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Plan Design Moves the Retirement Needle

Plan Design Moves the Retirement Needle

Plan Design contributes to the success of every high performing 401k plan.  401k plan fiduciaries and trustees should make certain that the plan is periodically reviewed and compared with industry practices, services, and fees. Sam Haines, Senior Financial Fiduciary Consultant with Centurion Group was recognized as a Finalist in Plan Design at the 401kTV GENIE Awards in New York, NY. Mr. Haines stresses the need for using a strong plan design when the goal is to get participants to the goal of being ready to retire. He points out the bad outcome that can arise when a plan participant waits too long to initiate retirement savings habits.

Full Transcript Here

Frank Licari
Frank Licari here 401kTV Genie Awards. Congratulations on the honor of being here today and being a finalist. Give us your name and the role of your company.
Well, thank you, Frank. My name is Sam Haines, I’m with Centurion Group, I’m a senior financial fiduciary consultant.
Great. Tell us why you’re here, what got you here today and why we’re having you speak and give us all this information.
So I was actually nominated for plan design. Working with some of our plan sponsors, trying to help them understand what is most important. In this particular case, getting participants to retirement and the only way you can get generally participants to retirement is through plan design. We take a look at all the big data, the analytics, and make sure that we can design a plan that’s going to meet their needs.
What’s the main thing that you normally see?
Generally, participants, if they wait too long to get into a retirement plan, they’re not going to get in. It seems as you’re taking something away from them. “I’m used to getting $500 a week, now I’m only getting $440 a week. I don’t want any part of that.” You know, it’s better to get them in early than it is late.
And so, you have to change that perception and that it’s your money, we’re not taking it. We’re giving it back to you when we’re, we’re making it better, right?
Absolutely. And you really dove into that. It’s their money and it’s making sure that they understand it. It’s their money. If they decide to leave in three months, six months, two years, five years, they can take their money and they can roll it over.
It’s still there.
It’s still there.
Right, no one’s taken it and put it somewhere else where they can’t find it.
That’s right.
And what kind of results are you seeing?
So we have a … we actually had a great case. We did a merger and acquisition assignment for a client, roughly 13,000 employees. And during that time, we were able to take a look at both of the plans, do a protected benefit analysis and find out what we’re going to be able to use this dollar amount. So they give us a fixed dollar amount and we got to work those numbers back into the match calculation to figure out what’s going to work best. We did, and we come back and we did an automatic enrollment and we actually had less than 1% opt-out.
Wow. That’s a great result.
Out of 13,000 employees, that’s a fantastic result.
Fantastic result. Well, that’s fantastic, congratulations on that.
Thank you.
What do you think of that Genie Awards so far?
Love it, love New York City. This is a great place, great venue, great people, and it’s just an honor to be here.
Well, a pleasure to have you.
Thank you, Frank.
Thanks very much.

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