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Employee communications: Transition to a Sustainable Income Plan

20 March 2015
Retirement plan sponsors are increasingly considering transitioning their current retirement plans to the Milliman Sustainable Income Plan (SIP). This allows them to have stable costs like those of a 401(k) plan, while providing participants with reliable, lifelong income like a traditional pension plan.

Communicating the change to a SIP, however, may feel daunting for plan sponsors. Effective communications ensure that employees understand how the SIP works, how it will affect them, and why a SIP is a stable retirement solution for the sponsor and for them. Breaking down plan concepts into digestible, clear messages is key. Using a variety of communication vehicles meetings, newsletters, personalized projections, etc. increases the odds of success. In fact, we've found employees are excited about SIPs once they understand how they work.

A short video created for employees can be one of your most powerful tools in communicating a new kind of benefit. The combination of images, written text, and oral explanations are very effective in conveying how a SIP works. It provides a solid foundation and a basic understanding that makes the detailed communications to follow more accessible. Below is a sample video created as an introduction to a SIP transition.

Note that the Milliman Sustainable Income Plan (SIP) was called a Variable Annuity Pension Plan (VAPP) at the time this video was produced.



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