case study

The STARS project is the creation and implementation of SUNY's custom target date fund designed to address the unique needs and varied demographics of their participants. By implementing a customized glidepath and a lifetime income solution, STARS provides tailored investment options that enhance both security and growth opportunities throughout an individual's career. This project ensures a more effective and rewarding investment experience, providing participants with the tools to achieve their retirement goals.

On July 1, 2024, automatic contribution escalation was added to the already existing automatic enrollment program. In addition, those who had been automatically enrolled since the DCP added automatic enrollment on July 1, 2023, were retroactively enrolled in automatic contribution escalation, effective July 1, 2024. Members didn’t need to take any action to keep their automatic enrollment settings. By default, 3% of their pay was deducted before taxes and contributed to their account. This amount was automatically increased by 1% each year until it reaches a maximum of 10%. Their money was invested in the SURS Lifetime Income Strategy (LIS), a professionally managed target date portfolio designed to help them grow their retirement savings while working and provide guaranteed income for life in retirement. As they near retirement, part of their savings can be moved into a Secure Income Portfolio (SIP), which ensures a steady monthly income they won’t outlive. This transition happens automatically. Members could also choose their own contribution rate and investment options or opt out of the automatic settings within 30 days.

In early 2024, staff of the Island $avings Plan Board of Trustees were informed that several State and county employee unions had negotiated Temporary Hazard Pay (THP) Settlements for their members for work performed during the COVID-19 pandemic. They reached out to Empower to research whether deferrals of similar payments were allowed in the Plan’s history and to determine the programing needed to allow a THP deferral into the Plan. The Board of Trustees agreed to allow participants to defer their THP into the Plan and Board staff worked with Empower, State departments, and counties to plan and program for the multiple THP Settlements that were negotiated. Multiple communication pieces were created to inform employees of this THP deferral opportunity and to provide more information about specific settlement details and instructions.

Historically, Prince George’s County administered its deferred compensation plans through multiple providers, which resulted in fragmented participant experiences, paper-heavy processes, and administrative inefficiencies. Following a thorough RFP process, the County made a strategic decision to consolidate from two recordkeepers to a single provider. In 2024, the plan completed the implementation of key enhancements identified during its initial evaluation. These improvements included a streamlined, cost-effective investment lineup that replaced underperforming funds and a more transparent, participant-friendly fee structure. The plan also introduced Roth contributions to offer flexible, tax-efficient savings options. Outdated paper-based processes for enrollment, deferrals, and contribution changes were eliminated, overcoming previous HRIS limitations that restricted deferrals to fixed dollar amounts by adding a percentage-based deferral option. Participants gained greater control over their investments through the addition of a self-directed brokerage account, along with access to fiduciary advice and one-on-one consultations with Certified Financial Planners.