Principal: New Worksite Pitch Gets Results

Principal Financial Group Inc. has developed a worksite presentation that seems to be increasing voluntary benefit plan participation rates.

The laptop-based presentation, designed with the help of International Business Machines Corp., Armonk, N.Y., is used by Principal’s salaried benefits enrollers in one-on-one meetings with employees during employer enrollments, the company says.

The presentation, Milestones, is tailored to fit the specific circumstances of each individual.

That tailored approach makes it easy for employees to establish goals for retirement, disability, life and other coverage and to stay on track with their retirement goals, according to Principal, Des Moines, Iowa.

Employees meet one-on-one with a salaried benefits specialist from Principal on company time, at no charge to the employee and the plan sponsor.

Milestones is designed for all employees regardless of income or assets. On average, employees reached by the program are ages 43 to 44, with an annual income of about $40,000. This is a target market usually underserved by worksite marketers, says Luke Vandermillen, national director of worksite benefits at Principal, Des Moines, Iowa.

“We call it ‘financial planning for the rest of us,’” Vandermillen says.

At the time of the initial meeting between an employee and a Principal specialist, Milestone is already programmed with information, furnished by the employer, about the employee’s income, existing benefits, contribution levels and other particulars.

The roughly 30-minute presentation helps identify financial needs and determine what benefits employees need to meet those objectives, at what levels, and how their projected payroll deduction would affect their paycheck.