Are we just yelling, or actually getting results? John Friar, AIF, of HJB Financial helps employers understand how best to enroll employees and communicate the benefits.

1. Presented By: John Friar, Financial
Consultant/Director of Corporate Retirement Plans
for Hausmann-Johnson Bauch Financial
401(k) Communication & Enrollment Strategies
Are we just yelling or actually getting results?

2. LET’S START WITH ENROLLMENT
What are the 3 questions
every participant has to
answer at the time they
enroll into their 401K?
Who is there to answer
those questions?

3. WHAT QUESTIONS DOES A PARTICIPANT HAVE TO
ANSWER AT ENROLLMENT?
1. Should I participate or not?
2. How much should I participate in the plan?
3. What investment options should I choose?
These choices can lead to “Auto-Grounded”

4. d
• Make participation easy
(Auto-Takeoff)Action 1
• Establish the initial savings
rateAction 2
• Implement Future
Enrollment (Re-enrollment)Action 3
Behavioral Finance Actions for Enrollment

5. d
• KEEP IT SIMPLE (KIS)Action 4
• Give them someone to talk toAction 5
• Talk to your advisor to see if
these options make sense for
your plan
Action 6
Behavioral Finance Actions for Enrollment cont…

6. ADEQUATE SAVINGS LEVELS
PUT IT ON AUTO
AUTOMATIC
ENROLLMENT
91%PARTICIPANTS
STAYED IN
AUTOMATIC
ESCALATION
(DEFAULT FEATURE)
AUTOMATIC
ESCALATION
(VOLUNTARY CHOICE)
88%PARTICIPANTS
STAYED IN
6%PARTICIPANTS
OPTED IN
Source: The Principal Financial Group. Data based on a combination of 42,806 participants opting out of Automatic Enrollment or Automatic
Increase as of April 25, 2013, and 65,662 opting in to Principal Step Ahead Retirement OptionSM as of April 31, 2013.

7. It’s a Changing World in Employee
Communication
What used to be
called effective
communication,
may no longer
work

8. Rethinking Retirement Plan Communication
“A successful retirement communications program
requires more two way communication along with
strategies that help participants envision what
retirement will really look like for them personally.”

9. Engage and Empower Through Communication
•Delivering personalized
and targeted
communication (Peer
Comparison)
•Making sure your
provider has the
technology to provide
this at a reasonable fee
•More efficient
techniques for
communication delivery
(smart phones, tablets,
email)
•Life-Stage programs
targeted at age
segments (Boomers vs.
Gen Xers vs. Millennials
Segmentation
Channel
Optimization
Data
IntegrationMetrics

10. One-on-One Meetings Still Work
RESULTS GENERATED BY 1:1 MEETINGS
Among plan
sponsors:
Among employees:
• 98% agree it increased
employee understanding of
their benefits
1
1 Based on data from Retirement and Investor
Finance, the Principal Financial Group, December
2013
2 Individual Investor Reporting, the Principal
Financial Group, January-December 2013
3 Results of the Principal Financial Group Retire
Secure Participant Survey , December 2013
• Over 58,500 1:1 meetings held; and 40,800 actions
taken (new participation, increased deferral,
automatic increase election) in 20132
• Participation is 23% higher and Average Deferral
is 15% higher when 1:1 meetings are offered
2
• More than 96% of participants responded that
they were satisfied with the 1:1 meetings in 20133

11. Employee / Participant Communication and Education Services
•Identify organizational goals and measures, and establish written action plan
•Identify proper tools including distribution media, non-traditional options and vendor
resources
•Develop an implementation plan including group and individual meetings, and organization
resources
•Ongoing reviews and modifications of written service agreement
•Determine if participant outcomes are meeting plan objectives
5 WAYS TO HELP WITH BETTER COMMUNICATION

12. SUCCESSFUL RETIREMENT PLAN
1. Consider “success” as it relates to your plan participants and
the role you play in impacting the plan’s success.
2. Work with your financial professional to evaluate your plan
and create a strategy.
3. Encourage participants to meet with a financial professional
to keep on track.

13. SO HOW DOES ALL THIS HELP
Plan
Evaluation
Higher
Participation
Better
Communication Help employees achieve retirement goals
Opportunity for orderly exit
More engaged, productive employees
Decreased health and benefit expenses

14. Thank you!
For More Information Contact:
John Friar
Financial Consultant/Director of Corporate Retirement Plans
Jfriar@hjbfinancial.com
Direct: 608-252-9634