401(k) Specialist Issue 3 - 2018 - 24

SEPTEMBER
SCOTT WHITE, NestEgg U with INTRUST
Getting Dirty in the DC Plan
NESTEGG U WAS BORN in the late 1990s from the philosophy that we all are at different
places on the retirement planning spectrum. To create success, participants had to learn something
to be able to move forward, and then there needed to be an easy way to take that next
step. Our education model follows a freshman, sophomore, junior and senior track, only we
focus on a particular theme each year, and they instead matriculate from spender to saver to
investor to planner.
We were fortunate enough to be involved with an organization that knew participant education
was important and the education department needed to be a dedicated business unit.
This has allowed our staff to stay focused on participant outcomes and not worry about
sales or managing retirement plans on a day-to-day basis.
We take a somewhat low-key approach to our education. While retirement planning by
" While
retirement
planning
by nature is
complex, we
understand the
clear majority
of participants
do not have
the time or
inclination to
'get into the
weeds.' "
Scott White is senior manager
for retirement and NestEgg U
with INTRUST.
nature is complex, we understand the clear majority of participants do not have the time or
inclination to " get into the weeds. "
This has allowed us to be successful in different industries and with various demographics.
One particular success story is a large coal mining operation. We knew that engaging this
group and getting them to trust us would be a challenge. We also knew the message needed
to be simple but effective.
" Know your customer " is a tried and true philosophy, but it is also important that you have
" been there, done that. " Before conducting any meetings, we had to be underground. We
needed to understand their hardships and they had to see us watching them work.
If you are grinding it out for 60 hours or more each week in a very difficult work environment,
stress relief is probably important-stress relief that translates into a case of beer, a can
of chew or a four-wheeler ATV. It's very easy for us to say, " You need to save more. " But what
might they be giving up to do so, and how does it affect their lives in other areas? In this case,
we had to know.
Getting this involved meant that, eventually, they began to trust that what we were saying
was in their best interest. We knew what it is they do, and that it's hard to save another $20
per week, but it will be worth it when they can retire at 62.
When the plan began to implement auto features in 2008, we repeatedly said, " Let it work
for you. " They did, and participation has increased in that time from roughly 70 percent to
over 90 percent. Deferral rates have gone from 3.5 percent to 8.7 percent. Fully 70 percent
are enrolled in an annual deferral increase. Average participant balances have tripled for longterm
employees, from $100,000 to $380,000 on average. By our success measurements, over
75 percent will have sufficient replacement income from this plan.
Today, our best spokespeople for the plan are the guys and gals underground. The plan is
working for them because they let it happen. Participants in this plan now have an opportunity
to create success because we met them on their turf, understood what they did, created
trust, and communicated with them in an effective fashion.
24
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401(k) Specialist Issue 3 - 2018

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