BOSTON, March 15, 2018 /PRNewswire/ -- John
Hancock Retirement Plan Services (JHRPS) has expanded its data
analytics capabilities to help plan sponsor clients and advisors
make plan and platform decisions to help participants save more for
retirement.
The company conducted a predictive analytics pilot with
long-term client Farm Credit Foundations (FCF) which had very high
participation and retirement readiness but wanted to know why the
few non-contributors had opted out after they were
auto-enrolled.
Using predictive analytics, JHRPS modeled participant data to
identify participant segments – top, normal, and non-contributors;
the team enriched the data with third-party data to provide broader
insight into the personas, and then used machine-learning
algorithms to predict future outcomes. The analysis identified who
the non-contributors were and provided insight into what might help
them save more.
Farm Credit used the data to make targeted plan design changes,
decreasing the auto-sweep default to encourage more employees to
participate. With the lower default rate, 90 percent of the
non-contributors stayed in the plan after the last auto sweep. In
addition, 70 percent of the new contributors remained at the lower
default rate, 16 percent elected a higher contribution rate and 4
percent elected to contribute after-tax.1
"John Hancock's advanced
analytics team stepped in and helped us change our approach," said
Cynthia M. Burkel, CEBS, SPHR, vice
president, Employee Benefits, Farm Credit Foundations. "The results
of the deep dive into our non-contributing employees surprised us.
Without John Hancock's analysis, we
would have continued with our annual auto-sweep unchanged, which
would have left some participants behind. John Hancock's ability to understand the
behaviors of these participants enabled us to turn around employee
behavior and achieve our goal of getting more people in the
plan."
Since then, JHRPS has rolled out its predictive analytics
capabilities to several large clients, working to uncover patterns
in under-participation. Now it is using the technology to dissect
its full book of business, so that insights gleaned from
participant data from across the platform can be used to help guide
plan sponsors, advisors, consultants, and TPAs working in all
markets – small, mid-size, and large plans.
"The growth and maturity of technology – especially using big
data along with sophisticated analytic tools and algorithms - has
given us the ability to process massive volumes of data into
insightful, interactive, results-driven systems," said Lynda Abend, Chief Data Officer, JHRPS. "We are
able to arm advisors and consultants with powerful information that
they can use to help plan sponsors make meaningful changes that
ultimately benefit participants."
About John Hancock Retirement Plan Services
As of
December 31, 2017, John Hancock
Retirement Plan Services serviced over 57,000 plans with over 2.7
million participants and $164 billion
in FUM Assets.2
About John Hancock and
Manulife
John Hancock is a
division of Manulife Financial Corporation, a leading international
financial services group that helps people achieve their
dreams and aspirations by putting customers' needs first and
providing the right advice and solutions. We operate primarily as
John Hancock in the United States, and Manulife elsewhere. We
provide financial advice, insurance and wealth and asset management
solutions for individuals, groups and institutions. Assets under
management and administration by Manulife and its subsidiaries were
over $1.04 trillion (US$829.4 billion) as of December 31, 2017. Manulife Financial Corporation
trades as MFC on the TSX, NYSE, and PSE, and under 945 on the SEHK.
Manulife can be found at manulife.com.
One of the largest life insurers in the United States, John Hancock supports approximately 10.7 million
Americans with a broad range of financial products, including life
insurance, annuities, investments, 401(k) plans, and college
savings plans. We also offer advice through Signator, a network of
independent financial advisors. Additional information about
John Hancock may be found at
johnhancock.com.
John Hancock Retirement Plan Services, Boston, MA 02210.
NOT FDIC INSURED | MAY LOSE VALUE | NOT BANK GUARANTEED
© 2018 All rights reserved.
MGTS-P 36233-GE
03/18-36233
MGR030818438723
PR-2018-14
1 As of 8/31/2017. Results may vary from plan to
plan.
2 John Hancock Retirement Plan Services consists of
John Hancock Life Insurance Company (U.S.A.) (not licensed in New York), John Hancock Life Insurance Company
of New York (licensed in
New York), Valhalla, New York and John Hancock Retirement
Plan Services, LLC. Approximate unaudited figures for John Hancock
Retirement Plan Services division, provided on a U.S. statutory
basis.
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SOURCE John Hancock Retirement Plan Services