect of plan compliance
Who is responsible for ensuring compliance?
Plan sponsors bear responsibility and liability for a broad range of factors. Among the key compliance areas addressed are:
Plan Documentation
Operations
Transactions
Financial Reporting
What are a plan sponsors primary compliance requirements?
Personal Liability
Legal Action
Fines
What are the penalties for non-compliance?

15. Principals Randy Snyder | Vice President, Financial Services
Franklin University
Phone:
Pete Kaplan | President
PK Financial Group Inc.
Phone: Fax:
Brian Petros | CEO
PK Financial Group Inc.
Phone: Fax: