PLANSPONSOR - October/November 2019 - 56

PLAN PROFILE
An Association Plan
S
outhington is a suburban community
of about 45,000, southwest
of Hartford, Connecticut.
Barbara Coleman-Hekeler, executive
director of the Southington
Chamber of Commerce, is proud to
be serving one of the fastest growing
business communities in the state
and, according to a recent study by
UnitedStatesZipCodes.org, a desirable
place to live.
Coleman-Hekeler worked her
first day as executive director of the
chamber on July 9, but she is not new
to that role-she served in it from 1993
through 1999, tripling the membership
while establishing the organization
as a leader in the community for
economic and business growth.
Now back in the position, she
immediately jumped into initiating
an association retirement plan (ARP)
to add a valuable benefit for chamber
members and prospective members.
Barbara Coleman-Hekeler, executive director of
the Southington Chamber of Commerce
As far as Coleman-Hekeler and retirement plan adviser Brian
Williams, president of Northshire Consulting in Southington-
and a chamber member who works with Coleman-Hekeler-
could see, " everything was perfectly aligned to create an ARP, "
she says.
As background, on July 29, the Department of Labor (DOL)
announced a new rule that expands access to affordable quality
retirement savings options for Americans working in small and
midsize businesses. Under the rule, these businesses can gain
access to retirement savings options through association retirement
plans (ARPs).
In Southington and the surrounding towns, there are 700
small-business defined contribution (DC) plans, with $2.5 billion
in combined assets and 38,000 participants, who have an average
balance of $65,000. Only about 40 of the 700 businesses are
chamber members; therefore, the opportunity to use this program
to recruit and retain members, Coleman-Hekeler says, is exciting.
Says Williams, " I can see a tremendous cost savings for
charter members of the ARP-and a way to fill a void for businesses
that don't offer retirement plans. " About 250 individual
chamber members do not have a DC plan, though they may have
A sponsor created an ARP for a chamber of commerce in Connecticut
a SIMPLE [Savings Incentive Match
PLan for Employees], SEP [simplified
employee pension plan], or solo-aka
individual or self-employed-401(k).
Williams researched different
recordkeepers, recommending one
nationally known in the multiple
employer plan (MEP) space, as it has
the platform that would best suit this
plan. " The more plans we get in, the
more assets, the more it will lower
fees across the board. If we can get
a few good-size businesses on board
early on and lower fees right off, it
would be good for pricing. "
The plan's letter of intent was
signed in early October. A press release
will go out shortly and the generalities
of the plan have been discussed at
chamber events. " Through the end of
the year, we will discuss the specifics
with chamber members and future
members, " he notes.
" We're the first chamber in the
state to have an ARP, " Coleman-Hekeler says. " We don't want this
fact to overshadow making best decisions. You can get carried
away with the excitement of a value-add program and skip things. "
Deferring to her position, she says, " I have to be accountable
to my board of directors, and that takes time. Every step of the
way, things must be filtered through our finance committee and
then our executive board and then our board of directors. There is
accountability on all sides, and all parties involved have their own
fiduciary responsibilities and accountability and due diligence to
our respective organizations and working with one another. "
" We expect an initial surge and then one or two plans adopting
per month going forward, " Williams says. " We're putting out a
quality program that appeals to startup plans through established
plans with over 100 participants. Different features of the MEP
appeal to different plans sizes. We expect the plan size to reflect
the average plan size in our area, which is about $2 million. "
" When you speak to employees, they're looking to the
quality offered them by their employer, and that's important, "
Coleman-Hekeler points out.
" Given the opportunities, there is a buzz going on about the
ARP plan, " Williams says. -Judy Faust Hartnett
56 PLANSPONSOR.com October - November 2019 Art by Chris Buzelli
http://www.plansponsordigital.com/plansponsor/october-november_2019/TrackLink.action?pageName=56&exitLink=http%3A%2F%2FUnitedStatesZipCodes.org http://www.plansponsordigital.com/plansponsor/october-november_2019/TrackLink.action?pageName=56&exitLink=http%3A%2F%2FPLANSPONSOR.com
PLANSPONSOR - October/November 2019

Table of Contents for the Digital Edition of PLANSPONSOR - October/November 2019
