Aon给美国特种雇员保障协会做的咨询案.PPT.ppt

,AftertheStormPlanRedesign101Washington,D.C.,TonyaB.Manning,FSAVicePresidentAonConsulting,DonaldJ.Segal,FSASeniorVicePresidentTheSegalCompany,1,AftertheStormPlanRedesign101,AftertheStorm,2,AftertheStormPlanRedesign101,WhatWillBeDiscussed:,ReasonsforSponsoringaDefinedBenefitPlanEmployer/EmployeeFactorstoConsiderinRedesignDesignAlternativesTransitionIssuesCommunicationMeasurement,3,AftertheStormPlanRedesign101,First.,4,AftertheStormPlanRedesign101,AFlashBacktothe70s,5,AftertheStormPlanRedesign101,Fashion,6,AftertheStormPlanRedesign101,TV,7,AftertheStormPlanRedesign101,Music,8,AftertheStormPlanRedesign101,Movies,9,AftertheStormPlanRedesign101,Comedy,10,AftertheStormPlanRedesign101,Retirement,DefinedBenefitPlans,11,AftertheStormPlanRedesign101,WhyWereDBPlansPopularinthe70s?,FewrulesregardingDBplansProfitsharingplansnotyetcaughtfireNo401(k)StockmarketrelativelyquietFixedincomeinvestmentspopularRisk,ERISA,12,AftertheStormPlanRedesign101,WhyEmployersTodayChoosetoSponsoraRetirementProgram,CompetitionforpersonnelIncreasing“popularity”ofDCplansEmployeedemandPaternalismFavorabletaxtreatmentDBplancanserveasatoolforHR(ERWs),13,AftertheStormPlanRedesign101,WhyPlanSponsorsAreLookingtoRedesignTheirPrograms,DBplanwoes:CashfundingrequirementsEffectonincomestatementandbalancesheetVolatility,14,AftertheStormPlanRedesign101,WhyPlanSponsorsAreLookingtoRedesignTheirPrograms,HistoricalExpenseforPensionPlan,15,AftertheStormPlanRedesign101,WhyPlanSponsorsAreLookingtoRedesignTheirPrograms,PerceivedlackofappreciationbyemployeesPressuretogrowshareholdervalueCompanysshorttermvs.longtermoutlookTrendy,16,AftertheStormPlanRedesign101,WhyPlanSponsorsAreLookingtoRedesignTheirPrograms,DeclineinDCequitybalancesEmployeesarenotsaving(oraresavingless)Employees/recruitsareagingNeedtophaseoutolderemployeesvs.NeedtophaseinolderemployeesEmployeesmoremobile/lessloyal,17,AftertheStormPlanRedesign101,FactorstoConsiderintheRedesignProcess,FinanceperspectiveCashrequirementEffectonfinancialstatementsAdministrativeexpensesVolatilityRiskCostobjectivesMoreCostneutralSavingsAffordability,18,AftertheStormPlanRedesign101,FactorstoConsiderintheRedesignProcess,HRperspectiveGoalsofprogramHowtouseyour401(k)planasatrueemployeemotivationdeviceBySuzanneThompson,ChFCEmployeemoraleCompetitorsAttraction/RetentionFuture(desired)structureofworkforce,19,AftertheStormPlanRedesign101,FactorstoConsiderintheRedesignProcess,PaternalismEmployeessavingsrate(currentandpotential)AdequacyofprogramWhodeservesfullretirementbenefits,20,AftertheStormPlanRedesign101,FactorstoConsiderintheRedesignProcess,OrphanismAdministrationpressingtowardpersonalaccountabilitywithproposedsavingsaccountsIndividualSocialSecurityaccountsagainbeingdiscussed,21,AftertheStormPlanRedesign101,FactorstoConsiderintheRedesignProcess,DemographicsAgeofworkforcepopulationAverageyearsofservice(actualanddesired)NumberofemployeesnearretirementIncreasedlongevityInvestmentsavvyofemployeesCompensationlevelofemployeesLow-paidlesslikelytosave?High-paidneedsupplementalbenefit?,22,AftertheStormPlanRedesign101,FactorstoConsiderintheRedesignProcess,TimingHealthofthecompanyHealthofeconomy/jobmarketSimultaneousbenefitimprovements/cutbacks,AnyCo.StockPrice,23,AftertheStormPlanRedesign101,FactorstoConsiderintheRedesignProcess,QuestionsRegardingSocialSecurityConsideritinadequacyassessment?(Willitsurvive?)Whatwillitbe?Shouldbenefitsbeintegrated?,24,AftertheStormPlanRedesign101,DesignAlternatives,NoProgramDBonlyFinalAveragePayCurrentPayUnitAccrual(careeraverage)Hybridplan(cashbalance,PEP,etc.)AdvantagesofeachdesignRegulatoryuncertainty,25,AftertheStormPlanRedesign101,DesignAlternatives,DCOnlyTargetProfitsharingcontributionSetpercentageDiscretionaryMoneypurchaseplan(why?),26,AftertheStormPlanRedesign101,DesignAlternatives,DCOnly(continued)SavingswithoutmatchSavingsandmatchFlatmatchformulaMatchvarieswithageand/orserviceMatchvarieswithplansponsorsperformanceSafeharbordesignAdvantagesanddisadvantages,27,AftertheStormPlanRedesign101,DesignAlternatives,BothDBandDCVarytypeofplanofferedbasedontypeofjobOfferbothtypestoallemployeesDBplanissecondary(usedasasafety-net)DCplanissecondary(tosupplementDBplan),28,AftertheStormPlanRedesign101,TransitionIssues-PhasingOutDBPlan,HowtodoitCloseparticipationFreezeaccrualAllparticipants/partialparticipantsServiceonlyTerminateChoice,29,AftertheStormPlanRedesign101,TransitionIssues-PhasingOutDBPlan,PossibledoubleuponcostGrandfatheringClosingparticipationAdministrationMultipleplansComplextransitionsNondiscriminationtestingRemovehighlycompensatedAddbacknonhighlycompensated,30,AftertheStormPlanRedesign101,TransitionIssues-PhasingOutDBPlan,GrandfatherCostHowtodoit(continueinDBorgetthebetterofthetwo)LegalissuesLawsuitpotentialHavesandHaveNotsdichotomyofworkforceEncouragingsavings(especiallyifnotpreviouslyrequired),31,AftertheStormPlanRedesign101,TransitionIssues-PhasingOutDBPlan,COMMUNICATIONCrucialAdditionalitemsnowrequiredMorechangesmeansgreaterneedforEFFECTIVEcommunicationChoiceisDEPENDENToneffectivenessofcommunicationPersonalizedcommunicationisveryimportant,32,AftertheStormPlanRedesign101,TransitionIssues-PhasingOutDBPlan,COMMUNICATIONMultipleapproachesarebestPaperIntranet/InternetMeetingsModelersOne-on-one,33,AftertheStormPlanRedesign101,Measurement,Longtermv