Non-Contributor Report

The purpose of this report is to make a case for participation in the plan based on personal benefit and tax savings illustrations.

Step 1 shows the expected income that might be produced from all known sources including Social Security, defined benefit, profit sharing, and money purchase sources, then compares it to minimum and full income replacement goals.

Step 2 introduces the plan’s potential tax savings, features and reasons to start right away in a personal way that motivates participants to have a sense of ownership of their responsibility.
Non-Contributor Report (continued)

Step 3 gives two suggestions to close any funding gaps to achieve the next minimum or full funding retirement income goal. Option 1 typically has a higher required return (and risk), but lower contribution than Option 2 and Option 2 typically has a greater contribution than Option 1, but lower required return (and risk). By giving participants two complete solutions that attain a goal, we eschew risk tolerance questionnaires which guide participants to choose an investment without knowing the correct contribution.

Our Quick Enrollment form acts as a call to action and makes it as easy as possible to choose a complete solution that could achieve the next goal. An increasingly popular approach to encourage new participants is "easy enrollment", where a simple, postage-paid postcard is sent to new employees and to employees who aren't contributing. After signing the card and returning it, the employees are enrolled in the plan — typically at a 3 percent contribution into a default investment fund.
Non-Contributor Report (continued)

The Retirement Analyst takes this good idea a step further. Since we know two solutions for each participant that can provide an adequate benefit, our Quick Enrollment form enables employees to check the box for a solution that can accomplish a goal. For plans that require changes through a web site, this form can be eliminated from the report.

Non-Contributor Report
444 W. Ocean Blvd., Suite 800
PMB 116
Long Beach, CA 90802

Office: (562) 987-2255
Fax: (562) 987-2257
bcorrin@retirementanalyst.com