Page 38 - American Vision Partners
P. 38
Retirement
Sample testing projections
Assumptions Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
# of HCE hires - 80 80 80 80 80
# of nHCE Hires - 520 520 520 520 520
HCE new hire deferral rate - 6.46% 6.46% 6.46% 6.46% 6.46%
nHCE new hire deferral rate - 4.00% 4.00% 4.00% 4.00% 4.00%
HCE new hire opt out rate - 7.00% 7.00% 7.00% 7.00% 7.00%
nHCE new hire opt out rate - 11.00% 11.00% 11.00% 11.00% 11.00%
Calculated values Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
HCE average deferral rate
Current plan: 50% up to 8%, auto enroll at 4% 6.46% 6.45% 6.45% 6.44% 6.43% 6.43%
Scenario 1: 50% up to 8%, auto enroll at 4%, sweep 6.46% 6.64% 6.61% 6.58% 6.56% 6.54%
Scenario 2: 50% up to 8%, auto enroll at 4%, auto escalate 1% up to 10% 6.46% 6.52% 6.56% 6.60% 6.61% 6.63%
Scenario 3: 50% up to 8%, auto enroll at 4%, sweep, auto escalate 1% up to 10% 6.46% 6.71% 6.77% 6.81% 6.84% 6.86%
Scenario 4: QACA Safe Harbor, 100% up to 1%, 50% on next 5%, Sweep/AE/AE 6.46% 6.71% 6.77% 6.81% 6.84% 6.86%
nHCE average deferral rate
Current plan 5.03% 4.84% 4.71% 4.61% 4.53% 4.47%
Scenario 1 5.03% 5.16% 4.97% 4.84% 4.74% 4.65%
Scenario 2 5.03% 5.13% 5.35% 5.64% 5.98% 6.36%
Scenario 3 5.03% 5.44% 5.68% 5.99% 6.34% 6.72%
Scenario 4 5.03% 5.44% 5.68% 5.99% 6.34% 6.72%
HCE less nHCE average deferral rate
Current plan 1.42% 1.61% 1.74% 1.83% 1.90% 1.96%
Scenario 1 1.42% 1.49% 1.64% 1.74% 1.82% 1.89%
Scenario 2 1.42% 1.39% 1.22% 0.96% 0.63% 0.27%
Scenario 3 1.42% 1.27% 1.09% 0.82% 0.50% 0.14%
Scenario 4 1.42% 1.27% 1.09% 0.82% 0.50% 0.14%
American Vision Partners — Lockton: A collaborative Healthcare Practice review 38 Lockton Companies
Sample testing projections
Assumptions Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
# of HCE hires - 80 80 80 80 80
# of nHCE Hires - 520 520 520 520 520
HCE new hire deferral rate - 6.46% 6.46% 6.46% 6.46% 6.46%
nHCE new hire deferral rate - 4.00% 4.00% 4.00% 4.00% 4.00%
HCE new hire opt out rate - 7.00% 7.00% 7.00% 7.00% 7.00%
nHCE new hire opt out rate - 11.00% 11.00% 11.00% 11.00% 11.00%
Calculated values Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
HCE average deferral rate
Current plan: 50% up to 8%, auto enroll at 4% 6.46% 6.45% 6.45% 6.44% 6.43% 6.43%
Scenario 1: 50% up to 8%, auto enroll at 4%, sweep 6.46% 6.64% 6.61% 6.58% 6.56% 6.54%
Scenario 2: 50% up to 8%, auto enroll at 4%, auto escalate 1% up to 10% 6.46% 6.52% 6.56% 6.60% 6.61% 6.63%
Scenario 3: 50% up to 8%, auto enroll at 4%, sweep, auto escalate 1% up to 10% 6.46% 6.71% 6.77% 6.81% 6.84% 6.86%
Scenario 4: QACA Safe Harbor, 100% up to 1%, 50% on next 5%, Sweep/AE/AE 6.46% 6.71% 6.77% 6.81% 6.84% 6.86%
nHCE average deferral rate
Current plan 5.03% 4.84% 4.71% 4.61% 4.53% 4.47%
Scenario 1 5.03% 5.16% 4.97% 4.84% 4.74% 4.65%
Scenario 2 5.03% 5.13% 5.35% 5.64% 5.98% 6.36%
Scenario 3 5.03% 5.44% 5.68% 5.99% 6.34% 6.72%
Scenario 4 5.03% 5.44% 5.68% 5.99% 6.34% 6.72%
HCE less nHCE average deferral rate
Current plan 1.42% 1.61% 1.74% 1.83% 1.90% 1.96%
Scenario 1 1.42% 1.49% 1.64% 1.74% 1.82% 1.89%
Scenario 2 1.42% 1.39% 1.22% 0.96% 0.63% 0.27%
Scenario 3 1.42% 1.27% 1.09% 0.82% 0.50% 0.14%
Scenario 4 1.42% 1.27% 1.09% 0.82% 0.50% 0.14%
American Vision Partners — Lockton: A collaborative Healthcare Practice review 38 Lockton Companies
