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Don’t Just Rest on Your Laurels

That’s the specific — and implied — message of three experts offering their take on how to increase plan participation. TSA Consulting VP Steve Banks, Hendershot Financial Group’s Tom Hendershot and Teresa Ward, Retirement Plans VP at OppenheimerFunds, made their remarks to attendees at a June 23 session of the NTSA 403(b) Summit in Washington, D.C. 

Their suggestions included: 

  • Define success and measure it
  • Become a trusted advisor
  • Make a plan and execute it
  • Embrace and leverage technology
  • Explore new ideas
  • Engage and be creative
  • Don’t rest on your laurels
Hendershot emphasized the importance of not standing pat. “It’s important to understand what the school system is looking for. I used to think 403(b)s would be at the top of the priority list, but I found that they really are almost an afterthought.” The answer, he says, is, “We need to do a better job of educating them about the importance of 403(b)s and retirement planning.” 

Hendershot added a note of greater urgency to that effort, noting, “The definition of success for many school systems is to reduce fees.” But he called this “really a clever instrument of the school systems.” And he said that despite their efforts to cut costs, participation in their 403(b) plans is down. 

Ward advised attendees to stretch, saying, “Don’t get comfortable. Continue to innovate, continue to change.” And Banks suggested that they should “Engage employers to get active participation.” 

John Iekel is Senior Writer and Editor for the NTSA Net portal.