PLANADVISER - November/December 2020 - 28

winners' circle
discuss the new environment, corporate values and community
support. We'll continue to focus on helping participants
make good financial choices and recognize, now especially,
that extends beyond retirement readiness.
Hammond: We have an in-house team of financial advocates
who can help employees with a variety of wellness
options, depending on the client's preferences. We offer
education and engagement; a financial health app; foundational
planning; personalized advice, including professionally
managed participant accounts; financial coaching; and
financial management services.
Stout: When it comes to holistic financial wellness, we start
with financial foundations such as goals and priorities, then
build a budget and tackle any debt. Holistic financial wellPEPs
and MEPS are perfect for small nonprofits that need
a plan that provides them better oversight. Companies
and organizations with under 50 employees might lack the
human resources [HR] staff to handle the required fiduciary
focus. I think the plans have great potential in the areas of
governance and oversight. As for midsize to large companies,
I haven't seen a compelling reason for PEPs to be part
of those. We've been successful in finding low-cost plans
for these clients, and, frankly, we want to be engaged with
them on an individual level.
" We need, as an industry, to reframe
our perspective on why these are
the right solutions for plan sponsors
so we can better express the value
proposition to our clients. "
ness must be tied in to an individual's goals if you want
to increase his chance of success. We've added two more
participant success advisers. They are salaried employees;
most have or are working on their CFP [Certified Financial
Planner] designation, and 100% of their time goes to
financial coaching sessions. These sessions are included in
our annual fees. Some clients prefer to have the on-site or
virtual days of coaching be billed á la carte. We're flexible
and want clients to use our services, so we work with them
on determining the best fee structure.
In the first half of this year, we conducted over 1,000
one-on-one virtual advice meetings. We also added a financial
assessment tool; the employee answers questions on a
dashboard that provides us information. This tool has led to
more efficient and meaningful conversations, and engagement
has been better than ever. The financial assessment is
tied to signing up for the one-on-one meeting, so we've had
no participant pushback.
PA: What role will PEPs [pooled employer plans] or MEPS
[multiple employer plans] play in the retirement plan
industry?
Stout: These plans are a step in the right direction, but I'm
not convinced they'll redefine our business. My fear is that
some people will focus on these plans as a way to drive
down costs. From what I've seen, there tend to be many
layers in these plans that add to the cost.
Hammond: I think once we get clarity on a few more
nuances, we'll be in a position as an industry to offer some
[solid] solutions. We're building one solution at Pensionmark
that should be an exceptional alternative plan. When
constructed correctly, these plans can offer employers a
way to deliver the most competitive solutions
to their employees at a reasonable cost. Then
sponsors can spend time impacting participant
behavior and focusing on their job versus taking
on responsibilities beyond their expertise.
My concern is for adoption. I'm already
hearing that many are positioning these as
a cost play. Given that sponsors will be hiring
multiple service providers to outsource their
work, I believe there will still be less-expensive
solutions in the marketplace if cost is the
driver. We need, as an industry, to reframe our
perspective on why these are the right solutions
for plan sponsors so we can better express the value proposition
to our clients.
PA: How important is advice for retirement income planning?
What do you predict will happen in that area in
your business?
DiPiero: Retirement income planning is extremely important.
We've been working with our providers on educating the plan
committees about guaranteed retirement income solutions
for plan participants and vetting and determining the appropriate
investment options for each plan.
Further committee education is key, highlighting in-plan
guaranteed income. Primary risks include sequence of return,
longevity and inflationary risk to ensure decisions are made
in participants' best interest. We work with all clients and
respective recordkeepers on education campaigns to, first,
make sure participants understand the importance of maximizing
contributions annually; second, tying these savings
to their life post-retirement; and third, educating on their
choices in retirement income planning.
Stout: How advice ties in to retirement income planning
should be included in any discussion with someone retiring
in the next 10 years. Many we speak with have no clue how
their money will last in those retirement years. They also
don't understand how their strategy to spend down their
savings should work. -Judy Faust Hartnett
28 | planadviser.com November-December 2020
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PLANADVISER - November/December 2020

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