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 The report starts with a summary of the expected sources of retirement income that might be produced from all known sources, including Social Security, defined benefit, profit sharing, and money purchase plans then compares the total to minimum and full income replacement goals to illustrate the retirement income gap. Participants are told the percentage of their ending income that those sources could replace.
Non-Contributor Report (continued)

Step 2 introduces the plan’s features in a personal way that motivates participants to have a sense of ownership of their responsibility to use the plan to acquire adequate benefits.

Step 3 gives two suggestions (one if the participant is seriously underfunded) to close any finding 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). Contributions are expressed as a one-time increase or small increases over a number of years. Tax Saver credit and total tax savings are also given.
Non-Contributor Report (continued)

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. It enables employees to color the bubble to enroll in a solution that can accomplish their goal. The form is faxed to our system for tabulation. It can be suppressed for plans that require changes through a web site.

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