Products September 18, 2013

Buck Offers Automated DC Plan Solution

September 18, 2013 (PLANSPONSOR.com) – Buck Consultants has released Savings InSight, a solution that will allow employers to automate their defined contribution (DC) retirement programs.
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Savings InSight, part of Buck’s retirement plan services, will be provided to workers through an employer’s intranet. It works for any type of defined contribution plan or design and with any recordkeeper. The employer’s management team sets targets and assumptions for the underlying retirement date, income level and payout period, resulting in more control over the eventual retirement readiness of its employees.

“Savings InSight will transform workplace retirement savings into a process that’s automatic and easy for everyone, from the market-savvy to the novice employee investor,” said Ted Goldman, Buck’s North American retirement practice leader. “People will know exactly where they stand in relation to their savings goals, and this confidence contributes to more focused, productive and engaged employees.”

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Savings InSight will enable employers to offer a retirement readiness solution that:

  • Enrolls employees automatically;
  • Sets a savings target for each employee based on age, pay and current savings, taking into account all retirement income sources;
  • Calculates a “smart” career contribution pattern that provides employees with customizable options based on their expected retirement age and income goals in retirement;
  • Invests in one of a plan’s default funds, though employees always may select alternative investments;
  • Reviews an individual’s actual results against the target, and automatically makes contribution adjustments that keep the program on track; and
  • Establishes a payout schedule that lasts throughout retirement.

According to Buck, it created Savings InSight to help companies assist their employees with smart, automated retirement planning and to boost employee confidence, make retirement patterns more predictable and let companies align them with business objectives.

“This service is built to bridge the savings gap we face as plan sponsors, individuals and society as a whole,” said Mike Roberts, group president of human resources services at the firm.

Buck Consultants, a Xerox Company, is a human resource (HR) and benefits consulting firm.

More information about Savings InSight can be found here.

Benefits September 18, 2013

Improving Plan Participant Outcomes

September 18, 2013 (PLANSPONSOR.com) – A new white paper looks at how plan sponsors can foster better outcomes for participants.
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According to Carol A. Idone, principal author of “Improving Participant Outcomes: An Action Plan for Plan Sponsors” and vice president of business development at Strategic Benefit Services (SBS) in Rensselaer, New York, the biggest obstacle plan sponsors need to overcome is employee inertia. She said, while most employees understand the need to save for retirement, they lack the expertise, desire or time to formulate and carry out a retirement savings strategy.

Idone told PLANSPONSOR, “I think the most important thing that plan sponsors can do to have an immediate impact on participant outcomes is to add automatic features to their plan, including both auto-enrollment and auto-escalation.” Idone noted that while the other items mentioned in the paper, such as plan options and investment menus, are important, they are predicated on people participating in the plan.

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“For those who are already participating in the plan, improving the investment menu or changing the matching formula may get them to their retirement goal quicker, or at least increase the likelihood of reaching their goal, but does nothing if someone is not yet enrolled,” she said. “I strongly feel that if a plan sponsor wanted to do just one thing to help their employees achieve their retirement goal it would be to put them in the plan and force the employee to make a conscious decision to opt out. Study after study shows most will not opt out.”

The white paper examines steps plan sponsors can take to provide greater assurance that employees will be able to generate sufficient retirement income. The paper also examines factors that plan sponsors should consider when assessing the value of the retirement plan offered to their employees.

SBS is a retirement plan consulting firm that works with finance and human resource (HR) leaders. SBS is also an affiliate of the Healthcare Association of New York State (HANYS).

A copy of the white paper can be found here.

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