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Fall 2016
health. wealth. life.
Not what we have, but what we
enjoy abundance. constitutes our
-Epicurus
In Pursuit of What Matters Most.
contents 3 4 5 6 7 8 9 10 11
A Letter from Terry Horan, President & CEO
EDUC AT ION Medicare 101 Supporting Your Employees in Their Benefits Rollover Relief What Fiduciaries Can Learn from the LaMettry’s Collision, Inc. Case
After a full year of health, wealth and life seminars, HORAN is currently finalizing our 2017 Education Catalog.
Turning Retirement Savings into Retirement Income HORAN Wealth Provides Market Recap & Economic Outlook New Center Seeks to Predict and Enhance Longevity Doug Miller, Executive Vice President, Reflects on 30 Years at HORAN
COMMUNIT Y & GROWTH
12 13 14
HOR AN EDUCATION SERIES
James Hendricks Joins HORAN as New Chief Financial Officer
The dates and details for the first and second quarter education offerings will be available on the website, www.horanassoc.com, in early January.
HORAN Heads to Central Ohio, Opens Regional Office in Columbus In the Community
CL IEN T FE AT URE
16 18
Wellness Works: Excellent Results from the 2016 Wellness Roundtable Series Client Spotlight: Dayton Metro Library
Please join us in welcoming our new corporate clients! - Advanced Testing Laboratory - Anchor Fluid Power - CareSource - Cincinnati Center City Development Corporation - Clubessential, LLC - Ethos Laboratories
health. wealth. life.
- Gate West Coast Ventures - HGC Construction - Legion Logistics, LLC - Neyra Industries, Inc. - Norris & Dierkers Architects - Rieman & Arszman Custom Distributors, Inc.
Look for us online!
Visit the HORAN Newsroom at www.horanassoc.com to view the online version of health.wealth.life. |2|
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A letter from Terry Horan
In Pursuit of What Matters Most. By the time you read this magazine, the United States will have elected a new president. Former British Prime Minister Tony Blair recently spoke at a conference I attended and reminded the audience that the election cycle in Great Britain is only four weeks. He quipped, “Apparently you Americans can’t get enough of a good thing!” While true, the United States has had a continuous, peaceful and organized transfer of power in every election cycle for almost 250 years. No other country of our magnitude has duplicated that record. This quarter’s HORAN magazine talks about other transfers that impact you. There are articles written by Tim Powell and Anna Pfaehler to help you build wealth and prepare for retirement. Paul Carl wrote a great article on how to keep your retirement plan out of trouble. Chris Mihin wrote an article about transferring your health benefits to Medicare. We spotlight our client, Dayton Metro Library, which is about to transfer to a new, main downtown library building—one of the first downtown library buildings built in Ohio in the last 25 years. HORAN has recently transferred one of our best employees, Cheryl Mueller, to our new Columbus office. She is charged with leading the delivery of the same exemplary service to our clients in Columbus that we attempt to deliver each day to the clients in our other markets. Doug Miller has been largely responsible for the growth of HORAN’s Employee Benefits Group to its current standing as one of the 100 largest in the country. He takes the opportunity in this quarter’s magazine to reflect on his 30 years with HORAN and the changes he has seen and foresees in the industry. HORAN and HORAN employees have been the recipients of many awards and recognitions in the last three months. Some of the best accolades are reviewed in this issue of the magazine. Without you, our clients and friends, none of this would be possible. We take the responsibility to meet your needs very seriously. Thank you for your continued business and confidence. Most sincerely,
Terence L. Horan, CLU, ChFC President & CEO of HORAN TerryH@horanassoc.com
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education
MEDICARE 101 WHAT IS MEDICARE?
Medicare Part A • • • •
Inpatient care in hospitals Skilled nursing facilities Hospice and home health care Generally no monthly premium if you qualify and paid Medicare taxes while working
Medicare Part B • Doctors’ services • Outpatient care • Other medically necessary services that Part A doesn’t cover • Pay a monthly premium determined by your income, along with a deductible
Medicare Part C • Combination plans managed by private insurance companies • Typically a combination of Part A, Part B & sometimes Part D, but must cover medically necessary services • Have discretion to assign their own copays, deductibles and coinsurance
Medicare Part D • Prescription drugs • Available to everyone with Medicare • Separate plan provided by private Medicare-approved companies, and you must pay a monthly premium
health. wealth. life.
Medicare is health insurance for people who are age 65 or older, under 65 with certain disabilities or any age with end-stage renal disease (permanent kidney failure).
GETTING STARTED Medicare sends you a questionnaire about three months before you’re entitled to Medicare coverage. Your answers to these questions, including whether you have group health insurance through an employer or family member, help Medicare set up your file and make sure your claims are paid correctly. Once you start Medicare, you should: 1. Schedule a free preventive visit within the first 12 months to assess your current health status and provide a health roadmap for the future. 2. Create an account on Medicare.gov to access your information and keep track of claims. If you want your family or friends to be able to call Medicare on your behalf, fill out an authorization form to allow them to do so.
COORDINATION OF COVERAGE If you have Medicare and another type of insurance, the question of who should pay or who should pay first can be tricky. For example, generally, a group health plan would pay before Medicare, but there are several exceptions. Contact the number below for specific answers for your situation, or visit www.medicare.gov for additional information. Do you have questions relating to Medicare that were not answered in this article? Contact Chris Mihin, HORAN’s Medicare expert, at 800.544.8306.
Chris Mihin Individual Health & Medicare ChrisM@horanassoc.com
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Supporting Our Clients’ Employees in Their Benefits Maggie Kroeger, CEBS Engagement Team Leader
In the midst of complex benefit designs, wellness programs and health care reform, finding time to provide the benefits education and support your employees need can be difficult. Our health benefits Engagement Team is dedicated to serving as the support you want and need to provide to your employees. With a passion for digging in to solve problems, the team focuses on the best claims resolution outcome for the employee. We take the time to listen to the unique situations each employee faces. If an employee is struggling with a claims issue, the Engagement Team provides a hand to hold, caring concern and a relentless spirit to advocate on behalf of the employee until a resolution is found. What differentiates our team is the integrity and passion displayed by each team member. They turn over every stone and knock on every door to do what is right for the employee. The team also works to engage employees in their benefits during open enrollment and throughout the year. Additionally, the Engagement Team provides the following services for our clients’ employees: ADVOCACY SERVICES • Answer complex benefit questions. • Resolve escalated claims issues. • Assist with online pre-screening or enrollment. • Connect your employee to the appropriate resources when a referral is necessary. PERSONAL GUIDANCE As the employee experts, the Engagement Team will provide personal support at health fairs, open enrollment meetings and other educational opportunities held during the year. CUSTOMIZED COMMUNICATION STRATEGY HORAN understands that various cultural and generational nuances exist in the workforce today. Those nuances influence an employee’s benefit engagement level. We design customized tools that support your culture and communicate, educate and engage employees.
“What differentiates our team is the integrity and passion displayed by each team member. They turn over every stone and knock on every door to do what is right for the employee and his or her family,” said Maggie Kroeger, Engagement Team Leader at HORAN.
As benefits become increasingly complex, the Engagement Team makes it easier on employees—helping them understand their benefits and taking a supportive role to find a resolution for the employee and his or her family.
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education
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To err is human; to forgive, divine. -Alexander Pope
Rollover Relief The IRS has acknowledged that taxpayers are human and sometimes we humans make mistakes—especially, if it is something we are unaccustomed to doing, like executing a rollover of a retirement account. There are two methods to roll over a retirement account: 1. A direct rollover or trustee-to-trustee transfer. 2. The trustee or plan administrator pays the proceeds to you, then you deposit the proceeds in an IRA or retirement plan within 60 days. Option 1 is my preferred method because it eliminates a step and there is less room for error. With option 2, you personally become involved and it is your responsibility to make sure the funds reach their ultimate destination within the allotted time. Plenty can and does go wrong. However, if your reason for missing the deadline happens to be one of the 11 common reasons listed by the IRS, you can now write a self-certification that will permit you to deposit the funds with the new trustee even if the 60-day window has closed. Previously, such mishaps required the IRS’s involvement to rectify along with significant time and money. A receiving trustee can accept a self-certification that one of these events caused the tardiness of the deposit and accept the funds into your new retirement account. You can treat the transaction as a valid rollover. However, the certification can be audited and overturned if the IRS determines you did not qualify for a waiver. The IRS’s willingness to forgive certain offenses here is not proof of their divinity. This likely stems from budget constraints and being unwilling to spend resources on rubber stamping certain waivers. It is important to note that while this new process makes life easier for some, it is not a blanket waiver of the 60-day rule. Utilizing a direct rollover or trustee-to-trustee transfer is still my preferred rollover method.
Anna Pfaehler, CFP® Director of Financial Planning AnnaP@horanwealth.com
health. wealth. life.
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11 Common Reasons for Missing the Account Rollover Deadline According to the IRS
1. An error on the part of either the receiving or distributing financial institutions; 2. The distribution check was misplaced and never cashed; 3. You deposited the check into an account you thought was an eligible retirement account; 4. Your principal residence was severely damaged; 5. A member of your family died; 6. You or a member of your family was seriously ill; 7. You were incarcerated; 8. Restrictions were imposed by a foreign country; 9. A postal error occurred; 10. The distribution was made on account of a levy and the proceeds have since been returned to you; or 11. You received information necessary to complete the rollover from the distributing plan too late. Note: You also have to certify that all the other requirements for a valid rollover were met and that the rollover contribution was made as soon as practicable after the reason for delay was resolved.
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What Fiduciaries Can Learn from the LaMettry’s Collision, Inc. Case Paul Carl Vice President, HORAN Retirement Advisors
Debbie Damberg and Tony Severson, two of 114 participants in the LaMettry 401(k) Profit Sharing Plan, filed a class action lawsuit against LaMettry’s Collision in May 2016. What made the 401(k) industry take notice? The plan’s investment value totaled less than $10 million.
Historically, similar class action lawsuits have been considerably larger in asset market value. The Suit
The allegations in the suit focused on two broad areas: payment of excessive fees and inappropriate investment selections. The suit claimed that the defendants had failed to actively monitor the providers, the fees, the share classes of the mutual funds offered for investment and the investments themselves. The lawsuit specifically cited violations of Employee Retirement Income Security Act (ERISA) section 404(a) and (b), commonly known as the exclusive benefit and prudence provisions.
The Allegations
participants through excessive fees over a period of time, reducing the plan participants’ retirement account balances. The plaintiffs alleged that the defendants failed to monitor investments, service providers and fees; provide plan documents; evaluate costs; and provide disclosures.
My View
As a former U.S. Department of Labor Employee Benefits Security Administration senior investigator, my view is that the lawsuit alleged that basic fiduciary actions were not followed. These actions include: • Rate or compare investment performance to peers and benchmarks. • Benchmark investment expense ratios. • Issue required participant notices, especially fee disclosure notices. • Make certain plan documents and public records available for review or copy by participants. • Monitor the plan service provider(s) to ensure fees were proper and disclosed adequately on participant account statements. • Implement a process to review for and act on irregularities arising from fee disclosures, plan records access and fee transparency. • Obtain and compare service and fee benchmarking data to determine if fees and services were consistent with standards. • Consider total plan costs to services rendered and how those costs are paid, indicating a fee transparency issue.
The alleged implication was a six-figure loss of income to plan
KEY TAKEAWAYS We may never know whether or not the plan fiduciaries acted in the manner alleged in the class-action lawsuit. The plaintiffs withdrew their suit from Minnesota’s U.S. District Court before the defendants could file a response. This withdrawal may provide some temporary relief to plan sponsors, plan providers, advisors and especially plan fiduciaries; however, new fiduciary rules will be in place and effective April 10, 2017. Through these new rules, as published in the April 8, 2016, edition of the Federal Register, EBSA redefines the term “fiduciary” to be much more far-reaching and inclusive than its historical definition. Additionally, EBSA finalized the “Conflict of Interest Rule—Retirement Investment Advice”, which may make the rendering of investment information in the traditional sense nearly extinct. Retirement plan fiduciaries should use this lawsuit as a reminder of what it takes to be successful. To maintain good habits in your own work as a plan fiduciary, ensure you have processes in place to:
Regularly monitor plan investments, including performance and key investment criteria.
Examine investment expenses, individual investment expense ratios and asset market value charges.
Draft and issue required participant notices within regulatory timeframe.
Make documents available including the summaries of plan description, material modifications and summary of annual reports.
Meet regularly with plan service providers.
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education Turning Retirement Savings into Retirement Income
Wage Replacement Ratio (WRR) – Annual Employer Pension Income – Annual Social Security Income = Annual Income Gap
Timothy Powell, CFP, AIF® Vice President, HORAN Wealth
You’ve saved years for retirement. Once you reach retirement, how do you create a stream of income from your savings to meet your needs? Every income strategy is unique, but each must address one common risk: longevity—the risk of outliving your assets or spending too much too fast. Additionally, there is a risk of leaving substantial assets untapped at death, or, said differently, the risk of not spending enough. Before deciding on an income strategy, you must first determine your income needs. Usually, this figure is based on some type of gap analysis calculation. The formula I use with clients is as follows: Wage
Replacement Ratio (WRR) minus Annual Employer Pension Income minus Annual Social Security Income equals Annual Income Gap. The resulting sum, or Annual Income Gap, is bridged by withdrawals from your retirement savings. There are three main strategies for taking these withdrawals, which I illustrate below. No one method is perfect and most retirees change their approach as circumstances change. The withdrawal strategy you select should be very carefully considered, reviewing all income projections and income needs. A comprehensive financial plan is one of the best ways to identify your risks, taxes and needs.
CONS
PROS
Inflation-Adjusted Withdrawal Method
Assumes withdrawal rate is fixed, increased annually by inflation. Payments will be sustainable throughout lifetime of retiree, with the intention that principal won’t be touched.
Total Amortization Method
The process of paying out monthly retirement income over a fixed period of time at a fixed rate of return. This method’s goal is to achieve a balance of $0 at the participant’s death.
•
You squeeze every drop out of an investment account to get as much income as possible.
•
To accurately calculate the correct income, the participant would need to know his or her date of death.
Dynamic Withdrawal Method
Assumes the retiree will consume more resources in the first 10–15 years of retirement than in the next 15–25 years. A higher, more aggressive withdrawal rate is used in the first stage of retirement and stepped down as the retiree ages.
•
The higher withdrawal percentage allows for more income during the retiree’s first 10–15 years of retirement, usually the most active.
•
Due to the aggressive nature of this strategy, a larger percentage is withdrawn annually, and the principal could be depleted rapidly if there are some consecutive years of poor performance.
• •
Investment principal is • protected (individual will never run out of money). • Assets can be passed to heirs.
A larger nest egg is required to generate the required income. RMDs may cause withdrawal rates to exceed the 4–5% withdrawal target.
The information discussed in this article is for general informational purposes only and should not be considered an individualized recommendation or personalized advice. There are many considerations to be made when developing an income strategy, and the strategies mentioned here may not be suitable for everyone. Each individual needs to review an income strategy for his or her own particular situation before making any decision. Examples provided are for illustrative (or “informational”) purposes only and are not intended to be reflective of results you can expect to achieve.
health. wealth. life.
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HORAN Wealth Provides Market Recap & Economic Outlook Christopher Cook, CFP® Vice President, HORAN Wealth
A
s 2016 comes to an end, the HORAN Wealth Management Investment Committee is busy studying the macroeconomic trends and framing our portfolio forecasts. We are pleased with our year-to-date portfolio performance and look forward to meeting the challenges of continued success through the rest of the year. Below is a recap of 2016 thus far as well as insights for what’s in store for 2017. US economic growth remained unspectacular, expanding a mere 1.4% in the 2nd quarter (Q2), year over year. A strong US consumer has been driving what little growth did exist. Although the US outperformed many advanced economies, output remained well below its long-term average, even as the labor market was close to full employment. Personal consumption increased 4.4% in Q2, but against the backdrop of lackluster global growth, drags from net exports continued to serve as a headwind. The Federal Reserve left short-term interest rates unchanged in their September meeting but signaled it expected to raise them before year-end.
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The big story for the economy next year is the outcome of the presidential election,” said Barry Mendelson, CIMA, Founder and Owner of Capital Market Consultants. Whoever is elected will want to try to get off to a quick start. Despite unimpressive global growth, slowing global trade patterns and policy easing among major central banks, the Fed has stayed committed to its gradual path of higher rates, a path that has proven to be responsive to incoming economic data. Cautious consumers, retrenching manufacturers and scant signs of inflation have diminished optimism about a breakout in economic
growth in the final stretch of the year. The economy could be constrained for the rest of the year to a growth rate only slightly above the expansion’s overall 2% pace—the weakest of any since the 1940s. We continue to be mindful of potential risks to the market while maintaining our strategic asset allocation discipline. Portfolio diversification has regularly proven to add value over longer investment horizons. Short-term macro shocks to the market will remain, although investors have repeatedly shown a resilience to “buying the dips.” A number of factors remain on our list of potential risks to 2016 results and have demonstrated the ability to place investors on edge from time to time. These risks include: 1. In recent years, equity valuations have appreciated above longer-term average levels. 2. Corporate earnings growth has been depressed, with lingering slow global economic growth. 3. US bond yields continue to trade near historic lows despite attempts by the Federal Reserve to take rates higher. 4. Overseas, an increasing amount of foreign bonds are trading with negative yields. Additional risks to market sentiment could include the contentious and colorful US presidential election, along with the persistent threats from geopolitics, terrorism and other “black swan” events. We spoke with Barry Mendelson, CIMA, Owner and Founder of Capital Market Consultants, HORAN’s economic research partner, about his thoughts on what’s in store for 2017. “The big story for the economy next year is the outcome of the presidential election,” said Mendelson. “Whoever is elected will want to try to get off to a quick start. I think late-winter/spring of next year we will see a lot of pronouncements of what we will do in the next 100 days. I think we may see some volatility in the first half of next year because of those pronouncements and what the implications might be for the proposed policy changes at the federal government level. Topics of discussion will probably have something to do with the spending on infrastructure, a renewed discussion on the budget deficit and interest rates.”
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education New Center Seeks to Predict and Enhance Longevity As a member of M Financial Group, HORAN partners with other member firms to explore opportunities to differentiate in areas that could benefit our clients. M Financial Group is currently partnering with The American College, the nation’s oldest and leading college serving the financial services industry, on one such initiative—the M Center for Excellence at The American College.
The M Center for Excellence will redefine the life insurance industry by bringing together leaders from disparate companies and institutions to innovate with an aligned perspective—a vested interest in the outcome of a healthier society. The Center’s mission is to connect the interests of clients with rapidly emerging medical advances designed to predict and enhance longevity. Gregory L. Hoernschemeyer, CLU, Senior Vice President at HORAN, has played an incremental role in shaping what the M Center will be and do for the industry. “The life insurance industry will become an advocate for longer lives well led, and the champion of better heath for all,” said Hoernschemeyer. The M Center will be positioned to: • Research the implications of increased lifespan on wealth transfer, wealth accumulation strategies and longevity planning; • Lead the life insurance industry to identify new ways of underwriting that take advantage of these new, biomedical technologies, making the entire process more holistic and less clinical, without compromising protective value; • Join with key health care stakeholders in promoting healthy lifestyles; • Assist the large Baby Boomer demographic to adopt lifestyle changes that can improve their life expectancies and enjoyment of their senior years; and • Host an annual summit or ongoing multidisciplinary forums creating additional opportunities for sharing education and learning. “Instead of being preoccupied with life expectancies, the focus will be on ‘health expectancies’ that support more productive, rewarding and healthy lives,” said Hoernschemeyer. M Financial Group was founded in 1978 by life insurance industry leaders with exceptional businesses who wanted to enhance what could be delivered to their clients. From its inception, M Financial has been a community of client advocacy, sharing, entrepreneurship, innovation and success.
health. wealth. life.
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Doug Miller, Executive Vice President, Reflects on 30 Years at HORAN Q.) How has HORAN evolved since you’ve been here?
DM: Well, it’s night and day because in 1986 there were Terry and his dad and maybe one support person and now we have more than 100 employees. I think some of the principles that Jack Horan created back then—always focus on the customer, always represent peoples’ best interests and always work hard have always permeated who we are. So in that respect, culturally, we are similar to how we were back then.
Q.) What part of the culture has always been there?
DM: Our focus on the customer. The belief to always do what is right for them and life will take care of itself.
Q.) What has been a big learning point for you?
DM: It’s a general feeling that in the early days you don’t always see problems as opportunities. You have to use challenges as an opportunity to learn. I think the setbacks that we had were great blessings that helped us to learn and grow. You don’t always feel that at the time because you’re not happy that things didn’t go your way, but if you take it seriously and you try to use it as an experience, then it is a really positive thing.
Q.) What are you most proud of?
DM: I think hiring on a lot of people that have a high degree of care for the customers has always been a great thing. We have recruited, attracted and retained really good people so it’s easy to want to do your best if you’re surrounded by people who want to do their best. The other thing I’m really proud of is how much HORAN is a part of the community. There has always been this philosophy that our community has supported us so we should do our best to support the region as well. I think it resonates with our millennial generation more than it ever did 30 years ago.
Q.) Most memorable moment in your career here at HORAN?
DM: I don’t think there is a single moment. I view it as a marathon. There is a point in the race where you are running, but it is hard and you have a long way to go, but you are also a long way from the start. So you just get to the point where you’re like, “okay, I’ve got to keep going.” But for me so much of it comes down to the people we have gotten to work with: the customers, the vendors and especially my co-workers. You want to hire great people not only to rely on but to also enjoy coming to work every day.
Q.) Can you talk about the relationships you have built with clients over the years?
DM: There is a lot of merit being in one place for a long period of time. It has been great to have customer relationships that have backed me for all 30 years and, in a lot of cases, 20 to 25 years. We are grateful for those long-term partnerships because the customers of the early days allowed us to get customers down the road. I am always grateful for those first people who had the confidence in us to go out on a limb because we didn’t have a track record in this business. Their support helped put us where we are today. Our employees now can go out and say that we have 500 corporate clients, but those were one brick at a time, and I am grateful for those early bricks.
Q.) Where do you envision HORAN going in the next 30 years? DM: It depends on what our customers need us to do. We would like to expand outside of the markets that we are currently in. I think that we have opportunity mixed with challenges in the future and that smart, passionate people will figure it out. We need to keep our ear close to what the customer needs and try to meet those needs to the best of our ability.
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growth
James Hendricks Joins HORAN as New Chief Financial Officer HORAN proudly welcomes James R. Hendricks as Vice President and Chief Financial Officer. “Jim is charged with all financial and fiscal management aspects of the company,” stated Terence L. Horan, CLU, ChFC, President & CEO at HORAN. “He will be an excellent addition to our firm, with his extensive experience in planning and policy-making to ensure compliance with local, state and federal requirements. Jim brings a deep background in problem-solving, strategic planning and analysis and is also experienced in acquisition valuation.” Jim provides leadership and coordination in HORAN’s strategic planning initiatives as well as due diligence to create, coordinate and evaluate the financial programs and supporting information systems of the company to include budgeting, tax planning, real estate and conservation of assets.
“I’m honored to be joining HORAN,” said Hendricks. “I was drawn to this opportunity based on HORAN’s outstanding reputation and my former experience working for a company that was a HORAN client. I experienced first-hand HORAN’s strong commitment to its clients and delivering excellent service. HORAN exemplifies integrity, teamwork and community involvement. I am looking forward to supporting HORAN’s continued growth and market expansion.” Jim comes to HORAN from OneCommand, Inc., where he was the Chief Financial Officer. Previously, Jim was the Vice President of Finance of the Divisions Maintenance Group. Jim earned a Bachelor of Business Administration degree in Accountancy from the University of Cincinnati, is a designated Certified Public Accountant and is a member of the American Institute of Certified Public Accountants and Financial Executives International. He lives in Anderson Township, Ohio, with his wife Amy and two sons.
health. wealth. life.
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HORAN Heads to Central Ohio, Opens Regional Office in Columbus HORAN is proud to announce our expansion into Central Ohio with the opening of our Columbus office. The addition of the Columbus office increases HORAN’s physical presence to four cities: Cincinnati, Ohio; Dayton, Ohio; Columbus, Ohio; and Fort Mitchell, Kentucky.
“Adding a third regional office is a key component of our strategic growth and market expansion plan,” said Terence L. Horan, CLU, ChFC, President & CEO of HORAN. “The new office location represents our commitment to provide outstanding client service to our growing list of Central Ohio clients and our continued commitment to the region.” HORAN’s primary focus in the Columbus market is providing employers with health benefit solutions. The firm looks forward to working with area businesses by structuring competitive benefit packages that will help control costs as well as attract and retain employees. “HORAN’s expansion in the Central Ohio market increases the depth, expertise and resources committed to the region as we create proactive employee benefit strategies to contain costs as well as navigate employers through the complexities of the Affordable Care Act,” said Horan. “Columbus has a strong and collaborative business environment. Cheryl Mueller, CEBS, Vice President–Central Ohio at HORAN, leads the company’s efforts in the region. Cheryl partners with employers to develop strategies that can be implemented to enhance employee benefit programs while containing costs and improving employee understanding and appreciation of their benefits. “Central Ohio is a great place to be. I am happy to be part of HORAN’s growth and hope to earn a solid reputation with the clients we serve,” said Mueller. Cheryl specializes in delivering cost-effective strategies to companies. She has demonstrated expertise in health care reform, data analysis, consumer driven strategies, plan implementation, health management, compliance education, contribution strategies as well as employee engagement and education. Involved in group health benefits since 2000 and utilizing her previous roles with HORAN as an Account Manager, Financial Analyst and Marketing and Communications Manager, Cheryl provides insight to the overall planning involved in delivering a well-designed benefits package. We are grateful for the advice, counsel and support provided to us by the Dublin Chamber of Commerce during our location search.
Cheryl Mueller, CEBS Vice President–Central Ohio CherylM@horanassoc.com
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community Terence L. Horan
Cincinnati Business Courier Business Owner Insight Panelist
HORAN Named One of the Country’s Best Medium Workplaces by Fortune and Great Places to Work® At HORAN, we don’t just stand behind our work. We stand behind the people who make it possible. A positive work environment is essential to a healthy business and has been a central component of our success. We’re proud to announce that HORAN has earned a place among the country’s Top 100 Best Medium Workplaces recently announced by consulting firm Great Place to Work® and Fortune.
Valerie BogdanPowers Cincy Magazine Healthcare Summit Panelist
HORAN won this accolade based on employees’ anonymous responses to an extensive survey about their levels of trust, pride and camaraderie at work. Great Place to Work reviewed the survey results of more than 52,000 employees from hundreds of companies in the ranking process. Among the findings from the study: trust fuels business performance. For example, the Best Small and Medium Workplaces enjoy roughly three times the revenue growth of their peers, even as they provide a better experience for their people.
“We believe a large part of our success in meeting clients’ needs is our culture,” said Terence L. Horan, CLU, ChFC, President & CEO of HORAN. We work hard every day to make our company a great place to work. Our employees achieve this through their dedication, strong work ethic and enthusiasm for their work.” HORAN came in 42 out of 100 organizations on the Best Medium Workplaces list.
Dominic Franchini Cincinnati Bell Make Your Business BOLD Panelist
Karl Diebold Named to 2016 Financial Times 401 Top Retirement Plan Advisers Karl Diebold, Vice President at HORAN Retirement Advisors, has been named to the 2016 edition of the Financial Times 401 Top Retirement Plan Advisers. The list recognizes the top financial advisers who specialize in serving defined contribution (DC) retirement plans. Applicants were then graded on seven criteria: assets under management; AUM growth rate; specialization in plans; years of experience; plan participation rate; advanced industry credentials; and compliance record.
Brandon Christen & Scott Silver
Led a workshop at Ohio Employee Health & Wellness Conference
health. wealth. life.
Diebold leads the HORAN Retirement Advisors practice working with individuals and corporations to deliver investment and retirement planning guidance. With more than 20 years of industry experience, Diebold is committed to designing bestin-class retirement plans for employers and helping employees save for a healthy financial future.
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HORAN Supports Operation 1,000 Cherry Trees in Dayton In 2011, a tsunami and earthquake devastated Japan. Alex Hara, Senior Vice President at JPMorgan Chase Bank, was deeply touched by those who took action after the disaster that took place in Japan. As a way of saying thanks to those who helped during the crisis, Hara created Operation 1,000 Cherry Trees. Hara’s mission is to plant and nurture 1,000 cherry trees in the Dayton area as a reminder of the strong bond of friendship that still exists between Japan and the United States. HORAN is honored to help make an impact in Dayton, as well as internationally, by donating and planting cherry trees to support the mission of Operation 1,000 Cherry Trees. The trees HORAN donated are planted at Dayton Art Institute.
Making a Splash for United Way This year’s United Way Campaign was HORAN’s most successful to date. Employees exceeded the firm’s goal and raised $129,087 (107% of goal) with 98% employee participation. During the campaign finale event, HORAN employees had the opportunity to pledge donations in exchange for HORAN leadership team members to jump into a swimming pool (see right for the “after the splash” picture). Employees were also able to bid on auction items and purchase tickets for raffle drawings. This year HORAN was named #14 on United Way of Greater Cincinnati’s Tremendous 25 list which recognizes the highest per capita giving companies in the area.
Employees Lead Story Time at Winton Hills Academy Elementary School HORAN employees recently spent time with students at Winton Hills Academy Elementary School. Volunteers were paired with small groups of students for story time, followed by a fun leaf-rubbing activity. United Way of Greater Cincinnati supplied the paper and crayons for the activity. The students were each given their very own “lil library” that contained a few books for their very own home library.
HORAN Celebrates 27 Years of Partnership with the CSO HORAN celebrated our 27th year of partnership with the Cincinnati Symphony Orchestra (CSO) on September 24, 2016. We hosted clients and friends at a pre-event reception at the Cincinnati Masonic Hall and at the Taft Theatre for a wonderful musical performance. HORAN is proud to partner with our valued client, the CSO, and will continue to support the arts throughout the region.
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client feature
HWL • CLIENT FEATURE
WELLNESS WORKS Excellent Results from the 2016 Best-in-Class Wellness Roundtable Series
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n order to accelerate the learning and progress for HORAN clients with the design and implementation of successful wellness programs, the Health Management team launched the HORAN Best-in-Class Wellness Roundtable Series in 2016. HORAN featured five wellness roundtables; three events were held at HORAN’s Corporate Headquarters in Cincinnati, one roundtable at the Dayton office and one roundtable in Kentucky at the Airport Marriot with an average attendance of 30 participants. The purpose of the roundtable series is to feature clients with advanced wellness programs to discuss how they implemented their programs, valuable keys to success as well as lessons learned. The shared dialogue between the audience and panelists led to lively discussion on the importance of leadership engagement, comprehensive biometric screen and health risk assessment, health coaching, wellness champions, incentives and metrics to evaluate program effectiveness.
health. wealth. life.
Panel members selected to present their wellness programs at the roundtable meetings represented organizations with advanced wellness programs. These programs have very high levels of participation by employees and spouses as well as measurable results, with the average annual cost trend and population health as measured by biometric risk factors or clinical data. Many of the featured organizations were recognized earlier this year at HORAN’s Health Management Symposium for their advanced wellness programs. Based on their responses to the Health Management Best Practices Survey in 2015, these organizations were selected for recognition based on the comprehensive nature of their programs and overall results. More than 100 organizations, spanning 13 industries and representing over 75,000 employees, participated in the survey, which is the first of its kind in the region.
Did you miss the 2016 Best-in-Class Roundtable series? Contact Scott Silver or Rakel Sanchez at 800.544.8306 to review what was highlighted at this year’s roundtables.
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Coming Soon: 2017 HORAN Health Management Best Practices Survey The HORAN Health Management team, led by Scott Silver and Rakel Sanchez, is working on the development of the 2017 HORAN Health Management Best Practices survey. The survey will be launched in January 2017 and be distributed to employers throughout the region to gather information to identify wellness trends, challenges and best practices. Benefits of participating in the survey include the following: • Published booklet of complete survey results • Summary of the key components of a wellness program and best practices necessary to achieve maximum results • Emerging health management trends and program features • Defined return on investment analysis and employer benefits of established wellness programs • Invitation to a HORAN Health Management Symposium event to review survey results and recommendations for employers The 2017 HORAN Health Management Symposium will be held to share key findings from the survey and will feature a special keynote speaker. The symposium will be held on April 5, 2017. If you are interested in participating in the 2017 survey, please complete the postage-paid postcard enclosed in this magazine and mail it to the address on the back of the card.
Thank you to our 2016 wellness roundtable panelists! STEPHANIE ECHOLS Montgomery County CONNIE FLYNN Remke Markets, Inc. CYNDI HAREN Cincinnati Northern Kentucky International Airport LAURIE IULG L JB Inc. KAY MOSS STOBER Drives Inc. CONNIE RETHERFORD Standard Textile Co Inc. WALT RODGERS RelaDyne Inc. TRICIA TOFT Cincinnati Eye Institute Y VETTE WALKER The Gorilla Glue Company DIANA WILSON VonLehman & Company Inc.
Rakel Sanchez & Scott Silver HORAN Health Management Directors
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HWL • CLIENT FEATURE
Client Spotlight: Dayton Metro Library
DESIGNING THE FUTURE
The Library’s Plans for Continuing to Inform, Inspire and Enrich “The very existence of libraries affords the best evidence that we may yet have hope for the future of man.” – T.S. Eliot The city of Dayton, Ohio, has a rich history in library services. The first library to be incorporated in the state of Ohio, the Social Library Society of Dayton, was founded in the city in 1805. Dayton established what is now known as the Dayton Metro Library in 1888 at its current location in Cooper Park. Over the past 128 years the Dayton Metro Library has grown to become a county-wide library system serving residents throughout Montgomery
County. More than 460,000 members depend on the library’s collection of resources, services and special programs and events. Currently, the Dayton Metro Library is undergoing a $187 million systemwide renovation plan entitled “Libraries for a Smarter Future.” The plan includes a complete overhaul of its Main Library located in Cooper Park, 11 new branches and major renovations at five existing locations. The initiative was launched in 2012 when more than 60% of voters supported a bond issue to help fund the project. The Dayton Metro Library is showing its appreciation for the community’s support by engaging them in every step of the design process. “We host public forums to ask residents about their aspirations for the community and for the library facilities to understand the important elements that we need to incorporate into the building design,” said Tim Kambitsch, Executive Director at Dayton Metro Library. “The new buildings will not be cookie-cutter libraries; they will be a direct reflection of the insights and input we have received from the community.” The new facilities will have enhanced technological capabilities, welcoming meeting spaces and expanded kids and teen spaces. While the facilities’ plan is at the top of the mind for many excited patrons, the real mission of the library is in the services it provides. Dayton Metro Library continues to grow its core services and additional community offerings. Countless programs and events are offered to Montgomery County residents, including kindergarten readiness education, summer reading challenges for school-aged children, career services and skill development, special exhibits, Lynda.com for Libraries, genealogy consultation, small business support and much more. The Dayton Metro Library staff plays an important role in delivering on the library’s mission.
health. wealth. life.
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“The facilities are exciting, but the staff is one of the greatest resources in the community,” said Kambitsch. Kambitsch views the library as a family. He wants to ensure every member of the library family is leading a full, rich life—especially the library staff members. “We see our employees as a part of our library family and want to make sure they have the same enriched lives as our library users themselves,” said Kambitsch. “Providing continuing learning opportunities, tuition reimbursement programs and a strong employee benefits package is all a part of that.” The library is proud to offer its employees a competitive benefits plan and wellness initiatives such as an annual bike-to-work day, a walking program and Health and Safety committee. “This world has so many nuances when it comes to health benefits, so having a strong partner like HORAN really has been a substantial advantage to us,” said Kambitsch. “I think that is probably the thing that we appreciate the most about HORAN—the education they provide to keep us on top of this rapidly changing health care environment.”
Kambitsch says the employee benefits arena is an example of the library’s strategy to be good stewards with the public’s funds. The library believes it is crucial to invest in the right support systems to ensure it is fiscally responsible with the community’s support. With expanded partnerships to tackle community challenges, and a newly launched Library Foundation to further leverage public funds through private support, the library stays true to its mission to inform, inspire and enrich the Dayton region in traditional and innovative ways. “It brings things full circle because the new facilities are a physical thing you see popping up in your community, but the end goal isn’t about building a new building; it’s about creating a community hub for our staff and resources to make a difference in the community,” said Kambitsch.
Erik Freudenberg HORAN’s Relationship Manager for Dayton Metro Library
Tammy Scott HORAN’s Account Manager for Dayton Metro Library
Martha Dils HORAN’s Client Service Manager for Dayton Metro Library
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Happy Thanksgiving from all of us at HORAN. May your celebrations be filled with abundance and may friends and family surround you during this special season.
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