Starting on October 1, AAPG members will be able to
participate in a new comprehensive, customized retirement savings
plan called GeoVest, designed by the Seattle-based actuarial and
consulting firm Milliman
USA.
Tailored specifically to fit the AAPG membership's
characteristics, GeoVest is set up for small employers (less than
100 employees) and sole proprietorships, but has many of the same
characteristics found in Fortune 500 retirement plans.
The plan covers U.S.-based income only, and larger
employers can also be accommodated. Milliman USA also manages the
retirement plan for AAPG and AAPG Foundation employees.
"Working closely with our Investment Committee, Milliman
carefully studied the demographics, financial assets and investment
requirements of petroleum geologists and constructed GeoVest to
meet them," said Jim Gibbs, AAPG Investment Committee chairman.
"The board is very enthusiastic about this savings
plan and encourages all members to participate," he added. "We may
be the only professional society in the world with its own customized,
large company-type retirement savings plan."
GeoVest is a value to AAPG members because many AAPG
members left larger oil companies with sizable assets in their retirement
accounts. By pooling the assets of not only the enrolled membership,
but the AAPG 401(k) plan as well, Milliman was able to interest
Charles Schwab in providing the investment vehicles.
(Milliman is Schwab's largest U.S. alliance partner
for third-party record keeping.)
All the investment funds available are screened and
selected from the Charles Schwab portfolio of mutual funds -- participants
therefore can choose from different fund families as opposed to
a single mutual fund family.
More advantageous is the fact that all GeoVest funds
are Same-Day Exchange, giving participants the ability to make trades
at daily market close prices as opposed to the typical three-to-five-day
transaction period.
The financial advisor to GeoVest is Marquette Alliance,
which has a long relationship with AAPG and the AAPG Foundation.
Marquette is responsible for selecting the funds, monitoring their
performance and ensuring a reasonable return on investments.
The number of investments selected and offered to
the participants will range from 12-15 high quality no-load mutual
funds.
Here's how the plan will work:
- Individual proprietors and company CEOs will enter into an
administrative service agreement with GeoVest that names them
as sponsors of the retirement plan.
- The sponsors then choose either a 401(k) retirement plan or
a profit sharing plan.
- All communication regarding investment elections, performance
and administrative tasks will be handled by Milliman USA's record
keeping group.
"When AAPG initially spoke with Milliman about the
need to develop a solid retirement program for their membership,
we knew we could find an appropriate solution to address their concerns,"
said Lance Burma, with Milliman. "Milliman has had extensive experience
working with association plans and developing a custom product to
fit the various needs of association memberships."
Some of the key benefits GeoVest sponsors and participants
will enjoy include:
- Outsourced administration.
- A dynamic interactive Web site allowing all transactions (including
investment trades, deferral rate changes and loan modeling) to
be done anywhere that a participant has access to the Internet.
- An additional Plan Sponsor Web site available for companies
that desire a "macro" level look at their retirement plan. This
site allows plan sponsors to identify average deferral rates,
distinguish plan-wide asset allocation and query a number of customized
reports plan sponsors may find important.
- A 24-hour automated voice response unit and customer service
call center is available to all participants.
Milliman USA employs approximately 1,750 people,
including a professional staff of over 700 qualified actuaries and
consultants.
For more information on GeoVest, contact Gerald Erickson
at Milliman USA's Minneapolis office at (800) 652-6675.