A Better Choice for Participants and Their Districts
CSD 403(b) and 457(b)
Retirement Trust
CSD
Retirement
A program developed by EducationPlus
®
®
Trust
A Better Choice for Participants and Their Districts
About EducationPlus TM
The mission of EducationPlus, formerly Cooperating School Districts, is to focus and mobilize
the leadership, talents and resources of member districts and the region to help prepare
students for success in their world. In addition, the Business Services division is committed to
helping districts maximize the purchasing power of school dollars. We continue to research
new and better ways to offer our customers the best quality products and services at the
lowest possible price. From this commitment came the CSD Retirement Trust.
CSD
Retirement
A program developed by EducationPlus
®
®
Trust
A Better Choice for Participants and Their Districts
ARE YOU RETIREMENT READY?
• How do you want to spend your retirement years?
• And, how much it will cost including healthcare?
THINK YOU CAN WAIT UNTIL 5 YEARS BEFORE,
THINK AGAIN!!
CSD
Retirement
A program developed by EducationPlus
®
®
Trust
A Better Choice for Participants and Their Districts
HOW MUCH WILL RETIREMENT
COST?
• Rule of thumb is 60-100% of Gross Pay depending on
your lifestyle
• You May be OK if you have:
 31 years of credit in PSRS; or
 40 years of credit in PEERS + Social Security
• If there’s a “retirement income gap,” will you:




Work part-time or full-time;
Adjust your lifestyle;
Save/Invest now;
All of the above?
CSD
Retirement
A program developed by EducationPlus
®
®
Trust
A Better Choice for Participants and Their Districts
YOU HAVE MANY OPTIONS FOR
SAVING & INVESTING FOR YOUR
RETIREMENT…
CONSIDER YOUR 403(b)/457(b)
CSD
Retirement
A program developed by EducationPlus
®
®
Trust
A Better Choice for Participants and Their Districts
Open Access Model, i.e.
Traditional Multi-Vendor
CSD
Retirement
A program developed by EducationPlus
®
®
Trust
A Better Choice for Participants and Their Districts
WHO HELPS YOU?
Sorry… when it comes to
403(b) or 457(b), I can’t
make a recommendation.
Here is a list of our
approved providers.
.
CSD
Retirement
A program developed by EducationPlus
®
®
Trust
A Better Choice for Participants and Their Districts
Typical Outcome of the
Traditional Multi-Vendor Model
Referral
Research
Give Up!
VALIC
CSD
Retirement
A program developed by EducationPlus
®
®
Trust
A Better Choice for Participants and Their Districts
Who’s Watching the Door?
How Provider Control/Oversight Can Improve
K-12 Employee Retirement Outcomes
A leading provider examined 403(b) plans in:
Arizona, California, Iowa and Texas to determine
how different methods of provider control and
oversight affect the number of products,
investment options and the level of fees that
employees pay on their retirement savings
accounts. They identified two models.
CSD
Retirement
A program developed by EducationPlus
®
®
Trust
A Better Choice for Participants and Their Districts
Who’s Watching the Door?
How Provider Oversight/Control Can Improve
K-12 Employee Retirement Outcomes
1) OPEN ACCESS MODEL:
ACCESS BY ANY WILLING PROVIDER
2) CONTROLLED ACCESS MODEL:
USING A BIDDING PROCESS TO SELECT, MANAGE AND
OVERSEE A SINGLE PROVIDER)
CSD
Retirement
A program developed by EducationPlus
®
®
Trust
A Better Choice for Participants and Their Districts
WHAT DID THE STUDY CONCLUDE
?
CSD
Retirement
A program developed by EducationPlus
®
®
Trust
A Better Choice for Participants and Their Districts
The study concluded that…
“While there are a number of economic reasons for the disparity
in fees based on administrative structure, we conclude that…
…controlled access (i.e. single provider) provides
a better model for maximizing the likelihood that
employees achieve their retirement goals.”
BECAUSE
Lower Fees
=
Higher Retirement Balances
CSD
Retirement
A program developed by EducationPlus
®
®
Trust
A Better Choice for Participants and Their Districts
In a May 2014 article entitled LOWER YOUR FEES,
BOOST YOUR RETURNS Morningstar wrote:
“To quote from the book of Bogle: You get what you don't
pay for. Vanguard (low-cost mutual fund firm) founder Jack
Bogle has pointed out that markets don't have to be efficient
for low costs to work. We know that mutual funds as a whole
will get roughly the market's return minus fees and trading
costs. Those that charge less are naturally more likely to
outperform than those with high costs.”
CSD
Retirement
A program developed by EducationPlus
®
®
Trust
A Better Choice for Participants and Their Districts
WHY CHOOSE THE CSD
RETIREMENT TRUST?
BECAUSE IT WAS CREATED BY
EDUCATIONAL EMPLOYEES TO HELP
EDUCATIONAL EMPLOYEES WITH THEIR
RETIREMENT
CSD
Retirement
A program developed by EducationPlus
®
®
Trust
A Better Choice for Participants and Their Districts
CSD Retirement Trust-Single Provider
Task Force Bid









Open Architecture
Advisor Guidance
Financial Strength
Low Investment Costs
Low Administrative Costs
High Fixed Income Return
Technology
Administration
Compliance
A Due Diligence
bidding process
that put the
participant first!
CSD
Retirement
A program developed by EducationPlus
®
®
Trust
A Better Choice for Participants and Their Districts
HOW DOES THE CSD RETIREMENT
TRUST HELP YOU RETIRE?
• Lowering fees to increase your
retirement balances/income
• Buying time into PSRS/PEERS
with no fees
CSD
Retirement
A program developed by EducationPlus
®
®
Trust
A Better Choice for Participants and Their Districts
PARTICIPANT FEES
CSD
Retirement
A program developed by EducationPlus
®
®
Trust
A Better Choice for Participants and Their Districts
Participant Administrative Quarterly Fee
Fees have decreased over 42% since The Trust’s inception
(No front end or CDSC sales charges, no redemption fees, no mortality & expense fees, no 12(b)(1) fees)
Administrative fees don’t apply to assets held in the
Fixed Interest Fund and decline as total plan assets grow and
reach pre-determined break-points.
CSD
Retirement
A program developed by EducationPlus
®
®
Trust
A Better Choice for Participants and Their Districts
Fee Comparisons
CSD-RT
Average
Market
Average
.
Why is saving on expenses important?
CSD
Retirement
A program developed by EducationPlus
®
®
Trust
A Better Choice for Participants and Their Districts
The impact of higher fees
on your retirement account
• Jackie and Jason each have a $20,000 nest egg
• They are both age 40 and will retire in 20 years.
• They are both growing their portfolios by 7.5% per year
on average.
• Jackie is paying 1% less in asset based fees…
CSD
Retirement
A program developed by EducationPlus
®
®
Trust
A Better Choice for Participants and Their Districts
So… what is the Impact of Lower Fees?
Year
Acct Value
Investment
Expenses
20
$84,957
0.50%
$13,251 More
Year
Acct Value
Investment
Expenses
20
71,706
1.50%
$0
CSD
Retirement
A program developed by EducationPlus
®
®
Trust
A Better Choice for Participants and Their Districts
Higher
CSD
Investment Lineup
International/Global
(investment management fees
shown in parenthesis)
Plus Vanguard Index Signal Funds
in the following categories:
Bond (0.08%-0.10%)
Large Cap Growth (0.09%)
Large Cap Value (0.09%)
S&P 500 (Large Blend) (0.04%)
POTENTIAL RISK/RETURN
Small/Mid Cap Growth
Small/Mid Cap Value
Large Cap Growth
Large Cap Value
Mid Cap (0.09%)
Small Cap (0.09%)
Target Date / Balanced
Foreign/International (0.14%)
Bold % reflect lower management
Fixed Income
fees since inception
Investors should carefully consider the
investment objectives, risks, charges and
expenses of a fund before investing. This
and other information is contained in the
fund’s prospectus and should be read
carefully before investing. To obtain a
prospectus please contact VALIC.
Lower
Short-term/Stable Value
American Funds EuroPacific Growth R6 (0.49%)
American Funds Capital World Growth/Income R6
(0.45%)
Vanguard Mid Cap Growth Inv (0.51%)
Fidelity Advisor Small Cap Growth I (0.92%)
Vanguard Selected Value (0.44%)
American Beacon Small Cap Value Inst (0.84%)
American Funds Growth Fund of Amer. R6 (0.33%)
T. Rowe Price Growth Stock (0.69%)
Calvert Social Index I (0.21%)
Vanguard Windsor II Adm. (0.28%)
T. Rowe Price Equity Income (0.67%)
Vanguard Target Retirement Income Inv (0.16%)
Vanguard Target Retirement 2005-2060 Inv (5-yr
increments) (0.16% - 0.18%)
American Funds Balanced R6 (0.29%)
PIMCO Total Return Instl (0.46%)
American Funds U.S. Government SEC R6 (0.28%)
VALIC Fixed Interest
Vanguard Prime Money Market Inv (0.16%)
CSD
Retirement
A program developed by EducationPlus
®
®
Trust
A Better Choice for Participants and Their Districts
Why the Trust is “A Better Choice”
It is a “Best in Class” model that…Performs
Since its launch in January 2010, the CSD Retirement Trust:
 Through December 31, 2014, investment options have outperformed their
peer benchmark in 30 of the 32 (94%) investment categories
 Decreased investment management fees in 20 of the 24 fund options
 Lowered administrative expenses by 42 percent
And… THERE ARE NO FEES TO BUY TIME IN PSRS OR PEERS
CSD
Retirement
A program developed by EducationPlus
®
®
Trust
A Better Choice for Participants and Their Districts
How it works
The “Line in the Sand”
Current Balances
Current
403(b)/457(b)
Accounts
New Contributions
New CSD-RT
403(b)/457(b)
Account
CSD
Retirement
A program developed by EducationPlus
®
®
Trust
A Better Choice for Participants and Their Districts
Based on a participant
survey in April, 8 out of
10 participants would
encourage their
colleagues to save for
retirement through the
CSD Retirement Trust.
CSD
Retirement
A program developed by EducationPlus
®
®
Trust
A Better Choice for Participants and Their Districts
I made “A Better Choice” because…
“The transition into the CSD Retirement Trust was very smooth for our
employees. The costs are lower and the service has been great.
People were very frustrated with the old system, with so many
different companies coming through the District and people agonizing
about what was happening with their money. The CSD Retirement
Trust process is really clean and precise, and our staff members are
much happier.
There are a broad variety of funds available to invest in, and our
VALIC rep does a good job of connecting with all the employees.
Everything that I was told was going to happen when we first looked
into participating in the Trust has happened, which is a good thing for
our employees.”
–– Michael Fournier
Retired President, National Education Association Clayton Local
Educational Technologist, School District of Clayton
CSD
Retirement
A program developed by EducationPlus
®
®
Trust
A Better Choice for Participants and Their Districts
I made “A Better Choice” because…
“The program is an excellent tool for me to save and put money
away for my retirement.”
–– Sharon Chance, Special School District
“The CSD Retirement Trust has helped me increase my retirement
funds for a hopefully secure and financially sound retirement. I
found out that I could buy back years of service from my previous
employer to increase my monthly earnings upon retirement. By
doing this, my monthly retirement income could easily quadruple.”
–– Karen Sisco, EducationPlus
CSD
Retirement
A program developed by EducationPlus
®
®
Trust
A Better Choice for Participants and Their Districts
I made “A Better Choice” because…
“The CSD Retirement Trust has done very well in picking a
diversified portfolio of funds for members to choose from. These
are funds run by seasoned managers who have long- term
records, with very low management fees. Most individuals do not
realize how important the low fees for the entire program are, and
how much they impact each member’s total return.”
–– Wayne Bauer, Clayton School District
“The new CSD RT has lowered our investment expenses by over
1 percent. This is significant since we have a very long investment
horizon. We are happy with the move.”
–– Sarah Garner, Pattonville School District
CSD
Retirement
A program developed by EducationPlus
®
®
Trust
A Better Choice for Participants and Their Districts
Why the Trust is “A Better Choice”
It is a “Best in Class” model that…
Improves retirement outcomes for Participants by:
•
Lowering fees and increasing transparency: Always strives for the lowest investment share class
•
Providing diversified investment options using a single trading platform for both 403(b) & 457(b) plans
•
Offering actively managed, low-cost passively managed index funds and age-appropriate target date
funds
•
Monitoring/reporting on fund performance quarterly, replacing underperforming funds as needed
•
Providing flexibility with both pre- and post-tax deferral options for both 403(b) and 457(b)
•
Enabling participants to buy time into the PSRS/PEERS/SLPS system with no rollover fees
•
Focusing on education and retirement outcomes, not selling products, using non-commissioned,
licensed Financial Advisors whose compensation is not effected by your investment choice
•
Improving the bottom line for participants by striving to increase their retirement balances to provide
higher income replacement
CSD
Retirement
A program developed by EducationPlus
®
®
Trust
A Better Choice for Participants and Their Districts
Why the Trust is “A Better Choice”
It is a “Best in Class” model that…
Addresses District issues by
•
Solving compliance, including tax compliancy, for the District and ultimately for the Participants
•
Being faster and more flexible to incorporate needed plan changes
•
Placing all providers (including current ones) under the Trust’s umbrella for all administration
•
Saving Districts time and money, thereby helping allocate valuable resources to other needs
•
Ensuring consistent plan communications
•
Reducing interruptions and security concerns during the school day
CSD
Retirement
A program developed by EducationPlus
®
®
Trust
A Better Choice for Participants and Their Districts
33 Participating School Districts
Bayless
Brentwood
Clayton
Carondelet Leadership
Academy
Dallas County
EducationPlus
Elsberry
Gasconade
Grain Valley
Grandview R-II
Hazelwood
Harrisonville
Jennings
KIPP–St. Louis
Liberty
Lindbergh
Maplewood Richmond Heights
Mehlville
Meramec Valley
Orchard Farm
Pattonville
Parkway
(6/30/15)
Ritenour
Smithville
St. Clair
Spring Bluff
Special School District
Valley Park
Warren County R-III
Washington
Webster Groves
Wentzville
Wright City
Over 4,400 Participants and
$75 Million in Plan Assets
(4/31/15)
CSD
Retirement
A program developed by EducationPlus
®
®
Trust
A Better Choice for Participants and Their Districts
“A POWERFUL TOOL”
CSD
Retirement
A program developed by EducationPlus
®
®
Trust
A Better Choice for Participants and Their Districts
Thank you for your interest
For additional information, please contact Stephen Keyser,
Managing Director, CSD Retirement Trust. Email him at
skeyser@edplus.org or call 314.265.6192.
Securities and Investment Advisory Services Offered Through CBIZ Financial Solutions, Inc.
Member FINRA, SIPC and Registered Investment Adviser.
6050 Oak Tree Blvd S., Independence, OH 44131 (216) 447-9000
CSD
Retirement
A program developed by EducationPlus
®
®
Trust