“One of the things we do best is listen to customer needs and translate them into service solutions,” says Sandy McCarthy, President, Retirement Services with Indianapolis-based OneAmerica.®
Few areas have a more pressing need for simplicity and streamlined retirement plan offerings than tax-exempt organizations. Especially top-of-mind for these employers is that they manage an assortment of legacy plans—usually some combination of 401(a), 401(k),403(b), and 457 plans.
Though offering a diverse lineup of plans has major benefits, it can also be complex and inefficient.
In an effort to help tax-exempt organizations simplify their approach, McCarthy and the team at OneAmerica have introduced ComboPlan. This cutting-edge solution provides “simplicity without sacrificing flexibility” and a sophisticated touch when it comes to plan administration.
ComboPlan capitalizes on the company’s long history in this market, priding itself on providing unique and customized support for the tax-exempt organizations that mean so much to their communities.
McCarthy’s enthusiasm for the tax-exempt space is palpable as she discusses the innovative solution, and the advantages it offers sponsors and participants as they work toward successful retirement outcomes.
Tax-exempt plans require specialized knowledge, unique solutions, excellent service, optimal plan design, ease of administration, and desirable outcomes for participants.
What is the history of OneAmerica in the tax-exempt market?
We’ve been in this space for quite some time, over 50 years. It’s a market that is really exciting for us.
As an organization and a mutual insurance company, OneAmerica has a strong focus not only on supporting our customers, but also on contributing to the communities where we live and work. Tax-exempt organizations are so special because they share this interest in supporting the well-being of their communities. That’s something that resonates with us.
What is the connection between the tax-exempt market and multiple plans?
Due to the way the tax code and the legislation have worked themselves out, the tax-exempt community has access to a number of core structures like 403(b), 457, and 401(a) plans. As a result, tax-exempt sponsors are able to customize the plans they offer employees. A 2020 survey from the Plan Sponsor Council of America (PSCA) found that 45% of nonprofit sector organizations that provide a plan have more than one type. However, with larger organizations, it can be more like 80%.
What are some of the drawbacks to multiple plans?
It comes down to the complexity in managing a variety of plans. Organizations could have multiple individuals who are managing, overseeing, and communicating the plans so there’s a duplication of efforts, resulting in lost time and money. When it comes to administration, that equates to multiple payroll feeds and multiple census files overseen by various record keepers – it’s a lot of unneeded complexity.
It raises the question of how to operate more productively. It’s really in the customer’s best interest to streamline the process. ComboPlan by OneAmerica frees them to focus on what’s truly meaningful and moves them forward – activities they might not otherwise have time to address.
What is the solution? How does OneAmerica help plan sponsors who administer multiple plans?
We have the OneAmerica ComboPlan solution, which incorporates the knowledge we’ve acquired over time. With ComboPlan services, we work side by side with our customers to examine their plan design and provide simplified solutions and services. We make access easy by streamlining our interactions through one payroll feed, one census file, and one service team – a single point of contact. Doing so encourages consistency, a strategic thought process, and outcomes-based opportunities.
Are there benefits for plan participants?
Participants end up with one holistic view of their plans – it’s easier to communicate, easier to understand, and easier to participate. If they want to make retirement decisions, whether it’s an investment decision, new contributions, whatever it might be, they have a combined, consolidated view. It means one log-on, one statement, and one point of reference for information. At the end of the day, it gives them better decision-making capabilities to achieve successful retirement outcomes.
Why is the time right for ComboPlan?
The time has always been right for ComboPlan, but it’s especially important as we deal with the impacts of COVID-19. Every organization is consistently challenged to do more with less. We want to continue to move the needle on retirement planning and improve employee decision-making abilities. It helps plan sponsors build retention and benefits programs, including creative compensation opportunities, to help attract people that might be looking for employment in the tax-exempt world.
What is your overall message to sponsors and advisors?
The tax-exempt market is in the OneAmerica DNA. Finding better solutions has been our decades-long mission. We can effectively support our customers because we listen and we understand what it takes. We stand by their side, have proven success, and we continue to invest in new enhancements and features because it makes a difference for our customers.
Tax-exempt plans require focused knowledge, unique solutions, excellent service, optimal plan design, ease of administration, and desirable outcomes for participants.
But by using ComboPlan, and streamlining plan design and management, tax-exempt organizations can make the most of their resources and focus on maximum impact for the people and communities they serve.
OneAmerica is the marketing name for the companies of OneAmerica. Download this document to learn more: https://sforce.co/2V530zg.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
