Tailoring Retirement Plan Education to Your Organization

NATE CHISHOLM – SENIOR RETIREMENT COUNSELOR
OCTOBER 2024

As a Plan Sponsor, one of the challenging tasks is to provide employees with the benefits support they are looking for. As much as 70% of employees in 2024 reported that they would like support when it comes to employee benefits1. Moreover, 43% of organizations in 2024 (up from 22% in 2023) say that 401(k) Education Programs are extremely important for employees2.

This begs the question of how to put together a meaningful Education Package that will be the most impactful for employees at your organization. At Lebel & Harriman Retirement Advisors, we understand the importance of tailoring an educational campaign that is best suited to meet the needs of your employees.

Group Sessions are a great way to provide a foundation of understanding for your employees. It covers crucial elements of a retirement plan such as plan eligibility, pre-tax vs. Roth, employer contributions, investments, distribution options, etc. One-on-one meetings on the other hand are individual meetings between employees and one of our licensed Retirement Counselors. While we have the ability to offer one without the other, I like to think of group and one-on-one meetings as a yin and yang.

Employees can use the group session to deepen their understanding of how the plan works, which will enable them to better leverage the plan in order to achieve their long-term retirement goals. For one-on-one meetings, employees are free to ask any questions relating to the plan, and while they are able (and encouraged!) to ask questions during the group sessions, being that finances are personal in nature, employees tend to be more comfortable asking questions in a one-on-one meeting instead. We also have a Confidentiality Agreement in place for all the plans that we provide education services to in that nothing discussed in a one-on-one meeting will go back to your organization.

Plan Sponsors who met with their Retirement Advisor in person reported an 85% satisfaction rate compared to 79% satisfaction for virtual meetings3. Other considerations for in person vs virtual can depend on how spread-out employees are at your organization. For organizations with one central location and it’s not overly burdensome to pull employees out of work for a period, an in-person meeting may make sense for both a group and/or one-on-one sessions.

However, for organizations that have employees spread out across multiple locations, virtual sessions may make more sense. Prior to 2020, the bulk of education meetings at Lebel & Harriman were in person. Over the past few years, like many other organizations, we have made extensive leaps to better leverage technology for educational purposes. The reason being is to be more efficient and to have a broader reach for connecting with participants in multiple locations, thus having a greater impact in improving long-term retirement outlooks.

Benefits of Leveraging Technology for Education Purposes

  1. Group Sessions: We have the ability to generate a Virtual Registration Link which allows employees to sign up in advance. This can lead to a higher turnout on the day of the Group Session.
  2. Recording: We can record Group Sessions to the extent an employee(s) is not able to attend or would like to reference it again at a later date.
  3. Complimentary Flyers: Once we have identified the desired educational package, we will have the ability to put together a customized flyer with all the specifics for your organization’s upcoming education, i.e. the day, time, location (or registration link if virtual), agenda for the group session (if applicable). This has several positive impacts:
    • Creates less work for the plan sponsor as the work is being delegated to Lebel & Harriman as the Retirement Plan Advisor;
    • Generates interest leading up to the day and typically results in a higher attendance rate on the day of.
  4. Venrollment: To better reach employees in various locations, Lebel & Harriman made the recent decision to purchase Venrollment. Venrollment is like an intranet site for employees specific to your retirement plan. Through Venrollment, we are able to offer a less than 5-minute retirement plan video, short bite-sized financial wellness videos, post custom 401(k) educational videos/fliers specific to your plan, and list the relevant L&H Retirement Counselor, Recordkeeper and internal contacts at your organization—all in one convenient place. This is not intended to replace our existing education service, rather is an investment made by Lebel & Harriman to continue to expand the ways in which we can support your employees. Check out a sample of what a page looks like HERE!
  5. One-on-one Meetings: Like Group Sessions, once a day is chosen, we can generate a Regisration Link but for one-on-one meetings. One-on-one meetings are typically 30 minutes per session and can be offered at any point in the day, i.e. 8:00-4:00, 9:00-5:00, etc. These meetings generally result in immediate participant improvements such as higher deferral percentages, more Roth utilization, greater number of participants with a beneficiary on file, etc. Each Venrollment Page also contains a Regisration Link that employees can use to schedule an individual meeting with their dedicated Retirement Counselor.

For plans that would like a Group Education and/or a Venrollment Page specific to your organization, an extensive and thorough process is followed in terms of putting the presentation deck together which includes the following:

  1. Review the Plan Document: All 401(k)’s and 403(b)’s are unique to your organization and the provisions are customizable. Provisions include eligibility, pre-tax vs. Roth, employer contributions, in-service distributions, loans, etc. If we are going to speak about the plan, it is paramount that we speak to it with accuracy.
  2. Investment Options and Default (QDIA): Investment options inside a 401(k) and 403(b) are customizable and specific to your plan. We need to make sure we are providing the most up-to-date investment options as well as what the Qualified Default Investment Alternative (QDIA) is to the extent a participant enrolls but does not select a specific investment(s).
  3. General Education Topics: We typically like to include some broader topics that are relevant at the time of the group session. Relevant topics in the Financial Wellness landscape is constantly changing, but at the time of this article, November’s election and its impact on capital markets has been a popular topic. Other topics include Inflation, Budgeting, Estate Planning, HSA Accounts, etc. Lebel & Harriman has also done extensive research and diligence in the Student Loan Repayment Tax Credit and Public Service Loan Forgiveness (PSLF) space. This can be valuable for participants working in Not-For-Profit space as they can utilize pre-tax deferrals into their retirement plan which may reduce their monthly student debt payment on their income driven repayment plan4.
  4. Venrollment Education Topics: Each participant’s financial situation is unique so in recognition of that, Venrollment is able to offer a handful of videos that applies to most participant situations, i.e. Roth, vs Traditional, Rollover Options, Beneficiary Designations, How a Target Date Fund Works, Making a Budget, IRA’s vs Retirement Plans as well as Social Security Basics. The best part is that these videos are easy to digest and not overly stimulating with the average length being less than five minutes.

Only 50% of employees are retiring on time5. 71% of Plan Sponsors believe this is largely due to a lack of retirement savings6. The top reason for working with a Retirement Advisor is Improved Participant Outcomes7.

At Lebel & Harriman, we have the ability to tailor an education package that has the highest meaningful long-term impact for individuals at your organization. We are committed to helping you determine the best fit for your retirement plan education offering by providing expert advice at the highest level of service.

Lebel & Harriman Retirement Advisors: Your Partner

Our decades of experience in Retirement Plan Management enable us to provide tailored education initiatives that meet the unique need of each client we work with. Contact us today to explore how we can support your educational goals and in turn enhance the success of your retirement plan.

  1. https://www.fidelityworkplace.com/s/employer-engagement?ccsource=em_B2B%7CW323638-20AUG24%7Cyfc_sep2024%7Cnewsletter%7C2%7Cnational_401k_day_financial_wellness_annual_enrollment_lnk ↩︎
  2. Fidelity 2024 Plan Sponsor Attitudes Study ↩︎
  3. Fidelity 2024 Plan Sponsor Attitudes Study ↩︎
  4. This is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. ↩︎
  5. Fidelity 2024 Plan Sponsor Attitudes Study ↩︎
  6. Fidelity 2024 Plan Sponsor Attitudes Study ↩︎
  7. Fidelity 2024 Plan Sponsor Attitudes Study ↩︎

This document is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. The information provided has been derived from sources believed to be reliable, but is not guaranteed as to accuracy, and does not purport to be a complete analysis of the material discussed.

    Any tax-related information connected to this article is provided as general education and should not be considered a recommendation. Further, you should seek specific tax advice from your tax professional before pursuing any idea contemplated herein. Securities offered through Valmark Securities, Inc. Member FINRA, SIPC. Investment Advisory Services offered through Valmark Advisers, Inc. a SEC Registered Investment Advisor 130 Springside Drive Suite 300 Akron, OH 44333-2431 Telephone: 800-765-5201 Lebel & Harriman, LLP and Lebel & Harriman Retirement Advisors are separate entities from Valmark Securities, Inc and Valmark Advisers, Inc.

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