Maximizing Plan Assets

1. STRONGER
Strategies
for success
2015 Partner Conference
together
Rescuing Leaking
Assets, Capturing
Rollovers, and
Facilitating Account
Aggregation
Sean Arnold, Product Manager,
BPAS

2. 2015 Partner ConferenceStronger Together
Welcome
• BPAS is committed to growing our collective
businesses
• This session is intended to be interactive,
WE WANT TO HEAR FROM YOU!

3. 2015 Partner ConferenceStronger Together
Strategies
• Incoming Rollover Specialist
• Making Participant Loan Provisions Work
• Retaining Assets of Terminated Employees

4. 2015 Partner ConferenceStronger Together
Incoming Rollover Specialist
• Sole responsibility to assist participants with rolling
outside assets into their current employer’s plan.
• High touch interactions
• Making use of technology, web, e-signature
• What else are you seeing?
• What else could we be doing here?

5. 2015 Partner ConferenceStronger Together
Participant Loans
Why Do We Offer Them?
Who wishes they could eliminate Participant Loans?

6. 2015 Partner ConferenceStronger Together
Participant Loan Policy
Participant loans can be advantageous:
• If we agree they encourage employees to save (more)
• If they are offered in a prudent manner
• Maximum loan amounts
• Source of loan proceeds
• Repayments are allowed to continue after termination

7. 2015 Partner ConferenceStronger Together
Participant Loan Policy
Limit the number of loans available
• Plans with fewer loans available have smaller outstanding loan
balances Number of
Outstanding Loans
Average Outstanding
Loan Principal
1 $ 7,994
2 $ 9,627
3 $11,381
4 $11,912
5 $13,590
Source: Minimizing Defined Contribution Plan Loan Leakage, October, 2013.
www.aon.com. AON Hewitt Retirement Research.

8. 2015 Partner ConferenceStronger Together
Participant Loan Policy
Limit the source of loan proceeds
• Plans that limit loans to Employee Deferrals have smaller
outstanding balances
Money Types Available
for Loans
Percentage of Participants
with Outstanding Loans
Average Outstanding
Loan Principal
Employee Contributions Only 26% $8,797
Employee and Employer
Contributions
29% $9,168
Source: Minimizing Defined Contribution Plan Loan Leakage, October, 2013. www.aon.com.
AON Hewitt Retirement Research.

9. 2015 Partner ConferenceStronger Together
Participant Loan Policy
Offer terminated participants an easy way to continue
making repayments
• Plans offering direct debit options have fewer loan defaults
MyPlanLoan has reduced the
number of loan defaults
amongst terminated
employees by as much as 40%
Loan Default Rates in 2012 (among terminated workers, by age)

10. 2015 Partner ConferenceStronger Together
Terminated Participants
• Confused about available options?
—Few realize they may leave assets in the Plan
—Many ask about rollover options available through BPAS
• BPAS is ramping-up efforts to address these issues
Together, we can be the solution!

11. 2015 Partner ConferenceStronger Together
Terminated Participants
• Training Call Center team to be participant educators
Leave in
Plan,
Installment
Payments
Cash Out
Direct
Rollover to
new
employer’s
plan
IRA
Rollover
Options for
Terminated
Employees

12. 2015 Partner ConferenceStronger Together
Terminated Participants
• Training Call Center team to be participant educators
Considerations
• Relationship with former employer
• Viability of former employer
• NUA
• Investment Options
• Loan Availability
• Distribution Options

13. 2015 Partner ConferenceStronger Together
Terminated Participants
Within the parameters of DOL Fiduciary Regulations
Working with Partners to build
rollover IRA programs

14. 2015 Partner ConferenceStronger Together
Summary
• BPAS is committed to strengthening our partnership
• Together, we can help participants and grow our
businesses by:
• Making it easy for new participants to consolidate accounts
• Re-educating Plan Sponsors on prudent application of
Participant Loan features
• Continuing our relationship with participants post-
severance

15. 2015 Partner ConferenceStronger Together
Questions
Sean K. Arnold
Product Manager
sarnold@bpas.com
315.292.6941
Thank you