Proposal for: COMPANY NAME. Presented by: NAME TITLE SAMPLE DATE AFN32087_0209 MUGC7797B

Transcription

1 Proposal for: COMPANY NAME Presented by: NAME TITLE DATE SAMPLE AFN32087_0209 MUGC7797B

2 Mutual of Omaha Retirement Services Proven Retirement Product Expertise Mutual of Omaha s subsidiary companies, United of Omaha and Companion Life Insurance, are the providers plan sponsors, like you, have trusted to deliver the solutions you need to make your retirement plan successful. We ve built strong, lasting business relationships by focusing on the fundamentals: n Provide fiduciary support at all levels n Offer investment options for every type of investor n Deliver unparalleled service A Solid Foundation You can count on us, not just for a competitive product portfolio, but also for the strength and stability you demand in uncertain times. In fact, the industry s leading rating agencies have recognized our efforts with consistently high marks. 1 Surveyed plan sponsors rated market image/reputation as very important when selecting/evaluating a provider, assigning a score of 5.78 out of 7.0.² Over the years we ve become known for our strong financial stability, widely recognized brand and passion for excellent customer service. To learn more, visit GetRetirementRight.com. 1 Standard & Poor s, A.M. Best December Plan Sponsor Survey MUGC7797B 1

3 Mutual of Omaha Retirement Services Our Approach to Fiduciary Services Mutual of Omaha understands the complexities of being a plan fiduciary and recognizes that you and your participants may not be investment experts. Our threetiered approach to fiduciary support includes assistance at the product, plan and participant levels. This additional structure can help you meet your responsibilities to provide prudent and diverse investments in your plan, while offering participants access to the professional account management they need to make sound investing decisions. Investment Options for All Investor Types Today s diverse workforce has widely varying investment styles and goals. Our retirement plan product includes options for all investor types from conservative to aggressive and everyone in between. We ve engaged leading investment consultants to help with investment selection, portfolio allocation, and ongoing performance monitoring and evaluation. Commitment to Service Administering a retirement plan can be a timeconsuming task for busy plan sponsors with other responsibilities. To be successful, you need assistance from an experienced provider. Mutual of Omaha delivers the administrative and ongoing operational support to make your plan easy to manage from day one. Our team of retirement specialists will help you design, implement and manage your plan, so you can focus on building your business. We ll also provide the tools and resources to help you and your employees better understand and manage your retirement accounts. FIDUCIARY SERVICES INVESTMENT OPTIONS plan support MUGC7797B 2

4 Fiduciary Services Three-Tiered Approach to Fiduciary Support Properly handled, the fiduciary role allows you to be part of a process that can significantly impact the success of your company s retirement plan. Nearly 60% of participants would like to receive more information and advice from their employer on how to achieve their retirement goals.¹ Our three-tiered approach to fiduciary support helps provide thorough investment screening and access to professional guidance, so you can be confident in the decisions you make on behalf of your company and plan participants. Product Plan Participant Product-Level Oversight Mutual of Omaha s Investment Manager Oversight Committee (IMOC) is comprised of respected investment and retirement services experts from Mutual of Omaha, supported by advisors from Callan Associates, Inc. The committee selects and monitors the product s investment managers and fund options, and monitors the re-balancing of the Mutual Directions portfolios. Plan-Level Guidance To lessen exposure to fiduciary risk involved with investment identification and ongoing monitoring, you have the option to engage Mesirow Financial Investment Management, Inc. to undertake specific fiduciary responsibilities in your plan. As a co-fiduciary to the plan, Mesirow will perform and defend their obligations in compliance with ERISA. Participant-Level Confidence When it comes to growing their nest eggs, participants also assume responsibility for their individual investment selections. This responsibility can be challenging, even for experienced investors. For individuals who prefer to leave the investment decisions to the experts, we offer access to professionally managed accounts. 1 ASPPA Journal, Winter 2007 MUGC7797B 3

5 Fiduciary Services Product-Level Oversight Callan Associates, Inc. Selecting the right mix of investments to offer employees is a critical factor to your retirement plan s success. Professional guidance can help you fulfill this important fiduciary responsibility. That s why we ve engaged Callan Associates, Inc. to provide strategic investment consulting for our retirement product. Callan and the Investment Manager Oversight Committee As a third-party advisor to Mutual of Omaha s Investment Manager Oversight Committee (IMOC), Callan helps the IMOC select and monitor the investment managers and fund options in the investment lineup. This added level of due diligence helps you fulfill your fiduciary responsibilities. The IMOC, supported by advisors from Callan, is responsible for the overall investment structure and design of our retirement products, including: n Investment manager search and selection process n Development of asset allocation strategies n Preparation of investment policies and guidelines n Ongoing performance monitoring and evaluation MUGC7797B 4

6 Fiduciary Services Plan-Level Guidance Mesirow Financial Investment Management, Inc. Through a special arrangement, Mesirow Financial can be appointed to serve as an investment advisor and fiduciary to your plan, undertaking specific responsibilities with respect to investment identification, selection and/or monitoring. As a cofiduciary to the plan, Mesirow Financial will perform and defend its duties and obligations in compliance with ERISA. The Fiduciary Partnership Program It s simple to fulfill the Fiduciary Partnership Program guidelines. Your plan will only need to include at least one investment from each of the following asset classes: n Cash (Guaranteed Account) n Fixed Income n Large Cap Blend n Small Cap Blend n International To assist you with meeting this requirement, Mesirow Financial has compiled a list of recommended investment options available within Mutual of Omaha s retirement product. These are called the Mesirow Financial Elite Lists. Financial Consulting Services As an independent third-party, you can rely on Mesirow Financial to provide unbiased investment recommendations within your retirement plan. Services provided by Mesirow Financial include: n Unbiased investment recommendations n Selections from the Elite Lists n Quarterly fund due diligence reports n Quarterly watch list reports n Ongoing recommendations regarding the Elite List funds A separate agreement is required for services from Mesirow. MUGC7797B 5

7 Fiduciary Services Participant-Level Confidence Stadion Often, plan participants need guidance in planning for retirement and making investment decisions; many times, they seek this guidance from their employers. If you re like most plan sponsors, you re probably reluctant to offer investment advice due to lack of expertise and the potential fiduciary liability. That s why we ve arranged for award-winning independent advisor Stadion, to provide professional account management to your participants. This service can help them identify and achieve their retirement goals, while providing additional fiduciary protection for you. Managed Account Services and More Stadion combines valuable tools, guidance and managed account services designed to make retirement planning easy for anyone. Their unique approach to managing individual accounts protects assets by reducing equity exposure during declining markets. Risk exposure is further decreased as participants near retirement via age-based portfolios that shift individual retirement assets to a more conservative holding as participants reach age benchmarks. For you, this means that the investment decision responsibility rests safely with Stadion s team of financial experts, not with you. Fiduciary Protection for Plan Sponsors Stadion qualifies as a Qualified Default Investment Alternative (QDIA), and can provide additional fiduciary protection available under ERISA. Only certain types of investment services qualify as a QDIA, including managed accounts, target-date funds or balanced funds. Selecting Stadion as your QDIA not only helps to ensure that your plan s default investment complies with DOL Regulation section c-5(e)(3) and (4), but it also provides all participants with the kind of high-quality managed account services normally reserved for high net worth investors. Stadion Warranty As an ERISA investment manager, Stadion accepts the fiduciary responsibility for the plan assets it manages, and provides a written warranty that Stadion will qualify as a QDIA under the Pension Protection Act. Unlike many providers, Stadion agrees to indemnify you as the plan fiduciary (covering associated costs) if the plan fails to meet certain requirements. Stadion Money Management, Inc. is an independent registered advisory firm and is neither an affiliate nor a subsidiary of Mutual of Omaha Insurance Company. Actively managed accounts are included only in plans that offer an IMA as an option. A separate agreement is required. Refer to separate agreement for further information. Past performance is no guarantee of future results. Additional fees may apply. MUGC7797B 6

8 Fiduciary Services Participant-Level Confidence Morningstar Retirement Manager SM Saving for retirement comes with risks and rewards for both you and your participants. You want solutions that address your fiduciary responsibility and help participants build their retirement savings. Participants want help making investment decisions that are aligned with their retirement goals. Morningstar Retirement Manager offers a suite of investment advisory services designed to help you and your participants achieve your goals. Professional Investment Guidance Retirement Manager gives participants access to professional investment guidance and managed account services from Morningstar Associates, a registered investment advisor. Personal Retirement Strategy Morningstar uses both quantitative and qualitative methods to provide participants with a retirement strategy that fits their unique situation. The investment process is managed by a team of experienced investment professionals who build customized portfolios, monitor the performance on a quarterly basis and make adjustments when necessary. Actively managed accounts are included only in plans that offer an Individually Managed Account (IMA) as an option. A separate agreement is required. The Morningstar name and logo are registered marks of Morningstar, Inc. Morningstar Retirement Manager SM is offered by and is the property of Morningstar Associates, LLC, a registered investment advisor and wholly owned subsidiary of Morningstar, Inc., and is intended for citizens or legal residents of the United States or its territories. Morningstar Associates is not affiliated with Mutual of Omaha. MUGC7797B 7

9 Investment Options Something for Everyone No two investors are alike. So selecting the appropriate mix of investments to offer in a retirement plan one that provides something for everyone can seem like an impossible task. Our retirement product includes options for all investor types from conservative to aggressive and everyone in between. Three Investment Approaches Participants can select from three types of investment approaches: Make My Decision For Me Individually managed accounts and recommendations for participants who want professional management and guidance Help Me Make My Decision Asset allocation portfolios for investors who prefer to invest their money based on personal risk tolerance or time until retirement I ll Make My Own Decision A menu of fund options for investors who like to build and manage their own portfolios Regardless of the investment approach, we ve engaged leading investment consultants to help with investment selection, portfolio allocation, and ongoing performance monitoring and evaluation. Approximately 71% of plan sponsors offer participants some kind of help with their investment decisions up from 65% in Group Annuity Contract Investment options are provided under a group variable annuity contract that is exempt from registration under the Securities Act of In order for the contract to be issued to plans that cover selfemployed individuals, Rule 180 of the Securities Act requires that either: the plan sponsor is a certain type of firm with the knowledge and experience in financial and business matters to adequately represent the interests of itself and its employees; or the plan sponsor obtains the advice of an independent advisor having such knowledge and experience. 1 Plan Sponsor 2008 Defined Contribution Survey MUGC7797B 8

10 Investment Options Make My Decision For Me Stadion Most participants prefer to leave the investment decisions to the experts. For this reason, Mutual of Omaha selected Stadion for the professionally managed account and QDIA feature of its retirement product. Stadion offers professional account management, as well as personalized planning tools and support to help your participants reach retirement on their own terms. A Stadion retirement specialist is available to help participants develop and implement their own personal retirement plan. Personalized Investment Guidance Through Stadion, participants have access to personalized investment guidance and ongoing monitoring from a team of experienced financial professionals. A registered investment advisor makes investment decisions on the participant s behalf and provides ongoing retirement account management consistent with the participant s age and risk tolerance. Active Investing As an active manager, Stadion actively invests and manages a participant s contributions based on their age, risk tolerance and current market conditions. Investment Methodology Participant accounts at Stadion are invested in one of five age-based portfolios. As a participant moves closer to retirement, their account is automatically shifted to increasingly conservative portfolios. All five portfolios are actively managed to achieve a balance of growth and safety, whether the financial markets are up or down. Each portfolio maintains modest expense ratios so participants can enjoy professional investment management for nearly the same fees they would pay to manage their own accounts. The Stadion investment philosophy is centered on a tactical asset allocation strategy that has a goal of participating in gains when stock market conditions are good, and reducing exposure to the stock market when they re not. This approach can make equity investing more tolerable for risk-conscious investors by helping to reduce the volatility of their portfolios. Stadion Money Management, Inc. is an independent registered advisory firm and is neither an affiliate nor a subsidiary of Mutual of Omaha Insurance Company. Actively managed accounts are included only in plans that offer an IMA as an option. A separate agreement is required. Refer to separate agreement for further information. Past performance is no guarantee of future results. Additional fees may apply. MUGC7797B 9

11 Investment Options Make My Decision For Me Morningstar Retirement Manager SM Morningstar Retirement Manager is a suite of investment advisory services designed to make it easier for participants to manage their accounts and maximize their options. Two Investment Management Approaches Whether participants are investment novices or veterans, most can benefit from Retirement Manager s two distinct services. These options give participants the freedom to determine how much help they receive. No matter what approach a participant chooses, the underlying methodology is consistent. Participants receive a personalized retirement strategy consisting of recommendations for: n Retirement income goal targets n Savings rates to help meet retirement goals n Portfolio asset mix based on achieving targets n Investment selection (managed by Morningstar only) Managed by Morningstar Managed by Morningstar is an individually managed account option designed to provide customized retirement account investment oversight and ongoing management. Morningstar Associates analyze a participant s age, risk level, goals and other savings accounts to determine the most appropriate asset allocation and investment selection. Each quarter, the participant s account is reviewed and adjusted as necessary. The participant receives a progress report to track their account. Managed by You Managed by You is intended for participants who prefer to make their own investment decisions, but want more research and information about the options available to them. Through this service, participants receive a comprehensive set of resources and education to help them make more informed decisions. The participant maintains responsibility for the ongoing management of their account. Actively managed accounts are included only in plans that offer an Individually Managed Account (IMA) as an option. A separate agreement is required. A participant will be charged a fee if electing this service. The Morningstar name and logo are registered marks of Morningstar, Inc. Morningstar Retirement Manager SM is offered by and is the property of Morningstar Associates, LLC, a registered investment advisor and wholly owned subsidiary of Morningstar, Inc., and is intended for citizens or legal residents of the United States or its territories. Morningstar Associates is not affiliated with Mutual of Omaha. MUGC7797B 10

12 Investment Options Help Me Make My Decision Asset Allocation Portfolios With so many alternatives available today, choosing investments can be an overwhelming task. That s why Mutual of Omaha offers risk-based and time-based portfolios, a convenient and tested way to benefit from expert asset allocation and investment selection. Mutual Directions Mutual Directions portfolios can help simplify investment selection by providing easy-to-understand, risk-based performance potential. Each portfolio is automatically rebalanced to its underlying target allocations to keep your participants investment strategy on track. 20% 30% Bonds Bonds 40% 30% Stable 40% 50% Value 60% Stable Value 30% Bonds Mutual Directions 1 Conservative Mutual Directions 2 Moderately Conservative Mutual Directions 3 Moderate Bonds 20% 100% 80% Mutual Directions 4 Moderately Aggressive Mutual Directions 5 Aggressive MUGC7797B 11

13 Investment Options Help Me Make My Decision Mutual GlidePath SM Mutual GlidePath is a series of time-based portfolios designed to help investors achieve a broadly diversified portfolio that will gradually become more conservative in its allocation as the target retirement date nears. The portfolios continue to be allocated along their investment glidepaths for twenty years beyond the target date to continue generating investment returns well into retirement. Real Estate 12% Bonds 26% Stable Value 6% 56% Mutual GlidePath 2010 years of Real Estate 5% Bonds 5% 90% Mutual GlidePath 2035 years of Real Estate Bonds 22% Stable Value 2% 64% Mutual GlidePath 2015 years of Real Estate 5% Bonds 5% 90% Mutual GlidePath 2040 years of Real Estate Bonds 16% Mutual GlidePath 2020 years of Real Estate 5% Bonds 5% Mutual GlidePath 2045 years of % 90% Real Estate 10% Bonds 10% 80% Mutual GlidePath 2025 years of Real Estate 5% Bonds 5% 90% Mutual GlidePath 2050 years of Real Estate 7% Bonds 7% 86% Mutual GlidePath 2030 years of Real Estate 5% Bonds 5% 90% Mutual GlidePath 2055 years of MUGC7797B 12

14 Investment Options I ll Make My Own Decision Monitored Fund Options For participants who want to build their own portfolios, we offer a carefully screened list of nationally known investment managers and mutual funds covering a wide range of asset classes and styles. This array of investments gives you the ability to select and combine the options that work best for your plan and your employees. The funds in our lineup are offered by premier investment firms so participants can be confident that the funds they select are carefully screened and continue to be reviewed on an ongoing basis. If a particular fund is identified as no longer meeting its performance criteria or style objective, it s replaced. Other Investment Options For those participants who want even more choice, we offer access to a self-directed brokerage account (SDBA).* With this option, participants can select and trade directly in individual stocks listed on major U.S. stock exchanges, including the New York Stock Exchange (NYSE), American Stock Exchange and NASDAQ. Or, they can select and trade directly in fixed-income securities, including U.S. government and corporate securities. Specific information for each fund option is available on our Web site at GetRetirementRight.com. *Not all plans qualify for the SDBA. This feature may impact pricing. MUGC7797B 13

15 Plan Support Commitment to Service Without our customers, we wouldn t exist. That s why the core of our business is built on a passionate commitment to customer service. Our team of service professionals cultivates long-term customer relationships through one-on-one attention and a thorough understanding of the unique details and complexities of each plan. This personal touch allows us to consult on specific ways to keep your plan running smoothly. Full-Service Support Our approach to plan design and the assistance we provide to you with regard to administration of your plan, tools and resources, and customer support comes with an attention to detail that s unique in the industry. We ve been the provider plan sponsors trust to deliver the full-service solutions you need to make your retirement plans successful. Our Commitment to You In a world where you re constantly asked to do more with less, it s more important than ever to get superior support from your retirement plan provider. At Mutual of Omaha, we re ready to help you make your retirement plan a success. We look forward to helping you meet your long-term business goals. Plan sponsors ranked service to participants as the most important criteria when selecting a plan provider, garnering a ranking of 6.65 on a 7.0 scale.¹ 1 Plan Sponsor 2008 Defined Contribution Survey MUGC7797B 14

16 Plan Support Plan Design & Administration Flexible Plan Designs Our flexible retirement plan designs can accommodate unique features and requirements that you need to ease some of your administrative responsibilities. We ll provide you with administrative and ongoing operational support to make your plan easier for you to manage from day one. Services include: n Loan origination and processing n Compliance testing n Automatic enrollment n Automatic contribution increases n Default investment options n Managed account options Comprehensive Plan Reporting You and your participants can track your plans with convenient online information and reports including account activity and status, forms and plan guidelines. Account balances and fund performance are updated and available to you and your participants on a daily basis. Smooth Implementation We make plan implementation easy by working with you and your payroll provider to arrange a smooth and timely process. Mutual of Omaha s team of implementation specialists oversees the process to ensure a seamless transition and to invest your participants contributions as quickly as possible. Specialized Provisions We also can accommodate specialized features* and provisions required by your plan, including: n Self-directed brokerage account (SDBA) n Trustee services n Company stock *These features may impact pricing. MUGC7797B 15

17 Plan Support Tools & Resources Get Employees on the Rigth Path We realize that your responsibilities as a plan sponsor extend beyond plan implementation and administration. You also play an important role in educating participants about the importance of saving for retirement. The Mutual of Omaha product includes comprehensive tools, education and resources to help you manage your plan and get employees on the right path to retirement. Participant Education Tools The Mutual of Omaha retirement product includes built-in participant education tools that are available in an online library for your use anytime. Plus, we provide ongoing communications directly to participants throughout the year. n Contributions newsletter Quarterly newsletter enclosed in participant account statements n Educational flyers One-page flyers covering topics from the need to save for retirement to the importance of increasing contributions. You can print or the flyers to your participants as needed n Web site Online resources include retirement calculators and guides to saving for retirement n Quarterly statements Comprehensive, easyto-understand account performance information mailed to each participant s home Participant Retirement Gap Analysis Participants often wonder how much their retirement account will be worth when they re ready to retire. To illustrate how their retirement plan is working for them, we provide personalized projection planners. These planners show participants how much they need to save to replace 80 percent of their current income at retirement. This amount is compared visually to current contributions and amount already saved, and is used to show how much more they need to save to reach the 80 percent income replacement goal. Plan Sponsor Resources We re committed to keeping you informed of news in the retirement plan industry and updates to your plan. Resources available to help you manage your plan include: n Fiduciary Online Communication Library (FOCLpoint) FOCLpoint is an innovative, online database designed to store plan-specific fiduciary documents in one secure location n Insights newsletter A monthly e-newsletter intended to keep you informed of industry news and current legislative action n Web site Free online resource where you can download participant communication tools, enrollment support materials and newsletter archives n Enrollment support To help you educate employees about the benefits of retirement savings, we can provide onsite enrollment meetings, educational videos and comprehensive educational materials MUGC7797B 16

18 Plan Support Customer Support Personalized Service Often the difference between good service and great service is in the people delivering it. That s why we re committed to providing you personalized support in line with our unwavering service standards. Our experienced retirement specialists work with you one-on-one to help you implement and manage your retirement program. Dedicated Relationship Manager We assign a dedicated relationship manager to get to know the unique details of your plan, and to provide consultation on ways to manage and enhance your plan. Your relationship manager stands ready to assist you with ongoing plan administration and participant education. Plan Reports As a Mutual of Omaha client, you ll receive detailed reports on your plan s performance. n Performance Quarterly This quarterly e-newsletter provides performance information about each fund in your plan, as well as industry insight from investment experts n Annual plan review At the close of each plan year, you receive a printed synopsis of total plan statistics including participation levels, most popular investment options and fund performance Online and Telephone Account Access In today s fast-paced world, you and your participants need a convenient way to access your account information. Certain administrative functions and basic plan data can be obtained 24 hours a day through our Web site, GetRetirementRight.com or via our automated telephone system.* Of course, retirement specialists are on hand to assist you and your participants on weekdays. *Services vary by plan. MUGC7797B 17

19 Investment options are offered through a group variable annuity contract (Forms 902-GAQC-09 or 902-GAQC-09(OR) or 901-GAQC-07 or 901-GAQC-07(OR)) underwritten by United of Omaha Life Insurance Company for contracts issued in all states except New York. United of Omaha Life Insurance Company is not licensed in New York. In New York, Companion Life Insurance Company, Hauppauge, NY underwrites the group variable annuity (Form 900-GAQC-07(NY)). Each company accepts full responsibility for each of their respective contractual obligations under the contract but does not guarantee any contributions or investment returns except as to the Guaranteed Account and the Lifetime Guaranteed Income Account as provided under the contract. Neither United of Omaha, Companion Life Insurance, nor their representatives or affiliates offers investment advice in connection with the contract. MUGC7797B 18