Benefits October 21, 2014

Higher Education Institutions Focusing More on Retirement Readiness

October 21, 2014 (PLANSPONSOR.com) – Higher education institutions that offer a 403(b) or Roth 403(b) plan are adopting practices that lead to a greater focus on participants’ retirement readiness, a survey finds.
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According to a research report released by Transamerica Retirement Solutions, “Retirement Plans for Institutions of Higher Education,” more 403(b) plan sponsors in the higher education market are working with plan advisers, implementing automatic enrollment features and streamlining retirement plans.

The research found 55% of institutions with an exclusive arrangement with a single retirement plan provider monitor the retirement readiness of their plan participants, compared to 23% of institutions that work with multiple providers. Further, 60% of institutions that partner with an adviser monitor retirement readiness. Among the institutions that partner with a financial adviser, nearly half estimate that 50% or more of their plan participants are on track to achieve a successful retirement.

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In 2014, only 28% of survey respondents characterized their plans as multi-vendor, compared to 48% in 2013. And in 2014, just 13% added investment options to their retirement plans, versus 27% in 2013.

In addition, in 2014, higher education institutions:

  • Reduced the number of retirement plans offered (13% vs. 12% in 2013);
  • Consolidated investments for multiple plans (11% vs. 9% in 2013); and
  • Streamlined recordkeeping for multiple plans (11% vs. 6% in 2013).

The number of higher education 403(b) plans utilizing automatic enrollment rose to 44% in 2014 from 41% in 2013. The number of plans using automatic participant deferral increase rose to 23% from 8%.

Forty-five percent of survey respondents indicated they do not work with an adviser—down from 48% in 2013. Fifteen percent said they plan to hire an adviser within the next 12 months.

"The gradual shift away from defined benefit plans and the high number of pre-retirees have led many higher education institutions to pay closer attention to the retirement readiness of their employees," says Brodie Wood, vice president and national practice leader in Transamerica Retirement Solutions' not-for-profit group. "The streamlining of retirement plans, adviser partnerships, and the adoption of automatic plan features are a powerful combination that is helping higher education institutions guide their participants toward retirement readiness."

The “Retirement Plans for Institutions of Higher Education” study was fielded by Transamerica Retirement Solutions in May 2014. The sample consisted of 117 plan sponsors at institutions of Higher Education.

The research report may be requested from here.

Deals and People October 21, 2014

MassMutual Expands Taft-Hartley Service Team

October 21, 2014 (PLANSPONSOR.com) – MassMutual’s retirement services group has added several members to its Taft-Hartley retirement plan client service team.
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The hires include three new relationship managers and two new sales consultants, and MassMutual’s Taft-Hartley staff is now made up of eight relationship managers and five sales staff dedicated to Taft-Hartley plans.

The new hires and promotions are as follows:

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  • Chad Girard was added as a sales consultant, providing internal support and resource management for the sales team. Girard joins MassMutual from Mercer and has more than 16 years of administrative experience in the market.
  • Dan Krause was hired as a business development consultant and will manage MassMutual’s union construction practice, strengthening relationships with building trade groups and providing event coordination and marketing. He joins MassMutual from International Union of Operating Engineers Local 478, where he was funds director for more than 20 years.
  • Ken Sullivan was named a relationship manager for MassMutual’s large Taft-Hartley retirement plan sponsors. Sullivan previously served on the Taft-Hartley team at Mercer and has 16 years of relationship management experience.
  • Eric Sarrazin recently joined the Taft-Hartley relationship management team after supporting MassMutual’s third-party administration (TPA) relationship management team for the last five years. In his 17-year career at MassMutual, Sarrazin has served in numerous capacities, including Taft-Hartley account manager and national accounts communications consultant.
  • Ron Packingham was named relationship manager after having worked as a retirement education specialist and registered representative for MassMutual for the past eight years. Packingham has 13 years of experience servicing retirement plan sponsors.

In addition, MassMutual promoted Joe Carmignani to assistant vice president and manager of the Taft-Hartley relationship management team. Prior to the promotion, Carmignani served as a relationship manager on the Taft-Hartley team.

John Dolan was also promoted, to managing director of the Taft-Hartley sales team. Dolan spent the last nine years as a Taft-Hartley relationship manager, including six years as part of MassMutual’s team.

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