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 1

What is Happening? Background  In 2010, WCERS selected the following four (4) active 457 Deferred Compensation plan providers: AXA Advisors Midland National   ING The Hartford    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 2

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. 3

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 4

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. 5

Implementation Overview 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. 6

Implementation Overview Automatic Asset Transfer Process • 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). 7

Implementation Overview 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 other active providers with no penalty or surrender charges. 8

Summary  Midland National and ING will now be active providers.  Nationwide and Great-West accounts will be transferred on May 31, 2013, to ING and The Hartford.  The blackout period starts on May 22, 2013, and will end on 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. 9