2017 RPAY – Cammack Retirement Group

PLANADVISER: Tell us about your practice and how you and your team members got into advising retirement plans.

Cammack Retirement Group: Charlie Cammack, our firm’s founder, began working in the non-profit retirement space with the establishment of the 403(b) regulations in the late 1950s, sowing the seeds to allow Cammack Retirement Group to become one of the largest retirement plan advisors to healthcare providers, educational and research institutions, social service organizations, and cultural and religious institutions.

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The members of our senior management team have complementary skillsets and backgrounds that help shape our client service culture. Managing Partner Jeff Levy has an actuarial background; Senior Partner Mike Volo’s background is in retirement and investment services; Partner Earle Allen has spent his entire career at the firm, focused on investment advisory and consulting services; and Principal Mike Sanders worked with retirement plan service providers early in his career.

PA: What is your mission statement?

CRG: At Cammack Retirement Group, we are solely focused on serving retirement plan sponsors. Our goal is to help plan sponsors successfully manage fiduciary risk and achieve their objectives in the most efficient, cost-effective manner. We are dedicated to consistently providing our clients with unmatched expertise, objectivity, and creativity in developing pragmatic, customized solutions. We take the time to listen to their needs and work with them in a direct and straightforward manner, so they can be assured that they are making intelligent, fact-based decisions.

We believe in the importance of what we do, and remain steadfast in our mission to ensure that our clients’ plans and their participants obtain the best possible retirement outcomes.

PA: What do you need to be successful? From your team? From your clients?

CRG: Simply put, being successful requires teamwork and dedication.

In terms of our own employees, we have found that a good team dynamic starts with dedicated, well-trained employees with high integrity and strong ethics. While Cammack Retirement has evolved to serve a variety of industries over the years, our company is rooted in non-profit, mission-driven organizations. Our corporate DNA matches this concept; and we employ dedicated and experienced individuals who always keep our clients’ interests top of mind.

From our clients, we need open communication in order to fully understand their organizational needs and priorities to develop a true partnership. By playing on the same team, we can work together to overcome obstacles and achieve the best possible value for their retirement plan participants. 

PA: What do you consider the most significant challenge facing retirement plan participants? Facing retirement plan sponsors? Facing retirement plan advisers?

CRG: Participants are overwhelmed with information and decisions, which makes it challenging to optimize their financial wellness. In a vacuum, making retirement planning decisions is difficult enough for participants. Add in decisions related to healthcare spend, student loan debt, and other financial decisions and it’s not hard to understand why many participants are not saving and investing properly for retirement. 

With a bevy of fiduciary breach lawsuits against plan sponsors, many plan sponsors are focused on fees and garnering the most value for their plan participants. The challenge for plan sponsors is understanding plan fees and the various fee methodologies so that they can make prudent decisions in fulfilling their fiduciary responsibility.

For plan advisers, the challenge is providing distinct value to plan sponsors in order to differentiate themselves, while continually looking for opportunities to more efficiently deliver services.

PA: Describe any particularly initiatives you have led with your customer base in the past 12 months (investment or education or plan design or communication).

CRG: With fees at the nexus of many of the fiduciary breach lawsuits Cammack Retirement Group has spent significant time with retirement plan investment committees to ensure they have a strong understanding of both investment expenses and recordkeeping and administrative fees. This also includes understanding fee methodologies and benchmarking their fees.

Our consultants have worked with many plan sponsor committees to begin implementing a level fee structure for plan administration and recordkeeping costs. Although the more typical model, where plan recordkeeping costs are paid through revenue sharing in the plan investment options with any excess going into a revenue credit account, enables the plan to take advantage of any excess revenue generated by the revenue sharing that exceeds the plan’s recordkeeping fee, the allocation of these administrative fees is not necessarily equitable. Participants using investments with high levels of revenue sharing available are shouldering more of the recordkeeping expense than those using investment with less revenue sharing.

We have led discussions with our plan investment committees to explore and implement mechanisms whereby each participant pays their equitable portion of recordkeeping fees for the plan, and thus an equal proportionate share of the plan costs.

PA: As a retirement plan adviser, what do you take the most pride in?

CRG: Everything we do is focused on earning our clients’ trust and exceeding their expectations; therefore we are most proud of our industry-leading client satisfaction scores and retention rates. Annually, we conduct a satisfaction and loyalty study to ensure we are delivering on the commitment we make to our clients.

The survey helps us understand what our clients’ value most and identifies opportunities for improvement. The item on which we focus most closely is our clients’ willingness to recommend Cammack Retirement Group to a peer. This is a leading indicator of customer loyalty, as well as growth, because strong relationships and referenceable clients are the lifeblood of our business.

Beyond the work we do for our clients, we understand the significance of our industry and the importance of successful retirement planning. Cammack Retirement strives to serve as a resource for all plan sponsors by providing timely and relevant thought leadership.

With the goal of helping plan sponsors manage fiduciary risk, maximize their retirement plan benefit, and improve participants’ outcomes, our extensive catalog of thought leadership tackles a broad range of topics, in a variety of formats. In the past year, we take pride in the fact that we have helped thousands of plan sponsors through our Staying Ahead of the Curve and Cammack Retirement Brief video series, our Top of Mind blog and newsletter articles.

PA: How do you grow your business? What changes to your practice or service model are you planning for 2017 and beyond?

CRG: With the opening our third office in Lexington, Kentucky, in 2016 (in addition to our offices in New York and Wellesley, Massachusetts), we are excited to continue to build our presence in the Southeast and expand our national footprint.

While Cammack Retirement Group was originally established to serve the non-profit marketplace, including the higher education and healthcare segments, in the past several years, our firm has experienced significant growth in the public sector and corporate retirement segments, including working with several state programs and industry-leading companies. We anticipate continued growth in both our well established markets, as well as developing segments.

 

BUSINESS AT A GLANCE:

Plan assets under advisement: $64 billion

Median plan size (in assets): $92 million

Total plans under administration: 350

Total participants served: 900,000

2017 RPAY – 401k Advisors Intermountain

PLANADVISER: What is your mission statement?

401k Advisors Intermountain: We feel that the highest form of recognition an employer can offer a valued employee is a way for them to retire comfortably. We help employers deliver on this. We have a clear passion to help as many people as possible retire with dignity and it is manifest in everything we do. 

 

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PA: Describe any particularly initiatives you have led with your customer base in the past 12 months (investment or education or plan design or communication).

401(k): Our team is evolving to meet what we consider to be the most important change in our industry in 20 years. That is a focused push to educate the masses on financial health. To be brief, we are fortunate to have had several of our larger clients allow us to use them to beta test various methods of education.

From those, we have come up with a great solution that helps employees and their families learn to live within their means. We help them focus first on getting out of debt, save for emergencies and, finally, appreciate the contribution from their employer towards their eventual retirement. Stress levels go down, production comes up and overall job satisfaction is improved.

This ultimately helps them gain a greater appreciation for their employer-sponsored retirement plan. This also completes the circle for the employer and helps them achieve the goal of reducing financial stress and creating happy employees. We are able to track increased savings, debt reduction and other wellness factors. This allows us to show the client real outcomes and validate the power of the program.

We have even marketed this solution to companies that are not our clients with success. One of the companies decided to hire us as their advisor, after seeing the impact and level of service we provide. We are certain this trend will continue.

The other by-product of this success story is the easy difference noticeable when we are stacked up against the competition.

As a part of another successful initiative we have been working on, we recently co-hosted an event with The Financial Services Roundtable recognizing employers in the Intermountain West who were deemed “Save10” companies. This distinguishes companies committed to helping their employees save 10% or more for retirement; 28 companies were awarded in the Intermountain West, with 21 of those being our clients. Our client OC Tanner (previous PLANSPONSOR of the Year and FORTUNE 100 Best Employer) hosted the event in partnership with Sen. Orrin Hatch, chairman of the US Senate Finance Committee.



PA: As a retirement plan adviser, what do you take the most pride in?

401k: We are fortunate to have clients that are like family. We are very proud of the many successes we have achieved with our family of clients. So many have built successful plans and helped their employees retire on their terms.

We are also very proud of the thousands of employees who have learned how to live within their means and pay off debt because of our financial wellness programs. We love hearing stories from participants in all stages of their lives tell us how they were able to turn their financial situation around, and now know they will be able to live a comfortable retirement. This drives us to keep pushing forward and continues to challenge our team to make sure we are always progressing forward.



PA: What is your most significant area of needed improvement?

401k:
We have been slow to grow into the not-for profit side of the retirement plan industry. We have a few plans, but feel like we really need to step it up as there is a lot of opportunity in this space. After all, many of our clients are on boards or committees of not-for-profits and we feel confident we could be a great help to them. Our plan is to prospect through our current client base and centers of influence to grow our presence. We are prepared for the differences in what they need to be successful, along with resources and support.



PA: How do you react to clients or prospects who don’t share your goals for their retirement plan?  

401k: Because we wear our passion on our sleeve about the importance of preparing employees for retirement, sometimes we overwhelm prospects and we don’t get hired. But, as we educate clients or prospects on the retirement savings crisis in our country, things change. We believe it is our job as advisers to help the employers understand why they need to play an integral role in helping people save.

Many committees do not jump on the bandwagon immediately; it takes several different approaches to find the one that resonates best and motivates them to employ the right tactics to move folks towards a successful path. As a team, we have learned to not give up coaching them on the right steps to take, even If they reject plan design and financial wellness the first time. It is our mission to help Americans retire and we must continue to find ways to get employers on board as partners.

We have countless success stories of helping plans move the needle in a big way. It’s not always the same strategy with each employer, and it requires persistence and passion for successful outcomes. When the committee sees your passion, they are more likely to get on board.

As a team, we never want to become content with the current state of things. Progression is necessary in business and personal affairs. As the industry ages and regulatory changes occur, we must continue to innovate in ways that keep us in business, but most importantly benefit our clients. We try and instill this same belief into clients/prospects. With this approach, we have been able to change the minds of many plan sponsors from just “check the box” clients into believers and promotors of 401(k) plans.

PA: How do you grow your business? What changes to your practice or service model are you planning for 2017 and beyond?

401k: When it comes to growing our business, we are truly reaping the benefits of having happy clients. They tend to be our best cheerleaders and we have found a way to harness that enthusiasm to help us grow. Our clients have a vested interest in our continued success and are happy to share their experiences and confidence in us with their friends through introductions to other professionals in their circle of influence.

Clients have invited us to speak to groups they are affiliated with like SHRM, CACPA and various associations. This has identified us as trusted experts, then we follow up with each attendee, inviting them to take advantage of a no-cost plan review. Many times, they ask us to help them as soon as possible.

Another method for growing our family of clients that has always been successful for us is partnering with CPAs, attorneys and benefits/P&C brokers. We are constantly reminding them of the great things we do to make the clients they referred us to happy. They are always glad they stuck their neck out for us. Each compliment or nice comment we receive we are sure to pass along to reinforce their decision to recommend us. It is amazing how effective that has been.

As our business, has grown and matured it has become clear to us that a specialized, team service model provides the best experience and outcomes for our clients. I vividly remember the days when it was just a couple of us, we had great relationships, but as the industry has evolved, I look back with great pride seeing how far we have come. Growth and opportunity has been the catalyst in our business to create the team and deploy the resources to every client efficiently and effectively.

We now employ a team approach with every client. We have a team leader to oversee every client relationship experience who is tasked with a 100% client reference and retention rate. We have significant resources available to our clients with the team service model. The team leader coordinates all of these resources to ensure an experience that meets the expectations we set for a client during the discovery phase.

Each client is assigned a lead adviser, CRM, financial wellness director, investment specialist and ERISA specialist.

I am delighted to share that 2016 was a record year for our business. We experienced record growth while adding significantly to our resources and team, and are looking at adding additional resources to our team in 2017 as well.

Lastly, by attending industry conferences, being a part of advisory councils with service providers, and sharing best practices with some of the most respected advisers in the business, we help move the industry forward. We are surrounded by some talented retirement plan teams across the country and we only hope our peers see us the same as we see many of them. ROCKSTARS! 

BUSINESS AT A GLANCE:

Plan assets under advisement: $2.4 billion

Median plan size (in assets: $11 million

Total plans under administration: 169

Total participants served: 53,000

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