Creating Participant Gap Reports in TRAK-Online

Transcript

Hello and welcome to this brief tutorial looking at configuring and running Participant Gap reports for groups of plan participants.

Now, running reports for plan participants normally starts with importing the census file.  We have a separate training video that will cover that topic.  In today’s video we are going to be looking at how to configure the Participant Gap Report and how to run that report for a group of participants.  We have a separate video on configuring the Contribution Analysis Report.  Once you have logged into TRAK Online and you are on the home screen, to run a Participant Gap Report, we are going to go down to our programs to Batch Processing, and we are going to click on Batch Processing.

In today’s video, we are going to be looking at running a Participant Gap Report.  Now, you will notice over here, that I have a Default Report Configuration.  To edit or to set up additional Report Configurations, we are going to click on this button that says “Report Configuration”.  This will open up the Participant Gap Report Configuration Editor.  Just taking a look at the navigation here, the report we are going to configure is listed in the box up here.  Currently, I only have one.  Then we have a number of tabs going across here and these are all tabs where there is information where you can configure and this is the information, the configurations that will be applied to all the participants of the group for which you select this report configuration.

If you would like to create custom configurations for different plan sponsors, you can do that by clicking the “Add New” button.  Naming your configuration here, you can select another configuration to base it off of, and then select “Save Changes”.

Now, let’s look at some of the tabs here.  Going from left to right, on the Setup tab, we have some basic assumptions for this report.  What are the rates of return that we are going to be using, both prior and during retirement?  What will we be using for inflation?  What are we going to be using to establish the life expectancy of all the participants?  We have a number of options for you to select.  On the Participant Gap Report, one of the sections is a recreation of their paycheck along with the presentation of a paycheck with a proposed contributions on it.  This section here is where you can decide what you want to be displayed on that paycheck section.  Whether you want the contributions to be a percent and dollar, as one or two lines, only a percent, only a dollar, etc.  Do you want the raises to be called raises or increases?  You can configure that. Do you want to round the contribution percentages?  And then down here, do you want to have guide numbers on your page and some other aesthetic choices for the reports.  That’s our Setup Tab.

Moving along to the right, we have the Retirement Income tab.  This is where we are going to decide: What is the income need going to be for each participant?  We can use the same income replacement ratio for everyone.  For example: 80 percent of their income at retirement or we can use different percentages based on different tiers.  Down here, you can add a COLA, you can have income tiers and then the income replacement ratio for each tier.  You can add addition tiers by pressing this button here or you can delete them by clicking the “X” button over here.

Our next tab, Retirement Age, is where we are going to set the default retirement ages for all the participants.  You have several options here.  It can be based on the Client Data, so if you have imported this information or you have configured individually for all the participants, it would use that information there.  You can use the Social Security Normal Retire Age, so this would be their full retirement age according to Social Security, based on their date of birth.  Or you can use a Custom Retirement Age and the manually select the age here.  Now in any group, you may have some participants, who based on these generic retirement ages that would already “be retired” or they may be nearing retirement.  Down here you can chose whether you want to skip reports for those who the system will believe are already retired or you can include the and have TRAK push out the retirement date if they are near retirement or if the software believes that they are already retired.

Our next tab allows us to establish what we are going to use for Social Security.  If you don’t want to include Social Security, you can uncheck the box.  If you are going to include Social Security, you’re going to want to determine when is that benefit going to begin.  It can begin at retirement or it can begin at their full retirement age.  Or the age that no penalty would occur.  And then you have some parameters down here that you can adjust, how much inflation is going to be used on Social Security and the percent of the calculated value that you want to use for the report.

The Contribution Change Thresholds tab is probably the one tab I’ll spend a little more time on here in this tutorial.  Now if we uncheck this box, that says Modify Client Scenarios, then what TRAK will do is TRAK will attempt to increase their contribution.  But that will be the only thing that TRAK tries to do.  So if they have a shortfall, it will try to increase their contribution.  If they are already fully funded, it will not do anything.  However, if you would like to allow TRAK to make other changes, for example: increase their contribution and have them retire a year later or increase their contribution and have them retire a year earlier if they are over funded, then you can check the box here.  This will allow trak to modify other variables.  Here, you can establish some thresholds for how much you would like to increase the contribution.  If you would like to cap that increase at a certain percentage, if you would like to have a minimum increase or a minimum contribution, you can set those up here.  Now, for those people that are overfunded, so they are already fully funded, we may want to present them with the possibility of maybe retiring earlier or maybe relying less on Social Security and in order to do that they can increase their contribution.  This is what we are going to set up here.  So for overfunded scenarios, we are going to decrease Social Security by ten percent until it gets down to fifty percent of the calculated value.  Then we will increase, excuse me, decrease the retirement age by one year down to age sixty and we can increase the income needed by five percent up to one hundred twenty percent of their income replacement.  Doing that then will allow them to increase their contribution, in order to meet some of these other criteria.  For those that are underfunded, in other words who have a shortfall, they need to increase their contribution.  We can also allow trak to change some other variables.  For example: increase their contribution and increase their retirement age.  In our scenario here, this would increase by one year up to age seventy, decrease the Percent of Income by increments of five percent down to sixty percent and then Increase Social Security in increments of ten percent up to one hundred percent.  So you can readjust these, you can delete them out of here and these are things that will allow trak to make addition adjustments in order to find a solution for the participant.

Our next tab is the Roth Account tab.  If your retirement plan includes a Roth, you can check the box here.  If you would like to include increased deferrals to the Roth account.  And then down here you can determine what are we going to do with those contributions, are we going to split them evenly or proportionally, only to the pre-tax, only to the Roth, etc.

Under the More dropdown, we some other options here.  Defined Benefit Account: if you would like to include a pension amount, a monthly pension amount, in the illustration you can check the box here.  You can name what that pension amount is going to be.  So maybe, the name of the pension system.  What the COLA amount is on that.  This is a value, it’s not pull this value from the Gap Analysis.  This is a value you will have had to have imported along with the census file or separately.  So this would have been a monthly value you would have imported.

And then our last category is Chart Options.  These are just some options you can configure for colors for your chart and some other aesthetic changes.

That is the Report Configuration for the Gap Analysis.  To go back to the Batch Processing and select our group of participants, I’m going to going to click here.

Once we have selected our report configuration, and you may not have to do this every time if you have some defaults set up that you are comfortable with.  Now we are going to select who are we going to run this report for.

All Paychecks will run this report for every single client in TRAK, so you may or may not want to do that option.

You can run the reports based on the employer.  You’ll recall that to run this, the Employer File is crucial to this process.  So each participant would be linked with an Employer File.  That happens during the import process.

You can run them by Group or even a Single Client.  So you can run it for one person, select them from the group here.

You have some other options down here for how you want to run those reports.

Once you select your group and any other options you may have, to run your reports you simply go up to reports.  Just like other modules in TRAK-Online, you select the reports you would like.  You can include them over here on the right and Generate Report.  The one difference with the Batch Reports is whether you would like to run all of those people and group them into a single file, in which case we would make this selection here.  And what it will do is it will create one PDF – excuse me, the All Clients is this one – it will make one PDF with all of the clients together or you can cap the number of participants in a report.  Or you can print them each to a separate file and it will create an individual file for each participant.  So you can select your options here, hit Generate Report, and then according to your selections it will create the PDF or the PDFs.

So that is our Batch Processing Report Configuration and Running.

Just to remind you of the steps for Batch Processing:  Step one is to import the census file.  Step two would be to configure the report if necessary.  Step three would be to select which clients or participants you are going to running that report for and step four is to run the reports themselves.

Thank you for joining me on the webinar today and thank you for choosing TRAK-Online.  We wish you luck in today’s marketplace.