Mercer and Synapses Implement Successful Personalized 401(k) Communications Program Pilot

Mercer a global provider of consulting outsourcing and investment services recently worked with Synapses Inc a provider of personalized 401(k) education products and services to develop a personalized employee communications pilot program aimed at increasing participant deferral rates for one of Mercers 401(k) administration outsourcing clients The program designed for a 401(k) plan with already-high contribution rates targeted a specific segment of the employee population that was not contributing enough to receive the full company match The MercerSynapses offering was considered a success by all involved particularly in terms of encouraging those who were not contributing enough to maximize the companys match

Just over 17% of targeted employees increased their contribution rate to better take advantage of their company match which exceeded our clients goals for the program noted Dave Tolve Retirement Business Leader for Mercers US outsourcing business This achievement is impressive given the persistent inertia of many participants in 401(k) plans and continued concern with the state of financial markets We see this result as another example of how Mercer creates real value for our clients by targeting participants at the right time in the right place with the right messages

Putting the 17% contribution increase results into perspective less than 2% of active currently contributing participants in all Mercer-administered retirement plans typically increase their contribution rate each month This monthly average has remained relatively consistent from 2005 through 2009

Utilizing Synapses personalized communication tools Mercers program provided targeted employees with a personalized retirement report Leveraging key employee data points these reports demonstrated a given employees potential retirement plan account balance at age 65 based on several hypothetical assumptions and taking the desired action of maximizing the employer-sponsored match

We are pleased to assist an industry leader such as Mercer to leverage our latest technology and communication solutions to impact 401(k) metrics for select customers said Jim Saunders President of Synapses Our recognized innovative approach for participant campaigns consistently provides unmatched results that far exceed traditional methods Mercers pilot program is an excellent opportunity to once again illustrate our industry leadership and specialty

We have seen a growing interest among plan sponsors to understand employee demographics in order to identify specific populations and then more fully engage each group in a meaningful way said Mr Tolve We have found that across our defined contribution client base personalized campaigns such as the recent experience with Synapses generate higher success rates -- with often twice as many participants taking the desired action versus non-personalized campaigns (Marketwire)