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Restructur ing ASPPA Strengthening representation of ASPPA’s traditional membership

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Restructuring ASPPA. Strengthening representation of ASPPA’s traditional membership. Restructuring ASPPA. How is ASPPA operating today? ASPPA acts as an umbrella organization serving all of its members - PowerPoint PPT Presentation

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Page 1: Restructuring ASPPA

Restructuring ASPPAStrengthening representation of ASPPA’s traditional membership

Page 2: Restructuring ASPPA

Restructuring ASPPAHow is ASPPA operating today?

ASPPA acts as an umbrella organization serving all of its members Growth of membership has been

exponential in the last 5 years; increasing number of members are not “traditional” members (i.e., TPAs, recordkeepers, consultants)

Sister organizations (ACOPA, NAPA, NTSA) offer focused governance for certain segments of the membership

Page 3: Restructuring ASPPA

Restructuring ASPPAHow is ASPPA operating today? ASPPA Board must serve as the advocate of the “traditional” members while at the same time serve umbrella functions for the organization as a wholeUmbrella activities akin to Industry Association, but traditional members also need a Professional Society for career development

Page 4: Restructuring ASPPA

Restructuring ASPPAHow do we best address the needs of the “traditional” ASPPA members? To answer this question, the ASPPA

Board created a Task Force to determine whether a separate sister organization should be established for the traditional members

The Task Force recommended to the Board that ASPPA get ahead of this issue by creating a separate sister organization

Page 5: Restructuring ASPPA

Restructuring ASPPA Task Force conclusions

The name of the sister organization should be ASPPA This preserves tradition and the connection traditional members have to the ASPPA name

Using ASPPA also retains the brand of the professional society

The sister organization should have a separate governance structure and be focused solely on the needs of the traditional members

Page 6: Restructuring ASPPA

Restructuring ASPPA With the recommendation of a separate sister organization, the ASPPA Board then formed a second task force. Task: How should the organization be reorganized to accommodate a new sister organization?

Page 7: Restructuring ASPPA

Restructuring ASPPA Recommendations of Task Force 2

Distinguish the coordinating functions from the separate sister organization by adopting a dba for ASPPA when it acts in an umbrella capacity

Board of Directors should be focused on the umbrella functions and coordinating the activities of the sister organizations

Board should not be tasked with direct membership services because all divisions of membership, including traditional members, will have a separate governance structure dedicated to such members

Page 8: Restructuring ASPPA

Restructuring ASPPABenefits to the “traditional” membersASPPA focuses solely on the needs

of the traditional members Conferences, credentials, education,

GAC issues, membership initiatives “Traditional” credentialed

membership: MSPA/FSPA, CPC, QPA, QKA, APM

MSPA/FSPAs continue to belong to ACOPA as well since ACOPA fills the role as an actuarial society and is primarily responsible for the professional development of the actuaries

Page 9: Restructuring ASPPA

Restructuring ASPPAThe organization as a whole will be

rebranded as the American Retirement Council (ARC) ARC is the coordinator among the sister

organizations (the “glue”) Cross-support, conflict resolution among sister organizations

ARC is the public persona for issues affecting the organization as a whole Industry representative of the collective Media interface Coordinate lobbying efforts

Page 10: Restructuring ASPPA

ARC

ASPPA

NTSA

ACOPA

NAPA

ARC serves the global needs of the sister organizations and focuses its energies on protecting the private retirement system

Page 11: Restructuring ASPPA

Restructuring ASPPA How would the governance structure change? Board of Directors resides at the ARC level to fulfill the ARC functions

ASPPA, like the other sister organizations, is governed by a Leadership Council

Page 12: Restructuring ASPPA

Restructuring ASPPA How are funds allocated?

Essentially the same as today, except the traditional members now have a separate professional society (ASPPA) that is focusing solely on the budgetary needs of its members

ARC Finance & Budget committee (including Staff) coordinates the budget proposals with the leadership of the sister organizations Consolidated budget submitted to ARC Board for approval

Page 13: Restructuring ASPPA

Restructuring ASPPA What is the focus of the ASPPA Leadership Council? Traditional ASPPA credentialed

members: serving their education, credentialing, conference, GAC needs CPC, QPA, QKA, APM MSPA/FSPA primarily represented by

ACOPA, but are also members of ASPPA. The ASPPA budget would ensure that, in

conjunction with the ACOPA budget, the needs of the actuaries are met, pursuant to the ASPPA-COPA agreement

Page 14: Restructuring ASPPA

Restructuring ASPPA What happens to QPFCs and TGPCs?QPFCs are automatically members of NAPA, where needs are addressed

TGPCs are automatically members of NTSA, where needs are addressed

If individual also holds an “traditional” credential (e.g., CPC), he/she also would be an ASPPA member

Page 15: Restructuring ASPPA

Restructuring ASPPA What does ASPPA do post-

reorganization? Offers conferences (Annual, Western

Benefits Conference, Women’s, Regional Conferences & any others added by ASPPA LC)

Maintains credentialing program for CPC, QPA, QKA (ACOPA takes care of MSPA/FSPA)

Provides non-credential education programs targeted to traditional ASPPA members (E&E Academy for Plan Administrators and Consultants)

Page 16: Restructuring ASPPA

Restructuring ASPPA What does ASPPA do post-

reorganization?Controls GAC function for issues for

which “primacy” is not housed with one of the other sister organizations Where appropriate, overlapping GAC functions coordinated by ARC

Publications (e.g., Plan Consultant) Awards: Educator, Eidson, Rosenberg Sets dues as part of budget process ASPPA’s budget will cover the above

Page 17: Restructuring ASPPA

Restructuring ASPPA What does the ARC Board of Directors do? Represents the entire

organization/advocate for industry Approves the budget Employs staff (includes Executive

Directors of the sister organizations) to provide operations for the sister organizations

Maintains employee benefit plans for staff

Page 18: Restructuring ASPPA

Restructuring ASPPA What does the ARC Board of Directors do?Ensures staff activities are allocated

in manner that best serves the collective needs of the sister organizations

Industry advocate for the sister organizations and the private retirement system; coordinate grass-roots efforts

Maintain reserves for the organization

Page 19: Restructuring ASPPA

Restructuring ASPPA ARC has no direct members

Each sister organization sets its membership standards and classifications Must be subject to Code of Conduct

Members of any sister organization are considered to be members of ARC

Actions of ARC Board that require membership approval Amendment of Bylaws Approval of new at-large Board

members

Page 20: Restructuring ASPPA

Restructuring ASPPA Structure of the ASPPA Leadership Council 13 voting members (1/1/2015 LC is the

ASPPA Board as constituted on that date) Officers 9 voting at-large members (must be credentialed members of ASPPA sister org – MSPA/FSPA, CPC, QPA, QKA or APM)

At-large serve on a single 4-year term (transitional rules for first few years to ensure appropriate staggering of terms)

Page 21: Restructuring ASPPA

Restructuring ASPPAASPPA Officers

PresidentPresident Elect (successor to President)Vice President (successor to the

President Elect) Immediate Past President Above 4 counted as part of the 13

members of Leadership Council (remaining 9 are at large)

Penultimate Past President (non-voting; not counted as part of 13)

Page 22: Restructuring ASPPA

Restructuring ASPPANominating Committee for ASPPA

Penultimate Past President Immediate Past President President President-Elect Executive Director of ASPPA Chooses next Vice President (subject to

ASPPA Leadership Council approval) Chooses new at large Leadership

Council members (subject to ASPPA membership approval)

Page 23: Restructuring ASPPA

Restructuring ASPPA Structure of the ARC Board of

Directors 8 Senatorial (2 from each sister org)

Represent interests of the sister orgs Decided by respective sister orgs Must be a voting member of sister’s LC

8 At-large (incl. officer positions) Strategic/global focus Transition rule: For 2015, 2016 & 2017 at

least 5 of the 8 must be credentialed members of the ASPPA sister org

One 3-year term (years as officer not counted against 3-year term limit)

Page 24: Restructuring ASPPA

Restructuring ASPPA ARC Officers

President President-Elect Secretary/Treasurer

Could be one or two people Immediate Past President Above counted as 5 at-large slots Penultimate Past President –

nonvoting; not counted in 8 at-large

Page 25: Restructuring ASPPA

Restructuring ASPPA ARC Nominating Committee consists of:

Current ARC Immediate Past President, President and President-Elect

CEO of ARC Selects new officers subject to approval

of ARC Board Selects new at-large Board members,

subject to approval of entire ARC membership (by ballot)

For 2015, the present ASPPA Board will submit a slate to the ASPPA membership for approval

Page 26: Restructuring ASPPA

Restructuring ASPPA Legal Implementation

Sister organizations are really membership divisions of ARC; no new corporations being created (ASPPA still referenced in the articles of incorporation as the Society, but it would be doing business as the ARC)

Membership vote required to implement because it is an amendment to the ASPPA Bylaws Under current ASPPA Bylaws eligible voting

Members are only Credentialed Members (as currently defined – by ASPPA Bylaws)

Electronic/mail-in voting to be completed by end of July

Effective date of January 1, 2015

Page 27: Restructuring ASPPA

Restructuring ASPPAASPPA members will be asked to approve the following: Revised bylaws ARC Operating Policies and

Procedures ASPPA Operating Policies and

Procedures Conforming amendment to the

ASPPA-COPA agreement Initial slate of ARC Board

members

Page 28: Restructuring ASPPA

Restructuring ASPPA Revised Bylaws

Bylaws need to be amended to reflect ARC as the dba of ASPPA and the ARC governance structure; requires ARC membership approval to amend in future

ARC Operating Policies and Procedures Handle issues not required to be in Bylaws;

requires two-thirds of ARC Board to amend ASPPA Operating Policies and Procedures

Establishes ASPPA governance structure; requires two-thirds of ASPPA Leadership Council to amend

Conforming amendment to ASPPA-COPA agreement Clarifies that ARC Board is primarily responsible

to carry out ASPPA’s obligations

Page 29: Restructuring ASPPA

Restructuring ASPPAAdding a new sister organization to the ARCThe initial four sister organizations (ASPPA, ACOPA, NAPA, NTSA) must agree to the addition of any new sister organization

All of the sister organizations should feel comfortable with adding a new member organization to the family

Page 30: Restructuring ASPPA

Restructuring ASPPA ASPPA reserves

Amount determined as of 12/31/2011 as the ASPPA-allocated reserves. If the ASPPA sister org choose to leave ARC before 2017, 100% of these reserves would go to the separate organization. Phased out percentage for the next 10 years. 12/31/2011 cutoff date recognizes that,

after 2011, NAPA and NTSA members added substantially to the reserves

No allocation of reserves to any other sister org that decides to leave the ARC