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2012 plan sponsor presentation l0212240551 exp0213 all states dc gu mp pr vi final copy

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  • 07/19/12 00:47 07/19/12 00:47
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    • 1. Retirement Plans:The Changing LandscapeWhat Do I Need To Know? For Plan Sponsor Use Only. Not For Use With Participants or the Public. L0212240551[exp0213][All States][DC,GU,MP,PR,VI]
    • 2. BackgroundERISA Requires Plan Fiduciaries toEngage in a Prudent Process.3. Selecting Service Providers4. Monitoring Plan Investments5. Benchmarking Fees and Expenses6. Employee Education 2
    • 3. Disclosure NeededDo Employees Really Know What They Are Paying? – AARP Survey (February 2011): • 71% of participants – incorrectly said they do not pay fees • 6% of participants – said they do not know whether they paid expenses or feesSource: AARP Survey: 401(k) Participant’s Awareness and Understanding of Fees, February, 2011 3
    • 4. 408(b)(2) – The New RuleDOL Final Regulations – Effective July 2012• Written agreement detailing services• Statement of fiduciary status to the plan• Disclosure of fees applied against participant accounts• Disclosure of categories of fees• Disclosure of provider compensation Employer Impact? 4
    • 5. Impact• Employees Will Become More Aware of Plan Fees And Expenses• Employers Will Seek Less Expensive Service Providers• Fee Benchmarking May Become Standard Practice• Disclosure Requirements Will Foster Greater Competition Between Service Providers 5
    • 6. Fiduciary Checklist Have you acted as a “prudent man” would act when carrying out1. your investment responsibilities? Are you providing an investment menu with a diversified2. selection of risk/return characteristics?3. Has sufficient due diligence been used in the ongoing selection of investment options in your plan?4. Do you have a written Investment Policy Statement (IPS), and are you following it? Have you supplied participants with the investment information5. and education needed for them to make informed investment decisions? 6
    • 7. Meeting My Responsibility• Establishing a Prudent Process: – Create a Retirement Plan File – Document the Decisions – Monitor the Plan 7
    • 8. Plan Design ComparisonSide-by-SideIllustration Compares: – Plan Types – Plan Costs – Plan Allocations – Plan Benefits – Accumulations at Retirement 8
    • 9. Provider Search “How Much Does My Plan Cost?” “Am I paying too much?” “Do I have the right investment platform?” 9
    • 10. Side by Side Pricing Analysis 10
    • 11. Benchmark Your Plan 11
    • 12. Benchmark Your Plan 12
    • 13. Benchmark Your Plan 13
    • 14. Investment Policy Statement – Set Investment Objectives – Define Roles & Responsibilities – Identify Selection of Investment Options – Investment Monitoring & Reporting – Participant Education and Communication – Coordination with Plan Document 14
    • 15. Investment Monitoring 15
    • 16. Clients Are Seeking Adviser Support PLAN SALES BREAKDOWN (<$50M MARKET) What aspects of the plan 9% Banks/other do plan sponsors consider 26% Direct 9% RIAs confusing to employees? 12% Financial planners • The top 3 13% Wirehouses – 80%: Where to invest/which funds to use 16% Benefit consultants/TPAs – 55%: How much to save 74% Intermediary for retirement 17% Regional broker/dealers – 30%: Financial planning 25% Insurance brokers <$50M market Intermediary market Source: Brightworks Partners; Deloitte 401(k) Benchmarking Survey, 2008. Reprinted with Permission from Putnam Investments. All rights reserved. 16
    • 17. Let Us Help You With: • Plan Design • Plan Benchmarking • Product Due Diligence • Fund Analysis/Investment Monitoring (IPS) • Investment Education • Employee Enrollment and Education • Ongoing Service Delivery Meeting Your Responsibility 17
    • 18. Thank You!! Questions? 18
    • 19. DisclosuresDisclosuresMetLife Pension Resource Center tools are provided by third parties, PLANSPONSOR Pathfinder and Fiduciary Investment Reporting Manager by Center forFiduciary Management, LLC who are not affiliated with MetLife.Provider Search Reports is provided by third party PLANSPONSOR Pathfinder:PLANSPONSOR Pathfinder is an analytical tool, the results of which are intended for informational purposes only. The information (results and reports)produced by this tool is/are reliant upon a multitude of subjective data elements which are controlled by independent sources other than Asset International, Inc.(the provider of the PLANSPONSOR Pathfinder tool, hereafter to be referred to as AI), and the Financial Advisor, and are subject to change. Examples ofindependent informational sources include (but are not limited to) industry vendors populating an industry database; Conditions and criteria specified by theclient and/or a paid Financial Advisor. AI does not guarantee the accuracy of results generated by the PLANSPONSOR Pathfinder tool. Furthermore, the resultsdo not constitute recommendations or advice. AI is not responsible for any losses resulting from the reliance upon the results produced by PLANSPONSORPathfinder as well as any information provided to the client by a Financial Advisor. Asset International, Inc., the provider of PLANSPONSOR Pathfinder, is anindependent organization and not affiliated with MetLife.Pathfinder Provider ScoresProviders provide a great deal of information to the Pathfinder database regarding their capabilities and services. Questions within the database that can bequantified have an automated scoring applied and have specific scoring algorithms associated with them. The scoring methodology takes into account theresponse(s) chosen and the market segment for which the response applies.The scores provided by the Pathfinder methodology may be helpful in reviewing general information about the providers but are not meant to imply a “best”provider and so they should not be used as the only factor in making the selection of the most appropriate provider for your plan. Other factors that may beconsidered in choosing a provider may include information submitted in your plans pricing proposal and information sent by the provider specific to your plan,past and present experience with the provider by you or your Advisor, survey information regarding customer satisfaction, the providers experience with planslike yours, and information gained through finalist presentations.The Provider analysis conducted by the Plan Sponsor/Pathfinder tool represents the results of the scoring methodology. The scoring does not apply anyconsideration to the products or services provided by MetLife or its affiliates. This report only shows the products and services of companies that have sellingagreements with MetLife.MetLife is not endorsing or recommending any Providers listed. MetLife does not guarantee the accuracy of results generated by the PLANSPONSORPathfinder tool. Not all Provider alternatives are displayed. MetLife does not independently verify the data contained in the PLANSPONSOR Pathfinder tool. 19
    • 20. DisclosuresDisclosuresSecurities and investment advisory services are offered through registered representatives and investment advisor representatives, respectively, of thefollowing MetLife companies: MetLife Securities, Inc., New England Securities Corp., Walnut Street Securities, Inc., and Tower Square Securities, Inc., 1095Avenue of the Americas, New York, NY 10036. All listed companies are members of FINRA/SIPC and registered investment advisers.Pursuant to IRS Circular 230, MetLife is providing you with the following notification: The information contained in this document is not intended to(and cannot) be used by anyone to avoid IRS penalties. This document supports the promotion and marketing of insurance products. You shouldseek advice based on your particular circumstances from an independent tax adviser.MetLife, its agents, and representatives may not give legal or tax advice. Any discussion of taxes herein or related to this document is for general informationpurposes only and does not purport to be complete or cover every situation. Tax law is subject to interpretation and legislative change. Tax results and theappropriateness of any product for any specific taxpayer may vary depending on the facts and circumstances. You should consult with and rely on your ownindependent legal and tax advisers regarding your particular set of facts and circumstances.PEANUTS © 2012 Peanuts WorldwideL0212240551[exp0213][All States][DC,GU,MP,PR,VI] 20