LumpSumAnalyzer

A proven state-of-the-art system to help participants make the right PRT lump sum elections…and get a picture of their retirement few would otherwise ever receive...

Lump sum elections as a result of de-risking activity from defined benefit pension plans are key to the process.

A lump sum is usually very enticing as it provides flexibility and a pool of investable assets. However, many people quickly spend some or even all the money, leaving less than needed for a long retirement.
Plan Sponsors need a process that increases participant satisfaction and keeps them on the right side of changes in the regulatory environment and can benefit from actions that increase participant security and comfort with the lump sum election.

“…three out of four boomers don’t have a written financial plan for retirement. For millennials, 87 percent don’t have a plan and 81 percent of Gen Xers are without a plan.” – Fidelity

For more information contact us.

The System

LSA is the proven state of the art system years in the making with updated capabilities for the 2020’s.

Tens of millions don’t have much insight into their retirement.

"How much money do I need?" is perhaps the most frequent question.
"What are my options?" and "How do I get there?" given my own particular circumstances.
Questions especially urgent when it’s increasingly obvious they don’t have enough.

Americans are under-achieving when it comes to retirement. The reasons are about evenly divided among "never thought about", "wouldn't know where to start", and some version of "I already know I'm screwed".

The LSA provides a retirement analysis for users who are at a critical juncture in their retirement planning: Do I take the lump sum or keep my pension, albeit in the form of an annuity? Participants who deserve – though rarely get – written analyses can get one in minutes.

Participant advantages include:

A better understanding of their retirement situation and the impact their election could have on a potentially critical financial decision
Instant updates/reports when new information is provided by the user
Confidential input can tie into financial advisor consultations if desired by the user
Unlimited use during the election period

Participant Services with the LSA

Our services, systems, and consultants can help participants and plan sponsors alike. Aimed at improving the Participant’s Experience, PS is a combination of services for participants, with the plan sponsor’s support and involvement.

Events
The process begins with information. Participants are offered access to lump sum election education forums/meetings. These sessions are free and made available at convenient locations and times. They allow members to ask questions about their options and get as much information as they need/want to make their decision. Additionally, interactive webinars are made available.

Systems – Lump Sum Analyzer (LSA)
Our online systems help users decide which option is best for them and their retirement, independent of any product, carrier, investment company, etc. Customized for each plan sponsor, the Lump Sum Analyzer combines plan level data with the user’s confidentially provided retirement assumptions, so users can see the impact of their choices.

Participant Consultants
The personal, human touch. Working with specially trained advisers all participants can access unbiased advice regarding their election and retirement planning during the election period. Consultations are available online, over the phone, and in person where practicable.

Benefits to Plan Sponsors

Assists plan sponsors administer election responses
Automated text prompts help nudge lagging participants to make their elections before time runs out (typically 30 days)
Fiduciary Liability reductions - Plan sponsor fiduciary liability may be reduced
Helps with the lump sum education and communication process
Increases goodwill and acceptance from participants
Provide employees with additional options and retirement planning assistance
Helps plans stay on the right side of DOL and other developments

Benefits to Participants

Become educated about their options and increase their confidence in their decision
Become aware of how they are set for retirement – An opportunity to take control
Learn about the changes in their pension plan - and embrace the change

To learn more about how we help participants and sponsors with their lump sum election decisions and process download our Participant Services pdf by clicking here.