10-Minute Enrollment:Scaling back meeting content to

drive higher enrollment rates

A white paper prepared by Transamerica Retirement Solutions

Patricia Advaney Chief Marketing Officer

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Contents

10-minute enrollment success at new employee orientation .................................................................................................. 2

Less is definitely more ............................................................................................................................................................ 2

Paper … seriously? ............................................................................................................................................................... 3

Get them nodding ................................................................................................................................................................. 3

“It’s part of your compensation; you earned it!” ...................................................................................................................... 4

“Yeah, saving is a pain …” ..................................................................................................................................................... 4

The presenter’s attitude is everything ..................................................................................................................................... 4

What if they do say “no”? ...................................................................................................................................................... 5

Do educate later .................................................................................................................................................................... 5

What about plans with automatic enrollment? ........................................................................................................................ 5

No one wants to be below average ....................................................................................................................................... 5

Measure success .................................................................................................................................................................. 5

About the author

Ms. Advaney is chief marketing officer and a member of the Senior Leadership Team. With more than 25 years of

experience in the investment and retirement plan industry, she is responsible for overseeing all marketing activities.

Plan Sponsor and Financial Intermediary Use Only

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10-minute enrollment success at new employee orientation

In the past, traditional enrollment meetings were typically scheduled in 45-minute blocks, with time allotted

to suitably review the employer’s retirement savings plan, including eligibility rules, employer match formula,

investment options, loan availability—even distribution options. Comprehensive enrollment packages were used to

explain thoroughly to employees how to set retirement income goals, how to determine how much to contribute,

and how to create an investing strategy.

What we have learned, however, is that results from our traditional enrollment approach have fallen short.

Consider the new employees’ perspective. Quite often they would come into an enrollment meeting exhausted

from two days—sometimes two weeks—of new employee orientation sessions on everything from safety

procedures to workplace violence to dental benefits. The retirement plan session would begin with a 45-minute

PowerPoint presentation, and despite the employees’ best intentions, their attention would drift. They may have

wanted to enroll in the retirement plan, but all the talk, talk, talk got in the way.

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Less is definitely moreEnrollment success is best achieved in 10 minutes or less. We weren’t so sure the first

time a new employee orientation meeting was shortened to a mere 5 minutes from 45

minutes. But once we rethought our game plan and redefined our essential message,

we found that our success rates were actually higher than they had been previously.

Perfecting an accelerated enrollment approach requires scaling back the materials that

are referenced during the conversation with the participant. Although other resources

should certainly be provided and used when specific questions or issues arise, in most

situations, very little is needed other than an easy-enroll card. No discussion points,

few decision options. The enrollment session should NOT be about reviewing benefits;

otherwise, enrollment will only be a secondary outcome.

The goal should be to get the employees into the plan. No talking about loans. Spare

the rod on investments. Certainly don’t review distribution options. All of that should be

saved for individual conversations (in-person or on the phone) when the employees can

include their spouses/partners to focus on refining their strategy—having already taken

the first step by joining the plan during new employee orientation. Subsequent targeted

communications can address the retirement saving needs of specific employee segments,

and are most effective when they get the right message to the right person at the right

time. The right message at new employee orientation is simple: enroll in your plan!

Transamerica believes there are three times that are best suited to enroll employees: At

new employee orientation, when employees become match-eligible, and when/if they

receive an automatic employer contribution.

All of these trigger points represent a great time to reach out to employees. And, with the

increasing popularity of automatic employer contributions, the argument is: Now that you

have money in your account, and you need to establish your beneficiary designations and

choose your investments anyway, why not make your own employee contributions?

Paper … seriously?Absolutely serious. It might be “old school” to suggest a return to paper, but easy-enroll

cards get the job done quickly and efficiently. They allow participants to take action

immediately, rather than leaving the meeting armed just with good intentions to (maybe)

enroll online later.

In fact, it’s a great idea to keep a supply of easy-enroll cards within reach of employees

at all times—in the cafeteria kiosk, in the HR waiting area, certainly with anyone who

provides retirement plan information and education. Invariably there will be an employee

who passes by in the hallway and says “Oh yeah, I should enroll…” The card can be

presented, the enrollment accomplished, and a follow-up session scheduled to refine the

employee’s retirement strategy.

“Old school” easy-enroll cards allow for immediate responseIt’s a great idea to keep a supply of easy-enroll cards within reach of employees at all times—in the cafeteria kiosk, in the HR waiting area, certainly with anyone who provides retirement plan information and education. Invariably there will be an employee who passes by in the hallway and says “Oh yeah, I should enroll …”

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Get them noddingTo help spur employees to action, it is critically important to create a sense of urgency.

Employees should be asked: “Who do you think is responsible for your retirement? Your

employer? Your spouse/partner? Your parents? The government?”

Nine times out of ten, someone will raise their hand and say “I am,” and people will nod

in agreement. And once they’re nodding, the stage has been set —people are primed to

complete the easy-enroll cards.

Round tables are perfect to foster positive group behavior. Encourage and thank the

first employee who enrolls. And then, point out and congratulate the first employee who

checks off a good deferral rate: “Seven percent? Good job!”

“It’s part of your compensation; you earned it!”Targeted messaging to younger employees should focus on enrolling at a deferral rate

that is at least high enough to maximize the match. Positioning the matching contribution

not as “something extra” but as an integral part of the employee’s overall compensation

package really gets the attention of younger workers.

“Yeah, saving is a pain …”“So is working until you’re 82.” Targeted messaging to older employees should serve

as a wake-up call. Traditional images of contented couples walking hand in hand on the

beach do not resonate with employees who have perhaps been reluctant to save for

retirement. Especially for mid-career and older employees, targeted messaging should

focus on the very real fear of not having enough money to retire.

The presenter’s attitude is everythingYour presenter—whether a specialist with your provider or a professional on your staff—

must embody a passion for enrollment in thought, word, and deed. If the presenter

expects employees to enroll and speaks as if that is the assumed outcome, it likely will

be. Assume that the answer is “yes.” Make employees say “no.”

To prepare, try to imagine if the enrollment opportunity were even shorter—say 5

minutes. What essential message would be provided to employees? How succinctly

would the critical urgency of enrolling in the plan be presented?

I am responsible for my own retirementTo help spur employees to action, it is critically important to create a sense of urgency. Employees should be asked: “ Who do you think is responsible for your retirement? Your employer? Your spouse/partner? Your parents? The government?”

Nine times out of ten, someone will raise their hand and say “I am,” and people will nod in agreement. And once they’re nodding, the stage has been set—people are primed to complete the easy-enroll cards.

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Participants should evaluate their ability to continue the auto-increase service in the event of a prolonged market decline, unexpected expenses, or an unforeseeable emergency.1www.psca.org. “Plan Sponsor Council of America 56th Annual Survey,” 2013.

What if they do say “no?”Now and then an employee does decide not to enroll, but the game is still not over.

Employees should be required to complete an easy-enroll card anyway, even if they

just write “zero” and sign it. Sometimes just having to document that they were

offered a benefit—that they declined—is enough to get them to change their mind

and enroll.

Do educate laterEducating employees on how to save and invest wisely is still a critical component of

retirement planning. If possible, new enrollees should be scheduled for an in-person

or phone-based one-on-one session when they can include a trusted friend or family

member. That is the best time to help them optimize their savings rates, choose an

investing strategy, set goals for retirement income, etc. Since the employee has already

enrolled, these one-on-one sessions can be used efficiently to focus on fine-tuning the

employee’s retirement strategy.

What about plans with automatic enrollment?Instead of easy-enroll cards, easy-increase cards can be used. It’s still a 10-minute

session rather than the traditional 45 minutes, but the focus is on a commitment to

saving more. Transamerica’s auto-increase service, for example, allows employees to

elect to have their contribution rates increased automatically every year, and can be

elected by checking a box on a modified easy-enroll card. And once employees sign

up, they almost never drop out. Positive inertia works to everyone’s benefit.

The auto-increase service is especially effective with employees who seem reluctant

to enroll because they’re not sure if they can save “enough.” The easy-increase cards

allow employees to join the plan with a lower savings rate (although at least as much

as needed to maximize any employer match) with a commitment to increasing the

savings rate regularly.

No one wants to be below averageOne way to encourage higher deferral rates is to tell the group the average deferral

rate for their plan, especially if it is very good. Many will be uncomfortable electing

3% if they know their colleagues contribute 8%. Depending on the particular situation

and the behavior you seek to inspire, other benchmarks can be referenced, including

departmental or division rates, average rates by plan type or industry, or even the overall

national average deferral rate of 6.8%.1

Follow up with investment educationEducating employees on how to save and invest wisely is still a critical component of retirement planning. If possible, every new enrollee should be scheduled for an in-person or phone-based one-on-one session when they can include a trusted friend or family member.

That is the best time to help them:

• Optimize their savings rates

• Choose an investing strategy

• Set goals for retirement income, etc.

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Measure successEnrollment success can be measured in stages by setting three goals: Get 70% of new employees to enroll at the new

employee orientation meetings, get 50% of the remaining 30% to enroll later when they become match-eligible, and get 50%

of the remaining 15% to enroll when/if they receive an automatic employer contribution. Over time this equates to a 92% or

more enrollment rate. The new “less is more” 10-minute enrollment approach can help make this happen.

About Transamerica Retirement SolutionsTransamerica Retirement Solutions (Transamerica) is a leading provider of customized retirement plan solutions for

organizations of every size.

Transamerica partners with financial advisors, third party administrators, and consultants to cover the entire

spectrum of defined benefit and defined contribution plans, including: 401(k) and 403(b) (Traditional and Roth);

457; profit sharing; money purchase; cash balance; Taft-Hartley; multiple employer plans; nonqualified deferred

compensation; and rollover and Roth IRA.

Transamerica helps more than three million retirement plan participants save and invest wisely to secure their retirement

dreams. For more information about Transamerica, please visit trsretire.com.

11216-PS_B (07/14) © 2014 Transamerica Retirement Solutions Corporation

440 Mamaroneck Avenue, Harrison, NY 10528 914-627-3000 | 800-770-6797 | trsretire.com

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Nothing presented herein is intended to constitute legal or investment advice, and no investment or plan design decision should be made solely based on any information provided herein. Nothing presented herein should be construed as a recommendation to purchase or sell a particular investment or follow any investment technique or strategy. Any forward-looking statements are based on assumptions and actual results are expected to vary from any such statements. While Transamerica has used reasonable efforts to obtain information from reliable sources, we make no representation or warranties as to the accuracy, reliability, or completeness of third-party information presented herein. Past performance is no guarantee of future results. There can be no assurance that any particular asset class will outperform another asset class. There is a risk of loss from an investment in securities.

This paper is general in nature and not intended as tax or legal advice. Because each employer is unique, an employer should consider its individual circumstances when evaluating a defined benefit plan administrative solution and should consult their retirement plan and/or legal advisor.