STRONGER

together

Strategies for success

2015 Partner Conference

Participant Education Strategies

The SequelPresented by your BPAS Team:

Suzan Huckaby, Senior Relationship Manager,Robert Malczyk, Vice President of Sales,

Thomas Sutton, Senior Trust Officer, Fiduciary Services

STRONGER

together

Strategies for success

2015 Partner Conference

Overview of the

original

2015 Partner ConferenceStronger Together

Why Educate?

2015 Partner ConferenceStronger Together

Why Educate

• Wealth Accumulation (a focus on outcomes)• Fiduciary Responsibility/404(c)• Financial/Physical Wellness – Retire with Dignity• Employer Benefits

— Retention & Recruiting

2015 Partner ConferenceStronger Together

Targeting How Employees Learn

A successful strategy incorporates how we learn into the communication plan

Visual Audio Written

2015 Partner ConferenceStronger Together

Challenges To Effective Education

• Learning Style Differences• Information Overload• Attention Spans• Complex Topics• Human Behavior

– “Doesn’t Apply To Me”• Reluctance To Make Decisions/Choices• Cost Effectiveness• Understanding Benefit Statements

2015 Partner ConferenceStronger Together

Tools to Simplify Education• Consider holistic education to improve financial

literacy• Implement Auto Plan Features• Simplify Investment Menus

— Target Date Funds— Risk Base Funds— Suggested Asset Allocation

• Advice

2015 Partner ConferenceStronger Together

Building a Successful Education Program

• Set/Create an Education Policy Statement • Targeted and Personalized• Relevant• Must be consistent, persistent, and multi-channel• Track progress toward goals• Gather feedback from participants • Establish relationships to minimize taxable

distributions at retirement

STRONGER

together

Strategies for success

2015 Partner Conference

The Sequel

2015 Partner ConferenceStronger Together

Time to Change the Conversation

Research done by Schwab in 2013 revealed a communication gap between what traditional 401(k) participant education efforts have been communicated and what this focus group said they actually wanted to hear.

Participants want 401(k) plan information that shows them real, practical value of their retirement plan without getting mired down in the details of plan features.

2015 Partner ConferenceStronger Together

Time to Change the Conversation

American Century Investments 2014 Survey asked:I wish the financial company that provides my company plan would do more to come into the workplace and educate me.

Disagree

Strongly Agree

Agree

Roughly two-thirds of the participants surveyed either strongly agreed or somewhat agreed with that statement.

2015 Partner ConferenceStronger Together

Time to Change the Conversation

Participants support

automatic enrollment at a

higher level

Suppose the company you worked for had an automatic enrollment option where 6% got taken out of your check automatically for retirement.

Is this something the company Should or Should Not do?

Over 60% of participants surveyed answered SHOULD DO

2015 Partner ConferenceStronger Together

Time to Change the Conversation

Let’s rethink 401(k) participant education better together