PLANSPONSOR - June/July 2018 - 56

PLAN PROFILE
Retirement With Dignity
F
or over 100 years, the not-for-profit
Hebrew Home at Riverdale has been
helping older adults age with dignity
and compassion, first as a nursing home
for the elderly, now also offering assisted
living, rehabilitation, senior housing and a
Medicaid managed long-term-care insurance
program, all under the umbrella of
RiverSpring Health.
Luz Liebeskind, chief financial
officer (CFO) and assistant treasurer,
joined the organization in 2008, just
as the home's two defined benefit (DB)
plans were frozen. Liebeskind says, " The
DB plans were not fully funded, and it
was unpredictable for the planning of our
budget in terms of expenses and contributions.
We've made many moves to
de-risk; made lump-sum payouts to some
terminated-vested participants; utilized
LDI [liability-driven investing] based
on improvements in the plans' funded
status; reviewed funding strategies to
reduce PBGC [Pension Benefit Guaranty
Corporation] premiums; and currently we
are reviewing options for annuitization of
some retiree benefits. "
According to Liebeskind, as the organization
expanded, revenues grew tremendously-as
did the number of employees.
" We wanted to move the administrative
function of the DB plans off human
resources [HR] and to a professional fiduciary.
The one person who handles benefits
for the Hebrew Home was tapped out, and
StoneStreet Equity LLC, the organization's
3(21) adviser for its 403(b) and DB plans,
and also provider of advisory services
for its nonqualified plans, suggested we
SNAPSHOT
PLAN SPONSOR
Hebrew Home
at Riverdale,
Riverdale, New York
A plan sponsor converts to a robust defined contribution plan
was a great communication and education
effort along with plan design initiatives to
ensure that participants were utilizing
the new plan properly and saving and
diversifying. It came from a paternal place
to make sure employees were getting the
most out of the benefit. "
At the beginning, employees had
the ability to buy their own annuity
contracts using multiple legacy providers.
StoneStreet educated them on the benefit
of consolidating their funds and helped
facilitate the transfer of those into the
single sponsor-controlled plan.
Over the last 10 years, the 403(b)
Luz Liebeskind, CFO and assistant
treasurer, Hebrew Home at Riverdale
outsource the DB plan administration to
an ERISA [Employee Retirement Income
Security Act] 3(16) fiduciary, " she recalls.
Pentegra, a fiduciary outsourcing
group, has been onboard with Hebrew
Home at Riverdale now for several months.
Its customer service model deals directly
with the participants, taking that responsibility
from the Hebrew Home. Participants
can go online and view or print out their
statements. They will soon be able to
access an online benefit calculator.
When employees in the DB plans
were no longer accruing new benefits, a
403(b) plan was built. Spencer Goldstein,
principal and chief investment officer
(CIO) of StoneStreet Equity says, " There
KEY PLAYER
Luz Liebeskind,
CFO and assistant
treasurer
PARTICIPATION
RATE
90%
AVERAGE
DEFERRAL RATE
6.7%
plan has grown from $1 million in assets
to over $43 million today. " I think the big
thing we've done over the last few years is
to implement automatic enrollment at 4%,
so participants can maximize the company
match of 50% up to 4%, " Goldstein says.
" Then they're auto-escalated to get them
to an adequate savings rate up to 8%. "
In addition, the plan sponsor makes
a 3% nonelective safe harbor contribution
and an additional employer contribution
of 1% to 4% based on years of service.
Goldstein says participants have attained
an average deferral rate of 6.7%, thanks
to very targeted group education and oneon-one
meetings, working closely with
Principal, the plan's recordkeeper.
More than 60% of the plan's assets
are in Principal's Lifetime Hybrid Funds.
" The population is spread out among many
locations, and many aren't working in an
office, " he says. " Using a target-date fund
[TDF] gets them invested in the market
and diversified. " -Judy Faust Hartnett
PARTICIPANTS
DC plan - 2,000;
DB plan - 1,056
(frozen in 2008)
56 PLANSPONSOR.com June-July 2018
Art by Chris Buzelli
TOTAL ASSETS
$43mm in DC
plan; $33mm
in DB plans
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PLANSPONSOR - June/July 2018

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