csd retirement trust a program developed by educationplus ® a better choice for participants and...

CSDRetirement

Trust

A program developed by EducationPlus®

A Better Choice for Participants and Their Districts

®

CSD 403(b) and 457(b) Retirement Trust

CSDRetirement

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About EducationPlus

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.

TM

http://edplus.org/index.html

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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!!

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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?

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YOU HAVE MANY OPTIONS FOR SAVING & INVESTING FOR YOUR

RETIREMENT…

CONSIDER YOUR 403(b)/457(b)

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Open Access Model, i.e.Traditional Multi-Vendor

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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.

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Typical Outcome of the Traditional Multi-Vendor Model

VALIC

Referral Research Give Up!

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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.

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Who’s Watching the Door? How Provider Oversight/Control Can Improve

K-12 Employee Retirement Outcomes

2) CONTROLLED ACCESS MODEL:

USING A BIDDING PROCESS TO SELECT, MANAGE AND

OVERSEE A SINGLE PROVIDER)

1) OPEN ACCESS MODEL:

ACCESS BY ANY WILLING PROVIDER

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WHAT DID THE STUDY

CONCLUDE ?

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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=

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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.”

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WHY CHOOSE THE CSD

RETIREMENT TRUST?

BECAUSE IT WAS CREATED BY

EDUCATIONAL EMPLOYEES TO HELP

EDUCATIONAL EMPLOYEES WITH THEIR

RETIREMENT

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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-RT

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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

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PARTICIPANT FEES

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Participant Administrative Quarterly Fee

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.

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)

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.

Fee Comparisons

1% 2% 3% 4%0%

CSD-RTAverage

Market Average

Why is saving on expenses important?

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The impact of higher feeson 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…

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So… what is the Impact of Lower Fees?

Year Acct ValueInvestmentExpenses

20 71,706 1.50%

Year Acct Value InvestmentExpenses

20 $84,957 0.50%

$13,251 More

$0

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PIMCO Total Return Instl (0.46%)American Funds U.S. Government SEC R6 (0.28%)

Short-term/Stable Value

Fixed Income

Large Cap Value

Large Cap Growth

Small/Mid Cap Value

International/Global

VALIC Fixed InterestVanguard Prime Money Market Inv (0.16%)

Vanguard Windsor II Adm. (0.28%)T. Rowe Price Equity Income (0.67%)

American Funds Growth Fund of Amer. R6 (0.33%) T. Rowe Price Growth Stock (0.69%)Calvert Social Index I (0.21%)

Vanguard Selected Value (0.44%)American Beacon Small Cap Value Inst (0.84%)

American Funds EuroPacific Growth R6 (0.49%)American Funds Capital World Growth/Income R6 (0.45%)

PO

TE

NT

IAL

RIS

K/R

ET

UR

N

Higher

Lower

CSDInvestment Lineup

(investment management feesshown in parenthesis)

Target Date / Balanced

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%)

Small/Mid Cap Growth Vanguard Mid Cap Growth Inv (0.51%)Fidelity Advisor Small Cap Growth I (0.92%)

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%) Mid Cap (0.09%) Small Cap (0.09%) Foreign/International (0.14%)

Bold % reflect lower management

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.

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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

Why the Trust is “A Better Choice”It is a “Best in Class” model that…Performs

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How it worksThe “Line in the Sand”

$ $

Current Balances New Contributions

Current 403(b)/457(b)

Accounts

New CSD-RT403(b)/457(b)

Account

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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.

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“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 FournierRetired President, National Education Association Clayton Local

Educational Technologist, School District of Clayton

I made “A Better Choice” because…

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“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

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“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


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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

Why the Trust is “A Better Choice”It is a “Best in Class” model that…

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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

Why the Trust is “A Better Choice”It is a “Best in Class” model that…

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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

33 Participating School Districts (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)

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“A POWERFUL TOOL”

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Thank you for your interest

For additional information, please contact Stephen Keyser, Managing Director, CSD Retirement Trust. Email him at

[email protected] 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

mailto:[email protected]

csd retirement trust a program developed by educationplus ® a better choice for participants and...

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