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  • Slide 1
  • United Way Retirees Association Helping United Way Staff Plan for Retirement United Way Retirees Association
  • Slide 2
  • 2 Webinar Logistics If your computer has sound capability, are your speakers turned on and is your volume up? If yes, can you hear music coming from your computer? If yes, please help UWRA keep its webinar expenses to a minimum by hanging up your telephone and listening to the webinar through your computer. If you have trouble with the audio at any time during the webinar, you can call in on your telephone: 888-487-0342 Confirmation code: 4297937 UWRA
  • Slide 3
  • 3 Agenda* 1.The Whys Behind This Webinar 2.Goals Of This Webinar 3.A Few Possible Ways That United Ways Might Help Its Employees Offering a Defined Contribution Plan -- Options Offering a Retirement Planning Education Program Local Example Offering Early Retirees Continued Group Health Insurance Coverage Local Examples 4.Retirement Planning Resources *Disclaimer: The content of this Webinar offers descriptions of programs/practices for consideration only and is not a substitute for professional advice. UWRA
  • Slide 4
  • 4 Todays Presenters/Contributors 1.Host/Webinar Development - Ralph Gregory, UWRA Board Member, Retired President/ CEO, United Way of Westchester and Putnam; Tricia Smith, UWRA President and CEO 2.Defined Contribution Plans: Bob Berdelle, Senior Vice-President and Chief Financial Officer, United Way Worldwide, Alexandria VA 3.Retirement Planning Education Program: Jane Grady, Vice President Human Resources, United Way of Massachusetts Bay and Merrimack Valley, Boston MA (Metro 1) UWRA
  • Slide 5
  • 5 Todays Presenters/Contributors 4. Benefit - Offering Retirees the Option of Continuing on the Group Health Plan John Roche, Director of Human Resources and Administration, United Way of the Greater Capital Region, Albany, NY (Metro 2) Tamara Calvert, Human Resources Director, United Way of Central Alabama, Birmingham, AL (Metro 1) Suzanne Bloomfield, Director Human Resources/EO, United Way of Greater Cleveland, Cleveland, OH (Metro 1) Kennethe Vaughn, Vice President, Talent Management and Diversity, United Way of Central Indiana, Indianapolis, IN (Metro 1) UWRA
  • Slide 6
  • Poll Question - Audience 6 UWRA
  • Slide 7
  • 7 The Whys Behind This Webinar First Webinar - Planning for Retirement in an Era of Uncertainty Provided a beginning framework for individual retirement planning This Second Webinar focuses on the importance of helping United Way employees to plan for retirement Encourage and empower your staff to: take responsibility for planning for their retirement, and view retirement planning as a lifelong effort UWRA
  • Slide 8
  • 8 The Whys Behind This Webinar Brief Recap Framing the Problem Frozen/disappearing pension plans and the subsequent necessity for individuals to take increased responsibility for their retirement planning 401ks and 403bs are losing value Rising healthcare costs Longer life spans Uncertainly over Social Security, Medicare and the Affordable Care Act No system-wide retirement plan is available for United Way employees Local United Ways vary considerably in relation to retirement benefits offered with smaller United Ways often providing no benefits at all Little best practice information is readily available from local United Ways in the area of retirement planning UWRA
  • Slide 9
  • 9 The Whys Behind This Webinar Brief Recap Research Shows Knowledge of retirement issues is positively related to ones attitude toward retirement Training and intervention programs designed to boost financial knowledge improve financial preparedness by triggering advance retirement planning activities Only about 1/3 of workers receive educational materials or attend retirement seminars offered by their employers Only 52% of 403b plan sponsors (nonprofits) contribute to employees accounts compared to 88% of 401k sponsors (for-profits) 38% of United Ways do so (Human Capital Survey) Many nonprofit organizations offer no retirement programs for their employees Most retirement planning programs/practices are geared to those aged 50 plus (There is a need to start sooner!) UWRA
  • Slide 10
  • Poll Question Age Group 10 UWRA
  • Slide 11
  • The Whys Behind This Webinar Age Composition of United Way Workforce 11 UWRA
  • Slide 12
  • The Whys Behind This Webinar Pending Retirements Within UW Workforce 12 UWRA
  • Slide 13
  • 13 The Whys Behind This Webinar Comments from Surveys of United Ways. Young staff are not concerned about long term employment with United Way nor retirement planning beyond a 403(b) plan. Lets encourage them to act now United Ways give a low priority to retirement planning assistance but have some interest in encouraging retirement planning, with emphasis on financial, health and quality of life matters. Lets revise our priorities Would welcome ideas for education programs segmented by age - finding younger employees are engaged more in retirement planning than previously. Lets start sharing more information Retirement counseling has not been offered for quite a few years - think such a program would enhance services to employees. Lets invest in keeping staff Information on a website alone does not cause employees to plan for retirement, interested in knowing what other United Ways are doing to encourage and assist in retirement planning Lets have a dialogue UWRA
  • Slide 14
  • 14 UWRA 14 Goals of this Webinar 2nd in the Series 1.Help start the conversation and sharing of practices related to the retirement planning arena 2.Provide examples of benchmark programs including elements of some programs that are working and can be tailored to address local realities 3.Provide some additional tips 14 UWRA
  • Slide 15
  • Retirement Benefits Defined Contribution Plans the biggest factor in saving for your retirement is to start today! Bob Berdelle, Senior Vice-President and Chief Financial Officer, United Way Worldwide Lets look at some basic definitions, United Way statistics and issues around Defined Contribution Plans 15 UWRA
  • Slide 16
  • 401k and 403b Plans General Definitions 401k and 403b plans are tax-deferred savings plans. Contributions to standard 401k and 403 b plans are made on a pre-tax basis and are taxable at the time of withdrawal. The plan is administered by a financial management firm chosen by the employer (or one of several). Employees select mutual funds and annuities in which to invest their contributions, and the employer may provide a match. 403b plans are used by nonprofit organizations, religious groups, school districts, and governmental organizations as determined by section 501(c) 3 section of the IRS code. The law exempts these organizations from certain administrative processes (hence lower administrative costs) that apply to 401k plans. It is generally beneficial to go with a 403b plan. However, a vendor may offer a great deal on a 401k plan so the plan instituted is an individual organizational decision 16 UWRA
  • Slide 17
  • United Way Statistics Human Capital Survey (charts on next slides) 65% of the United Ways that responded to the 2010 Human Capital Survey* offer a defined contribution plan 38% offer a match (47% of the Metro I-IV respondents; and 25% of the Metro V+ respondents) 27% do not offer a match (35% of the Metro I-IV respondents and 13% of the Metro V+ respondents) The United Way Employer match levels vary considerably, with the majority being in the 3 to 6% range * 2012 Human Capital Survey in Progress 17 UWRA
  • Slide 18
  • Financial Benefits Offered to Employees (All UWs) Source: 2010 United Way Human Capital Study, Part II Organizational Questionnaire, Benefits Section 18
  • Slide 19
  • Defined Contribution Plan (403b with Match) 19 Financial Benefits for All Staff Source: 2010 United Way Human Capital Study, Part II Organizational Questionnaire, Benefits Section
  • Slide 20
  • 20 Defined Benefit and Defined Contribution Plans without Match Financial Benefits for All Staff Source: 2010 United Way Human Capital Study, Part II Organizational Questionnaire, Benefits Section
  • Slide 21
  • United Way Statistics Human Capital Survey 28% of the United Ways responding to the 2010 Human Capital Survey offer a defined benefit (pension) plan. However, in many cases today, organizations are freezing defined benefit plans -- new employees cannot enroll and current enrollees pension levels are frozen. Most organizations have converted to defined contribution 401k or 403b plans. IMPLICATION: There is an increased necessity for individuals to take responsibility for planning for their retirement FACT: The 401k generation is beginning to retire, and it isn't a pretty sight... The median household headed by a person aged 60 to 62 with a 401k account has less than one-quarter of what is needed in that account to maintain its standard of living in retirement. (February 2011) Federal Reserve data analyzed by the Center for Retirement Research, Boston College for The Wall Street Journal 21 UWRA
  • Slide 22
  • United Way Statistics Some Takeaways Defined Contribution Plans 1.Good news - The survey shows that some small city United Ways are offering defined contribution plans so it is feasible to do so regardless of size 2.Not So Good news More than 1/3 of the United Ways that responded do not offer a defined contribut