Deals and People August 2, 2019

Retirement Industry People Moves

Custodia adds former Pfizer HR chief to advisory council, and IRS names leader for Tax Exempt/Government Entities division.

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Art by Subin Yang
Art by Subin Yang

Art by Subin Yang

Custodia Adds Former Pfizer HR Chief to Advisory Council

Custodia Financial has appointed Chuck Hill, former chief human resource officer of Pfizer Inc., to its Strategic Advisory Council (SAC). In his role on the SAC, Hill will support distribution efforts for Retirement Loan Eraser across his broad network of senior human resources (HR) executives and industry practitioners.

While at Pfizer, Hill was responsible for all enterprise human resource programs, including compensation and benefits.

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He joined Pfizer’s human resources (HR) team in 1987, supporting the Pharmaceutical Sales Force. After that, he held a number of roles including HR director of Pfizer’s Global Manufacturing facility in Groton, Connecticut; vice president of HR, Corporate Finance; and senior vice president HR, Worldwide Biopharmaceuticals Businesses. Prior to joining Pfizer, Hill served for eight years in the United States Air Force as an instructor fighter pilot and flight commander. He served as the executive sponsor of the Pfizer Colleague Council, Veterans in Pfizer, which works to maximize the unique role that veterans and active military personnel play in driving workplace and marketplace outcomes.

“Having a former CHRO and plan sponsor with Chuck’s experience, network, and values on the SAC is imperative for Custodia and for the employers we serve,” says Tod Ruble, CEO of Custodia Financial. “Chuck understands from years of experience the goals, challenges, and risks that large plan sponsors face, so his voice on the SAC—and advocacy in the marketplace—will be invaluable.”

“Upon learning about Custodia’s mission, I felt drawn to the critically important work that Tod and the team are doing. Preventing leakage caused by loan defaults is a challenge that should be on every large plan sponsor’s radar,” says Hill. “I’m thrilled to be working with the Custodia team to raise awareness among HR executives that Retirement Loan Eraser is an effective solution that automatically improves employees’ retirement outcomes, while minimizing fiduciary risk.”

IRS Names Leader for Tax Exempt/Government Entities Division

The Internal Revenue Service (IRS) has selected Tamera Ripperda to lead the Tax Exempt and Government Entities (TE/GE) division. 
 
In TE/GE, Ripperda will take over as commissioner for Sunita Lough, who will become the IRS deputy commissioner for Services and Enforcement on September 1. TE/GE oversees issues including exempt organizations, employee plans and government entities. 
 
“Tammy brings a variety of skills and expertise to the diverse set of programs overseen by TE/GE,” Rettig said. “She has a strong record of successfully handling critical programs and working closely with people inside and outside the IRS.”
 
Ripperda became SB/SE Deputy Commissioner in 2016. During this period, she spent 14 months as a director in the Tax Reform Implementation Office (TRIO) where she helped oversee the implementation of the Tax Cuts and Jobs Act (TCJA) of 2017. Prior to 2016, Tammy was the Director of TE/GE Exempt Organizations (EO), where she oversaw tax administration and policy for 1.6 million exempt organizations, and held other positions. 
 
“TE/GE plays a critical role serving key areas for the nation, ranging from tax-exempt groups and retirement plans to Indian tribal governments and tax-exempt bonds,” Ripperda said. “I look forward to working with our TE/GE employees and partner groups to continue finding ways to serve these important communities.”
 
Tammy began her IRS career in 1988 as a Revenue Agent in St. Louis. She has a bachelor’s degree in accountancy from Southern Illinois University.

Opinions August 2, 2019

Taking a ‘Calculated’ Approach to Retirement Readiness

Nathan Voris, with Schwab Retirement Plan Services, discusses how retirement calculators can be a useful resource for employees—by spurring them into action and providing them with more confidence about retirement readiness.
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Plan sponsors are always thinking about which tools and resources will have the greatest impact on their employees’ engagement and outcomes. From online portals to webinars, there’s more information available to participants today than ever before, largely thanks to the Internet. Amid all of these useful options, you might be surprised to know, the humble online retirement calculator is really pulling its weight.

We recently surveyed 1,000 401(k) participants, and the vast majority (82%) said they are likely to use online tools to help them plan for retirement.1 Just over half have already utilized an online calculator. And, as it turns out, the results they received spurred them to action.

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Of those who have used this type of calculator, 61% took a positive next step, such as: increasing their contribution level for their 401(k) and other retirement accounts, altering their spending habits, accessing online advice through their 401(k) plan, asking a financial professional for advice and even opening a new retirement account.

This kind of behavior is definitely commendable, and it reinforces a point that my colleagues and I think is so important. Wherever an employee is in their financial journey, we want to encourage them to take their next best step. The cumulative effect of all of these small steps is what moves participants from saving to investing to true financial ownership.

The other byproduct of retirement calculators is confidence. Forty-two percent of those who have used one felt confident after doing so—more than any other emotion that was listed for them to choose from.

Large groups also reported feeling relief and happiness. Most (71%) said they felt encouraged and wanted to learn more. From my perspective, we can’t underestimate the power of confidence in helping participants engage with their investments and make a plan they can stick to.

I should note that a much smaller percentage of people who’ve used an online retirement calculator reported feelings of frustration—and even panic or sadness. For them, this tool is no less valuable. Sometimes, getting an objective perspective on how much work we have to do is just what we need to overcome our inertia and take action that will improve our situation.

While many participants are self-starters, the reality is that they still want help. Nearly all respondents in the survey (95%) said they’d feel confident in their ability to make the right 401(k) investment decisions if they had the help of a financial professional, and 93% said they’re likely to follow financial advice from a professional. Seventy-two percent said they’d take advantage of help from a professional specifically to develop a financial plan, if it were offered by their employer.

And yet, about half (48%) of participants feel their situation doesn’t actually warrant professional advice. As those looking out for 401(k) participants, we need to work to address this misperception. After all, no matter how much a person has to invest, that money is part of their wealth, and they deserve the benefit of guidance to make the most of it.

The bigger picture here is that most Americans have a lot of work to do to save enough for a comfortable retirement. The people we polled believe they need $1.7 million, on average, for retirement. While everyone’s situation is different, this is a realistic projection—though getting there is going to be a challenge for most.

That’s why it’s so important for us to encourage participants to use all of the resources at their disposal—from consultations with a professional to simply plugging their information into an online retirement calculator to take their financial pulse. Participants tell us they want help. Together, we need to focus on leading them to it and making sure they know they deserve it.

[1]This online survey of U.S. 401(k) participants was conducted by Logica Research for Schwab Retirement Plan Services, Inc. Logica Research is neither affiliated with, nor employed by, Schwab Retirement Plan Services, Inc. The survey is based on 1,000 interviews and has a 3% margin of error at the 95% confidence level. Survey respondents worked for companies with at least 25 employees, were current contributors to their 401(k) plans and were 25 to 70 years old. Survey respondents were not asked to indicate whether they had a 401(k) account with Schwab Retirement Plan Services, Inc. All data is self-reported by study participants and is not verified or validated. Respondents participated in the study between March 19 and March 29.

 

Nathan Voris is managing director, business strategy at Schwab Retirement Plan Services.

 

This feature is to provide general information only, does not constitute legal or tax advice, and cannot be used or substituted for legal or tax advice. Any opinions of the author do not necessarily reflect the stance of Institutional Shareholder Services Inc. (ISS) or its affiliates.

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