Deferred Compensation Plan BOARD REPORT 15-12

Transcription

1 Deferred Compensation Plan BOARD REPORT Date: February 6, 2015 To: From: Board of Deferred Compensation Administration Staff Subject: - Active Employee Survey Review: National Save for Retirement Week Promotion - Updated Retiree Survey Results by Retirement Plan Board of Deferred Compensation Administration Eugene K. Canzano, Chairperson John R. Mumma, Vice-Chairperson Cliff Cannon, First Provisional Chair Tom Moutes, Second Provisional Chair Michael Amerian, Third Provisional Chair Ray Ciranna Linda P. Le Wendy G. Macy Robert Schoonover Recommendation: That the Board of Deferred Compensation Administration receive and file information regarding active employee and updated retiree survey results from the 2014 National Save for Retirement Week campaign. Discussion: As the Board is aware, the City s Plan conducted an engagement/awareness campaign for the 2014 National Save for Retirement Week event. The City s campaign ran from October 15-31, Active Employee Survey Results - The focus for active Plan participants was in encouraging them to use the Plan s Retirement Income Projection Calculator. An incentive was provided by inviting them to report their results in order to become eligible for a random drawing for gift cards. As part of reporting their results, respondents were asked to complete a brief survey (much shorter than the separate survey provided to retired participants). A total of 1,112 active employee survey responses were received. Survey results indicated that a strong majority of respondents found the calculator a useful tool for thinking about retirement income replacement. 5 of respondents selfreported a Retirement Income Replacement Percentage of over 9. Below is general demographic data for the respondents: 58% of respondents had over 15 years of service. 51% of respondents said they plan to work another 9 years or less before retiring. A majority of respondents identified themselves in a professional or managerial working class. 14% of respondents have had a Deferred Compensation account open for 5 years or less. The full responses are included in Attachment A. Separately, Attachment B breaks out the same active employee survey data by retirement system (based on respondent 1

2 Deferred Compensation Plan BOARD REPORT answer). The retirement system question was optional, and respondents who did not answer the retirement system question were removed from this set of data. Retiree Survey Results Update - At its January 20, 2015 meeting, the Board received a report detailing the results of the retiree survey for the 2014 National Save for Retirement Week event. The Board asked if the results could be broken out by the City s three retirement systems. That break-out is included in Attachment C. It should be noted that the retirement system question included two non-plan specific responses ( I m a member of more than one plan and No longer a member ) for which staff was unable to match with the appropriate retirement plan for the reporting of this data. As such, the data provided does not include the responses for those respondents. Submitted by: Paul Makowski Reviewed by: Esther Chang Approved by: Steven Montagna 2

3 Retirement Income Projection Calculator Survey Attachment A Would you like to enter the drawing OR respond anonymously? DECLINE DRAWING ENTRY (take survey anonymously), 8.7% ENTER DRAWING (personal contact information required), 91.3% How old are you? 65 and over, 3.8% 25 or under, 0.8% 56-64, , 24.7% 41-55, 49.7% 3

4 Retirement Income Projection Calculator Survey Attachment A How long have you worked for the City of Los Angeles? Less than one year, 1.1% 1-4 years, 2.7% 5-9 years, 17.4% 20 or more years, 43.1% years, 20.7% years, 15. How much longer do you expect to work for the City of Los Angeles? 20 or more years, 18.8% Less than one year, years, 20.3% years, 13.9% years, years, 25.1% 4

5 Retirement Income Projection Calculator Survey Attachment A Which status best describes you? Active DWP, 6. Active Sworn (LAPD, LAFD), 17.2% Active Civilian, 76.8% Approximately how long have you been a participant in the City's Deferred Compensation Plan? Less than one year, 3.3% More than 15 years, 33.7% 1-5 years, 11.1% 6-10 years, 27.4% years, 24. 5

6 Retirement Income Projection Calculator Survey Attachment A Please identify your gender (Optional) Female, 49.1% Male, 50.9% What is your race/ethnic group? (Optional) Other or decline to state, 8.4% American Indian, 0.3% Filipino, 11.7% Asian, 22.1% Hispanic, 21.8% Black, 12. Caucasian, 23.2% 6

7 Retirement Income Projection Calculator Survey Attachment A Please let us know how useful the Retirement Income Projection Calculator has been in helping you think about and plan for your retirement (Check all that apply) % The calculator provided me with information I did not have before regarding my potential future retirement income. 39.7% The calculator provided me with information that causes me to consider changes to how I save using the Deferred Compensation Plan. 10.1% 6. The calculator did not provide me with new information. Other (please specify) Please rate this calculator on a scale of 1-5 (5 being best) in the following categories: Provided useful information Easy to use Provided me with a new way of looking at my retirement

8 Retirement Income Projection Calculator Survey Attachment A Please indicate your job category (Optional) Sworn - Fire, 4.6% Protective Services, 0.6% Clerical, 16.3% Sworn - Police, 13. Paraprofessional, 2.3% Management, 9.8% Service & Maintenance, 2.4% Skilled Craft, 1.4% Technical Professional, 25. Administrative Professional, 24. Enter your Retirement Income Replacement Percentage. This is required to participate in the promotion. 121% or more, 26.3% Less than 7, 17.1% 111% - 1, 8.3% 7-8, % - 11, 8.9% 91% - 10, 11.2% 81% - 9, 12.2% 8

9 Retirement Income Projection Calculator Survey: By Retirement System Attachment B How old are you? 6 47% 46% 34% 27% 23% 24% 16% 6% 1% 3% 1% 1% Active Civilian Active DWP Active Sworn (LAPD, LAFD) 25 or under and over How long have you worked for the City of Los Angeles? 42% 46% 47% 28% 22% 21% 18% 14% 14% 1 1% 3% 4% 2% Active Civilian Active DWP Active Sworn (LAPD, LAFD) Less than one year 1-4 years 5-9 years years years 20 or more years How much longer do you expect to work for the City of Los Angeles? 24% 22% 19% 14% 12% 7% 17% 14% 29% 1 Active Civilian Active DWP Active Sworn (LAPD, LAFD) 17% Less than one year 1-4 years 5-9 years years years 20 or more years 9

10 Retirement Income Projection Calculator Survey: By Retirement System Attachment B Approximately how long have you been a participant in the City's Deferred Compensation Plan? 34% 29% 3 28% 24% 12% 11% 4% 2% 9% 21% 18% 52% Active Civilian Active DWP Active Sworn (LAPD, LAFD) Less than one year 1-5 years 6-10 years years More than 15 years Please identify your gender (Optional) 10 87% % 42% 6 13% Female Male Active Civilian Active DWP Active Sworn (LAPD, LAFD) What is your race/ethnic group? (Optional) % American Indian 34% 3 Asian 26% Black 18% Caucasian 14% 14% 11% Filipino 8% 9% 7% 9% 8% 9% Hispanic 1% 1% Other or decline to state Active Civilian Active DWP Active Sworn (LAPD, LAFD) 10

11 Retirement Income Projection Calculator Survey: By Retirement System Attachment B Please indicate your job category (Optional) 29% 31% 29% 24% 12% 14% 14% 8% 1 3% 1% 3% 1% Active Civilian Active DWP Active Sworn (LAPD, LAFD) 7 Administrative Professional Clerical Management Paraprofessional Protective Services Service & Maintenance Skilled Craft Sworn - Fire Sworn - Police Technical Professional Enter your Retirement Income Replacement Percentage. 3 27% 24% 22% 27% 1 18% 12% 12% 9% 7% 9% 9% 16% 13% 7% 18% 14% 12% 1 6% Active Civilian Active DWP Active Sworn (LAPD, LAFD) Less than % % % % % or more 11

12 Arkansas, 1% Nevada, 1% New Jersey, 1% Oregon, 1% Other - I do not live in a US State or Territory, 1% Colorado, 2% Idaho, 2% Illinois, 2% Nevada, 3% Oregon, Texas, 2% Washington, Nevada, 4% South Carolina, 2% Washington, 4% Retirement Income Security Survey by Retirement System Attachment C What is your age? % 47% 9% 11% 9% Retirement System (LACERS) 57% 34% 46% 46% 7% Employees Retirement 41 to to to or older What is your gender? Los Angeles City System (LACERS) 6% 94% 7 Female Male 1 California, 96% 10 8 In what State or U.S. territory do you currently reside? California, 82% California, 9 6 Retirement System (LACERS) Pensions (LAFPP) Employees Retirement 12

13 Retirement Income Security Survey by Retirement System Attachment C Are you currently a resident of Los Angeles County? 8 76% 71% 6 46% 54% 24% 29% No Yes Retirement System (LACERS) Employees Retirement How many years has it been since you retired/separated from City service? % 47% 56% % % 19% 12% 11% 9% 6% 19% or more Retirement System (LACERS) Employees Retirement What type of retirement did you take? % 78% 1% 9 28% 72% Disability Early Regular Los Angeles City System (LACERS) 13

14 Retirement Income Security Survey by Retirement System Attachment C What event or situation occurred that led you to retire or separate from City service? (check all that apply) % 83% 76% 12% 6% 6% 8% 8% 6% 8% 1 1% 1% 2% Los Angeles City Employees Retirement System (LACERS) Employees Retirement Plan (WPERP) Eligible to Retire (years/age) Found other employment Spouse/domestic partner retired Health reasons Other I've discovered that I can adjust my lifestyle according to my income % 4 34% 52% 4 43% 12% 11% 8% 3% 1% 2% 2% Retirement System (LACERS) Plan (WPERP) Agree nor 14

15 Retirement Income Security Survey by Retirement System Attachment C I don't need to spend as much as I did before I retired to be satisfied. 23% 33% 16% Retirement System (LACERS) 44% 2% 2% 36% 23% 14% 13% 4% Plan (WPERP) Agree nor I am more comfortable saving than spending and withdrawing from my retirement accounts. 43% 58% 3 32% 27% 21% 17% 16% 17% 12% 8% 1% 2% 2% Retirement System (LACERS) Plan (WPERP) Agree nor I've discovered that having more time while retired allows me to spend less money. 12% 29% 27% 28% 4% Retirement System (LACERS) 8% 32% 31% 29% 28% 26% 21% 17% 8% Plan (WPERP) Agree nor 15

16 Retirement Income Security Survey by Retirement System Attachment C % It is important to maintain the same lifestyle I had pre-retirement. 42% 26% 14% Los Angeles City System (LACERS) 32% 54% 6% 6% 47% 11% 2% 2% Agree nor I am surprised how hard it is to live on my retirement paycheck. 11% 42% 22% 8% 54% 18% 11% 34% Agree 3 nor Retirement System (LACERS) Pensions (LAFPP) Employees Retirement I've discovered that having more time requires additional spending as I can participate in many more activities. 4% 36% 31% 31% 29% 26% 26% Los Angeles City System (LACERS) 43% 26% 17% 9% 8% 3% 6% Agree nor 16

17 Retirement Income Security Survey by Retirement System Attachment C % What sources of ongoing income do you presently receive? (check all that apply) 37% 39% 19% 16% 12% 11% 13% 1 9% 1 7% 6% 6% 7% 7% 8% 3% 2% 2% 2% 3% 3% 1% 3% 3% 4% 1% Retirement System (LACERS) Pensions (LAFPP) Employees Retirement Retirement/Pensions Income from LACERS, LAFPP, DWP or combination Deferred Compensation Plan Social Security Paid employment Annuity Investment income (including real estate) IRA Other employer retirement plan Spouse or family member income Other Have you rolled other retirement account assets into the City of LA Deferred Compensation Plan? % 9% Los Angeles City System (LACERS) 63% 37% 94% 6% No Yes (I rolled in my IRA, 401(a), DROP, 401(k), 403(b), or other 457 account) 17

18 Retirement Income Security Survey by Retirement System Attachment C I rely on my Deferred Compensation account to provide an ongoing source of retirement income. 69% 31% Retirement System (LACERS) Employees Retirement No Yes I wish I had set aside more money in Deferred Compensation. 38% 33% 31% 31% 31% 28% 29% 23% 23% 1% Retirement System (LACERS) 8% 3% 2% Plan (WPERP) Agree nor Which of the following statements regarding your account is more true? % 5 43% 4 Los Angeles City System (LACERS) 33% 67% I expect to leave a significant portion of my Deferred Compensation Plan assets to my heirs I expect to spend all or most of my Deferred Compensation Plan assets in my lifetime 18

19 Retirement Income Security Survey by Retirement System Attachment C Tell us about your Deferred Compensation Investment Preferences. (Check all that apply) 43% 44% 3 31% 27% 27% Los Angeles City System (LACERS) 34% I invest in stocks I invest in bonds I invest in savings options % 89% 69% 19% 9% 3% 2% 4% Los Angeles City System (LACERS) Tell us about your beneficiary designation. 27% I have recently verified that my beneficiary for this account is current I need to change my beneficiary for this account I need to verify that my beneficiary for this account is current What is your preferred method to receive or obtain Plan information? Los Angeles City System (LACERS) 51% 48% 3 63% 3% 2% 2% 2% Electronic - when I log into my account at or through Hard copy - paper mailed to my home In Person - talking to a local counselor Phone - via toll free number ( ) of talking to a local counselor 19

20 Retirement Income Security Survey by Retirement System Attachment C % 51% I am satisfied with the present state of my physical health. 6 51% 23% 21% 18% 17% 1 8% 9% 11% 2% Retirement System (LACERS) Plan (WPERP) Agree nor I am satisfied with the quality and quantity of my social opportunities with others. 19% 54% 21% Retirement System (LACERS) 29% 6 8% 2% 3% 19% 57% 9% Agree nor All things considered, I am satisfied with my overall experience of being retired. 47% 1 3% Retirement System (LACERS) 5 43% 49% 43% 8% 0 2% 0 0 Agree Nor 20