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Deferred Compensation Program

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Employer Advisory CommitteeUpdate on DCP &

Retirement Readiness

November 15, 2012

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Deferred Compensation Program

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DCP Survey• Background

DRS customer surveys Confirm reasons people are in DCP and

reasons they don’t participate Help us start new targeted message

campaigns

• Information helps us prioritize next steps

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Deferred Compensation Program

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DCP Survey Statistics• Over 12,000 responses

7,234 participating Greater than 5,200 do not

• Most work for State Agencies or Educational Employers

DCP only 457 plan for employees at State Agencies

Other employers offer multiple plans

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Deferred Compensation Program

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DCP Survey Statistics• Majority have been employed for either

11+ years or 21+ years – 65% of total respondents

• 39% are in age category 50-59

• 20% are over 60

• 17% are under 40

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Deferred Compensation Program

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Reasons I Joined• I realized I needed to start saving more for

retirement

• I could begin contributing at an amount I could afford

• Written reasons From paycheck and reduces taxes Employer match Affordable/low fees Worried about Social Security

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Deferred Compensation Program

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Key Features• Flexibility to change my contribution

amount

• Ability to choose from a range of investment options

• Fees are “lower”

• No penalty for withdrawals prior to age 591/2

• Online access

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Deferred Compensation Program

Discover the Smart, Easy Way to Save.

What does DCP Represent• Convenience

• Retirement Success

• Long-Term Financial Security

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Deferred Compensation Program

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Reasons I haven’t Joined• I can’t afford to save

• I don’t know enough about DCP

• It’s too late or too early to start

• I’m already contributing to another plan

• I just haven’t got around to it Good intentions but barriers exist

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Deferred Compensation Program

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Next Steps• Individual email to those who told us they

want to know more Answers to reasons for not joining

• Identify barriers to participation and determine what we can do to limit them

• Working with our Record Keeper to develop marketing plan for 2013

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Deferred Compensation Program

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Next Steps• Share with employers

• Start conversation on how we can work together to help members prepare for their retirement future…

• …Retirement Readiness What we do currently and Best

Practices What should we do? Incremental improvements Checklist we are working on

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Retirement Readiness

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Outreach Now and in Future• Promote Retirement Readiness (RR) –

NS4RS

• Help increase awareness on how employers help prepare employees for RR

Social Security and PERS/other Systems

Employers contribute 50% to future benefits

Voluntary plans like DCP …

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Retirement Readiness

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Outreach Now and in Future• Retirement Readiness – what is it?

It is now a core business process within DRS

We are working on the Ideal state for members and

retirees Current state Gaps and next steps

Identifying the value – the reason we all can benefit from retirement readiness

• What is Retirement Readiness to you…

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Retirement Readiness

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Outreach Now and in Future• Education and Outreach Team

Workshops and Benefit fairs Let them help you/Involve them

Online resources Help raise awareness

Increase online resources Retirement Planning Seminar

NS4RW…

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Retirement Readiness

Discover the Smart, Easy Way to Save.

– WASHINGTON STATE –

Retirement Readiness

Discover the Smart, Easy Way to Save.

Questions?