The Good Word For the Canadian Baptist Pension Plan, a communications strategy with financial and lifestyle-based workshops keeps members on the straight and narrow for retirement. By Brooke Smith While capital accumulation plans (CAPs) have faced market volatility over the past year, members of the Canadian Baptist Pension Plan aren’t that concerned. Only one of the five regional constituencies that comprise the plan reports any inquiries about lower investment returns. “In January, one region indicated it had received a few calls from anxious members who were concerned about the market downturn, but nothing recently,” says Alayna Wilson, national director, pension and insurance, with the plan. With roughly 850 participating employers (churches), the Canadian Baptist Pension Plan began as a defined benefit plan in 1962 and was then converted to a defined contribution (DC ) plan in 1982. “The returns have been lower, for sure, on all CAP s— probably since the beginning of the year,” Wilson says. “[They] are not as good as they had been, and our plan isn’t any different than any other in that respect.” Yet the membership isn’t panicking. Wilson attributes this, in some measure, to well-educated members and their chosen vocation. “They’re mainly ministers working in the denomination, and [for] their full career, [they’ve been] in the same pension plan,” she says. “They might have 35 years [of service]. If they have, they certainly survived Oct. 19, 1987.” Of the 1,309 members in the pension plan, 225 (about 17%) have 21 years of service or more. Furthermore, the Canadian Baptist Pension Plan began a more “intentional” communications program two years ago. Now, every year, members receive newsletters in addition to their plan statements. Employers also receive newsletters. The plan has also stressed the importance of financial planning workshops and pre-retirement seminars, encouraging each of the regions to offer at least one of each annually. The workshops had always been rather sporadic, says Wilson, with the content focused primarily on the financial aspects of retirement. “Certainly, the meat of the workshop is still financial, but we added lifestyle pieces as well,” she says. “We’re able to enlist subject-matter experts from the pews as our workshop resources.” For example, a “voice of experience” segment includes retired members, both couples and singles, sharing what retirement is really like. This more comprehensive approach addresses not only the financial aspects of retirement but the psychological aspects, too. Plan members also have online access to plan information, allowing them to view their contributions and use retirement planning calculators. Wilson can’t say exactly how many members are using the online tools, but she says the number is growing. Members are also encouraged to seek professional financial advice at enrollment, to fill out the risk tolerance questionnaire and to look at their investments at least once a year. Even with this encouragement, however, Wilson is aware that not all plan members are engaged in retirement planning. “They may do their thinking when they enrol. Then they let things ride until they start attending workshops or they are edging up closer to retirement,” she says. “It’s part of our communication strategy and process to say, ‘Look at your stuff. Make sure this is where you want to be.’” Still, most members seem to be getting the message. Only a small portion (roughly a dozen) do not make a fund choice at enrollment. “We don’t automatically place them in the default fund when this happens,” says Wilson. “Rather, we follow up with them. We really try to engage people in making the investment choice that suits where they’re fitting, in terms of risk.” From newsletters to retirement-lifestyle workshops, the Canadian Baptist Pension Plan has already reached its members. Now, it’s just a matter of preaching to the converted. |
