Retirement Marketing Plan

							                                                     Project Justification
                                                     For the 2009 Leadership Recognition Award



                               Commonwealth of Massachusetts Deferred
                                    Compensation SMART Plan
                                      A communication program educating employees
                                     and encouraging participation in the SMART Plan

                                                 Presented by:
                           The Commonwealth of Massachusetts Deferred Compensation Plan
                                                 Presented to:
                  National Association of Government Defined Contribution Administrators, Inc.

A) Plan Description: The Commonwealth of Massachusetts’ comprehensive vision is to help Massachusetts public
   employees save and invest for a financially secure retirement, as well as to increase overall Plan participation.
   The SMART Plan enrollment and education campaign is an exclusive marketing and communications plan
   designed to promote the SMART Plan to eligible participants, emphasize the benefits of saving for retirement,
   and provide investment solutions.

    Materials are segmented into four categories, with key verbs used as titles to indicate the action needed—
    Participate, Invest, Educate and Advise. Visual elements, including color schemes, are used to help participants
    easily discern between the categories of communication information. The language used throughout the
    communication pieces is clear and concise, with a specific call to action in order to meet the participant’s
    expectation or desire for exact directions. Materials also present investment and retirement planning solutions in
    an easy-to-understand language that speaks to varied levels of investors, creating a library of credible investment
    and retirement planning resources.

    The materials we are submitting for consideration in the 2009 Leadership Award include three key brochures—
    Plan Overview, Two Paths to Investing and Reality Investing®—as well as a computerized informational
    presentation. The enrollment campaign materials were created over a span of several months during which the
    Plan transitioned to its new service provider. The material has been used continuously since the transition in
    March 2008 and is still in use today with eligible SMART Plan participants.

The supporting documents include:

 SMART Plan Overview – This complete overview brochure of the Massachusetts Deferred Compensation
  SMART Plan provides specific Plan information, as well as general information on the benefits of saving
  through a deferred compensation plan.
 SMART Plan: Two Paths to Investing for Retirement – The Commonwealth of Massachusetts understands
  that every participant has a different level of knowledge and experience with saving and investing for retirement.
  This colorful brochure offers an overview of the Plan’s two paths to investing for retirement, along with basic
  investment education on things like asset allocation, risk tolerance and more.
 SMART Plan Reality Investing® – For those Plan participants seeking professional advice, the Reality
  Investing overview brochure introduces the Reality Investing advisory services offered through the SMART
  Plan, explains the levels of advice offered, and provides easy instructions on how to get started.

Project Justification – SMART Plan                                                   Page 1 of 2
 Computerized Informational Presentation – For those Plan participants unable to attend an on-site educational
  seminar conducted by one of the local SMART Plan representatives, a computerized presentation is offered on
  our custom Plan Web site at www.mass-smart.com > educational seminars > SMARTPath Retirement
  Funds. The presentation discusses the ―Two Paths to Investing‖ concept, providing participants an opportunity
  to educate themselves on the investment options offered through the Plan and to help them make informed
  decisions.

B) Significance of Improvement to the Plan: In March 2008, the Massachusetts Deferred Compensation SMART
   Plan transitioned to a new service provider, Great-West Retirement Services®. One of the strategic initiatives of
   the transition was to create captivating enrollment materials that supported the SMART Plan brand image. Many
   employees believe that they are already adequately preparing for retirement with other benefits provided by the
   Commonwealth of Massachusetts. Our goal is to help individuals understand their true retirement needs and
   educate each one on the benefits of the SMART Plan to ultimately focus on the enhanced retirement lifestyle and
   opportunities that are possible by participating in the Plan.

    Our new Plan provider adds significant service enhancements for participants, and we believe the enhanced Plan
    will allow us to more effectively communicate the messages that we want our employees to understand and
    respond to.

C) Benefits Realized by the Service Recipients: The materials were designed to capture the attention of
   employees through their rich colors and engaging look. The initial benefit of the Plan is that it was designed
   exclusively for Commonwealth of Massachusetts employees, not another generic plan. The completed materials
   have significantly enhanced our communications to eligible employees and solidified the SMART Plan brand.

D) Return on Investment—Short-Term and Long-Term Payback: A well thought out, custom Plan is not an
   inexpensive venture; however, a strategic marketing and communications plan with a single, unique brand and
   spirit can capture attention and increase participation in the short and long term, adding assets under
   management. We believe new participants and enhanced participation (increased contributions, electronic access
   and education services) in the new Plan will benefit the Plan provider, investment partners and Plan
   administrator. Enhancing participation is ultimately what the Plan strives to accomplish. Plan participants receive
   a dependable stream of valuable communications that will serve them and reinforce the Plan’s relationship with
   them. We believe that over the long term, the employee benefits from the Plan’s attractiveness and retention
   efforts.

E) Feasibility of Use by Other Governments of a Similar Size: Custom plans are feasible for other plans that are
   the same size as the SMART Plan, or even smaller, depending upon the organization’s population, culture,
   budget and other retirement plan options. There is much coordination with the process, and the organization must
   have a project ―champion‖ and well-organized review and approval procedures. The initial process of developing
   the brand or theme is the most critical step, and the organization should be willing to invest time in the
   development phase.

F) Description of Measurable Results: As stated earlier, the comprehensive vision is to help Massachusetts
   public employees save and invest for a financially secure retirement, as well as to increase overall Plan
   participation. Creating a brand image is an important step in the process, but ultimately the goal it to achieve
   measurable results in participant behavior. Participation in the Plan showed nearly a 2% increase from 2007
   through the end of 2008. Positive results are also visible when reviewing participant investment behaviors – Plan
   participants increased the average number of investment options from 3.18 to 3.5 and the number of participants
   using the Managed Account service, an advisory services tool offered through Advised Assets Group, LLC,
   increased from approximately 900 to 5,240 by the end of 2008.




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