DEFERRED COMPENSATION PLAN SURVEY RESULTS February 21, 2005
General Satisfaction Levels Questions 1-3 1. How satisfied are you with the Deferred Compensation Plan offered by the City of Los Angeles? 2. How satisfied are you with the investment options offered under the City s Deferred Compensation Plan? 3. How satisfied are you with the services (such as walk-in centers and telephone help line) available to educate you and assist you with using the City s Deferred Compensation Plan? General Satisfaction Satisfied 100% 80% 81% 72% 54% Unfavorable 35% 40% 13% 6% 18% 10% 11% 0% Deferred Comp Plan Investment Options Services
Current Plan Services Questions 4-9 Prior to receiving this survey, how familiar were you with the following Deferred Compensation Plan services? 4. City Hall Walk-in Center 5. Group meetings with a Plan representative 6. Individual meetings with a Plan representative 7. Print materials (Plan information, newsletter, quarterly statement) 8. Plan web site 9. Customer service telephone line Service Familiarity 100% 80% 85% 68% 62% 40% 38% 32% 29% 0% Print Materials Phone Line Website Group City Hall Walk-In Ctr Individual
Current Plan Services (continued) 10. What Deferred Compensation Plan services have you used in the last 12 months? (check all that apply) Service Utilization 50% 40% 30% 42% 35% 10% 7% 6% 3% 0% Print Materials Website Phone Line City Hall Walk-In Ctr Group Individual
Current Plan Services (continued) 11. What services do you prefer to use to get information about or conduct business relating to your Deferred Compensation Plan? (select up to 3 preferred sources) Service Preference 57% 56% 51% 50% 40% 30% 27% 14% 11% 10% 0% Website Print Materials Phone Line Individual City Hall Walk-In Ctr Group
Fees vs. Services 12. Which is more important to you? a. Keeping Plan costs lower so my returns are higher? b. Having more services (e.g. service centers, access to in-person counseling, financial advice, managed accounts)? Fees vs. Services Preference 15% 85% Keeping Plan Costs Low er Having More Services
Service Preferences 13. I am satisfied with my knowledge about retirement savings in general. Satisfied w/knowledge of Retirement Saving Agree 55% 23% Disagree 22% 0% 10% 30% 40% 50% 14. I am comfortable making investment decisions regarding my Deferred Compensation Plan on my own. Comfortable Making Investment Decisions Agree 50% 28% Disagree 22% 0% 10% 30% 40% 50%
Service Preferences (continued) 15. I think more should be done automatically for City employees to help them save for retirement so that employees don t have to try to become investment experts themselves. More Should Be Done Automatically Agree 53% 26% Disagree 21% 0% 10% 30% 40% 50%
Service Preferences (continued) 16. I would like having the Plan automatically invest my money in a broadly diversified mix of stocks, bonds and savings options consistent with my chosen level of risk. Prefer Automatic Investing of My Money Agree 42% Disagree 35% 23% 0% 10% 30% 40% 50% 17. I would like additional information to help me invest my Deferred Compensation Plan assets. Would Like More Information Agree 71% 19% Disagree 10% 0% 10% 30% 40% 50% 70% 80%
New Services 18. I believe it would be better for City employees if they (select only one): (a) were enrolled in the Plan by the City automatically when they first came to work at a minimum amount of $15 per payday, with the ability to opt out if they choose; (b) b) are enrolled only when the participants actively choose to start making contributions (as is the case today). Enrollment Preference Automatically Enrolled 42% Optionally Enroll 58%
New Services (continued) Questions 19-23 - 19. Assuming there is no charge for this service, I would value being able to sign up for automatic increases in my Plan contribution amounts at pre-set intervals (i.e. annually based on an amount I have chosen). 20. Assuming there is no charge for this service, I would value having the Plan automatically adjust my investment choices based on changes in my age or how close I am to retirement. 21. At $25-$75 per participant per year, for those who want the service, I would be interested in receiving Investment Advice (such as through an online investment preferences questionnaire with personalized results). 22. At $100-$150 per participant per year, for those who use the service, I would be interested in receiving an In-Person Review of my Plan balance and allocation strategy. 23. At 3/4%-1% of my account balance per year or about $225-$300 for an account balance of $30,000, for those who use the service, I would be interested in having Managed Account services for my Deferred Compensation Plan investments. Interest in New Services 50% 57% 43% 42% 45% 59% Don't Favor Favor 40% 30% 10% 23% 23% 34% 24% 34% 24% 31% 25% 16% 0% Automatic Increases Auto Investment Adjustments Auto Investment Advice In-Person Review Managed Accounts