your retirement plan solutions · 2017-06-26 · service platform—it can also give your clients...

For use with financial professionals only.

Your Retirement Plan

Solutions

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When you come across

opportunity...a retirement plan


3

MAXIMIZE THE CLIENT EXPERIENCE

The retirement plan landscape can be challenging for novices and seasoned retirement plan advisors alike. Despite the obstacles, we can help you find the right solution for all your plan clients’ needs.

Whether you are solving for executive retention, sheltering employees’ income from taxes, providing them with a retirement savings vehicle or solving for the limitations of a current plan, Cetera Financial Group® has the depth and breadth of expertise and services to help you deliver comprehensive strategies and solutions.

Cetera’s diverse retirement plan solutions can not only help you deliver an expanded client service platform—it can also give your clients benefits that reach beyond the plan itself while enhancing their ability to maintain a competitive business by:

» Attracting and retaining the best talent with a robust retirement plan

» Focusing more time on the business, rather than managing the plan

» Increasing retirement savings for employees across the organization

» Forging a relationship with a financial advisor who can assist in other matters

Do you have what you need

to be successful?


SOLUTION

We assist in developing the client presentation and

recommendation

DISCOVERY

We help identify needs and gather data in order to develop the right solution

Two Ways to

Engage

OPPORTUNITY SUPPORT

If you do not normally advise on retirement plans, or if a retirement plan opportunity requires specialties outside of your experience, you can easily engage Cetera® Retirement Plan Specialists—your affiliated consulting third-party administrator—for the right level of assistance. With their three-step process designed to help you win retirement plan business through customized solutions, no plan opportunity is out of reach.

IMPLEMENTATION

Once the plan is adopted, we put the resources in place to help you effectively implement it and

provide ongoing plan services

4 For use with financial professionals only.

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PRACTICE CONSULTING

If you are looking to grow your retirement plan business, run it more efficiently, or wish to go beyond opportunistic support, our Retirement Practice Consultants can help. They deliver training and best practices to equip you with the resources you need to engage plans and manage them effectively. Drawing on extensive plan product knowledge, the latest industry insights and retirement plan-focused technology, they work with you to improve your work flow and plan management through their five-step process.

DISCOVERYIdentify your needs and work with you to collect data on your current retirement plan practice

ANALYSIS

Organize and assess your practice to identify gaps and areas for improvement

COACHINGCreate a review schedule, and meet with you to monitor progress toward goals

IMPLEMENTATIONImplement process changes from report, setting measurable goals when possible

PLAN DEVELOPMENTPresent a summary of findings along with a roadmap to implement suggested changes



Guy J. Hocker [email protected]

Alex Petrenko QPA, QKA

Senior Vice President Retirement Plan [email protected]

Robert UngerQualified Retirement Plan Solutions [email protected]

Diana Barisof QKA, PPC™

Qualified Retirement Plan Solutions [email protected]

Our Retirement Plan Specialists deliver customized solutions, from retirement plan creation to employee benefit plan administration. They can also offer more sophisticated options such as new comparability testing, multi-plan integrated benefits testing, or individually tailored benefit-rate grouping.

RETIREMENT PLAN SPECIALISTS

Ruben Ramirez CRPS, PPC

Manager, Retirement Practice Consulting [email protected]

Matt Richards QPFC, AIF, PPC

Retirement Practice [email protected]

Kevin Villar AIF


Jeff Janechek CEBS, AIF, PPC


Our Retirement Practice Consultants are ready to help you with best practices for business growth and retention, technology and practice management, product knowledge and regulatory updates. They also provide support for Guided Retirement Solutions (GRS), our integrated online resource center.

RETIREMENT PRACTICE CONSULTANTS

Your Retirement Plans

Team

Steven Rabinaw CPC, QPA, QKA, AIF®

Qualified Retirement Plan Solutions [email protected]

[email protected]

844.881.PLAN (7526)

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GUIDED RETIREMENT SOLUTIONS

Guided Retirement Solutions (GRS) is the online gateway to growing your retirement plan business, putting all the tools and resources you need at your fingertips. It’s your first stop for help identifying retirement plan opportunities, industry insights and best practices, and strategies to get you started in this multitrillion-dollar marketplace.

Resources that Grow Your Practice—

and Grow with It

ADVISOR TRAININGEducational resources to boost your retirement plan knowledge

PROSPECTINGLead generation materials tips, ideas and marketing materials

CLOSINGCritical plan proposal and presentation materials to help you win plans

ONBOARDINGSample forms, questionnaires and guidelines to onboard clients

CLIENT SERVICE & RETENTIONA suite of resources for plan sponsor meetings and employee enrollment seminars

THIRD-PARTY CONTENTA wealth of best-in-class resources from strategic partners


PENSION FEASIBILITY STUDY

A simple phone call starts the process of creating a complimentary Pension Feasibility Study (PFS) for your next client. Its easy-to-understand format illustrates the benefits of the proposed plan design options with side-by-side comparisons. A single implementation page and implementation roadmap make closing the sale a straightforward process.

PENSION FEASIBILITY STUDY

RETIREMENT PLANSPECIALISTS

CETERA® RETIREMENT PLAN SPECIALISTS


Birth HireSalary Deferral

3% Safe Harbor

Profit Sharing

Total $Salary Deferral

3% Safe Harbor

Profit Sharing

Total $Salary Deferral

3% Safe Harbor

Profit Sharing

Cash Balance

Total $

Owner 1 2/2/1968 11/10/2008 $190,500 $18,000 $5,715 $29,285 $53,000 $18,000 $5,715 $29,285 $53,000 $18,000 $5,715 $0 $85,000 $108,715Owner 2 12/30/1966 10/15/2007 $96,670 $18,000 $2,900 $32,100 $53,000 $18,000 $2,900 $32,100 $53,000 $18,000 $2,900 $0 $65,000 $85,900Child 1 5/17/1994 11/5/2011 $38,080 $0 $0 $0 $0 $0 $1,142 $0 $1,142 $0 $1,142 $0 $0 $1,142Child 2 9/2/1998 9/10/2012 $14,664 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Owner Employees $36,000 $8,615 $61,385 $106,000 $36,000 $9,758 $61,385 $107,143 $36,000 $9,758 $0 $150,000 $195,758

EE 1 8/19/1979 6/14/2015 $74,500 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0EE 2 9/24/1981 10/19/2007 $36,445 $1,057 $1,093 $1,840 $3,991 $1,057 $1,093 $1,531 $3,681 $1,057 $1,093 $820 $750 $3,721EE 3 2/4/1970 9/8/2011 $28,568 $0 $857 $1,443 $2,300 $0 $857 $1,200 $2,057 $0 $857 $643 $750 $2,250EE 4 12/12/1985 5/25/2009 $21,255 $0 $638 $1,073 $1,711 $0 $638 $893 $1,530 $0 $638 $478 $750 $1,866EE 5 7/11/1986 8/30/2010 $22,826 $685 $685 $1,153 $2,522 $685 $685 $959 $2,328 $685 $685 $1,027 $750 $3,147EE 6 10/26/1976 10/1/2011 $8,803 $0 $264 $445 $709 $0 $264 $370 $634 $0 $264 $198 $750 $1,212EE 7 12/22/1968 10/15/2007 $28,836 $0 $865 $1,456 $2,321 $0 $865 $1,211 $2,076 $0 $865 $649 $750 $2,264EE 8 2/18/1976 4/20/2009 $19,069 $572 $572 $963 $2,107 $572 $572 $801 $1,945 $572 $572 $429 $750 $2,323EE 9 1/26/1980 12/13/2010 $58,266 $0 $1,748 $2,942 $4,690 $0 $1,748 $2,447 $4,195 $0 $1,748 $1,311 $750 $3,809EE 10 8/2/1972 9/8/2009 $21,508 $645 $645 $1,086 $2,377 $645 $645 $903 $2,194 $645 $645 $484 $750 $2,524EE 11 9/12/1963 8/4/2011 $21,143 $0 $634 $1,068 $1,702 $0 $634 $888 $1,522 $0 $634 $476 $750 $1,860EE 12 11/14/1971 7/23/2012 $52,142 $0 $1,564 $2,633 $4,197 $0 $1,564 $2,190 $3,754 $0 $1,564 $1,173 $750 $3,487EE 13 8/29/1974 10/28/2013 $19,822 $0 $595 $1,001 $1,596 $0 $595 $833 $1,427 $0 $595 $446 $0 $1,041EE 14 7/28/1973 1/1/2008 $11,302 $0 $339 $571 $910 $0 $339 $475 $814 $0 $339 $254 $750 $1,343EE 15 1/1/1990 2/14/2013 $14,352 $0 $431 $725 $1,155 $0 $431 $603 $1,033 $0 $431 $323 $750 $1,503EE 16 7/22/1986 2/24/2013 $17,568 $0 $527 $887 $1,414 $0 $527 $738 $1,265 $0 $527 $791 $750 $2,068EE 17 9/26/1982 10/8/2013 $13,865 $0 $416 $700 $1,116 $0 $416 $582 $998 $0 $416 $312 $0 $728EE 18 1/30/1993 10/11/2013 $4,573 $0 $137 $231 $368 $0 $137 $192 $329 $0 $137 $206 $0 $343EE 29 12/26/1984 11/26/2013 $788 $0 $24 $40 $63 $0 $24 $33 $57 $0 $24 $18 $0 $41EE 20 10/2/1994 8/12/2013 $7,306 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0EE 21 7/30/1994 3/28/2013 $6,277 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Non‐owner Employees $2,960 $12,034 $20,257 $35,251 $2,960 $12,034 $16,848 $31,841 $2,960 $12,034 $10,037 $10,500 $35,531

$106,000 77%

$32,291 23%

$27,236

$107,143 79%

$28,881 21%

$29,653

$195,758 86%

$32,571 14%

Plan at a glance

2015 Owner Contribution

2015 Non‐owner Contribution

2015 Tax Savings Estimate

2016 Current Owner Contribution

2016 Current Non‐owner Contribution

2016 Current Tax Savings Estimate

2016 Proposed Owner Contribution

2016 Proposed Non‐owner Contribution

2016 Proposed Tax Savings Estimate $66,393

ABC Co. and XYZ Co.401(k)Plan

NamePlan Comp

2015Date of

Cash Balance Plan with a 401(k) PSP

2016 Proposed

401(k)Plan

2016 Current

$106,000

$32,291 $27,236

$107,143

$28,881 $29,653

$195,758

$32,571

$66,393


Salary Deferral

3% Safe Harbor

SH MatchProfit Sharing

Cash BalanceIndividual Tax Savings

37.00%MI 3.90%

2.90%43.80%

3: Additional Advantages Inherent to Qualified Plans:

• Maximize tax‐advantaged funding with IRS Letter of Determination regarding tax benefits

• Accessibility of plan assets via loans, hardship, and in‐service distributions

$66,393

$0

100.00%

Employer Contribution to Rank & File

$10,500

Gross Tax Savings

$100,008

Net Tax Savings

$0

$195,758

$0

85.73%

$65,000 $85,900 37.62% $29,134

$0 $1,142 $0 $0 $0 $1,142 0.50% $387

Implementation Advantages

% of Total

2016 Proposed: Cash Balance Plan with a 401(k) PSP

1: Estimated Plan Funding Summary

$18,000 $5,715 $85,000

Total Contribution

$108,715 $36,87247.61%

$0

$0 $0

$0

$18,000 $2,900 $0 $0

0.00%

$36,000 $9,758 $0 $0

$0

$150,000

$0

$35,531 14.27%$2,960 $12,034 $0 $10,037

• Tax treatment diversification available through Roth 401(k) feature

• Payroll tax: employer contributions not subject to payroll tax

• ERISA protection for plan assets from judgment creditors

Total Plan Funding Tax Rates

Net Estimated Tax Savings

$32,571

$1,044

Tax Rates (Top Dollar) Federal State (Median Rate)

2: Estimated Tax Savings v. Funding Cost

• Employer contributions deductible to business

• Tax‐deferral on contributions and earnings

Less Medicare Tax of 2.9% on Owner Deferral

Less Contribution for Non‐owner Employees

$231,288

Medicare Impact

$228,329

MedicareCombined Tax Rate

Gross Tax Savings

Owner Employees

Owner 1

Owner 2

Child 1

Child 2

HCE Totals

Non‐owner Employees

Total Plan Funding

Total Plan Funding (less non‐owner employee deferrals)

• Effective Employee Retention Tool

• Opportunity for participants to defer a portion of salary in a tax‐advantaged vehicle for retirement

• Ability to transfer plan assets to another plan upon termination of current plan or employment

86%

Owners Non‐Owners

» Graphical and numeric presentation to appeal to different audiences

» Executive summary showing big-picture impact: savings opportunity, benefit costs, net tax benefit, and fees

» Detailed per-employee funding breakdown to contextualize impact on overall employee compensation/benefit package

» Estimated tax benefit analysis focusing on key players

» Compliant with 408(b)(2) fee disclosure requirement


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PLAN ADVICE & CONSULTING PROGRAM

Increasing regulatory requirements and overall retirement plan complexity have created a market demand for specialized advisors. Plan sponsors are seeking retirement-focused advisors who have the ability to offer customized services and who acknowledge a fiduciary role when providing non-discretionary investment advisory services.

FEE FOR SERVICES PLAN CONSULTING

PLATFORM AGNOSTIC

FIDUCIARY OR

NON-FIDUCIARY

SINGLE

AGREEMENT

FLEXIBLE FEE STRUCTURE

Get ahead of the fiduciary curve and enter into a fee-based consulting relationship with your plan clients through the Plan Advice & Consulting Program. As an approved advisor who focuses on employer-sponsored retirement plans, you can offer customized advice and consulting services to plan sponsor clients. Additionally, because the program is offered on a fee-based model, it gives you greater flexibility when pricing your services.


RETIREMENT PRACTICE TECHNOLOGY

Make your plan business easier to manage through our partnership with Envestnet Retirement Solutions, one of the industry’s leading retirement plan practice management platforms. Our web-based interface fully integrates your directly held retirement plan book of business while helping you deliver improved client outcomes. With our retirement practice technology, you can effectively manage your retirement plan relationships, add greater value for your clients and win and retain new plan business.

Your tool suite subscription gives you:

» A retirement plan business management dashboard with a detailed view into all of your direct retirement plan business—without having to log in to third-party platform websites

» A robust set of tools to help you manage your Plan Advice & Consulting Platform client relationships: generate investment policy statements, customized reports for investment advice, research funds, and more

WelcomeNews from NAPA-NET

Assets by Recordkeeper Schedule

Which Participants Are More Likely to Hold TDFs? Wed, 4 May 2016

DOL Rule an Acknowledgment of Plan Advisors’ Importance Wed, 4 May 2016

Retiring More, and Liking it Less? Wed, 4 May 2016

FINRA Levies $20 Million Fine Over Variable Annuities Wed, 4 May 2016

Markets Dip, But Saving Rates Rise Tue, 3 May 2016

The 7 Highly Effective Habits of Highly Effective 401(k) Plans Tue, 3 May 2016

DOL Settles ERISA Claims with STIF CIT Fund Provider? Tue, 3 May 2016

John Hancock Financial Services(12.26%)

Principal Financial Group (12.14%)

Voya (11.12%)

American Funds (11.13%)

Others (53.24%)

Alerts

04/27/16 ERS update: Separate account performance from various providers updated. ratios and IPS will be over by 28th April.

04/18/16 ERS update: 1Q 2016 Mutual Fund performance updated!

04/07/16 ERS update: 1Q 2016 Mutual Fund performance will be ready by 18th April!

12/30/15 ERS update: Training videos are now available under WIKI!

05/02/16 3703 Funds needs to be reviewed in 11923 Plans

05/02/16 155 Funds in 784 Plans are Inactive

05/04/16 6239 Plans having funds with outdated return

NEWS FEED

BUSINESS DASHBOARD

PRACTICE MANAGEMENT TOOLS


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NAPA MEMBERSHIP

As an advisor working with the Cetera Retirement Plan Solutions Team, you’ll receive complimentary membership to the National Association of Plan Advisors, the premier association fighting for you and your clients, which includes:

» NAPA Summit conference discount

» Capitol Hill meetings

» Up-to-date regulatory information

» NAPA-net news feeds

» Advisor advocacy

» Advisor membership savings of $395 per year

Please visit the NAPA website, www.napa-net.org, for more information about the organization.

OUR STRATEGIC PARTNERS

With a vested interest in helping you find success, our Strategic Partners enhance your ease of doing business with industry best practices and product sales support. Their insights and resources provide additional breadth of expertise to empower your practice and enhance your client relationships.

Benefit from all your retirement plan solutions team has to offer today. Start the conversation at [email protected]

or by calling 844.881.PLAN (7526).


© 2017 Cetera Financial Group,® Inc. 17-0187 6/17

For more information, please contact:

Cetera Financial Group, Inc. 200 N. Sepulveda Blvd., Suite 1300 El Segundo, CA 90245 866.489.3100 cetera.com


About Cetera Financial Group®Cetera Financial Group (Cetera) is a leading network of independent retail broker-dealers empowering the delivery of objective financial advice to individuals, families and company retirement plans across the country through trusted financial advisors and financial institutions. Cetera is the second-largest independent financial advisor network in the nation by number of advisors, as well as a leading provider of retail services to the investment programs of banks and credit unions.

Through its multiple distinct firms, Cetera offers independent and institutions-based advisors the benefits of a large, established broker-dealer and registered investment adviser, while serving advisors and institutions in a way that is customized to their needs and aspirations. Advisor support resources offered through Cetera include award-winning wealth management and advisory platforms, comprehensive broker-dealer and registered investment adviser services, practice management support and innovative technology. For more information, visit cetera.com.

Note: “Cetera Financial Group” refers to the network of independent retail firms encompassing, among others, Cetera Advisors, Cetera Advisor Networks, Cetera Investment Services (marketed as Cetera Financial Institutions), Cetera Financial Specialists, First Allied Securities, Girard Securities, and Summit Brokerage Services.

http://ceterafinancialgroup.com

http://ceterafinancialgroup.com

your retirement plan solutions · 2017-06-26 · service platform—it can also give your clients...

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