401(k) Specialist Issue 1 - 2018 - 28

DECEMBER
TODD TIMMERMAN, Retirement Plan Analytics
The Role of Stewardship in
Positive Financial Outcomes
FOR TODD TIMMERMAN AND HIS TEAM at Retirement Plan Analytics, succeeding in the
401(k) business means more than simply acting as a fiduciary. It means supporting plan sponsor
clients by encouraging them to act as stewards. RPA is rapidly approaching $10 billion in
plan assets on which it consults, while also serving 120,000 participants (25,000 of whom are
engaged in financial wellness).
" Fiduciary is a legal requirement to act in the best interest of the participants, " says Timmerman,
managing director with the Charlotte, North Carolina-based 401(k) advisory firm.
" A steward understands that a plan has been entrusted to their care, and they need to do
everything possible to make sure employees are in a far better place when they leave than
when they arrived. "
" Clients are very interested in a stewardship relationship, since it also covers all of the fiduciary
bases, but then goes above and beyond. "
Here's an example of its positive outcome. A financial services organization with whom
RPA works has 4,500 employees and " a great culture with an excellent benefits package. "
Their committee realized that a key obstacle to achieving retirement readiness was em " Clients
are
very interested
in a stewardship
relationship, since
it also covers all
of the fiduciary
bases, but then
goes above and
beyond. "
Todd Timmerman is managing director
of Charlotte, North Carolina-based
Retirement Plan Analytics.
ployee debt, so helping in its reduction became an area of focus.
" Led by our primary consultant on the project, Brandon Helms, we consulted with the
plan-sponsor client on best practices, the measures of success that would be needed, and an
engagement strategy. Within the first three weeks, 70 percent of their employees utilized the
new financial wellness benefit. In the first 90 days, the sponsor (with our assistance) created a
$4.2 million 'financial turnaround' for participants. "
RPA then helped initiate a campaign focused on retirement readiness, one that illustrated
the potential impact to employees' aggregate retirement balances by maximizing the employer
match and saving more for retirement.
" Throughout the first quarter of 2017, our plan sponsor client wanted employees to take
two steps; the first was to complete their financial wellness assessment and the second was to
participate in a virtual coaching session on retirement preparedness. "
The results speak for themselves:
* A $400 million increase (in aggregate) of estimated balances for employees at retirement;
* 62 percent of employees are saving 6 percent-plus of their own income (up from 25
percent last year);
* 97 percent of employees participate in the retirement plan, and;
* 28 percent of employees increased their savings in the retirement plan during the first
quarter of 2017.
" We know financial wellness is widely discussed within the 401(k) industry, but for us,
it's really about financial wellness engagement at the participant level. We get excited when
our plan sponsor clients see progress and participants gain financial courage and confidence.
It gets to the core of what we do. It's tangible, it's measurable and it's great for helping our
clients and their participants create better outcomes. "
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401(k) Specialist Issue 1 - 2018

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