Disclosure of Compensation for Pension Plan Clients

Direct Compensation

Sibson clients pay us directly for services in three ways –

Through a negotiated annual retainer amount, generally payable in monthly installments, covering specified services;

On a flat fee basis for specific projects; and

Through periodic billings based on our hourly time charges

Your specific arrangement is detailed in your retainer agreement with Sibson, or described in other communications between you and Sibson.  If you would like a copy of your most recent retainer or other agreement with us, please call your Sibson representative.  A list of our offices appears below.  Alternatively, please call Allyson Daniels at 212-251-5367, and she will handle your request.

116 Huntington Avenue
8th Floor
Boston, MA 02116-5744
t. (617) 424-7300
f. (617) 424-7390
101 North Wacker Drive
Suite 500
Chicago, IL 60606-1724
t. (312) 984-8500
f. (312) 984-8590
1300 East Ninth Street
Suite 1900
Cleveland, OH 44114-1593
t. (216) 687-4400
f. (216) 687-4490
30 Waterside Drive
Suite 300
Farmington, CT 06032-3069
t. (860) 678-3000
f. (860) 678-3090
10740 North Gessner Drive
Suite 320
Houston, TX 77064-1187
t. (281) 671-5600
f. (281) 671-5608
Los Angeles
10880 Wilshire Boulevard
Suite 850
Los Angeles, CA 90024
t. (310) 231-1700
f. (310) 231-1790
New York
333 West 34th Street
New York, NY 10001-2402
t. (212) 251-5000
f. (212) 251-5490
1230 West Washington Street
Suite 501
Tempe, AZ 85281-1248
t. (602) 381-4000
f. (602) 381-4090
1009 Lenox Drive
Suite 115
Lawrenceville, NJ 08648-2321
t. (609) 482-2300
f. (609) 895-0950
1100 Crescent Green
Suite 103
Cary, NC 27518
t. (919) 233-1220
f. (919) 233-7575

Indirect Compensation

Effective January 1, 2013, we do not receive indirect compensation related to our pension plan clients.

Insurance brokerage services for fiduciary liability insurance, fidelity bonding, employment practice liability insurance, and cyber liability insurance are no longer provided by The Segal Company, but are instead offered by Segal Select Insurance Services, Inc. (Segal Select), a wholly-owned subsidiary of The Segal Group.  For information regarding compensation paid to Segal Select, see the disclosure here.

In any case in which a client requests assistance with the purchase of an annuity, the work is performed by Segal Advisors, Inc. (dba Segal Rogerscasey). For information regarding compensation paid to Segal Rogerscasey, see the disclosure here.

Gifts, gratuities, and non-monetary compensation

From time to time, third-party vendors may provide Sibson (and its affiliates) with non-monetary gifts and gratuities, such as promotional items (i.e., coffee mugs, calendars, or gift baskets), and access to certain industry related conferences and meals associated with those conferences (collectively, “gifts”).  Sibson has implemented policies and procedures intended to identify, quantify, and track gifts received by it and its affiliates.  Pursuant to rules established by the Department of Labor, Segal has implemented a policy for allocating the value of a gift among multiple clients, where applicable.  Under such policy, where potentially reportable compensation is received by Sibson (including its affiliates) in connection with several clients, Sibson will first divide the fair market value of such gift by the number of individual clients to which such gift is reasonably applicable and then allocate the result to each affected client to determine if it exceeds the de minimis threshold under the Section 408(b)(2) regulation and related and associated guidance.  Based on historic trends, Sibson does not expect to receive gifts in excess of the de minimis threshold under the regulations with respect to your Account.

Compensation for Termination of Your Account

We do not receive a termination fee or apply a penalty when your agreement with Sibson is terminated.