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As the Founder of Plan Design Consultants, Inc. some 40 years ago, my life has been consumed with compliance, compliance and more compliance with Government rules and regulations surrounding retirement plans. In this blog post I am like Don Quixote and Sancho Panza railing against the Windmills in the Spanish novel, The Ingenious Gentleman Don Quixote of La Mancha. The Windmills in my case are archaic Government regulations forcing Plan Sponsors to pass out various Notices during each year.Hey, Government! Instead of asking all of our clients to pass out one insipid (definition of "insipid" - without distinctive, interesting or stimulating qualities) notice after another each and every year, consider a new idea that might actually educate and motivate. What Notices are we referring to? Well, let's see. There is the Summary Annual Report, Safe Harbor Notice, Qualified Default Investment Alternative Notice, Automatic Enrollment Notice, 404a5 Fee Disclosure and that is a partial list depending upon the type of retirement plan. Hey, Government! Instead of thinking that each Plan Sponsor is going to work with their professional financial advisor and the financial institution providing their plan to develop and actually carry out effective employee education and motivation, consider a new idea that might actually educate and motivate.
What is the new idea? Let's redirect some of the enforcement and audit dollars of the Government to developing a few really, really good movies or videos that can properly communicate about the wisdom of saving. Hire the best creators and movie makers from Hollywood to craft the message. Get some A-list actors and actresses to volunteer their time "for the good of America." Come on, Brad and Angelina, help us out (yea, right!).
I am betting a team of professional screen writers, combined with professional directors and actors could come up with a handful of really effective short videos or movies that could actually educate and motivate the average participant to get off their butts and start saving. Create a movie showing a saver and a non-saver later in life - you know, at retirement. One struggling to make ends meet and one enjoying life based on decisions they made about saving years ago. Instead of each Record-Keeper inventing their own education, just have Plan Sponsors host meetings (on company time) to screen the movies or videos. Have the Record-Keepers build prominent links to the movies on their websites. Pay NetFlix and Amazon to host the movies for free. Throw some advertising dollars into the promotion. And consider even doing some rap videos - have some rap star rail against the stupidity of not doing something for the family. You get my drift - do anything but a boring enrollment book nobody will read.
Yeh! You're right - that is crazy thinking - let's just force a few more inane notices upon everyone. That will work! Right? Okay, I am done being Don Quixote fighting the Windmills - back to my work helping clients understand all the Notices they have to pass out. Or better yet, back to helping my grandkids with their Common Core Math - who says an old dog can't learn new tricks!
See our other Post below on Electronic Disclosures (June 11, 2014)
