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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Employee communications: Transition to a Sustainable Income Plan