Nationwide : A Proven Provider. of Retirement Solutions for Public Sector Plan Sponsors and Employees

Transcription

1 Nationwide : A Proven Provider of Retirement Solutions for Public Sector Plan Sponsors and Employees

2 Going above and beyond for quality workmanship. Why Nationwide Retirement Solutions? Going above and beyond for quality retirement solutions. We know you have many choices when it comes to your retirement plan provider. And sometimes it s difficult to differentiate what s out there. Nationwide offers certain features as part of every plan: accurate recordkeeping, closely monitored regulatory update process, diverse investment options and more. And we stand behind those offerings. We ve separated ourselves from the competition with: Plan Performance Participant Outcomes Strategic Partnership But we don t stop there. We get to serve nearly 1.5 million public employees who have entrusted us with more than $55 billion in assets and we didn t get there by dressing up the same old standards. Our commitment to your goals and your employees needs is proven through our sponsors 18-year average tenure with us. And that s all just the beginning. As of August

3 457(b) Roth 457(b) PLAN PERFORMANCE We do more than just learn from our history with the public sector, we build on it. 401(k) 401(a) Post Employment Health Plan (PEHP ) When it comes to the Nationwide Retirement Solutions business, we have nearly four decades of 100% dedication to public sector employees. Early on, we were instrumental in developing the 457 plan, and have since built a business that: Services 1.5 million participant accounts Administers nearly 8,000 plans of all sizes Possesses over $55 billion in assets under management Holds a case retention rate of over 99% Has an average plan sponsor relationship length of 18 years All numbers current as of August We re proud that so many plan sponsors have placed their faith and trust in us it speaks volumes about our commitment to public sector plan sponsors, their employees and their families. We have nearly 900 associates whose focus is to be the best provider of public sector retirement plan services, and over the last 40 years, we ve gained valuable experience and insight into the types of goals and hurdles many plan sponsors face. We re #1 in total 457 plans administered and #2 in total assets 1, with public sector clients in 47 states. 1 PlanSponsor.com, June Fixed and variable annuity options We continue to develop a flexible mix of plan designs, products and services to help your employees prepare for and live in retirement: Professionally managed accounts Stable value option Mutual funds Bank products 2 3

4 Delivering on our commitments starts with a strong foundation. When you choose Nationwide Retirement Solutions, you re also putting 80 years of Nationwide s strength and stability to work for your employees and their families. As a conservative, full-service financial firm, Nationwide holds a diverse portfolio of investments and cash-flow sources. The diverse businesses of Nationwide include: Our disciplined investment policy and sound portfolio choices have helped us maintain a strong balance sheet and earned us a spot on the Fortune 100 list. 2 We also have more than 30,000 associates, making us one of the largest financial services companies in America. 2 Based on revenue. Fortune Magazine, May Retirement plans Investment management Mutual funds and annuities Life insurance Property and casualty insurance The mutual benefit Every Nationwide business shares the goal of becoming a trusted advocate by helping to protect what matters most and helping people prepare for financial stability. So by being a mutual company, Nationwide s interests are directly aligned with our customers. Rank: 5th strongest of 21 Received: 03/10/09 Affirmed: 08/03/10 A1 good AGENCY Moody s A+ superior AGENCY A.M. Best The quarterly earnings pressures of publicly held companies don t sway us and, therefore, we can take a long-term view and do what s right for our customers. Just take a look at what the industry s leading ratings agencies have to say about our business and our staying power Rank: 2nd strongest of 16 Received: 1/30/06 Affirmed: 03/27/12 A+ strong AGENCY Standard & Poor s Rank: 5th strongest of 22 Received: 12/22/08 Affirmed: 07/27/12 These ratings and rankings reflect rating agency assessment of the financial strength and claims-paying ability of Nationwide Life Insurance Company and are subject to change at any time. They are not intended to reflect the investment experience or financial strength of any variable account, which is subject to market risk. Because the dates are only updated when there s a change in the ratings, the dates above reflect the most recent ratings we have received. Banking Celebrating success Recent Nationwide awards include: Great Workplace Award (from Gallup) Top 100 Women Impacting Supplier Diversity (from Women Enterprise USA) Fifth consecutive Top 10 ranking on the Most Trusted Companies for Privacy list (from TRUSTe and the Ponemon Institute) 4 5

5 Participant outcomes All participants are different. Our integrated education is different, too. Any provider can attempt to communicate to your employees, but we apply a proprietary approach to education that supports our greatest asset our associates through messages, content and visuals that are truly relevant and drive specific action. We make the most of in-person, print, phone and web, while consistently encouraging your employees to talk to a retirement specialist, who is a highly valued resource among many public sector employees. We ve created solutions to fit different needs. Print Phone Our research-based web experience is just one touch point of many. NRSforU.com was recently redesigned with improved usability, accessibility, navigation and content. Through rigorous research, we created ways to provide simpler online enrollment, easier access to account information and better tools and calculators. Each type of education is designed to stand alone or be integrated to provide a multitouchpoint experience and consistent message reinforcement. This means your employees can get information they want, the way they want it. In-Person One participant may value multiple forms of in-person communication... Web Another participant may get everything she needs in just one place. Participants who used two or more touchpoints gave significantly higher ratings for overall plan satisfaction, value and quality than those who only used one touch point 3. 3 NACo Participant Satisfaction Survey, The user-centric design helps reduce searches; for example, the new Account Summary page answers 80% of most participant questions in one place without having to click through to additional content 4. 4 Nationwide User Experience Research,

6 We have one of the largest retirement services teams in the industry. And they re ready to help. Many times, employees feel most comfortable talking to a professional. That s why our local network of over 300 associates serve all worksites and shifts. Our retirement specialists are registered representatives that adapt their outreach methods to make in-person sessions meaningful for every participant from blue collar to white collar, from new enrollees to seasoned investors. It s all about addressing your employees needs. And with the average tenure of our retirement specialists being an impressive 9.5 years, we have the experience and knowledge to help make preparing for retirement easier. 18% Easy access investment offerings Quality Statements 20% 11% Our quality service and communication (including responsiveness, accuracy and clear explanations) accounts for over 50% of our high participant satisfaction scores. NACo Participant Satisfaction Study, % 20% Quality service Quality communication One-on-One and Group Settings Local retirement specialists schedule time at various locations for walk-ins and appointments with employees even for those who work late shifts in nonoffice settings. They can help with enrolling, conduct account reviews, help educate your employees on retirement savings strategies, plus help them understand income and distribution options upon and throughout retirement. For groups, local specialists present educational workshops on topics related to employees needs. Our presentations are created in flexible modules, which are short five- to eight-minute discussions. Longer workshops are also available and can be tailored to the needs of the plan, specific departments or employee groups. Nearly 80% of satisfied participants say that receiving valuable information that s customized to their unique situations drives their happiness with our local specialists. NACo Participant Satisfaction Study,

7 We do more than chat with participants; we discuss opportunities to help build a better future. Customer Service Center and Home Office Retirement Specialists Our customer service center is staffed from 8 a.m. to 11 p.m. ET. These representatives are highly experienced with the public sector and also trained by region so they understand the needs of specific plans. Local retirement specialists have home office partners who provide education over the phone for the convenience of employees. Participant Solutions Center Nationwide cares about total financial stability for your employees. And sometimes, that approach to preparation means understanding options beyond a 457. When an employee s financial planning needs falls outside the general 457 offering, Nationwide offers the Participant Solutions Center (PSC) through our affiliate, Nationwide Securities LLC. This kind of personalized guidance can be especially helpful during key transitions such as a job change or retirement. The Participant Solutions Center is staffed by our affiliate, Nationwide Securities LLC representatives. How the PSC can help First, the PSC will work with interested participants to fill out a worksheet of personal financial information ranging from current income sources and investments to assets, liabilities and beyond. Then, at no additional cost to you or your employees, we ll provide a personalized Financial Needs Analysis. This report helps illustrate retirement outlook and gives general guidelines to help with decisions about financial products and services. It provides forecasted estimates on everything from cash-flow needs to long-term health care costs, and considers inflation, life expectancy and other factors. Finally, based on gaps reported in the Financial Needs Analysis, we help participants explore the wide array of investment options available, including IRAs, mutual funds from multiple fund families, annuities, life insurance and banking solutions. Fees would apply only at the individual product level when a participant elects to make a purchase. Your employees have easy access to a real person: Customer Service Center Hotline Group workshops Participant Solutions Center Private in-person meeting Home Office Retirement Specialist Hotline 10 11

8 Plan Performance Participant Outcomes Strategic Partnership Typical marketing and education pieces just won t do we use targeted materials to complement our in-person efforts. 1 Sample One-on-One Material 457 deferred compensation guide 2 Sample On-Site Material 3 Sample Self-Service Material DEFERRED COMPENSATION PLAN 457 deferred compensation guide GettiNG Started WEBSITE AND VOICE RESPONSE SYSTEM Need more information? Choose the method that s best Even a small increase today could help you reach your retirement goals. for you. Day or night, what you need is just a click or call away: get answers on THe web: More than half of American households are at risk of not having enough income to maintain their living standards in retirement.* Are you saving enough in your deferred compensation account? To find out, check out the On Your Side Interactive Retirement Planner. <Plan Website> SM Visit NRSforu.com/planner Talk To a professional one-on-one. <Plan Phone> <rep Name> < Rep Phone > < Rep address > your guide To getting prepared <da Name> < Rep Phone > < Rep address > DEFERRED COMPENSATION PLAN HelpiNg public employees prepare for and live in retirement Our retirement specialists use a variety of research-based materials to support their consultations with your employees. As part of a strategic plan, our materials can be used in three distinct ways: < address@nationwide.com> <DA Name> 457 deferred compensation Guide <Corporate Number> < address@nationwide.com> investment basics GeT To KNoW THe language of InvestIng what are stocks? what are bonds? what are short-term investments? Stocks offer an investor an ownership position in a When you purchase a bond, you are basically giving a Short-term investments are sometimes referred to as the stock typically increases, too. While stocks may than stocks and provide a more steady flow of income. Understanding how to invest starts with learning the lingo. expose investors to more short-term risk than bonds However, they also typically provide a lower rate of return. At its most basic, investing involves putting your money value or capitalization (total value of the company s company s assets and earnings. one unit of owner- loan to the entity or corporation (also known as the bond cash equivalents because they can be easily sold ship is called a share. Many factors influence the value issuer). In return, the bond issuer agrees to pay back the (converted to cash) without affecting their value. While of a stock, but a company s earnings generally have loan amount along with interest on a specified date, known these short-term investments are generally less risky than the biggest impact. as earnings increase, the value of as the maturity date. bonds are generally more stable stocks or bonds, their returns are also usually much lower. or short-term investments, they have also historically outperformed those investments over the long term. to work for you with the hope of making more money. The success of an investment can be measured by the income it generates, the interest it bears, or its increase in value over time. Most portfolios consist of three main asset classes or Stocks can be generally categorized by their market outstanding shares). large-cap stocks refer to companies with market values greater than $10 billion. because these tend to categories of investments: stocks, bonds and short-term be large, established corporations, their stocks general- investments. each have unique features, risks and rewards. ly offer lower risk than stocks from smaller companies. mid-cap stocks refer to companies with market values between $2 and $10 billion. these stocks are typically more volatile than large-cap stocks, but less also tend to be more risky. One-on-one to help employees gain confidence and make smarter decisions trade on either the U.S. or foreign stock exchanges and are generally considered higher-risk investments. Retirement specialists are Registered Representatives of Nationwide Investment Services Corporation, member FINRA. > NRM-8285AO.2 (08/11) certificates of deposit (cds) are savings certificates issued by commercial banks and are insured by the fdic. they can be issued in any denomination and offer a fixed interest rate payable at a specified maturity date. often come with favorable tax incentives. In exchange for money-market accounts (mmas) are deposit accounts these incentives, the interest rates of municipal bonds are offered by banks and offer many of the same features often lower than taxable bonds. as a standard savings account, including fdic insurance. corporate bonds are issued by corporations and However, most MMas require a higher minimum account generally offer higher returns in exchange for higher risk. Assets rolled over from your account(s) may be subject to surrender charges, other fees and/or a 10% tax penalty if withdrawn before age 59½. balance and place restrictions on how often you can Generally, the higher the credit rating of the company, the withdraw money from the account. lower the interest rate paid to the investor. treasury bills (t-bills) are money market securities NRM-7432AO.2 (08/11) issued by the U.S. federal government that pay a fixed interest rate and have maturity dates one year or less from Investment-grade bonds refer to bonds that have <eventname> the date of issue. t-bills are generally considered to be received high ratings from financial research experts such among the safest investments in the world, because they as Standard & Poor s or Moody s. Issuers of these bonds are backed by the full faith and credit of the United States. are considered more likely to pay the interest and principal International stocks refer to companies that are located outside of the United States. these stocks may <date> amount in a timely manner. because of this reliability, many investment-grade bonds have lower interest rates. <time> High-yield bonds refer to bonds that have received lower ratings from financial research experts. Issuers of <place> these bonds also known as junk bonds are considered less likely to pay the interest and principal amount in a timely manner. but this lack of reliability is made up for for more information contact <repname> at <repnumber> or < >@nationwide.com (in some investors minds), by higher interest rates. 2 On-site to promote events or present workshops volatility: Indirectly refers to primer tax IncentIves: Also known as a tax credit or tax break; a deduction or exemption that reduces the amount of income you can be taxed on. fdic: The Federal Deposit Insurance Corporation; insures account deposits made by investors in the event that a bank fails. level of risk; for example: stocks that have regularly fluctuating prices are considered riskier and more volatile. Stocks whose prices fluctuate less (or by a smaller amount) are less risky and less volatile. each investment has a level of risk and a level of possible reward associated with it. The colored boxes 2011 Nationwide, One Nationwide Plaza, Columbus, OH All rights reserved. Nationwide, the Nationwide framemark, and On Your Side are service marks of Nationwide Mutual Insurance Company. correspond with the risk vs. reward chart that you ll learn more about on the next few pages. of compounding and see what growth can really mean. Retirement specialists are Registered Representatives of Nationwide Investment Services Corporation, member FINRA. > 16 the snowball effect of compounding Fliers In the example below, Investor #1 invests $2,000 per year beginning at age 30 and then stops investing after 10 years ($20,000 total contribution). although she s no longer contributing to the account, she leaves her money in the account to grow for an additional 25 years. Investor #2 procrastinates and doesn t start investing until age 40. He contributes $2,000 per year for a total of 25 years up until the day he retires ($50,000 total contribution). Put your money to work. Now that you know you need to save for retirement, you may say, but I already have a savings account at a local bank. truth is, most savings accounts earn as little as a 1% rate of return. With such a low rate, although Investor #1 invested $30,000 less than Investor #2, she ended up with a much higher account balance at retirement. that s because she gave her money 10 more years to grow. your savings will not have much potential for long-term growth. this is because the higher the average rate of return, the more your investment benefits from something called compounding. 3 Compounding is the process of continually adding earnings to the amount you contribute (principal) Self-service to drive employees to take action on their own terms and then reinvesting those earnings to create even more earnings. to take advantage of compounding, Investor #1 s Account 10 YeAR INVeSTMeNT/ CoMPoUNDING PeRIoD $160,474 additional compounding on top of investment at retirement you ll want a plan (like your employer s deferred comp plan) that offers access to investment options with potentially higher rates of return. Investor #2 s Account The time is right now. now to invest in your future. time is one of the most RetiRement MythS & RealItIeS at retirement want to talk retirement? important factors in the potential success of your investments. this is because time and compounding work together to build momentum for your money. $135, YeAR INVeSTMeNT/CoMPoUNDING PeRIoD age 65 No matter what your age, there s no better time than Call a Nationwide retirement think of it like a snowball rolling down a hill. the longer specialist today. We re available the hill, the bigger that snowball could potentially in person and over the phone. become. by starting early, you maximize the effects myth #1: of time and compounding on your investments. Keep in mind that investing involves risk, so there s no guarantee you ll reach your investment goals. My pension & SoCIal SeCURIty will CoveR all My RetiRement needs. 457 deferred compensation Guide earnings: Income gained from an investment that s added to an investor s principal. welcome PrIncIPal: The money an investor defers into an investment account; doesn t include earnings. rate of return: A gain or loss on an investment that s stated as a percentage; usually defined each quarter. This illustration is a hypothetical compounding calculation assuming a 7% annual rate of return. It is not intended to serve as a projection or prediction of the investment results of any specific investment. Investments are not guaranteed. Depending on your underlying investments, your return may be higher or lower. Interest compounded annually based on beginning-year contributions. No taxes or fees are reflected in this example, which would lower the results displayed. Source: Nationwide Financial (2008). WelCoMe To 7 Time to catch-up special retirement plan contribution provisions for people nearing retirement on average, a public pension will replace only about it may seem like retirement is far away, but now is the time to plan for your future. 50% of your current income myth #2: after 25 years of service. enough retirement income. on average, a public pension will provide only about InflatIon. It s the rate of increase in the prices of goods and services over time. 50% of your current income after 25 years of service. one example is the rising cost of gas. and, most industry professionals say you ll need about 70% to 90% of your current income just to maintain your standard of living in retirement. but when you factor in inflation and increases in medical costs, some experts say you may need as much as 126% of your final pay.¹ So how will you bridge your retirement income gap? With the future of Social Security so uncertain, it seems that having supplemental retirement savings is more than a nice-to-have it s a necessity. 65% of households are at risk of not having enough to maintain their living standards in retirement. Source: National Retirement Risk Index (2010). Includes health and long-term care costs. I CaN t afford to save. a few realities to consider: Why? because, for most americans, pension and Social Security benefits will simply not provide Managing your retirement assets in one place. Consolidate your IRA, 401(k), 403(b) and 457(b) into your Nationwide retirement account Reality: 8 your future If you re not already saving for retirement, the time to get started is now. RolloveRs transfers <Nationwide Retirement Solutions and Nationwide Life Insurance Company have endorsement relationships with the National Association of Counties, The United States Conference of Mayors, and the International Association of Fire Fighters-Financial Corporation. More information about the endorsement relationships may be found online at WHat do the colored squares above mean? TAP INTo THe PoWeR 15 catch-up provisions Contact <RSVPName> to register at <RSVPNumber> by <RSVPDate> 457 deferred compensation Guide PortfolIo: A group of investplan ments held by an investor (such as stocks, bonds or mutual funds). market value: Also known as market price; how much a company is worth at a particular point in time. Your guide to using the website and Voice Response System 2011 Nationwide, One Nationwide Plaza, Columbus, OH All rights reserved. Nationwide, the Nationwide framemark, and On Your Side are service marks of Nationwide Mutual Insurance Company. of the most common. are generally considered to be the most stable type of bond. another way to classify bonds is by their ratings. small-cap stocks refer to companies with market values under $2 billion. Small companies can often grow much faster than big companies, but their stocks Now s the time to enroll in deferred compensation. *The National Retirement Risk Index, a variety of investment types can be generally treasury bonds are issued by the U.S. government and Talk with your Nationwide representative about the benefits of combining your IRA, 401(k), 403(b) and other 457 plans into your Nationwide deferred compensation account. <Nationwide Retirement Solutions and Nationwide Life Insurance Company have endorsement relationships with the National Association of Counties, The United States Conference of Mayors, and the International Association of Fire Fighters-Financial Corporation. More information about the endorsement relationships may be found online at categorized as short-term investments. below are a few one way to classify bonds is by their issuer. municipal bonds are issued by local governments and risky than small-cap stocks. 1 To increase your deferral today, contact: Are you tired of hassling with <Rep Name> multiple retirement accounts? <Local Phone Number> Saving for your future starts with a plan High-tech tools to help you manage your account HealtH care. Health care costs are on the rise. Men who retired at age 65 may need up to $346,000 to cover health expenses in retirement; women could Reality: need even more.² long-term or assisted-living care. Continual care for an ongoing condition If you have cable TV or eat lunches out, you can afford to save for retirement. can be very expensive. 63% of people who need long-term care for a chronic condition ended up having to reduce their savings by an average of 61% just to cover their bills.³ outliving your money. It s important to make sure your savings are sufficient to provide income throughout your expected lifespan. according to the 2010 Social Security trustees Report, the average 65-year-old is expected to live between 17 and 20 additional years. myth #3: INveStINg IS too complicated. ¹ Hewitt Study Reveals Widening Gap Between Retirement Needs and Employee Saving Behaviors, pension/ asp (accessed 6/15/11). ² Savings Needed for Health Expenses in Retirement: An Examination of Persons Ages 55 and 65 in 2009, notes/index.cfm/fa=notesdisp&content _id=4291 (accessed 9/21/11). ³ Beyond Dollars: The True Impact of Long Term Caring. Genworth Financial (9/30/10). 1 Education brochure 2 Reality: you just need the right plan and the right partner. Brochures Workshops 12 13

9 STRATEGIC PARTNERSHIP We understand plan sponsors needs inside and out, from transition through implementation. On day one, we make things as simple as possible by giving you a single point of contact. That contact will be your partner throughout the transition and planning cycle as we combine the workplace expertise you bring to the table and the retirement plan experience we bring to the table. From there, we ll tackle your concerns, from ever-changing legislative regulations to a challenging economy, and design a comprehensive retirement plan to help meet your needs. Customer Service Center prepares to answer questions Transition communications delivered to employees On-site transition workshops begin A swift transition We have a proven history of transition and implementation success, which shows in our consistently high ratings on our Conversion Scorecards. We offer a team of transition specialists for every plan and work behind-the-scenes to minimize blackout and maximize your satisfaction with the process. Our process also boasts no impact to distributions because we coordinate accelerated payouts during the blackout period. There is no financial impact to current participants because their ending balances with your current provider are the opening balances with Nationwide. Your website launches and further communications delivered One-week (or less) transaction hold minimizes inconvenience One-day blackout finalizes the transition There s a whole team dedicated to your planning needs, and only your needs. First, we ll get to know you like a partner should. We ll gain a deep understanding of how you define success, including your specific needs, goals, issues, and opportunities. We can also help you define possible priorities that will lead your plan on a better path. Celebrating success 1 2 Focus on success Informs action 3 Evaluate results Sets expectations Since 2010, we have helped our clients get nationally recognized by earning: More than 30 awards from NAGDCA Influences Two Plan Sponsors of the Year from PLANSPONSOR magazine Create solutions Then our team will develop and execute strategies to achieve your objectives. Finally, outcomes are studied through a review of the plan data, demographics, and activity. We provide valuable updates including a peer and demographic report known as Gauging Success, in addition to legislative and industry updates. These details are used to support strategic decisions and annual planning. Five Eddy Awards from Pensions & Investments magazine 14 15

10 Dedicated to the needs of the community. Dedicated to the needs of those who serve the community. Choose a proven provider. Always remember that Nationwide is On Your Side. Just like we ve been on the side of public sector employees in communities across the country. We know you have many choices when it comes to your retirement plan provider. Let us help you achieve your unique vision of success. Remember: Our plan performance tells you we ve delivered on our commitments. Our participant outcomes mean your employees are in capable hands. Our strategic partnership brings it all together so you know we ll work side by side to reach your goals Let us prove it to you. NRSforU.com/ plansponsor 16 17

11 Securities offered through Nationwide Securities, LLC., member FINRA, SIPC. DBA Nationwide Advisory Services, LLC. in AR, FL, IL, NY, TX and WY. Representative of Nationwide Life Insurance Company, affiliated companies and other companies. Information by Retirement Specialists is for educational purposes only and is not intended as investment advice. Retirement Specialists are registered representatives of Nationwide Investment Services Corporation: Member FINRA. In MI only: Nationwide Investment Svcs. Corporation. Nationwide Retirement Solutions and Nationwide Life Insurance Company (collectively Nationwide ) have endorsements relationships with the National Association of Counties and the International Association of Fire Fighters-Financial Corporation. More information about the endorsement relationships may be found online at NRSforU.com Nationwide, PEHP, the Nationwide framemark and On Your Side are service marks of Nationwide Mutual Insurance Company Nationwide Retirement Solutions Inc. All rights reserved. NRM-8995AO (8/12)