New Features in Contribution Management

If you manage your monthly contributions through Contribution Management, keeping participant information up-to-date is easier than ever. The service was recently upgraded, allowing you to use the Benefits Access Portal (BAP) to maintain and update your own participant data. Using the new functionality ensures that the correct contribution information is available before submitting your remittance. Contribution Management allows you to:

• Enroll new participants
• Make changes to compensation and contribution amounts for existing participants
• Determine payment frequency (e.g., pay contributions based on payroll cycles) and shorten the timeframe for crediting participant accounts
• Modify contribution amounts when employees’ contributions fluctuate (e.g., hourly employees)
• View a rolling 12-month history of participant contributions on each file

Additional information about the benefits of using Contribution Management is available in our e-learning presentation Introducing Contribution Management and the Benefits Access Portal for Plan Sponsors—Quick Tips.

If you are new to Contribution Management, or if you would like to use the new features to update participant information through BAP, you must fill out a Security Administration Form for each user (request “Plan Sponsor Admin” access in Part 2 to update participant data). Submit the form to the Pension Administration Team via e-mail (scanned copy) to pateam@gbophb.org, fax to 1-847-866-5191 or mail to the General Board. After your security form is processed, you will receive an e-mail with further instructions.

Diversified Fund Offerings

The General Board’s goal as a retirement plan administrator is to help participants achieve a secure future through their retirement investments. Our investment division, Wespath, offers a diversified array of seven funds for General Board-administrated participant accounts:

• Stable Value Fund (SVF)—a low-risk bond fund
• Inflation Protection Fund (IPF)—a fixed-income, inflation-protected securities fund
• Fixed Income Fund (FIF)—a fund composed of a broad range of fixed-income instruments
• Multiple Asset Fund (MAF)—a diversified multiple-asset-class “fund of funds”
• Balanced Social Values Plus Fund (BSVPF)—a multiple-asset-class fund with attention to social issues (Note: Will be replaced by the Equity Social Values Plus Fund in January 2015)
• U.S. Equity Fund (USEF)—a U.S. equity fund
• International Equity Fund (IEF)—an International (non-U.S.) equity fund

While some retirement plans offer more choices, in the case of investing, more isn’t necessarily better. Researchers at Columbia University found that the probability of an employee participating in a savings plan declined with the number of investment options offered. Having a greater number of investment choices increased complexity and inhibited participation. Furthermore, participants only choose a few funds in which to invest, even when given a large number of options. According to the Vanguard Center for Retirement Research, the typical participant invests in only three options; more than 40% of participants invest in only one or two funds.

Our fund offerings provide an exceptional opportunity to participants. Rather than offering a large, intimidating menu of investment options, Wespath strives to make sure that the funds we offer provide sufficient diversification for plan participants. The Wespath mission is to enable our clients to meet their investment objectives while honoring the values of The United Methodist Church.

New Fund Available in January 2015

On January 1, 2015, the General Board will introduce a new fund, the Equity Social Values Plus Fund (ESVPF). It will invest in U.S. and non-U.S. domiciled publicly owned companies with highly rated sustainable policies and practices related to:

• The environment
• Diversity
• Employee relations
• Human rights
• Product quality and safety

EVSPF will be available to United Methodist-affiliated institutions and eligible participants in the Clergy Retirement Security Program, Horizon 401(k) Plan, Retirement Program for General Agencies and United Methodist Personal Investment Plan.

Concurrent with the introduction of ESVPF, the General Board will eliminate the Balanced Social Values Plus Fund (BSVPF)—effective December 31, 2014. Participants who currently invest in BSVPF will receive a letter about actions they may choose to take. ESVPF is composed primarily of equities and, therefore, carries greater investment risk than BSVPF.

Additional information about the fund changes can be found in the ESVPF Q&A document.

Educational Opportunities for Participants

To create and implement a retirement savings strategy, participants must understand their plan and the options available to them. It’s not surprising, therefore, that year after year retirement plan sponsors indicate that educating participants is their primary goal.

That’s why the General Board’s Education and Plan Sponsor Relations department, through its team of benefits educators, coordinates participant educational opportunities—online, over the phone and in person. Our team customizes opportunities to meet the needs of your group, offering on-site meetings to medium to large plan sponsor groups, and other opportunities (e.g., webcasts) when preferred or when visits are not feasible.

Webcasts typically last approximately an hour, and are designed to address the specific needs of the audience. For instance, your group’s presentation may cover:

• UMPIP
• EY Financial Planning Services
• Account investment options
• LifeStage Investment Management Service
• LifeStage Retirement Income
• Retirement planning
• Other topics, as requested

We also educate participants through targeted communications that are designed to keep them active, engaged and contributing. Our outreach is focused on helping participants prepare for retirement, stay aware of the services offered through the General Board and maximize opportunities to save.

If you’re interested in scheduling one of these educational opportunities for your participants, contact the General Board’s Benefits Educators team via e-mail at BenefitsEducatorGroup@gbophb.org.

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