Creating Participant Contribution Analysis Reports in TRAK-Online
Hello and welcome to this brief TRAK-Online tutorial. In today’s tutorial, we’re going to be looking at how to create Participant Contribution Analysis Reports. This is a feature that is part of our Batch Processing, which will allow you to run reports for a group of participants including a Batch Gap or Retirement Needs Analysis report. The Contribution Analysis report that we will be looking at today, as well as a Participant Benchmark Report that you can give to the plan sponsor. Before we begin looking at the Contribution Analysis report, I just want to remind you of the process for running these sorts of reports. Normally that would begin with importing the census data that you get from the plan sponsor or the record keeper. We have a separate training video on that. Then you would configure the reports, decide what you want include, the assumptions, etc. That’s what we will be looking at today. Decide what groups you want to run the reports for, and then run the reports themselves.
So today we are going to be looking at the Contribution Analysis Report, specifically. We have a separate video for looking at the Gap Analysis. To get into the Batch Processing or the Participant Report Creation, we are going to scroll down here and the program we are going to use is the Batch Processing tool.
Today we are going to be looking at the Contribution Analysis. Now when you are going to run these reports, you are going to need to pick a report configuration here. If this is your first time running these reports, you might want to open this up and make sure that report is going to display the things that you want and it’s configured with the assumptions you would like to display. The first thing I would like to point out here is that you can create a custom configuration. So, if you have a plan sponsor that you want to configure a little bit differently, you can click the Add New button here, name your new configuration and save it. Now this report is highly configurable, so I’m going to go through these tabs and show you how include or not to include things, and how to change the assumptions on the report itself.
Now this report has a number of different sections. One of the sections on the report is a Paycheck Display section that can show a number of different creations of their paycheck, including their current paycheck, paychecks based off of new contribution scenarios and the maximum that they might contribute.
On this first tab, Paycheck Display, we’re just going to make some very high level decisions about how this data is going to be displayed; are you going to show the details of the taxes, how are you going to display FICA and Medicare, etc. The other thing you can also include here is an election deferral section that will basically give the participant the opportunity to say if they would like to increase their contribution and to sign off on that. If you would like to include that, you simply check the box here.
Our next tab here has to do with any applicable Roth accounts. If there is a Roth account that you would like to include and maybe show contributions going to the Roth, you can check the box here. Decide how the values are going to be displayed, but then this is probably the main thing you want to look at here. So for contribution increases, are we going to split them between the Pre-tax and the Roth, are we going to divide them equally or proportionally, or do we want them to go to only one or the other. So that is probably the main thing you would want to configure on this tab.
Our next tab, moving along here, is the Qualified Plan Contributions. On this tab we are going to configure exactly what types of contributions do we want to display, what types of scenarios do we want to create. So do you want to include their current contribution as a reference, would you like to include a Quick Max – this would be the theoretical maximum amount that they can contribute up to the contribution limits or you can hide that. Do you want to display those contributions as a dollar and a percent or one or the other? So you can select that. Do you want to include a column where the contributions are increased annually? If so, you can include this. Specify how those increases are going to occur, so this would be a handy column if you have auto escalation in your plan, to be able to set this up here. Now the contribution increases, those contributions scenarios can increase either by relative values or by absolute values. So for example, if I choose relative values which is probably the most common and over here we have two, four, six and eight percent. What that is going to do is it provide suggestions that add two percent to their current contribution, add four percent, add six percent, etc. So if they were currently contributing three percent then the other contributions would show five percent, seven percent, etc. If you choose absolute values, then the percentages here are what you are actually suggesting that they contribute. So you are suggesting they contribute two or four or six or eight percent. You can add additional contribution amount here by clicking the button. You can also delete here, you can edit these values. We’ll switch back to Relative Values. Is the contribution amount a percent or a dollar. When you are adding the contribution, do you want to round that value or just have it be exact? Those are some of your options here on this tab.
Next we are going to set up what are we going to use as their retirement age? A couple of choices here, Client Data will use the retirement age in each individual person’s file in TRAK Online. So if you have worked independently with them you can use that date, if you have imported them with a retirement age then you can use that. Social Security Normal Retirement, this would be their full retirement age determined by their birthdate by Social Security, the date that no penalty would occur for them. Or you can do a Retirement Custom Age and use the slide here to set the retirement age. The selection you choose here, of course, will apply to all the participants. Because we are taking something here and applying it to everybody, there may be certain people in your group of participants according to what you select here, the software is going to thing Oh, they should be retired when in actual fact they may still be working. Do we want to skip the reports for those people that the software thinks are retired or do we want to run reports for them as well? If you would like to run reports for them, simply uncheck the box and then chose, we can push out their retirement date. So that will help you include people who are still working who based on what you configured here the software may believe they are retired.
On our Accumulation tab, this has to do with the section of the report that would show the various scenarios may accumulate over time at different rates of return. You can start this section on a new page if you like, you can make sure that you show the retirement year if you would like to show that you check the box here. Are those increases over time displayed at a grid, a chart – a bar chart or both? Down here, I want to point out this is where we are going to configure the rates of return that we are showing. So the different interest rates, as well as what years do we want to show. I have mine set up to show those account balances at five years, in ten years and of course at retirement since I have selected that up here.
Our next tab is the Cost to Wait section. This is an optional section. You can choose to include it or not by using the check box here. This would show them the cost to wait to increase their contribution. What if they waited a half a year, a year, two years or five years? So you can configure the time periods here for the delay and then TRAK will calculate the cost, the loss of account balance in retirement, that would occur for those different contribution scenarios with those different delay periods here.
The final tab is the “Payout” section. Again, this is an optional section. You can include or not include it by selection the check box here. Here is where we are going to set up their life expectancy and what this will do is translate those hypothetical account balances from the different contribution amounts into retirement income. So at different rates of return, how much hypothetical monthly income could they generate in retirement based off of the life expectancy you have set up here. So you can determine a little how those payouts are going to happen and then the payout rates down here below, the rates of return.
That is the configuration for the contribution analysis. This is a step that you probably won’t have to do every time, particularly if you have gone through the trouble of setting up the Report Configuration the way that you like or if you create custom report configurations for different plan sponsors.
The next step in the process is selecting the group that you are going to run the reports for. “All Paycheck” would be everyone in TRAK Online, “Select Employer” you would select an employer file and it would run the reports for those employees, “Client Group”, or a single person.
You have some additional options down here for those reports.
Once you have selected the client list and the report, simply click the “Reports” tap up here. You can select the report that you like, you will add it to the list over here. With the Batch Reports, the participant reports, you have the option to either print all the participants in a single PDF or you can break it across a number of PDFs if you have a large group of participants. What this will do, say you have fifty people, it will create one PDF that has all fifty people in it or you can print to separate files. What this will do is when you generate report, it will generate (in our example) it will generate fifty PDFs, one for each person, each named with that person’s name. So those are your two options. You click generate report and your reports will be created.
Thank you for joining me today on this video and thank you for using TRAK Online.