WAYNE COUNTY AIRPORT AUTHORITY DEFERRED COMPENSATION PROGRAM - - PowerPoint PPT Presentation

WAYNE COUNTY AIRPORT AUTHORITY DEFERRED COMPENSATION PROGRAM ENHANCEMENTS

Spring 2013

Today’s Agenda

 What’s Happening and Why?  Implementation Overview  Questions/Discussion

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What is Happening?

Background

 In 2010, WCERS selected the following four (4) active 457 Deferred Compensation plan providers:  Nationwide Retirement Solutions and Great-West Retirement Services were frozen to new contributions.  These changes were not fully implemented at the Airport Authority. Active Airport Authority providers currently are:

• AXA Advisors
• The Hartford
• Nationwide Retirement Solutions

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• AXA Advisors
• Midland National
• ING
• The Hartford

What is Happening?

Plan Review

 In 2012, WCERS conducted a comprehensive review of its 457 Deferred Compensation Program focusing on:

• Industry best-practices, including plan compliance and fiduciary oversight
• Plan and participant services
• Overall investment returns

 Review Findings

• Airport Authority:
• WCERS oversees both the County and Airport Authority’s deferred compensation plans.
• For compliance, oversight and operational reasons, it is necessary for the Airport Authority

to mirror Wayne County’s plan.

• Wayne County:
• The assets with the two (2) frozen providers, Nationwide Retirement Solutions and Great-

West Retirement Services, should be transferred to the active providers.

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What is Happening?

Reasons for Change

• Further align Plan with regulatory standards and industry best practices
• Plan compliance with all relevant IRS guidelines
• Fiduciary oversight to control costs and protect Plan participants
• Formal ongoing investment monitoring process to maintain competitiveness of Plan

investment offerings

• Enhance participant services
• Onsite enrollment and account reviews
• Investment advice for active and retired account holders
• Individual retirement counseling
• Payout strategies for retirees
• Simplify Plan operation and coordination
• Update investment menu offerings
• Provide for future Plan enhancements, including a Roth 457 feature

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What is Happening?

Summary of Changes

 Two new 457 options are now available to Airport Authority employees effective April 1, 2013:

• Midland National
• ING Financial Partners

 AXA Advisors and The Hartford will remain available.  Assets at Great-West Retirement Services (already frozen) will be transferred to an active provider.  Nationwide Retirement Solutions will be terminated. Current assets and future contributions will be transferred to an active provider.

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Implementation Overview

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Asset Transfer Options

• Option 1 - WCERS selected ING and Hartford as the providers for the

automatic asset transfer.

• No fees charged or restrictions on transferring your account to another active

provider.

• No surrender charges or deferred sales charges to transfer your account to another

active provider at any time.

• Formal ongoing investment monitoring process and oversight by WCERS.
• Option 2 - You may choose to transfer your account to any of the four active
• providers. Individual transfers must be completed by May 22, 2013.

Implementation Overview

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• Your Nationwide and/or Great-West account will transfer to either ING or

Hartford on May 31, 2013.

• Your investments will be transferred to similar investments (“mapping”).
• Money in a Fixed Account today will be mapped to a Fixed Account.
• Money invested in market-based investments today will be mapped to a “like”

investment with a similar investment objective.

• If you have the optional supplemental life insurance with Nationwide or

Great West, your new provider will work with you to maintain this important benefit.

• If you are retired and receiving monthly distributions:
• Your distributions will continue uninterrupted with no changes (same method and

the same or similar dates as you have currently).

Automatic Asset Transfer Process

Implementation Overview

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Asset Transfer Blackout Period

• On May 22, 2013, the plan will enter a blackout period.
• During the blackout period, no financial transactions are allowed, including

contributions, exchanges and withdrawals.

• If you have separated service or retired and are scheduled to receive a

distribution during the blackout period, your payment will be processed immediately before the blackout period begins.

• The blackout period will end on or before June 14, 2013.
• Once the blackout period ends, financial transactions are allowed.
• After the Asset Transfer, you are encouraged to update your beneficiaries.
• Accounts transferred to ING or Hartford may be transferred to any of the
• ther active providers with no penalty or surrender charges.

Summary

 Midland National and ING will now be active providers.  Nationwide and Great-West accounts will be transferred

• n May 31, 2013, to ING and The Hartford.

 The blackout period starts on May 22, 2013, and will end

• n or before June 14, 2013. No financial transactions are

allowed.  You may choose among active providers at any time after the blackout.  If your assets are mapped into ING or The Hartford, you will incur no fees or surrender charges on transfers out of ING or The Hartford.

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