1 BPAS Firm Update and Conference ObjectivesBarry Kublin President, BPAS
2 BPAS Firm Update and Conference ObjectivesWelcome, BPAS Partners Conference Thank You! YOU – for partnering with us to provide retirement plan services to our mutual clients YOU – for joining us in a 3-day learning experience to improve our businesses and the effectiveness of the services we provide YOU – for engaging in a critical discussion of our industry and re-examining how we might partner to improve the retirement income readiness of working households Guest speakers, for sharing your knowledge BPAS Marketing staff, for a first-class effort
3 BPAS Firm Update and Conference ObjectivesUpdate on BPAS Firm Capabilities Strategies to compete in today’s 401k/403(b) marketplace Business opportunities beyond the traditional 401k/403(b) marketplace Regulatory updates Contemporary Investment Management Issues Interactive sessions to discuss best practices among Partners
4 BPAS Firm Profile BPAS was founded in 1973 (41 years old)If you knew of us, you might not know us today! 9 offices (3 Upstate NY, NYC, NJ, Phil, Pitt, Houston, San Juan) 240 professionals 3,600 clients 350,000 participants $16 billion assets under custody
5 BPAS Firm Profile Advanced DC Plan AdministrationESOP, KSOP 401(k), 403(b), 457 municipal 457, 409A non-qualified Taft-Hartley, Prevailing Wage MEP, MET 1081 (Puerto Rico) Defined Benefit Plans Mid-market traditional and cash balance Small-market cash balance
6 BPAS Firm Profile VEBA/HRAVoluntary Employee Beneficiary Association/ Health Reimbursement Accounts Funded post-retirement medical benefits Taft-Hartley (IBEW, USWA) Public Sector (Northwest Firefighters Association) UAW VEBA is the largest direct holder of GM stock (8.8%) Health and Welfare Benefits Actuarial valuation of post-retirement benefits other than pensions, ASC715, GASB45
7 BPAS Firm Profile IRA EGTRRA Rollovers$5k cash-outs from DC AND DB plans Significant savings in DB related to admin and PBGC expenses Orphan plan accounts (Dewey) Voluntary Rollovers Platform for Advisors for BPAS participant clients
8 BPAS Firm Profile MyPlanLoan AdministrationNon-payroll deduct loan administration for terminated participants or active participants where payroll deduction is not available Reduce leakage amongst participants who avail themselves of a 72p transaction that is offered in a prudent manner
9 BPAS Firm Profile Employee Benefit Trust Services ($16 billion)Collective Investment Funds Unitization of managed accounts for use in multiple plans Transfer Agent, 3(38) status CIFs are available on all major trading platforms
10 BPAS Firm Profile BPAS Trust Company of Puerto RicoDirected trustee for PR 1081 plans Participant directed DC Keogh (smaller P/S and MP plans Mid-market DB plans Small cash balance plans Market Leadership PR CPA society (CEU, Master Trust) PBGC, Mendez
11 BPAS Firm Profile BPAS Fiduciary Services3(38) services to participant-direct DC plans sold and serviced by registered representatives and directed trustees, neither of whom provide a potentially desirable service for the plan sponsor 3(38) services to cash-balance plans sold by individuals/institutions that cannot provide discretionary investment management services Under this model, BPAS Partners provide sales, relationship management, participant education and plan consulting services and receive 12(b)(1) or bp fee income
12 Community Bank System, Inc.BPAS Firm Update Community Bank System, Inc. BPAS Community Bank, NA CBSI/CBNA ranked as 4th best bank amongst top 100 publics in U.S. by Forbes in 2014 CBNA, is a regional bank with $7.4 B in assets and 190 facilities in Upstate, NY and NE, PA BPAS is an autonomous business unit and a material segment of CBSI, operating as a national practice
13 BPAS Fiduciary ServicesThe BPAS Organization BPAS (Inc.) BPAs, LLC Daily Val. Plans IRA VEBA/HRA MPL HB&T Co. Hand Securities (Broker Dealer) CIF Admin Daily Val. Custody BPAS Fiduciary Services HCG, LLC Actuarial Services H&W Consulting Non Daily Val DC BPAS Trust Co. of PR Directed Trustee for Puerto Rico Plans
14 Strategies to Compete Defining Value in a crowded DC Provider SpaceMeasuring plan level success Marketing the message Managing a profitable practice under 408(b)(2) Reducing Plan Leakage Retaining assets in the Plan Increasing Plan Participation and Savings Rates
15 Business Opportunities Beyond 401k/403(b)Cash Balance Plans VEBA/HRA Holistic Financial Planning Capturing IRA Rollovers
16 Regulatory Updates 408(b)(2) v2 Expanded definition of fiduciaryState initiatives, which potentially compete with private sector offerings, intended to increase coverage Municipal bankruptcies and retirement benefits Act 40 Funds, CIFs and fiduciary liability
17 Contemporary Investment Management IssuesStable Value Offerings QDIA Target Risk-based Participant Education Retirement Income Products Guaranteed income products Longevity Risk products Installment payment arrangements
18 Advocacy BPAS Appeal to Get Involved ASPPA NAPA http://savemy401k.com/American Society of Pension Professionals and Actuaries NAPA National Association of Pension Advisors PAC
19 Conclusion and BeginningThank you for attending We look forward to your feedback and opportunities for program improvement We look forward to the continued success and growth of our partnership
20 Questions?
21 Contact Barry Kublin President BPAS