MODERATOR:Pam Medlin, Benefits Project Manager, Koch Business Solutions

PANELISTS:• Bill Gheres, Director of Retirement Planning and Administration, Erie Insurance• Kevin Marpoe, Director – Treasury Services, Highmark Health• SueEllen Bonilla, Plan Sponsor – Retirement Income Services, Ingersoll Rand• Laura Gaynor, Senior Vice President, National Practice Leader for Corporate Plans,

Transamerica Retirement Solutions

Streamlining Plan Management

Streamlining Plan Management

• Topics:Bill Gheres – Operational Efficiencies with One Provider

Kevin Marpoe – Challenges from Acquisitions

SueEllen Bonilla – Streamlining Processes through Strong Partnerships

Laura Gaynor – A Provider’s Perspective

Streamlining Plan Management

• Bill Gheres – Operational Efficiencies with One Provider

Operational Efficiencies

Consider Two PerspectivesPlan SponsorPlan Participant

Operational Efficiency ≠ Retirement Readiness

Operational Efficiencies

Operational Efficiency Gains

In-House Investment CapabilitiesHolistic Total Rewards CommunicationBundle DB & DC with Fidelity InvestmentsAutomatic DC Enrollment

Operational Efficiencies

Don’t Sacrifice Retirement Readiness

401(k) Participant Loan

• No General Purpose Loan

• Similar to Safe Harbor Hardship W/D Reasons

• Adds Administrative Burden

Operational Efficiencies

Don’t Sacrifice Retirement Readiness

Participants Need Someone to Talk With

• In-House Staff

• Fidelity Investments

• The Ayco Company

Streamlining Plan Management

• Kevin Marpoe – Challenges from Acquisitions

Challenges from Acquisitions

Issue: In 2014 inherited four additional DC plans due to acquisitions• Poor oversight; Too many fund options – investment option overload;

Inefficient fee structuresWorked with HR benefits team to review the plans, focusing on:• Plan Design, Investment Solutions, Employee Engagement and Plan ManagementCurrently finalizing an enterprise-wide retirement strategy, meant to offer market-based benefit packages, with a reduced emphasis on defined benefit retirement plans• Standardize offerings as much as possible; Simplify and standardize vendors

and administration

Challenges from AcquisitionsCorporate Philosophy – Defined Contribution Plans• Provide competitive, useful and participant-friendly plans• Utilize safe harbor plan provisions to make administration easier and improve

portability• Implement auto-enrollment, auto-escalation, auto-rebalancing, default investments

and appropriate loan provisions• Autopilot retirement planning

• Use technology to ease administrative burden• Investment menus utilize open architecture, best-in-class funds and lowest cost

share class, without increasing sponsor’s burden of plan costs (revenue sharing)• Offer investment advisory solutions

• Plan and financial education available on line• Financial planning services offered to employees

• Effectively communicate with employees/participants

Challenges from Acquisitions

Interim/ Phased Approach:• Centralize oversight with one investment committee and one consultant,

with regular management reviews (consistent with fiduciary best practices)

• Include the plans in the organization’s employee communications strategy

• Improve the structure and quality of funds offered to participants by reducing the fund line-up to an appropriate number of funds and adopt a structure consistent with our philosophy:

• Reduce number of funds to a manageable and understandable amount, utilizing organization’s approach to fund structure (three tier)

• Utilize best-in-class fund options, where possible• Conduct detailed review of default option (target date funds)

Challenges from AcquisitionsInterim/ Phased Approach (continued):Fee review

• Benchmark fees against those of similarly sized plans• Negotiate a reduction in fees from vendor, while covering plan costs• Reduce individual fund fees based on share class or fund vehicle• Ensure fee transparency

Map asset transfers from old funds to new funds• Reduce number of fund options used from 188 to 32 funds (including 12 target date

funds)• Default participant assets and future contributions out of any closed fund whenever

possible to ensure that participants are investing in options that are being continuously monitored

• Map to a combination of QDIA and like-funds, based upon a fund-by-fund reviewCommunicate changes, options and actions to participants/employees

Streamlining Plan Management

• SueEllen Bonilla – Streamlining Processes Through Strong Partnerships

Streamlining Processes ThroughStrong Partnerships

• Issue: • Identified above normal number of errors in the weekly funding

• High number of errors remained consistent each week

• Several processes with little or no value-add

Streamlining Processes ThroughStrong Partnerships

1) Identified the issues

2) Sought help

3) Assessed a plan – Rapid Improvement Event

4) Tracked trends

5) Categorized items in priority order

Streamlining Processes ThroughStrong Partnerships

• Reduced errors

• Identified areas for improvement

• Improved visibility

• Significantly improved productivity

• Maintain strong partnerships

Streamlining Processes ThroughStrong Partnerships

Streamlining Plan Management

• Laura Gaynor – A Provider’s Perspective

Streamlining Plan Management

• Benefits – Plan Sponsor• Cost• Streamlined data feeds• Off-loading of administrative tasks• One point of contact • Consolidated reporting• Consolidated approach to investment offering• Comprehensive communication plan promoting retirement benefits

Streamlining Plan Management

• Benefits – Participants• Reduced cost• Holistic approach to retirement readiness• Cohesive/consistent messaging • One access point

Streamlining Plan Management

Questions??