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– WASHINGTON STATE – Deferred Compensation Program

– WASHINGTON STATE – Deferred Compensation Program. Employer Advisory Committee Update on DCP & Retirement Readiness. November 15, 2012. Discover the Smart, Easy Way to Save. – WASHINGTON STATE – Deferred Compensation Program. DCP Survey. Background DRS customer surveys

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– WASHINGTON STATE – Deferred Compensation Program

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  1. – WASHINGTON STATE – Deferred Compensation Program Employer Advisory Committee Update on DCP & Retirement Readiness November 15, 2012 Discover the Smart, Easy Way to Save.

  2. – WASHINGTON STATE – Deferred Compensation Program 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 Discover the Smart, Easy Way to Save.

  3. – WASHINGTON STATE – Deferred Compensation Program 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 Discover the Smart, Easy Way to Save.

  4. – WASHINGTON STATE – Deferred Compensation Program 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 Discover the Smart, Easy Way to Save.

  5. – WASHINGTON STATE – Deferred Compensation Program 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 Discover the Smart, Easy Way to Save.

  6. – WASHINGTON STATE – Deferred Compensation Program 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 Discover the Smart, Easy Way to Save.

  7. – WASHINGTON STATE – Deferred Compensation Program What does DCP Represent • Convenience • Retirement Success • Long-Term Financial Security Discover the Smart, Easy Way to Save.

  8. – WASHINGTON STATE – Deferred Compensation Program 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 Discover the Smart, Easy Way to Save.

  9. – WASHINGTON STATE – Deferred Compensation Program 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 Discover the Smart, Easy Way to Save.

  10. – WASHINGTON STATE – Deferred Compensation Program 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 Discover the Smart, Easy Way to Save.

  11. – WASHINGTON STATE – Retirement Readiness 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 • … Discover the Smart, Easy Way to Save.

  12. – WASHINGTON STATE – Retirement Readiness 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… Discover the Smart, Easy Way to Save.

  13. – WASHINGTON STATE – Retirement Readiness 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… Discover the Smart, Easy Way to Save.

  14. – WASHINGTON STATE – Retirement Readiness Discover the Smart, Easy Way to Save.

  15. – WASHINGTON STATE – Retirement Readiness Questions? Discover the Smart, Easy Way to Save.

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