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Plan Design Strategy Makes  Impact

Plan Design Strategy Makes Impact

Plan Design strategy needs to be well thought-out to reap results. 401k plan fiduciaries and trustees need to be certain that the retirement plan is periodically reviewed and compared with industry practices, services and fees. Thomas Parker, Consultant with VERTICAL FINANCIAL, INC. was recognized as a Finalist in Plan Design at the 401kTV GENIE Awards in Chicago, Il.   Mr. Parker supports the need for using auto enroll and auto re-enrollment within the 401k plan.  Unfortunately, waiting too long to participate within a participant funded retirement plan can have negative long-lasting repercussions for the plan participant.

Full Transcript Here

Graham Thomas:
Hi Graham Thomas, publisher of 401k TV coming to you live from the 2019 Genie Awards in Chicago. I’m joined here by Tom Parker, principal and founder of Vertical Financial located in Chicago, Illinois just down the street.

Graham Thomas:
Tom, congratulations and thank you-

Tom Parkere:
Thank you.

Graham Thomas:
For coming. May I ask you a couple of questions?

Tom Parkere:
Sure.

Graham Thomas:
First of all, what is it about planned design that you are doing that you find unique and specific and be specific please?

Tom Parkere:
Okay. Again, this is very individual as we’re trying to get the goals and objectives of each client, but specifically we’ve been a very big adopter of auto features, such as auto enrollment. We are starting at 6% and we’re having auto increase married to that so that every year that they’re going up 1%, but the real kicker that really makes a huge impact is we’re doing a sweep where the reboot of the plan allows people that are not in the plan to be at 6%. for those that are under 6%, they’re at 6% so that we have a hundred percent participation at least for a day. Normally, there’s less than two or 3% that opt out of us. We get everybody in the plan, then we engage the participants. In general, that’s a specific way of making the plan whole and then talking to the individuals to make sure they understand.

Graham Thomas:
Interesting. Do you ever get pushback once you’ve engaged the participant?

Tom Parkere:
Not really because the participant really likes to be able to talk to somebody. One of the things that we have found is that most of the participants have never been on your website. Well these providers have spent millions of dollars and years of empirical data to figure out what helps them.

Graham Thomas:
Yes.

Tom Parkere:
We sit down, open that website up, and then we start saying, let’s take a look at the resources. Let’s get you enrolled in the website cause now you have security. Otherwise that cybersecurity doesn’t exist.

Graham Thomas:
It sounds like demystification is something that you really specialize in. Well, thank you. Thank you very much. Congratulation on your nomination.

Tom Parkere:
Really appreciate it. Thank you.

Graham Thomas:
Tom Parker from Vertical Planning. Thank you again. Please stick around for more videos from 401k TV.

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