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2. Solving Retirement Plan Leakage
May 3, 2017
June 8, 2017

3. Retirement
Readiness
Financial
Wellness
Reduce
Risk
Manage
Cost
What Are Your Key Benefit Priorities?
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4. want to reduce plan risk and
fiduciary responsibility.2
92%
of employers concerned about
employee financial wellbeing.1
want to help participants reach
retirement goals.1
87%
77%
Surveys Confirm …
1 AON Hewitt 2017 Hot Topics in Retirement and Financial Wellbeing survey
2 Deloitte Annual Defined Contribution Benchmarking survey
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5. of employees have saved less
than prior years
52%
of employees are stressed
about their financial situation
28%
Employee Financial Stress Affects Productivity
42%
of Millennials have
student loans
43%
of those surveyed will likely
take a loan from 401(k) plan
Source: PwC’s 2016 Employee Financial Wellness Survey
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6. 6RE T IRE M E NT LO AN E RASE R
What % of
employees with
loans will default
upon job loss?
A. 42%
?C. 86%
B. 59%

7. 7RE T IRE M E NT LO AN E RASE R
Loan Problems Start at Separation
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Sources: U.S. Census data analysis and “Borrowing From The Future: 401(k) Plan Loans and Loan Defaults, Wharton School, University of Pennsylvania, February 2014
§ 86% of loans default upon job loss.
•Plans require loans
before hardships
Hardship
•Job loss leads to
loan defaults, taxes
and penalties
Loans •Participant loan
defaults likely
causes cash out of
the entire account
Cash Outs
§ Millions of workers die, become disabled or suffer involuntary job loss
each year
§ $6 billion in loans default annually exclusive of cash outs – a major
driver of plan leakage

8. 8RE T IRE M E NT LO AN E RASE R
The Loan Conundrum
Loans improve
participation
rates
Involuntary job
losses cause
loan defaults
and cash outs
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9. Taxes
Penalties
Lost Earnings
Cash Outs
The Tip of The IcebergHidden Cost of Loan Defaults
Only 8% of loan
defaults are reported
on Form 5500
Lost retirement
savings?
$20 - $30 billion a year

10. Sponsors Accountability for Loans
§ Loan offsets actually diminish plan assets
§ Involuntary terminations result in defaults and loss of plan assets
§ Limited solutions until Retirement Loan EraserTM was introduced to
the retirement marketplace
ERISA 29 CFR 2550.408b-1(d)(vii) requires a
plan to adopt "steps that will be taken to preserve plan
assets in the event of such (loan) default.”
Sponsors Are Responsible for Loans
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11. 11RE T IRE M E NT LO AN E RASE R
A Simple Solution, Providing Powerful Outcomes
Retirement Loan Eraser is a fully automated loan protection program that
prevents loan defaults and eliminates associated cash outs.
§ Improves retirement outcomes
§ Strengthens financial wellness
§ Reduced risk in your retirement programs
§ Includes “just in time” participant communication
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12. 12RE T IRE M E NT LO AN E RASE R
How RLE Works
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§ $0 balance
§ No taxes
§ No penalties
§ Retirement account
restored
432
§ Participant takes
a loan
§ Auto-enrolled in
RLE
1
New Loan Loan Repayments Involuntary Event Loan Paid Off
§ Paycheck deduction:
ü Principal
ü Interest
ü Premium
§ Delinquent loan
§ Eligibility confirmed
§ RLE pays loan
balance

13. 13RE T IRE M E NT LO AN E RASE R
A Protected Loan Improves Outcomes
$4,600 Median 401(k) Loan
WITHOUT
LOAN INSURANCE
WITH
LOAN INSURANCE
LOST LOAN
VALUE $0 $20,352
LOST
RETIREMENT
SAVINGS
$0 $145,582
Future loan value based on 42 year old borrower retiring at 67.
Assumes borrower with unprotected 401(k) loan fully cashes out after job loss.
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14. 14RE T IRE M E NT LO AN E RASE R
Benefits for You And Your Participants
14
§ Improved retirement outcomes and financial
wellness
§ Reduced risk and burden of loan defaults
§ Increased buying power of plan – retained assets
and number of participants

15. 15RE T IRE M E NT LO AN E RASE R
Ready to Improve Retirement Outcomes in Your Plan?
§ Adopt RLE today and begin preventing loan defaults
§ Complete a Loan Protection Analysis form and
understand the potential impact for your
participants
www.loaneraser.com
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