Employer Panel - Plan Governance
How do you do it?
April 23, 2013
Family Dollar Stores, Inc.
Family Dollar 401(k) Plan
Jonathan Gomes, Manager, Retirement Strategy &
Compliance – Plan Sponsor
About Family Dollar
• Discount chain of retail stores with
approximately 56,000 employees, 7,600 stores in
45 states
• Headquartered in Matthews, North Carolina, just
outside of Charlotte
• Family Dollar is a Fortune 300, publicly held
company with common stock traded on the New
York Stock Exchange under the symbol FDO
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401(k) Plan features:
Plan Design
– Pretax contributions
• 1% to 75% of pay
– Employer Match
• 100% immediate vesting
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–
–
–
–
–
Catch-up contributions
Rollover contributions
90 day eligibility, no automatic enrollment
12 Investment options, 5 Risk Base Models (Semi-annual auto-rebalance)
Loan and hardship features
Other plans:
• Non-qualified Deferred Compensation Plan
• Employee Stock Purchase Plan
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Emory University and
Emory Healthcare
Theresa Milazzo, Associate VP, Human Resources
Emory University and Emory Healthcare
• Founded in 1836 in Oxford, Georgia (healthcare since
1905)
• Established in Atlanta by a land grant from Coca-Cola
president Asa Candler in 1915
• Top 20 university (by U. S. News and World Report)
• 11 Undergraduate and Graduate schools with 14,200
students
• $4 billion annual operating budget
• One of the Southeast's leading health care systems
• One of the nation's leading research universities - $520
million in research funding in fiscal 2012
• 27,700 employees
Familiar Faculty
President Jimmy Carter, Founder of The Carter Center
His Holiness the Dalai Lama
Author Salman Rushdie
Familiar Faculty
CNN medical correspondent Sanjay Gupta
Other Points of Pride
• Yerkes National Primate Center – groundbreaking
research in neuroscience and infectious disease
• Michael C. Carlos Museum, Schwartz Performing Arts
Center, Lullwater Preserve
• Leader in global health initiatives
• Physician support for Grady Hospital, VA Medical
Center, and Children’s Healthcare of Atlanta
• $72 million in charity care in 2012
• National champion women’s swimming and diving
team for four years
• Award winning debate team since the 1980s
Emory’s Benefit Plans
• Two medical plans plus full array of other health and
welfare plans
• Retiree medical plan
• Courtesy scholarship plan
• Four 403(b) retirement plans and a grandfathered
pension plan for Emory Healthcare
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Emory University
Emory Healthcare
The Emory Clinic
Wesley Woods, Inc.
• Three 457(b) deferred compensation plans and
various non-qualified plans
• Three vendors – Fidelity, TIAA-CREF and Vanguard
Invesco
Southern Employee Benefits Conference
April 23, 2013
Invesco: We are a leading
independent global investment
manager
Helping Investors Worldwide Achieve Their Financial Objectives
•
Our global resources include:
• $687.7 billion in assets under management around the globe.
• Specialized investment teams managing investments across a wide range of asset classes and
investment styles.
• 750+ investment professionals and 6,000+ employees worldwide.
• On-the-ground in 20 countries, serving clients 150+ countries.
• 2012 Revenues - $2.9 billion
•
Our clients benefit from our:
• Commitment to investment excellence
• Depth of investment capabilities
• Organizational strength
•
Source: Invesco. Client-related data, investment professional and employee data are as of Dec. 31, 2012. Invesco Ltd. assets under management are as of Dec. 31, 2012, and include all assets under advisement, distributed and overseen by Invesco,
including those of its affiliates Invesco Distributors, Inc. and Invesco PowerShares Capital Management LLC, which have an agreement with Deutsche Bank to provide certain marketing services for the PowerShares DB products. Invesco PowerShares
Capital Management LLC is the sponsor for the PowerShares QQQ and BLDRS products. ALPS Distributors, Inc. is the distributor of PowerShares QQQ, BLDRS Funds and the PowerShares DB Funds. Invesco PowerShares Capital Management LLC and
Invesco Distributors, Inc. are wholly owned, indirect subsidiaries of Invesco Ltd. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail products. Invesco Ltd. is not affiliated with ALPS Distributors, Inc. or Deutsche Bank.
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US Benefits – Overview
Census
2,800+ employees and 7,500+ covered lives
Relatively young workforce – average age of employees is early 30’s
Locations
 Located in over 35+ states
 Most employees located in California, Colorado, Georgia, Illinois, Kentucky, Massachusetts, New York and
Texas
 Sales force and sales offices scattered throughout remaining states
Benefit Offerings
Health
 Medical (85% in HDHP w/HSA)
 Dental
 Vision
Income Protection and Retirement
 Disability Plans
 Life and AD&D for employees and
dependents
 401(k) Plan with both employer
matching and supplemental
contributions
Work/Life
 Generous paid-time-off
plan (new hires start with 3
weeks vacation)
 Employee Assistance
Program (widely utilized by
both employees and
dependents)
 Employee Stock Purchase
Plan
Benefit Strategy
Provide a comprehensive benefit
package that is competitive both
within our industry and geographies
while aligning with our mission
statement of “helping investors
worldwide achieve their financial
objectives”
Employ a thoughtful approach that links
benefits with our overall business
strategy and employee value
proposition
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US Benefits – 401(k)
Eligibility
All employees are eligible from date of hire
• 90%+ of employees contribute into the 401(k)
• 80% of employees maximize the employer matching
Plan
Highlights
Plan Features Options
 Safe Harbor Plan
 Traditional pre-tax and
ROTH 401(k) elections
 Eligible compensation
includes salary,
overtime, bonuses and
commissions
Employer Contributions
Investment Options
 $ for $ matching up to 6%
 Robust line up with 24
fund choices and 5 model
 Matching contributions always 100%
portfolios (based on risk
vested
tolerance)
 Supplemental Contributions:
 35% of employees invest
- Employed on 12/31
in one of the 5 models
- 4 year vesting
 Invesco funds and non- 4% to 4.5% past years
proprietary funds in the
line up
 Limited brokerage
account (mutual funds and
ETF’s; no individual stocks)
 Invesco stock no longer
an investment option
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US Benefits
Successes:
 Educated work force that is tech savvy
Challenges:
 Educated work force that is tech savvy
 Good consumers of healthcare dollars (HDHP  Specialty drug utilization is way ahead of
w/HSA has been very successful)
national average
 Average HSA balances increasing every year  Finding the right balance of employee
communications on benefit plans
 Employees generally receptive to voluntary
benefits (employees pay 100% of the premiums)
 Providing the appropriate level of retirement
 Actively planning for retirement and highly
engaged with 401(k) plan
planning education
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Panel Discussion
• Structure
– Who makes up your committees?
– How many committees and different areas of focus?
– Procedure and process?
• Budgets
– How to pay for plan expenses?
– Impact of changing regulations and compliance?
– Impact of changing corporate budgets?
• Fee Governance
– Impact of fee disclosure?
– Process followed to comply with fee disclosure?
– Going forward?
Panel Discussion
• Eligibility
– Coverage rules (hours requirement, etc.)?
• Documentation
– Types of documents?
– What to keep on file?
• Advisors and Consultants
– Areas of focus, specialties and roles?
– Selection process?
If the DOL comes knocking?
• Now what?