City of Foster City 2016 Communication and Education Plan

City of Foster City 2016 Communication and Education Plan

2016 Communication and Education Plan Purpose Increase retirement readiness of City of Foster City employees by using various channels of communication to build education and encourage proactive engagement with their 457(b) retirement plan. Objective Encourage unenrolled, plan eligible employees to take action toward retirement and participate in the City of Foster City 457(b) Retirement Plan to save for their future Build the financial education of employees to help them make confident financial decisions by providing easy access to online resources, financial workshops and an onsite advisor team Improve the retirement readiness of all City of Foster City employees by emphasizing simple steps they can take now to save more for their future, while remaining within their budget Educate employees about the importance of diversifying their investment allocations to develop a robust portfolio and protect against down-market turns Key Components Targeted Campaigns (digital and print) Web Messaging Individual Consultations and Seminars/Workshops Online Tools and Resources 2

2016 Communication and Education Strategies Strategic messaging: The City of Foster City and VALIC have partnered to help ensure all employees understand their retirement options and can feel confident when making financial decisions. Through segmented and targeted messaging, employees at the City of Foster City will receive relevant and pertinent financial information that coincides with their particular financial situation and life stage. Audiences: Entry Level/ Early Career - Benefits of enrolling early and associated materials (i.e. plan document, forms) - Awareness of specific deferred compensation plan requirements and policies - Basic investment strategies such as diversification, pre-tax vs. post tax contributions Mid-Career - Reasons to continue saving/ benefits of enrolling in the plan if not currently contributing - Developing a financial plan and coordinating other sources of retirement income; Understanding Roth 457 options compared to regular 457 contributions - Considering available investment guidance and broadening familiarity with asset allocation options Pre-Retirees - Maximizing contributions to include 50+ and traditional catch-up provisions/ Enrolling in the plan if not currently contributing - Termination options including use of sick leave, vacation and other accrued benefits as contributions to their retirement plan assets - Preliminary understanding of distribution options and meeting long-term retirement needs Retirees - Asset Allocation strategies in retirement (i.e. liquidity strategies, diversification) - Evaluating alternate retirement options including IRAs an annuitized distributions - Rollover options and the pros/cons of remaining in the Plan compared to non-plan options 3

2016 Communication and Education plan Quarterly Overview

2016 Communication and Education Plan Objective: Plan Participation Objective: Financial Education Objective: Retirement Readiness Objective: Diversification Emphasis: Inform employees about the reasons they should consider supplementing their pension plan by enrolling in the 457(b) plan Emphasis: Build financial education for all employees to help them make confident and informed financial decisions that fit their situation Emphasis: Help highlight the importance of being retirement ready by showing simple steps employees can make to increase their savings potential Emphasis: Educate employees about the potential benefit they can receive by diversifying their assets to protect against market turns Key Component: Targeted Mailings Key Component: Seminars and Videos Key Component: Email and Web messaging Key Component: Workshops 5

Objective I (1Q16) Emphasis: Plan Participation VALIC will provide plan eligible, unenrolled employees with targeted and specific information regarding their retirement options to begin planning for their future. Employee communications: A series of messages will inform employees about the benefits of enrolling in the 457(b) plan, reasons to save and provide additional resources to help elicit action. Individual consultations with Geoff Akers, your local financial advisor Targeted Mailings unenrolled employees will receive information about the benefits of enrolling in the 457(b) plan as well as reasons to begin saving now for retirement Fliers to be posted: March 29 th for Wellness Fair Targeted Emails as a reinforcement, all employees not enrolled in the plan will receive an email linking them to their specific plan information to educate about why they should take action Retirement Income Strategies Seminar invite unenrolled employees to learn about retirement income strategies and consider enrolling in their retirement plan to save for their future Update Custom Website update information and layout of VALIC.com/fostercity to help engage and educate employees about their plans as well as areas of opportunities to increase their retirement savings potential 6

Objective II (2Q16) Emphasis: Financial Education VALIC will further financial literacy of employees by guiding them through financial concepts. Employee communications: A series of messages will educate employees about financial concepts to build a firm foundation of understanding to help them make confident financial decisions. Financial Planning Campaign encourage participants to meet with their dedicated City of Foster City financial advisors to get a financial plan created Financial Literacy Online Seminars host on-demand webinars on VALIC.com/fostercity for easy access to financial literacy education Add Email for it Statement Messaging use available space in Quarterly Statements to encourage participants to visit VALIC.com/fostercity to get financial education Financial Education Workshops financial advisors will work with employees and help them understand key financial concepts. Suggested seminars include: *Millennials and Retirement *Retirement Income Strategy for Women *Recommendation: Invite spouses and significant others to attend seminars as well Individual consultations with Geoff Akers, your local financial advisor 7

Objective III (3Q16) Emphasis: Retirement Readiness VALIC will encourage employees to increase their contribution rates to maximize retirement potential. Employee communications: A series of messages will stress the importance of growing assets needed for retirement by taking advantage of compound interest and paying themselves first to become retirement ready. Individual advisor consultations with Geoff Akers, your local financial advisor - will be onsite for 3 weeks in the summer to assist in meeting with employees RetireFIT participating employees will receive a retirement readiness report highlighting where they are, where they need to be and how to get there Am I on target? Email/Flier send all VALIC participants a reminder to increase their retirement savings to benefit from compound interest and link to the effects on your paycheck calculator Online Articles host education on VALIC.com/fostercity and the City of Foster City s internal website, if applicable. Articles can also be provided for employee newsletters, if applicable Statement Messaging Add statement messaging about increasing contributions to become retirement ready 8

Objective IV (4Q16) Emphasis: Diversification VALIC will help employees understand the importance of diversifying their assets and preparing for market down-turns Employee communications: A series of messages will educate employees about complex financial concepts to build a firm foundation of understanding to help make confident financial decisions. Targeted Mail Campaign send a targeted postcard or letter to employees allocated in one fund who would potentially benefit from diversifying their investments Quarterly Statement Message highlight the importance of diversifying their investments to protect their assets Diversification Flier - place in heavily populated employee areas as an added touch point and reinstatement of message Investment Planning Workshop host the investment planning workshop at least once a quarter to help educate employees and provide ample opportunity for them to ask questions and receive pertinent information Online Articles and Web Messaging use VALIC.com/fostercity to host asset allocation information and develop a resource center where diversification information can be hosted for easy access Individual consultations with Geoff Akers, your local financial advisor 9

2016 Communication and Education plan Monthly Breakdown

1Q16 Communication Strategy January: Plan Participation Finalization of CE Plan. No communications deployed to employees. February: Increase Contributions Audience: Pre-retirees; Mid-Career; New Career/Entry Level Focus: Increase deferrals Materials: Mailed flier Seminar: N/A March: Plan Participation Audience: Plan eligible employees Focus: Enrollment / Wellness Fair Materials: Attend wellness fair Seminar: Retirement Income Strategies (Completed with max capacity of 10 employees)

2Q16 Communication Strategy April: Plan Participation & Financial Education Audience: Mid-Career Focus: Enrollments & Financial Planning Materials: 1Q16 Statement Msg, Mailed/Emailed non-participating employees about plan participation, provided fliers as added touch points Seminar: N/A May: Financial Education Audience: New Career/ Entry Level Focus: Getting Started Materials: Flier and Budgeting and Setting Goals video on website Seminar: Millennials and Retirement June: Financial Education Audience: Retirees Focus: Estate Planning Materials: Mailed letter, survey Seminar: Retirement Income Strategies for Women

3Q16 Communication Strategy July: Retirement Readiness Audience: Pre-Retirees Focus: Are you track? Materials: 2Q16 Statement Msg, Are you on track? email, GPS flier Seminar: N/A August: Financial Education Audience: Retirees Focus: Financial Fraud Materials: Mailed letter, flier Seminar: N/A September: Retirement Readiness Audience: New Career/ Entry Level; Mid- Career, Pre-Retirees Focus: FutureFIT Launch and Fee Disclosure Materials: Announcement email, video, website, fee disclosure web msg Seminar: N/A

4Q16 Communication Strategy October: FutureFIT Audience: New career, Mid-Career, Pre- Retirees Focus: FutureFIT (continued) Materials: Web messaging, video, fliers, emails Seminar: Investment Planning November: Diversification Audience: Participants allocated in one fund; default investment options Focus: Diversification Materials: Flier/ Letter Seminar: N/A December: Ret. Readiness Audience: All employees and participants Focus: Retirement Readiness & Fee Disclosure Materials: RetireFIT statements, email, diversification flier, fee disclosure postcard Seminar: N/A

2016 year-end goals The current participation rate for City of Foster City is approximately 79%. There are 40 eligible employees who have not yet actively engaged the City of Foster City Retirement Plan. Goal: Deploy targeted campaigns toward the identified eligible employees to encourage at least 10 to enroll in the plan There is a need for financial plans to be composed for employees of City of Foster City, however there may not be an awareness they are available. Goal: Inform employees about availability of professional financial assistance and complete at least 10 financial plans An opportunity remains to increase the overall contributions participants are deferring into the plan to help them plan for their financial future. Goal: Increase total plan contribution by at least 1% 15

City of Foster City 2016 Communication and Education Plan