REAL-LIFE LESSONS. Enhancing Your Plan s Operational Wellness:

Transcription

1 Enhancing Your Plan s Operational Wellness: REAL-LIFE LESSONS Jon Keeler, Head of Operations-Services, T. Rowe Price Gini Holden, Executive Relationship Manager, T. Rowe Price Doug Gardner, Manager-Rewards, AVANGRID, Inc.

2 CHANGE 2

3 Introduction Operational Review Data Quality Client Experience Idea Exchange 3

4 Operational Review THREE KEY BENEFITS Reduce Administrative Burden Improve Participant Experience Mitigate Operational Risk 4

5 Reduce Administrative Burden CHALLENGE: Plans can have cure periods of 30, 60, or 90 days, which may cause administrative difficulties SOLUTION: Change to IRS maximum allowed cure period BENEFITS: Reduces touch points and potential errors in loan process Provides participants sufficient time to cure delinquency Positions for future enhancements 5

6 Reduce Administrative Burden CHALLENGE: Clients spend time reviewing statement details, which may delay mailing SOLUTION: Use T. Rowe Price s automated statement release process BENEFITS: Takes advantage of T. Rowe Price multi-step quality control Maintains ability to submit and approve custom messages Statements release quicker 6

7 Improve Participant Experience CHALLENGE: Completing complex distribution forms may be a source of confusion for participants SOLUTION: Consider implementing paperless withdrawals Allow participants to request distributions, excluding hardships, via the Participant Service Center BENEFITS: Automates the distribution process Reduces potential for errors and participant calls 7

8 Improve Participant Experience CHALLENGE: Terminated participants must obtain a certified check or money order, include a letter of instruction or form, and mail the payment at the same frequency as the prior payroll cycle SOLUTION: Implement automated ACH debit service for terminated employees BENEFITS: Streamlines the loan repayment process for terminated participants Speeds up processing Reduces potential participant calls 8

9 Mitigate Operational Risk CHALLENGE: Clients can currently utilize , fax, PGP, and security FTP/SSL to transmit files SOLUTION: Begin utilizing T. Rowe Price s secure data exchange platforms BENEFITS: Mitigate the risk of data compromise Delivers a more efficient, intuitive, and reliable experience Enables you to take advantage of our enhanced solutions 9

10 Mitigate Operational Risk CHALLENGE: Some clients do not take advantage of automated contribution processing, funding, and reconciliation features SOLUTION: Upgrade the funding and reconciliation process with an automated, online method for transmitting contributions and loan repayments BENEFITS: Automates the exchange of information in a secure, Webbased collaborative workspace Expedites funding and reconciliation Provides easier access to substantial, auditable history 10

11 Data Quality Overview PURPOSE OF THE DATA QUALITY SCORECARD AND PROFILE: Introduce plan sponsors to our approach to data quality and provide them with data quality remediation support. Establish a benchmark data quality score for plans and set goals for future data quality efforts. Minimize the impact of incomplete or inaccurate data on plan administration. DATA QUALITY REVIEW SERVICES: Perform a maintenance file review of the participant indicative data to ensure that all data is accounted for and as accurate as possible. T. Rowe Price will perform periodic data quality reviews of the participant data in the plan to confirm the efficacy of our maintenance data quality controls. 11

12 Data Quality Scorecard DATA QUALITY BY CATEGORY 100.0% 99.9% OVERALL DATA QUALITY SCORE 99.8% 99.7% 99.6% 98.91% Valid Invalid 99.5% Address Concerns Date Concerns Indicative Data Concerns Code Concerns Duplicate Records Data Element Name Details Page # Quality Score* Records Received Null/Blank Valid Records Invalid Records Social Security No , , Name , ,696 0 PP Status , ,696 0 Date of Birth , ,696 0 Date of Hire , ,694 2 Address Line , ,691 5 Address Line ,365 13,331 2,365 0 City , , Data Element Name Details Page # Quality Score* Records Received Null/Blank Valid Records Invalid Records State , ,696 0 ZIP Code , , Hours of Service , ,695 1 Termination Date 100 5,159 11,810 5,159 0 Location , ,696 0 Rehire Date ,211 14,485 1, Address , , LOA Status Indicator , *Data Element Quality Score represents the number of valid entries relative to the total number of entries. 12

13 AVANGRID COMPANY PROFILE Diversified energy and utility company $30 billion in assets and operations in 25 states 3.1 million customers in New York and New England 7,000 employees PLAN PROFILE 31 years with T. Rowe Price 12 plans (7 qualified, 5 non-qualified) 5,600 participants Approximately $1 billion in plan assets ADR in the 401(k) plans Moderately acquisitive 60% union Foreign-owned Highly-regulated Newly public 13

14 Challenges Complexity of multiple plans Multiple plan documents and provisions Large union population Nonunion plans with union populations Balancing cost with ROI 14

15 Solutions Deeper understanding of the AVANGRID business and culture through discussion about both adopted and rejected items Cure period end date change from 90 days to IRS maximum Deemed loan repayments are sent via payroll Automated the plan-to-plan transfer process for employees moving between plans Reports are sent directly through T. Rowe Price's secure site, CAFÉ 122 of 177 enhancements adopted Average cost per participant across all seven plans reduced substantially 15

16 IDEA EXCHANGE 16

17 THANK YOU Please share your feedback by completing the survey via the app or paper form. CMYAVUOTJ