Make the most of an annual plan review

Transcription

1 Annual Plan Review Reference Guide Make the most of an annual plan review

2 INTRODUCTION The Nationwide Annual Plan Review is a summary of a Plan Sponsor s retirement plan providing detail of the most recent year as well as preceding years. It focuses on: Plan Features Plan Assets amount of assets in the plan overall Fund Assets amount of assets in individual funds within the plan Plan Participant Demographics The Annual Plan Review s goal is to provide Plan Sponsors and Investment Professionals with information needed to objectively evaluate a plan s performance and how it performed against other plans. This Reference Guide is meant to provide you, the Investment Professional, with the background you need to not only understand this new tool, but how to use it and its contents with your Plan Sponsors. The guide will take you through a sample Annual Plan Review, provide definitions for the various datapoints shared on each page and provide suggestions on how to use the information with Plan Sponsors to help improve the plan and build your business. If you have any questions about how to interpret your Nationwide Annual Plan Review data or have any other questions about this tool, please call Nationwide at

3 Retirement Plans Customized Evaluation Annual Plan Review A B C Name XYZ Brokerage, Inc. Prepared for ABC Company Case Number: As of Month Day, Year FOR PLAN SPONSOR USE ONLY 3

4 A Cover Personalization On the Nationwide Annual Plan Review cover, there are six editable fields under the report headline. Each of the six fields allows for a maximum of 20 characters each. This information can be personalized on Nationwide s Annual Plan Review website, accessed via the Sales & Service Center (SSC) or Pension Administration Services (PAS). Suggested uses include: Investment Professional Name, Firm Association Administrator Name Other Contact Information Example: John Smith XYZ Brokerage, Inc. Jane Doe ABC Administration B C Plan Name and Number This information is pulled from Nationwide s record-keeping system. As of Date This is the Annual Plan Review End Date. It is the last day of the Annual Plan Review reporting cycle, which is most often tied to the plan s year end. 4

5 Focuses of this review* Summary of Plan Features Plan Assets Fund Assets Plan Participant Demographics Benchmark criteria Your review compares current information to previous years so you can see how your plan is performing, where your educational efforts are working, and what areas offer opportunities for improvement. It also compares your plan to other similar Nationwide plans for the current and previous year. * Please note that the graphs appearing in your review are based on information provided to Nationwide. Some graphs may appear incomplete if Nationwide has not been supplied with at least 50% of your employees information. Participant demographics may not be applicable to every plan. Please notify your third-party administrator, financial advisor or Nationwide representative if you have any questions. The information included in this report does not include retroactive transactions processed in the same month that this report was generated. Plan s current year is based on the year of the Annual Plan Review s end date. Financial reporting is on an effective basis and does not include accrued transactions outside of the Annual Plan Review reporting period. 3 On this page is background information on the data used in the Nationwide Annual Plan Review. Here are some key concepts to understand when reviewing and using the Annual Plan Review. 5

6 Year-to-year Comparisons Nationwide is able to compare plan activity from year to year when the necessary data have been provided. In order to produce the plan s first Annual Plan Review, prior-year data must be provided through one of the data submission methods for the most robust Annual Plan Review. Nationwide s system will store and report the data on future Annual Plan Review reports. Peer Group Comparisons Nationwide has information on more than 25,000 retirement plans from which data can be aggregated. This group of plans serves as the comparative peer group for our Annual Plan Reviews. Only plans that have appropriate data submitted are included in the peer group calculations. The peer group is calculated annually. Participant Demographics The graphs appearing in this review are based on information provided to Nationwide. Participant demographics may not be applicable to every plan. In order to provide a representative sample of your plan s participant demographics, we need at least 50% of each type of participant datapoint (birth date, annual compensation, gender) to reflect statistics on that particular datapoint. If we do not have the required amount of data, the associated graphs or demographic section will either be suppressed or appear as N/A. Effective Basis Reporting Financial reporting is on an effective basis and does not include accrued transactions outside of the Annual Plan Review reporting period. Transactions may occur in one calendar year but may be assigned to a different year s financial reporting. This is most typical in final, year-end deposits, as the deposits are sent in and deposited the following year (e.g., deferrals from participants 12/31 payroll are submitted and deposited into their accounts in early January). Although the transaction date is in January, the payroll end date would dictate that the deposit would be reflected in the prior year s accrual reporting (such as for the 5500). Transactions are included in the annual reporting based solely upon the effective date of the transactions. Using the example provided above, the deposit would appear as a January transaction in all effective-basis reports, such as the Nationwide Annual Plan Review, because that is when the deposit will appear in participants accounts. 6

7 KEY ANNUAL PLAN REVIEW DATES Before we review the Nationwide Annual Plan Review graphs, here is further detail about some key dates and processes used and mentioned throughout this report. Annual Plan Review End Date Last day of the Annual Plan Review reporting cycle (e.g., 12/31). Annual Plan Review Reporting Period Up to three reporting periods can be included in the Annual Plan Review. If multiple periods are included, each has the same Annual Plan Review End Date. Each reporting period is equivalent to the year immediately preceding the Annual Plan Review End Date (e.g. if the most recent Annual Plan Review End Date is 12/31/16, the Annual Plan Review Reporting Cycles would be 1/1/16-12/31/16, 1/1/15-12/31/15, 1/1/14-12/31/14). Generation Date This is the date on which the Annual Plan Review is generated. This date defaults to three calendar months after the Annual Plan Review End Date to allow year-end data to be updated. The date can be viewed on the SSC website and can be changed to earlier or later than the default. The change can be performed by a Nationwide representative or the Plan Administrator. Auto Release Date This is the date that an Annual Plan Review will automatically release to Nationwide s Investment Professional, Administrator and Plan Sponsor (if requested) websites. Any requested hard copies will also be mailed at this time. This date defaults to 30 days after the draft version of the Annual Plan Review generates, but can be changed by the Investment Professional and/or Administrator. The auto release date range can be set from one day up to 60 days. Effective (Processed As Of) Date Date on which a plan transaction was processed. 7

8 A Observations B C Plan Assets The assets in your company s retirement plan have increased by 40% over the past year. To learn more about your plan s assets, take a look at the Plan Assets section of this report. Great Job! Participation Rate Congratulations, the participation rate in your plan has grown by 3% and is now 10% above the industry average! But isn t there always room for improvement? Check out the Next Steps section in this report for ideas. Opportunities Average Participant Deferral Rate The average deferral rate in your plan has grown by 4% the past year, but is still 1.3% below the peer group average. We can help you focus on those participants with low rates to help increase percentages for your plan. The Next Steps section of this report gives you some ideas. Participants at or Above Maximum Match Although 19% of your participants aren t deferring enough to meet your maximum match provision, it s an increase of 11% from last year. Your financial advisor can work with Nationwide to obtain participant-level details behind these observations and any of the graphs contained in this report. 4 8

9 A Observations The Observations on this page highlight key plan information and actionable takeaways. Observations are recorded under two general headings: B Great Job Information is listed under this heading if the evaluated plan data have improved over the prior year and are stronger than the peer group comparison. HOW TO USE THIS: When reviewing these plan observations, it s important to recognize what is going well with the Plan Sponsor. Financial Advisors may also want to pay special attention to these observations and leverage tactics that successfully support them when focusing on areas of the plan that can be improved. C Opportunities Items will be listed under this heading if the plan data being evaluated have declined from the prior year to the current year, OR regardless of the year-to-year comparison, if the plan s performance is less than the peer group comparison. HOW TO USE THIS: These issues should be topics of focus for the plan in the months following the Annual Plan Review in order to improve the overall health of the plan. Potential methods and tools for addressing these topics are included in the Next Steps section at the end of the Annual Plan Review. 9

10 Key Plan Statistics Your Plan 2014 Your Plan 2015 Your Plan 2016 Peer Nationwide Retirement Plans¹ 1 Peer data based upon participant information from Nationwide Private Sector Retirement Plans serviced within the current calendar year. Plan Assets Assets ($) 2,000,000 1,500,000 1,000, ,000 0 A Participation Rate 76.0% 75.0% 1,750, % 74.0% 73.0% 1,250, % 71.8% 980, % 70.3% 70.0% 69.0% 68.0% 67.2% 67.0% 66.0% Peer B Participant Status C # of Eligible Employees # of Participants with a Balance Average Account Balance $5,355 $6,410 $8,750 # of New Participants # of Participants with a Balance and Deposits # of Participants with a Balance and no Deposits # of Participants with no Balance Deferral Rates* 8.8% D Deferral Rates Relative to Match Threshold E 8.6% 8.4% 8.2% 70% 81% 8.0% 7.8% 7.6% 7.5% 7.8% 8.92% Percent of participants deferring at or above the match (6%) 58% 7.4% 7.2% 7.0% 7.2% Peer Percent of participants deferring below the match 42% 30% 19% *Includes only actively deferring participants Based on our peer group, an average of 81% of participants defer enough to maximize their employer s full matching provision. 5 KEY PLAN STATISTICS The information on this page is typically considered the most important and informative of the Nationwide Annual Plan Review plan information for Plan Sponsors and their Financial Advisors. NOTE: As mentioned earlier, where applicable, the comparison group used in this report is based on the Nationwide universe of retirement plans for the most recent year. This encompasses all plans for which Nationwide has received the necessary Annual Plan Review data. A Plan Assets This will depict the plan s ending balance as of the last day of the Annual Plan Review reporting periods for each of the last 3 years (assuming the plan s current contract with Nationwide has been active in that time frame). HOW TO USE THIS: Many factors affect plan assets from year-to-year (market conditions, staffing changes, etc). However, the plan assets can be an obvious indicator of how fully the participants are using their retirement plan. 10

11 B Participation Rate This rate is determined by dividing the number of participants with a balance, and at least one deposit deferral during that Annual Plan Review reporting cycle, by the number of eligible employees. The number of employees eligible to participate (current and former) needs to be provided annually to ensure that the plan s participation rate is reported accurately. HOW TO USE THIS: An increase in plan participation can lead to higher employee satisfaction (benefit to the plan) and higher Investment Professional revenue (by increasing assets under management). Nationwide has several collections of campaign materials to help support a plan participation campaign. C Participant Status Graph definitions: Eligible Employees: the number of employees who were eligible to participate in the plan at any point during the most recent Annual Plan Review reporting period; this is used to help determine the plan s participation rate; this number needs to be submitted to Nationwide annually, reporting on the number of eligible employees as of the last day of the Annual Plan Review reporting period; it should not include terminated participants who have a zero balance Participants with a balance: participants with a balance greater than $0 as of the end of the Annual Plan Review reporting period Average Account Balance: average balance of all participants with a balance New Participant: any participant that had a zero balance at the beginning of the Annual Plan Review reporting period but has a non-zero balance at the end of the current Annual Plan Review reporting period Participants with a Balance and Deposits: a subset of the participants with a balance datapoint, focusing on those who have also had a deposit during the most recent reporting year; this can also typically be considered as the number of active participants; the number of participants with a non-zero balance as of the last day of the reporting period and at least one participant deferral during the reporting period; the number of eligible employees is divided by this number to determine the plan s participation rate Participants with a Balance and no Deposits: a subset of the participants with a balance, focusing only on those who had zero deposits during the most recent reporting year; this typically includes employees who have suspended their participation in the plan or who have terminated employment but have left assets in the plan; these participants are not included in the calculation to determine the Plan s participation rate Participants with no Balance: any participant that had a non-zero balance at the beginning of the current Annual Plan Review reporting period and a zero balance at the end of the current Annual Plan Review; this typically indicates an employee who was terminated from the plan and withdrew all assets HOW TO USE THIS: As part of the Annual Plan Review, a Participant Breakdown report is also generated and posted on the SSC when the Annual Plan Review is generated. Using the Participant Breakdown report, an Investment Professional may be able to target specific groups of participants. For example, an Investment Professional may be able to target the Participants with a Balance and no Deposits to start contributing in the plan again or work with the Plan Sponsor to reduce the number of terminated employees who have parked assets in the plan and reduce administration costs to the plan. 11

12 D Deferral Rates To determine an individual participant s deferral rate, the total deferrals during the Annual Plan Review reporting period are divided by their Annual Compensation. The average of all participants deferral rates equals the plan s deferral rate. The deferrals of any participant with no annual compensation on file will not be included in the case level deferral rate. Similarly, participants with stated compensation but no deferrals during the reporting period will also not be included in the case level deferral rate. HOW TO USE THIS: Similar to Participation Rates, this is a key measurement of participant plan use. Increasing this number benefits both the plan and the Investment Professional. To help do this, Investment Professionals can take advantage of the captive audience of participants already deferring into the plan by further educating them on the benefits of increased deferrals, using tools like Nationwide s Investor Checkup education modules. E Deferral Rates Relative to Match Threshold This graph shows the percentage of plan participants who are contributing enough to their retirement plan in order to receive the maximum employer match. If a plan has a tiered match, the highest matching tier should be reported as the maximum match. This percentage may need to be submitted to Nationwide once, or annually, if the match varies from plan year to plan year. If Nationwide does not have the match percentage available, the graph and its observation will be suppressed entirely. HOW TO USE THIS: When considering this datapoint, the percentage of participants below the line represents opportunities for the Investment Professional to suggest increasing deferral rates in order to take full advantage of the employer match and not leave money on the table. 12

13 Summary of Plan Features Feature Usage/Activity Number of Participants A B Invested in Asset Allocation Funds Automated Asset Rebalancing C Managed Accounts* # of Participants Aggregate Balance 44 $440, $950, $1,010,000 D Self-directed Brokerage # of Participants Aggregate Balance 1 $80,000 1 $82,000 5 $360,000 E F Number of Loans Processed Voice-response Activity Calls Exchanges Allocation Changes G Internet Usage Access Exchanges Allocation Changes H Automatic Enrollment Enrolled Taken Control Opted Out Requested Refund * The plan sponsor, not Nationwide, selects the registered investment advisor used in conjunction with managed accounts. The plan sponsor must determine whether this service is appropriate for participants. Additional fees apply for this service. 6 SUMMARY OF PLAN FEATURES The Nationwide Annual Plan Review s Summary of Plan Features gives you an at a glance view of the options available to participants for the specific plan. This page will help you review the selections made by participants and may provide insight towards possible participant education needs. Not all plans will have the same features and services. Therefore, the features on this page may vary by plan. For more information on any of these services, please contact your Nationwide representative. 13

14 A Invested in Asset Allocation Funds This is the number of participants who have a balance in an asset allocation fund at the end of the Annual Plan Review reporting period. This feature will be reported, even if the plan does not offer asset allocation funds, to demonstrate the funds overall availability in the product platform. HOW TO USE THIS: If the plan does not offer asset allocation funds, this is something to consider and potentially recommend given their widespread use in the marketplace, potential applicability for Qualified Default Investment Alternative provisions and potential benefits to hands-off participants (even if the decision is to leave the funds out of the portfolio). If the plan does offer asset allocation funds but utilization is low, further education around these types of funds may be appropriate in upcoming participant communications. Contact Nationwide for marketing material regarding this topic. B Automated Asset Rebalancing The number represents the number of participants who have selected the feature via the participant website or voice response phone system for Nationwide s record-keeping system to automatically rebalance the participant s account to a predetermined (by the participant) portfolio allocation. HOW TO USE THIS: This feature is available to all participants who have access to process exchanges. Participants can choose to automatically rebalance their account to a previously determined allocation mix on a quarterly, semi-annual or annual basis. Nationwide s Automatic Asset Rebalancing Process Guide can help walk participants through this process. C Managed Accounts This is the number of participants and the overall amount of assets invested through professional money management services as of the end of each reporting period. This entry will not appear on the report if the plan does not offer this service. HOW TO USE THIS: Managed Accounts is a popular service for participants who determine that they do not have the time, desire or expertise to manage their own portfolios. Additionally, research has shown that when Managed Accounts is offered in a plan s enrollment meetings, participation in the plan is typically around 75%. If you are not familiar with this service, please consult with your broker/dealer to determine whether this service is available, or contact your Nationwide representative for more information. D Self-directed Brokerage This illustrates the number of participants and the overall amount of assets invested in the plan s brokerage option as of the end of each reporting period. This entry will not appear on the report if the plan does not offer this service. HOW TO USE THIS: Plan Sponsors interested in the self-directed brokerage option can offer this feature to participants. For more information, such as whether your broker/dealer firm approves this feature, please contact your Nationwide representative. 14

15 E Number of Loans Processed Reflects the number and is reflected of loan withdrawals processed during the reporting period, independent of the number of participants who have requested a loan, and is reflected for each year. Some plans may not allow loans, therefore there would be no loans processed. HOW TO USE THIS: These data could represent the health of the plan s participant base, as a whole. A spike in this number from year to year could give the Plan Sponsor insight into how participants are using their individual retirement accounts. Also, a Financial Advisor may wish to target specific participants relying on these loans to discuss other potential financial options. F G Voice-response Activity Participant voice response phone service activity, such as calls made, exchanges and allocation changes processed, are tracked and reported for each period. Only data starting from 1/1/09 are included in the report. Internet Usage Provides detail around participant Internet access, processed exchanges and allocation changes processed for each period. Only data starting from 1/1/09 can be included in the report. HOW TO USE THIS: Helps answer the question: are participants aware of the personal account management tools available to them? If the participant base has ready access to the Internet, but you see a high volume of voice-response activity, this could be an indication that participants are missing out on educational and retirement planning tools that are available only via the Internet. H Automatic Enrollment When a plan uses Automatic Enrollment, the resulting participant activity is reported. Automatically enrolled participants are indicated as enrolled Participants who have elected to actively manage their enrollment will show as taken control Those who have opted out of the plan will show as opted out Participants who have elected to have their deferrals refunded during the opt-out period will show as requested refund Plans that do not offer Nationwide s Automatic Enrollment program will not reflect this section in the Annual Plan Review. HOW TO USE THIS: Thanks to recent regulations, this is an increasingly popular provision for retirement plans. Using automated enrollment can help a Plan Sponsor and participants take charge and save for retirement. 15

16 Plan Assets A Asset Class Diversification B Investment Options Cash 1 Bonds 2 Balanced 1 Large Cap 3 Mid Cap 1 Small Cap 1 International 1 Specialty 1 The asset classes represented within your plan by number of available investment options C D E F G Deposits and Performance Employee $65,000 $97,500 $130,000 Contributions Employee $15,000 $6,000 $50,000 Rollover Employer $35,000 $52,500 $70,000 Contributions Investment $72,400 $58,800 $112,500 Performance Total $187,400 $214,800 $362,500 H I K Distributions Cash Payouts $15,000 $15,000 $25,000 J Rollovers $35,000 $35,000 $50,000 Loans $10,000 $12,000 $15,000 L Hardships $3,000 $0 $2,500 Total $63,000 $62,000 $92,500 The information above represents key activity within your plan. Other types of activity can also impact your plan balance during any given year. 7 PLAN ASSETS A B Asset Class Diversification This is the number of funds, by asset class, the plan has selected as Designated (core) funds to be offered to all participants. Designated Funds These are any funds selected by the Plan Sponsor made available to plan participants to invest in. The Plan Sponsor assumes due diligence and monitoring responsibility for such funds. Only Designated funds are included in the Asset Class Diversification graph. Fund Window funds, if available, are not Designated. Fixed, Indexed Fixed and Short-term Indexed Fixed contracts, if part of a plan s portfolio of investment options, are included in the Annual Plan Review report as part of the Cash asset class. HOW TO USE THIS: Dependent on the data, this information can be used to have a discussion around issues such as plan asset diversification and potentially confusing fund options. 16

17 C D E F Deposits and Performance This graph provides a compilation of all related transactions for the year. Employee Contribution (their compensation) A deposit made into a participant s account directly from their compensation. Typically, this is classified as a deferral. Employee Rollover Incoming deposits for the benefit of the participants, which are comprised of assets that were previously held in a qualified account outside of the current retirement plan. Employer Contribution (the employer) A deposit made into a participant s account, but initiated by the employer. Profit-sharing and matching contributions are typical examples. NOTE: (This applies to sections D, E and F) These Plan Activity line items are dependent on the source of the funds. Sources could include employee pre-tax deferrals. employer match, employer discretionary, etc. G H I J K L Investment Performance Overall retirement plan investment activity for the noted year. Distributions This graph provides a compilation of all related transactions for the year. Cash Payout Any participant withdrawal excluding hardships, rollovers and loans. Rollover A participant withdrawal where assets are rolled over to an IRA or to another qualified plan. Loan A distribution where the total amount paid qualifies as a loan to the participant. Hardship A participant withdrawal where the total amount paid to the participant is classified as a hardship transaction. 17

18 Fund Assets Fund Name Assets ($) Assets (%)* # of Participants Sample Money Market Fund $225,000 13% 78 Sample Bond 1 Fund $175,000 10% 86 Sample Bond 2 Fund $125,000 7% 78 Sample Large-Cap Stock 1 Fund Sample Large-Cap Stock 2 Fund Sample Large-Cap Stock 3 Fund Sample Mid-Cap Stock Fund Sample Small-Cap Stock Fund Sample International Growth Fund Nondesignated Investment Options $250,000 14% 80 $150,000 9% 33 $50,000 3% 13 $275,000 16% 110 $200,000 11% 50 $200,000 11% 24 $100,000 6% 16 Total Total $1,750, % 568 * Due to rounding, some balances account for less than 1% of plan assets and this may cause a sum of this column to appear as other than 100% # Indicates a blocked fund, which is restricted from electronic access by participants 8 18

19 FUND ASSETS This chart highlights the funds with assets (and the number of participants invested in such funds) in the plan at the end of the reporting period. It is possible that a previously selected Designated fund may not appear on this chart if the fund is now blocked or has no balance as of the last day of the reporting period. This chart focuses only on funds that have a balance at the end of the Annual Plan Review reporting period. Some key definitions that relate to this chart: Non-designated Investment Options These are any investment funds or options available to participants but not designated or reviewed by the Plan Sponsor. This category includes funds available via the Fund Window, funds used by money managers (in conjunction with Fund Window), investments available via Self-Directed Brokerage and Employer Stock. Blocked Funds These are funds that were previously designated by the Plan but are now unavailable for new investments. Funds being used by money managers without access to Fund Window will also appear as blocked funds. A blocked fund will only appear if it has assets as of the Annual Plan Review End Date. Non-blocked Funds Any designated fund that is available to plan participants to exchange into is considered non-blocked. A fund can be blocked to new investments upon request of the Financial Advisor and the approval of the Plan Sponsor. Assets % Column The total of this column will always appear as 100%, although manually adding the individual percentages may result in a different sum. This is due to rounding the percentages to whole numbers. 19

20 Fund Assets Investment Options Your Plan 2016 Peer Group Nationwide Retirement Plans¹ 1 Peer data based upon participant information from Nationwide Private Sector Retirement Plans serviced within the current calendar year. Investment Options Number of funds Offered With a balance Receiving contributions 9 A B C Deposits by Asset Class* Cash 14% 13% 9% Bonds 13% 16% 16% Large Cap 25% 23% 20% Mid Cap 18% 19% 20% Small Cap 14% 15% 17% International 16% 14% 18% *Rounded to the nearest whole percentage 9 20

21 FUND ASSETS Investment Options A B C Offered The number of investment options the plan has set as Designated core options available to participants. With a Balance The number of investment options that have a balance at the end of the Annual Plan Review reporting period. Receiving Contributions The number of investment options that received a deposit during the Annual Plan Review reporting period. For all three of these datapoints, only Designated and non-blocked options are counted. Blocked options are not factored, even if they have a balance or have experienced activity during the reporting period, so that a Plan Sponsor gains a sense of how the participants are using the core options. HOW TO USE THIS: Use this graph to compare your plan s investment options against similar plans to help determine the plan s general competitiveness. This information can also help you understand participants investment habits. Deposits by Asset Class In this chart, the plan s total deposits are categorized according to the relative amounts going into the fund asset classes. This chart does include deposits in blocked and non-designated funds (such as Fund Window funds), so that Plan Sponsors obtain a full picture of how participants are investing. HOW TO USE THIS: This can help you offer targeted plan investment strategies as well as address general educational issues with the employee base. 21

22 Participant Demographics Comparisons by Age Your Plan 2015 Your Plan 2016 Peer Group Nationwide Retirement Plans¹ 1 Peer data based upon participant information from Nationwide Private Sector Retirement Plans serviced within the current calendar year. Participant Demographics Comparisons by Total Compensation Your Plan 2015 Your Plan 2016 Peer Group Nationwide Retirement Plans¹ 1 Peer data based upon participant information from Nationwide Private Sector Retirement Plans serviced within the current calendar year. Group Deferral Rate* Average Funds Invested In Average Balance Group Deferral Rate* Average Funds Invested In Average Balance 5% 10% 15% 20% xx% k 50k 75k 100k 125k 150k 2% 4% 6% 8% 10% k 100k 150k 200k 250k < > $7, $8, $10, $18, $29, $39, $42, $66, $87, $57, $99, $127, $110, $114, $108,900 <$20,000 $20 39,999 $40 59,999 $60 79,999 $80 99,999 >$100, $6,100 $8,800 $9,500 $11,900 $15,500 $21,400 $25,000 $37,900 $54,000 $76,000 $101,000 $90,100 $91,400 $130,300 $132,400 $166,600 $172,000 $220,000 *Includes only actively deferring participants. *Includes only actively deferring participants. Balance Mix by Asset Class Balance Mix by Asset Class Cash Bonds Balanced Large Cap Mid Cap Small Cap Int l Specialty <30 8% 10% 4% 20.2% 11.5% 19.6% 16% 10.7% % 11% 7% 21.5% 10% 16.5% 13.8% 11.2% % 12% 15.5% 25% 8.8% 11.2% 6.2% 2.7% % 18.2% 10.1% 16.6% 11.2% 9.9% 7.7% 1.1% > % 17.9% 13.5% 13% 9.8% 6.6% 4.6% 0% Total Cash Bonds Balanced Large Cap Mid Cap Small Cap International Specialty Compensation <$20, % 12.1% 3.3% 13% 21.1% 3.2% 1.8% 1.8% $20 39, % 6.6% 4.1% 30.1% 15% 16% 3.3% 3.3% $40 59, % 13% 2.2% 27.9% 19% 21.1% 8% 8% $60 79, % 11.7% 5.5% 28.8% 22.2% 7.9% 2.1% 2.1% $80 99, % 16.9% 7.1% 30% 6% 7.3% 5.8% 5.8% >100, % 14% 8% 45.4% 0% 5.3%.5%.5% Participant Demographics Comparisons by Gender Your Plan 2015 Your Plan 2016 Peer Group Nationwide Retirement Plans¹ 1 Peer data based upon participant information from Nationwide Private Sector Retirement Plans serviced within the current calendar year. Group Deferral Rate* Average Funds Invested In Average Balance 2% 4% 6% 8% k 40k 60k 80k 100k 120k Male $63,000 $72,700 $96,700 Female $49,800 $62,300 $53,700 *Includes only actively deferring participants. Balance Mix by Asset Class Cash Bonds Balanced Large Cap Mid Cap Small Cap Int l Specialty Male 6.8% 13% 3.1% 30.2% 16.4% 19.9% 8.7% 1.9% Female 17.7% 10.8% 6% 27.9% 21.4% 9.7% 6.2%.3% 12 22

23 PARTICIPANT DEMOGRAPHICS Plans that have at least 50% of the applicable participant demographic datapoint age, gender, compensation can generate a separate demographics page for each demographic. Those participants with the applicable datapoint will be included in the demographic data set. (For example, if 85 of 100 participants have the gender datapoint populated, those 85 people will be considered the data set for the plan.) Demographic segment graphs will be included if 50% of the participant data are provided. Otherwise, they will be automatically suppressed. These pages can also be suppressed when customizing the Annual Plan Review. Further, participant demographic pages that are generated can be suppressed when customizing the Annual Plan Review. For each demographic segment, the following items will be displayed: Deferral rate Average number of funds invested in Average balance Balance mix by asset class Gender will be divided between male and female. Annual compensation will be segmented into groups of increasing ranges. Age will be segmented into groups of age ranges. All data reflect the information on file at the end of the reporting period. The Average Funds Invested In category does not include any funds used through Fund Window or any participants using Managed Account Services. HOW TO USE THIS: The Participant Demographic reports can be extremely helpful in providing value-added service to the plan. You can use this information, in conjunction with the participant breakdown report, to identify and educate specific groups of employees and specific individuals who may benefit from additional guidance, based on their investment information. 23

24 NEXT STEPS In the Next Steps section, the Nationwide Annual Plan Review provides information about Nationwide support and tools to help Financial Advisors and Administrators develop action plans to assist Plan Sponsors as they continue to improve the overall health of their retirement plan. Using the Annual Plan Review as a starting point, Nationwide can help you support plan building campaigns with tools such as: Employee Participation Campaigns Increase Contribution Campaigns Asset Allocation Campaigns Additionally, more feature-specific materials are also available. Just contact Nationwide for information about materials regarding topics such as: Fund Window Target Date Maturity Funds For more information or suggestions on how to turn your Annual Plan Review into actionable plan recommendations, call us at

25 BREAKDOWN REPORTS Each Annual Plan Review includes a Participant Breakdown report. These reports provide detail about each plan participant s investments, including age, account balance, deferral rate, compensation, account activity, usage of Fund Window when applicable, etc. HOW TO USE THIS: The participant breakdown reports provide the specific participant details that make up the Annual Plan Review statistics. This participant-level detail can help you identify which participants may need further plan support or education to best take advantage of their retirement plan. The information included in the breakdown reports applies to all aspects of the Annual Plan Review. For example, a participant who was terminated during the year will be included in the breakdown report, even though the participant is not represented on the demographic pages. The unallocated account is included in the plan/fund assets, but the account is not counted as a participant. Because not all participants may be counted in the demographic pages due to the potentially missing datapoint (age, gender, compensation), the breakdown reports can be used to identify which participants were included in the sample set. For your convenience, the breakdown reports are provided in a spreadsheet so that you can easily sort information based upon your needs. When three years of data are available, each year will be included in the spreadsheet on its own tab. A Fund Breakdown report is also available. This report provides the fund and fund balance for each participant included in the Annual Plan Review. The Nationwide fund symbol, and the fund s ticker symbol, are displayed. Any funds used through Fund Window or Managed Account Services will reflect as a non-designated investment option in the fund name column so that you can identify those funds from the plan s core funds. This report can also help identify which funds participants are invested in as well as allocations by fund. For assistance in reviewing your participant and fund breakdown reports and developing them into actionable plans, contact your Nationwide representative. 25

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28 Not a deposit Not FDIC or NCUSIF insured Not guaranteed by the institution Not insured by any federal government agency May lose value This material is not a recommendation to buy, sell, hold or roll over any asset, adopt an investment strategy, retain a specific investment manager or use a particular account type. It does not take into account the specific investment objectives, tax and financial condition or particular needs of any specific person. Investors should work with their financial professional to discuss their specific situation. Nationwide is involved in relationships with multiple independent broker/dealer firms. Financial services are made available through those independent broker/dealer firms and their representatives. The independent broker/dealers are not responsible for and do not produce this material. Neither Nationwide, nor any of its affiliates, are affiliated with these independent broker/dealer firms or any of their affiliates. Self-directed brokerage services are available through TD Ameritrade Corporate Services, Division of Ameritrade, Inc., a registered broker/dealer not affiliated with Nationwide. The plan sponsor, and not Nationwide, selects the registered investment advisor used in conjunction with managed accounts. The plan sponsor must determine whether this service is appropriate for participants. Additional fees apply for this service. Please note that the investment options offered through Nationwide s Fund Window have not been individually selected and are not monitored by the Plan Representative. Nationwide does not monitor the funds offered through Fund Window The Nationwide Group Retirement Series includes unregistered group fixed and variable annuities and trust programs. The unregistered group fixed and variable annuities are issued by Nationwide Life Insurance Company. Trust programs and trust services are offered by Nationwide Trust Company, a division of Nationwide Bank. Nationwide Investment Services Corporation, member FINRA. Nationwide Mutual Insurance Company and Affiliated Companies, Home Office: Columbus, OH Nationwide, the Nationwide N and Eagle and Nationwide is on your side are service marks of Nationwide Mutual Insurance Company Nationwide APPROVED FOR ADVISOR AND ADMINISTRATOR USE PNM-1603AO.4 (10/17)