This document summarizes key points from a BPAS Partner Conference presentation on best practices for retirement plan advisors. The presentation covered topics like creating an online presence to attract prospects, using client relationship management software, surveying clients to define service models, automating fiduciary processes and reports, and making education meetings more engaging for retirement plan participants. The goal was to share insights that can help advisors strengthen their businesses and better serve clients.

1. B P A S P A R T N E R C O N F E R E N C E 2 0 1 6
BPAS Partner Best Practices
Paul Neveu
President, BPAS Plan Administration & Recordkeeping Services
B P A S P A R T N E R C O N F E R E N C E 2 0 1 6

2. Welcome
• The goal of this session is to share insights and
best practices which can help in your business
• We are honored to have partnerships with more than 400
firms across the financial intermediary space (RIAs and Trust
Companies; Over 90% of our business)
• As we work with all of you, we see some very creative ideas
and strategies
2016 BPAS Partner Conference

3. Bringing Back the CORRECT Focus in
Client Relationships
A. 408(b)(2) and the tendencies of
many plan sponsors
• It’s heavily about the fees
• Whatever your fees are, they
need to be reduced
• Maybe we should issue an RFP
• Someone else will do it for less
• Sometimes the “pure
commodity” philosophy (copier
paper, driveway rock salt, bottled
water)
B. Why you have a retirement
plan in the first place
• Getting participants to a place of
financial security
• The plan as a strategic attraction
and retention tool
• Managing risks, reducing
workload
• Combatting inertia to drive KSIs,
including auto measures
• Engaging the RPC for each client
• Creating a meaningful, lasting
relationship
2016 BPAS Partner Conference

4. Introduction
The things you do everyday in client
relationships – including your passion,
enthusiasm, resourcefulness and
diligence – determine whether you can
successfully shift clients from column A
to B. (A custom solution built around
their needs; not an “off the shelf”
program provided to all clients.)
2016 BPAS Partner Conference

5. Helping clients look at their plan versus
industry norms. Being able to put the
situation in context for clients and
prospects.
2016 BPAS Partner Conference
Perspective

6. — $6.7 trillion in DC — $7.3 trillion in IRAs
— $9.9 trillion in other (private sector DBs;
federal, state, local DBs; annuities, etc)
842,000 DC plans
$6.7 trillion in total assets
94 million participants
Total retirement assets in US: $24
trillion (end of 2014)
Source: ICI.org
DC Industry as a Whole

7. $4.6 Trillion in
401(k) Plans
$900 Billion in
403(b) Plans
$700 Billion in 457
and Federal Thrift
Savings Plan
$500 Billion in
private-sector DC
plans (PS, ESOP,
kSOP, etc)
Source: ICI.org
Of the $6.7 Trillion in DC Plans:

8. • Average participation rate:
– 87.6% of all eligible EEs have a balance in their DC plan
– 75.4% for plans with EE $ only (10 – 12% higher with match)
– 79% for BPAS’ DC plans as a whole
• Average deferral rate: 5.8% for NHCEs, 6.9% for HCEs
• Approx. 38% are now safe harbor (approx. 25% match, 13%
QNEC or AA), approximately 30% of plans fail the ADP / ACP test
• Average ER contribution to 401(k)/403(b) is 3.2% of pay, but 4.7% of pay across all plans
• 68.7% of plans now retain an Investment Advisor (or Corporate Trustee) to service their
plan
• 89% plans have a written IPS, but only about half among plans < $5M
Sources: PSCA, 401(k) Help Center
High Level Figures to Keep in Mind

9. • 35% of plans are now offering Investment Advice (as opposed to education or guidance)
• 62% of 401(k) plans now allow immediate eligibility for deferrals
• Auto enrollment: 59% of all plans now,
most common is 3% of pay, 57.9% of these
plans auto-increase EE deferrals over time
• Maxing out: Approx. 54% of participants now “max out the
match”; about 12% reach the full 402(g) limit (incl. catch up)
• 33% of plan sponsors have no investment committee
• Loans: Permitted in 87.8% of plans. 14.6% of participants have a loan outstanding,
average loan amount is $6,216 (1.6% of plan assets)
• SDBAs now offered in 28% of plans (avg. SDBA balance on BPAS platform = $201,731)
• Roth: 51% of plans now. When offered, 19.5% of participants use it
Sources: PSCA, 401(k) Help Center
High Level Figures to Keep in Mind

10. • At BPAS on Omni:
– 401(k) Plans: $52,723
– 403(b) Plans: $32,960
– 1081 Plans (PR): $17,731
– 457(b) Plans: $52,232
– 457(f) Plans: $233,678
– All DC Plans: $38,916
• Plan Sponsor, 12/31/2015: $63,752
• Fidelity annual survey (12/31/2015): $87,900
• Vanguard: $102,682 (average), versus $29,603 (median)
2016 BPAS Partner Conference
Average Balances Across Plan Types
(At BPAS on Omni, 12/31/2015)

11. Agriculture,
Forestry,
Fishing and
Hunting
Mining,
Quarrying,
and Oil and
Gas Extracts Utilities Construction Mnfg.
Wholesale
Trade Retail Trade
Transport
and
Warehousing Information
Finance and
Insurance
Part. Rate
74.0% 83.5% 85.0% 67.5% 74.0% 75.0% 56.0% 70.0% 76.0% 81.0%
HCE Def.
Rate 6.8% 7.0% 7.4% 6.1% 6.8% 6.6% 5.3% 6.1% 6.7% 6.7%
NHCE
Def. Rate 5.2% 5.6% 6.2% 4.2% 4.5% 4.4% 2.9% 3.9% 5.0% 5.1%
% who
Max
Match 48.0% 71.0% 77.0% 49.0% 55.0% 53.0% 47.0% 51.0% 54.0% 60.5%
Avg. Ann.
Comp $34,159 $87,214 $87,578 $52,321 $57,374 $64,896 $31,195 $48,453 $77,231 $84,555
Avg EE
Def ($) $1,776 $4,840 $5,429 $2,171 $2,581 $2,855 $904 $1,865 $3,861 $4,312
2016 BPAS Partner Conference 11
Key Data Points by Industry
(Fiduciary Benchmarks, Inc.)

12. 2016 BPAS Partner Conference
Real Estate
and Rental
Leasing
Prof.,
Scientific
and
Technical
Services
Mgmt of
Companies
and
Enterprises
Admin and
Support and
Waste
Mgmt,
Remediatio
n Services
Educational
Services
Healthcare
and Social
Assistance
Arts,
Entertnmnt
and
Recreation
Accomm.
and Food
Services
Other
Services
(except
Public
Admn)
Public
Admin.
Part. Rate
69.0% 78.0% 71.5% 68.0% 68.0% 68.0% 56.0% 25.0% 77.5% 49.0%
HCE Def.
Rate 5.9% 6.7% 5.6% 5.9% 6.8% 6.3% 5.7% 3.2% 6.9% 6.3%
NHCE
Def. Rate 3.6% 5.3% 3.9% 3.9% 4.6% 3.8% 3.3% 1.6% 4.7% 1.1%
% who
Max
Match 43.0% 57.0% 46.0% 54.0% 63.5% 50.5% 55.0% 26.0% 49.0% 35.0%
Avg. Ann.
Comp $47,290 $80,077 $96,586 $36,761 $40,785 $48,354 $43,219 $23,405 $34,885 $57,320
Avg EE
Def ($) $1,678 $4,244 $3,718 $1,433 $1,876 $1,837 $1,426 $374 $1,639 $630
Key Data Points by Industry
(Fiduciary Benchmarks, Inc.)

13. 2016 BPAS Partner Conference
Finance and
Insurance
The ABC Bank
401(k) Observation
Part. Rate
81.0% 86.1% Strong result; higher than average
HCE Def. Rate
6.7% 6.8% Reasonable (SH plan, bumping up against 402(g) limits)
NHCE Def. Rate
5.1% 4.9%
Can be boosted up more. Many employees sitting at 3% of
pay
% who Maximize
Match 60.5% 86% Strong result; much higher than average
Avg. Ann. Comp
$84,555 $48,510 Reflects many tellers; consistent with Banks
Avg EE Def ($)
$4,312 $2,549 Average
Avg. Balance $63,752 (all DC
plans) $74,982 Above average
Avg ER contr. ($)
$3,105 $3,056 Generous ER formula across match and PS
Avg ER contr. (%
of pay) 4.7% of pay 6.3% of pay
Generous ER formula across match and PS
How Can You Present this to a Client
(One Page Dashboard)

14. Ideas. Things that other
Advisors and Trust Companies
are doing. Ways to better
serve clients and build your
business.
2016 BPAS Partner Conference
Best Practices

15. • Define your practice to
the world at large
• Create a product name,
and/or easy to find URL
• Section for Plan
Sponsors, Participants
• Link to the Participant
Education Center
• Model fact sheets
• Economic information
• Market charts
• Calculators
• Log in to BPAS
• Testimonials
• Request a proposal
2016 BPAS Partner Conference
Retirement Services Landing Page

16. • Many prospects will keep you at “arm’s length” due to the sheer number of firms
knocking on their door
• However, decision makers may be willing to click a short link in an email to view a
multimedia show – put a toe in the water without a sales pitch
• Showcase your philosophy, approach, fiduciary
status, technology, solution for education and
guidance, etc.
• Use this link in multiple locations – website,
business cards, brochures, email signatures, etc.
• It’s all part of building your brand
• Dovetails with new Roadways proposals
2016 BPAS Partner Conference
A Multimedia Clip for Your Retirement
Solutions

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• Can usually be produced for a
few thousand dollars (see
www.bpas.com/r2r for
examples), specialty MM firms
• BPAS can guide you in getting
this done
A Multimedia Clip for Your Retirement
Solutions

18. • Many advisors use CRM to manage interaction with individual wealth
management clients; can also be used for plan participants
• “Know your client” compliance
• Categorize and tag results (ABC Company 401k Plan)
• Reporting engine
• Automated alerts – call to review asset allocation, follow up on rollover
• Broadcast emails
• Importing/exporting
• FINRA/SEC compliance
• Produce report for plan sponsor of annual interactions with participants
2016 BPAS Partner Conference
Implement CRM (e.g., Red Tail CRM)

19. • Smaller plans versus larger plans. Client perceptions and reality.
• We know what the mix should generally be. But how do CLIENTS want you
spending your time, between PS-level and Participant-level activities? It’s
worth knowing.
• Identify key services and their level of importance to client, as well as time
commitment from your firm.
• Document the services you (and we) will deliver Thornburg
example (K3). BPAS example (K2).
• Revisit with client every 2 years and whenever there is
pressure to update/reduce fees. They go hand in hand.
• Fee considerations (minimum annual fee, benchmarking).
2016 BPAS Partner Conference
Meet with Plan Sponsors to Define Your
Service Model

20. Which functions do you consider our highest priorities as your Advisor/Trustee?
– Managing your investment menu, offloading fiduciary risk
– Managing the compliance risk of your plan (DOL, IRS, fiduciary concerns)
– Boosting Key Success Indicators of your plan
– Educating and engaging participants so they can make sound decisions in the plan
– Training participants on procedures, processes and technology
– Problem resolution
– Managing costs against benchmarks and maintaining a proper documentation trail
– Managing / overseeing the recordkeeper
– Meeting with our committee to review high level issues
– Other services (please provide)
2016 BPAS Partner Conference
Online Survey / Report Card for Retirement
Plan Committee Members

21. • If 1 was the lowest cost, lowest service provider and 10 was a
very high service provider (with correspondingly higher costs),
where would you put your priority for your Plan?
• How satisfied are you with our firm in servicing your plan?
With BPAS?
• Any suggestions for things we can improve in the future?
2016 BPAS Partner Conference
Online Survey / Report Card for Retirement
Plan Committee Members

22. • Many of our partners use F/I 360
• BPAS Fiduciary Services can support your business if needed
• Plan Investments Plus ™ (see M9 in toolbox for sample)
• Plan Tools ™
• “Regardless how you handle and deliver fiduciary services, getting
the process down so it is evergreen and monitored, with
automated client reporting, is essential”.
– We have seen some partners spend 10 – 15 hours preparing investment
review reports for client meetings; you can automate this.
2016 BPAS Partner Conference
Simplifying Your Fiduciary Deliverables
and Process

23. • Annual Plan Review Report
– Now includes 12 month “income statement” at level of
funds, then sources.
2016 BPAS Partner Conference
• Investment Monitoring Report /
Fund Performance Grid
• Quarterly Economic & Market
Report (Resource Center,
Education section)
Suggested Handouts for Plan Review
Meeting

24. • Other demographic reports from PS site:
– Retirement Gap Report
– YTD Rate of Return Report
– Range of asset and utilization reports
• By the way, sign your clients up for one of
the BPAS Plan Sponsor site training
sessions (2x/month)!
• And the good news is…..
2016 BPAS Partner Conference
Suggested Handouts for Plan Review
Meeting

25. • Enhanced entire format, selection of reports and look
• Renewed focus on the KSIs of each plan
• First report around July 20th (6/30/2016), quarterly
thereafter
• Annual update of
benchmark data
• Additional enhancements
over next 3 quarters
2016 BPAS Partner Conference
The APRR  The QPRR!

26. • Runs monthly across all plans
• Posts to Resource Center,
Demographic Reports section
• Compares data to M* averages
• Makes for an easy handout
during plan review meetings
26
New: Fund Performance Grid

27. DOL has hired 650 additional
field agents in last two years.
What happens when the PS
receives the dreaded “letter?”
• Vendor search process
• Plan docs and amendments
• Gov’t filings and communications
• Vendor documents and agreements
• 404(c) compliance activities and file
• ERISA fidelity bond
• List of who has access to plan sponsor website
(kept up to date with BPAS)
• Participant communication archive
• Plan procedures, minutes, resolutions
• 408b2, 404a5 disclosures
• Other
Rockland Trust Solution
2016 BPAS Partner Conference
Old School But Effective: The Fiduciary
Compliance Binder

28. • We have an array of presentations
for your use in the Toolbox
(Education tab)
• However, nothing is more stale than
just giving the same presentations
over and over
• Make these sessions something
participants will want to attend
• Use content from PEC, Financial
Resource Center, articles from the
web and other sources
2016 BPAS Partner Conference
Turning Education Meetings into
Holistic Financial Planning

29. • 20 minutes on the plan and investment menu
• 30 minutes on rotating topics (retirement
healthcare planning and HSAs, IRAs, life
insurance, mortgages, getting out of debt,
basic tax considerations, how Social Security
works, personal finance topics, etc.)
• Walk participants through the website and
using the financial calculators
2016 BPAS Partner Conference
Turning Education Meetings into
Holistic Financial Planning

30. • Plan sponsor site includes participant email addresses, but see if PS will provide
you with a full list
• Send Survey Monkey (online survey at surveymonkey.com) to participants one
month before education meetings
• Ask HR rep to email link to all employees, ask them to respond
• Sample survey is provided, change to suit situation
– Understanding of plan provisions
– Retirement readiness
– Comfort level with investments
– Using the website
– Other areas where more training is needed
2016 BPAS Partner Conference
Online Survey to Drive Participant
Education Meetings

31. • Produce colorful reports for client, use to shape
education/communication efforts
• A big hit with clients.
– Clients always want to know that your approach is tailored
to their needs, not “off the shelf”
• See toolbox for many targeted communication pieces and full
array of PPT presentations
2016 BPAS Partner Conference
Online Survey to Drive Participant
Education Meetings

32. For instructions and our template, please email Melissa Varvarezis (Mvarvarezis@bpas.com)
2016 BPAS Partner Conference
Online Survey to Drive Participant
Education Meetings

33. 2016 BPAS Partner Conference
0 2 4 6 8 10
Basics of Retirement
Understanding Our Plan
How Much to Contribute
Investment Basics
Investment Menu
Investment Selection
Tour of Website
Planning CalculatorsOn a scale of 1 to 10
(where 1 is a topic you
are not interested in
and 10 is a topic you
are very interested in),
please indicate your
level of interest in
learning about the
following topics at your
retirement plan
education meeting.
Sample of Results

34. • Produce colorful reports for client, use to
shape education/communication efforts
• A big hit with clients. Clients always want to
know that your approach is tailored to their
needs, not “off the shelf”
• See toolbox for many targeted
communication pieces and full array of PPT
presentations
2016 BPAS Partner Conference
Targeted Communications
(toolbox.bpas.com)

35. • Will “live” at top of participant home page
• 5-part wizard:
– Basic info, Retirement needs, additional needs, retirement income, completion
• Will encompass full range of assets
• Future costs: healthcare, college, housing, etc.
2016 BPAS Partner Conference
Participant Gap Thermometer (coming)

36. • Projects shortfall, updates daily based on current balance
• User-set parameters (inflation rate, earnings, retirement date, etc.)
• Plan Sponsor and advisor will be able to see macro results for each participant,
but not specific assets or costs that would cross the line with data security
• A much better assessment to help you better serve participants
2016 BPAS Partner Conference
Participant Gap Thermometer (coming)

37. • Our world is about to change dramatically with new fiduciary regulations
• Tremendous new opportunities for fiduciaries and those who embrace
full transparency, level compensation
– Some in our industry have engaged in practices that drove these new
regulations. We can use this time to remind clients that we have been
operating with these concepts for years; capitalize on the process with
new business
• Cement relationships, reaffirm your value proposition, get value out of the
change
• BPAS stands ready to help as your partner
2016 BPAS Partner Conference
Conclusion

38. B P A S P A R T N E R C O N F E R E N C E 2 0 1 6
BPAS PARTNER CONFERENCE 2016
#BPASPC