2023 Year in Review: Schwab Retirement Plan Services

Schwab RPSC Year in Review for Prospects

[Intro music: Inspirational, motivational]

Phew, 2023 was a big year. Here's what came out of the journey. Every year, Schwab Retirement Plan Services looks at what you and your participants want to accomplish. Then we map out a plan for how we can help you reach those goals. In 2023, our plan focused on providing: Innovative solutions. Added support. Invaluable insights.

Here's what's new. The digital experience is now a better experience. More curated financial wellness content. Account Overview page focused on in-demand features. Plan services are expanding, with your top talent in mind. We now collaborate with Conduent (defined benefit plans) and Newport (nonqualified deferred compensation plans). You'll be able to access industry-leading features with the same great service. Your plan health reporting dashboard got a healthy refresh. Easier access to plan data. Enhanced reporting. An improved overall user experience.

A new student loan resource was added. An easier way to manage student loans: Vault Advisor.

The Participant Webcast Series helped build confidence. 91% of participants felt they were better prepared to take the next step in their financial journey as a result of the information presented in the webcasts.

Important industry updates. We stayed connected to important developments coming out of Washington, D.C. The latest on SECURE 2.0. At the end of 2022, Congress passed the SECURE 2.0 Act of 2022 (SECURE 2.0) to make it easier for employers to administer their retirement plans and for individuals to save more for retirement.

Key provisions that took effect in 2023:

The required minimum distribution (RMD) age increased from 72 to 73 and will increase to 75 starting in 2033.
Employer matching or profit-sharing contributions can be treated as Roth contributions. (optional)
Employees can self-certify hardship distributions. (optional)
The permanent rules for disaster withdrawals have now been standardized. (optional)
Terminal illness distributions are exempt from the 10% early distribution penalty.

Participant insights. Inflation and market volatility continued to weigh heavily on workers' minds in 2023. Key findings from our annual nationwide survey of 401(k) plan participants:

$1.8 million is the average amount people think they need for retirement.
86% of Gen Z 401(k) savers would be willing to give up a portion of their next raise in exchange for better benefits.
401(k)s have become a nonnegotiable benefit for workers, with nearly nine in ten saying it is a "must have" when looking for a new job.

Charitable giving solutions. Schwab Charitable™ donors showed up for charities in record-breaking amounts in 2023. $6.1 billion granted to charity. 127,000 charities supported. 1 million grants recommended.

Source: Schwab Charitable. All figures reflect granting activity from January 1, 2023, through December 31, 2023. For more information, visit https://www.schwabcharitable.org/resource/fiscal-year-2023-giving-report.

Some extra achievements we're proud of. Throughout 2023, Schwab Retirement Plan Services continued being recognized with third-party awards: Received the most Best in Class awards of any qualifying plan provider rated for the sixth year in a row.

Rated in the 2022 PLANSPONSOR® Defined Contribution (DC) Survey

PLANSPONSOR award was given on March 21, 2023. The criteria, evaluation, and ranking were determined by PLANSPONSOR. See plansponsor.com/research/2022-best-class-dc-providers/?pagesec=5#Methodology for more information. A licensing fee has been paid to PLANSPONSOR for the use of the award logo, however Schwab did not pay any fees to be considered for the award.

The journey continues in 2024. What's ahead? We can't wait to show you.
2024 has exciting things planned:
We'll continue enhancing the participant experience.
Further upgrades will be made to the plan sponsor website, reports, and case management.
We'll keep you aware of SECURE 2.0 implementation news and insights.
Nonqualified and defined benefit plan sponsors will be able to take advantage of enhanced services.
Our teams will continue research efforts and share the insights they've gained.
Questions? Call 877-528-6190 to start elevating your retirement plan.
Hello 2024…let's go!

Disclosures.
Vault Advisor is provided by Student Loan Benefits, Inc. (Vault) and is not affiliated with Schwab Retirement Plan Services, Inc. and its affiliates.
Newport and Conduent are not affiliated with Schwab Retirement Plan Services, Inc. or its affiliates.

Securities are offered through Ascensus Broker Dealer Services, LLC, member FINRA/SIPC. Securities in California are offered under the d/b/a Ascensus Corporate Insurance Solutions.

Other insurance products may be offered by Newport Group, Inc., an Ascensus Company. Investment Advisory and fiduciary consulting services are offered through Newport Group Consulting, LLC, a registered investment adviser and subsidiary of Newport Group, Inc., an Ascensus Company. For more information about Newport Group Consulting and its services, please visit newportgroup.com or refer to Form ADV Part 2, which is available by contacting 407-333-2905, or visiting newportgroup.com or adviserinfo.sec.gov.

Conduent and Conduent Agile Star are trademarks of Conduent, Inc. and/or its subsidiaries in the United States and/or other countries.  
Schwab Retirement Plan Services internal data from January 1, 2023, to December 31, 2023, based on participant survey included in all live events. Respondents selected "I'm better prepared to take the next step in my financial journey as a result of the information presented in this webcast."  2023 401(k) Participant Study, Charles Schwab & Co., Inc. and Logica Research, August 2023. This online survey of U.S. 401(k) participants was conducted by Logica Research. A total of 1,000 plan participants completed the survey. Survey respondents were actively employed by companies with at least 25 employees, were 401(k) plan participants, and were 21–70 years old. All data is self-reported by study participants and is not verified or validated. Respondents participated in the study between April 19 and May 2, 2023. Detailed results can be found here: https://content.schwab.com/web/retail/public/about-schwab/schwab_2023_401k_participant_survey_findings.pdf  55 in the PLANSPONSOR® 2022 Defined Contribution (DC) Survey, 48 in the PLANSPONSOR® 2021 Defined Contribution (DC) Survey, 102 in the PLANSPONSOR® 2020 Defined Contribution (DC) Survey, 88 in the PLANSPONSOR® 2019 Defined Contribution (DC) Survey, 74 in the PLANSPONSOR® 2018 Defined Contribution (DC) Survey, and 62 in the PLANSPONSOR® 2017 Defined Contribution (DC) Survey. A total of 15 providers qualified for inclusion in the 2022 results and providers were rated by sponsors in four areas of service. A total of 15 providers qualified for inclusion in the 2021 results, down from 17 providers listed in 2020 and 23 providers listed in 2017, 2018, and 2019. More information regarding the methodology and survey results can be found at: https://www.plansponsor.com/research/2022-best-class-dc-providers/?pagesec=5#Methodology

"We," "us," and "our" refer to Schwab Retirement Plan Services, Inc. throughout this document, unless otherwise noted. "Schwab" refers to The Charles Schwab Corporation, unless otherwise noted. Outcomes are not guaranteed.  Schwab Charitable™ is the name used for the combined programs and services of Schwab Charitable Fund™, an independent nonprofit organization. Schwab Charitable Fund has entered into service agreements with certain affiliates of The Charles Schwab Corporation.  The material contained herein is proprietary to Schwab Retirement Plan Services, Inc. (SRPS) and is for informational purposes only. None of the information constitutes a recommendation by SRPS. The information is not intended to provide tax, legal, or investment advice. SRPS does not guarantee the suitability or potential value of any particular investment or information source. Certain information presented herein may be subject to change. Neither the presentation nor any information or material contained in it may be copied, assigned, transferred, disclosed, or utilized without the express written approval of SRPS.  The Charles Schwab Corporation provides services to retirement and other benefit plans and participants through its separate but affiliated companies and subsidiaries: Charles Schwab Trust Bank; Charles Schwab Bank, SSB; Charles Schwab & Co., Inc.; and Schwab Retirement Plan Services, Inc. Trust, custody, and deposit products and services are available through Charles Schwab Trust Bank and Charles Schwab Bank, SSB, Members of FDIC. Brokerage products and services are offered by Charles Schwab & Co., Inc. (Member SIPC). Schwab Retirement Plan Services, Inc. created this communication for retirement plan sponsors and retirement plan consultants, advisors, and other retirement plan service providers and fiduciaries only. Schwab Retirement Plan Services, Inc. is not a fiduciary to retirement plans or participants and only provides recordkeeping and related services.  © 2024 Schwab Retirement Plan Services, Inc. All rights reserved.