The document discusses the Eastern Alliance for New Jersey's (EANJ) initiative to help New Jersey employers address challenges with healthcare costs, workforce skills gaps, and retirement savings. It notes that EANJ conducted meetings with 217 employers where increasing healthcare costs and workforce productivity were top concerns. The EANJ initiative aims to provide employers with a superior multiple employer retirement plan that offers custom plan designs, administrative services, regulatory compliance, investment advisory services, and participant education in order to help more New Jersey workers save for retirement. The retirement plan solution would allow employers to pool resources and delegate fiduciary responsibilities while providing administrative efficiencies and investment options.

1. 2016
1

2. EANJ’s Role
Education/Awareness
Finding Solutions
2

3. In 2012, 8 state-wide meetings (217 employers)
expressed top concerns:
1. Increased healthcare costs (78%)
2. Productivity of workforce (62%)
3. Mismatch of skills of current and future workforce
(39%)
4. Finding money for capital investments (32%)
3

4. The healthcare cost problem was being
“solved” by cutting benefits and shifting costs
to workers
Also, a move to high deductible plans that
worked for some employees but no others
4

5. 5
725 EANJ members (50% of membership)
Total 23,000 covered lives

6. 1. Increased healthcare costs (78%)
2. Productivity of workforce (62%)
3. Mismatch of skills of current and future workforce
(39%)
4. Finding money for capital investments (32%)
6

7. ProductivitySkills Wages
Hiring
7
Retirement

8. 8
At the point of hiring, productivity is
not known, it is only predicted
Productivity may peak without
investment in new equipment,
technologies and training
At some point the employer may replace
and start over

9. 9

12.  Full-time opening remains vacant
 Older worker works part-time (no healthcare
benefits)
 Full-time hiring is delayed
 Delayed investment in productivity
12

14. 14
When workers cannot be replaced:
o Employers are less likely to invest in new
equipment to increase productivity >>>
o Pay raises, if any, are not based on
productivity >>>
o Employers are less likely to invest in new
equipment to increase productivity.

15.  “More with less” has become a permanent
feature for many firms
 Half of all companies surveyed say that
employee morale is low
Source: Braun Research, Princeton, NJ (2012)
15

16.  38 million working-age households (45%) have
no private retirement account
 Medium retirement account balance is $3,000
for all working households
 $14,500 for near retirement households
16

17. 17

18. 18
Fewer Employers Sponsor 401K

19.  Administrative burdens
 Fiduciary and legal issues
 Absence of in-house expertise
 Costs and fees
 Employee turnover
 Employees don’t care about retirement savings
19

20. After wages, employees report
healthcare and retirement savings as
“very important”
20

21. Most Americans Say They Will Rely on 401K for
Retirement
21

22. 22

23. The EANJ Initiative:
Help NJ employers solve their retirement plan challenge
- Superior quality
- Greater value than employers can find on their own
- Customize to meet individual employer needs
- Fiduciary solutions designed to protect employers
- Experienced experts to maximize benefits

24. EANJ Sponsors a Multiple Employer Plan (MEP):
• Allows multiple employers to adopt a single retirement plan
• Delegates many of the fiduciary liabilities inherent in qualified
retirement plans
• Eliminates employer involvement in annual plan audits
• Eliminates employer tax (Form 5500) filings
• Provides economy of scale in pricing and best practices

25. • Custom Plan Design
• Robust Recordkeeping and Administrative Services
• Disciplined Investment Selection and Monitoring
• Effective and Engaging Participant Communication
EANJ Cornerstones of Success
1 2 3 4 5
Custom
Plan
Design
Administrative
Services
Regulatory
Compliance
Investment
Advisory
Participant
Education

26. • Objective based plan designs
• Custom plan designs to maximize the benefit for adopting
employers
• Administrative best practices & standards to ensure administrative
efficiency
EANJ Solution Includes: Custom Plan Design

27. EANJ Solution Includes: Plan Recordkeeping,
Administration & Compliance
• Turn-key recordkeeping and administrative solution
• Plan Documentation
• Daily valuation of participant accounts
• Enrollment, distribution and loan processing
• Year-end compliance testing
• Tax withholding and reporting

28. EANJ Retirement Savings Advantage Team
Sponsor, Fiduciary Trustees, Investment Advisor, Administrator, legal Counsel