Daphne Weitzel is chief operations officer at Alliance Benefit Group, and Linda Byrne Blossom is vice president of investment services at Alliance Benefit Group.

Weitzel is a certified plan consultant with more than 16 years of experience with administration of qualified and non-qualified retirement plans. As COO, she manages the day-to-day operations of the company's multiple service areas and provides marketing support and consulting services to clients and intermediary relationships.

Blossom has more than 25 years of experience in the design and administration of qualified plans. She's particularly experienced in consulting on the development of 401(k) plans and effective employee communications for 401 (k) retirement savings plans. She leads the firm on specialized services for 401 (k) plans, with responsive reporting and flexible investment options. Blossom is a member of the ABG Investment Advisory Team.

Weitzel and her husband, Terry, have one daughter and live in Peoria. Blossom and her husband, John, have two children and live in Peoria.

Tell about your background, schools attended, family, etc.

Weitzel: I grew up in Farmington. My father was a partner in Melgreen Furniture, where I learned a great deal about customer service and pride in ownership. I attended Northern Illinois University and majored in journalism. Upon graduation, I moved to Tucson, Ariz., and married my high school sweetheart, Terry. We currently reside in Peoria with our daughter, Frannie.

Blossom: I was born in Pontiac, and we lived in rural Saunemin, where my father farmed until I was 10 years old. He decided to go into the ministry, and we moved to Deer Creek and then to Roanoke, where I graduated high school. I attended Illinois State University and graduated with a degree in music education in 1973 and moved to Franklin Park. I worked for Motorola, typesetting text for the various owners' manuals, and also for the Franklin Park Christian Church as choir director.

In 1974, I moved back to Roanoke and interviewed at Small, Parker, Ackerman and Blossom, Inc. I've worked at the firm ever since.

In 2002, I attended the Center for Fiduciary Studies in Pittsburgh and received the designation of Accredited Investment Fiduciary Auditor™ (AIFA®). This was an intensive short course used to enhance my understanding of an investment advisor's fiduciary role and applying a prudent investment process to the services our firm offers as a Registered Investment Advisor (RIA).

Give the history of Alliance Benefit Group, Inc., formerly known as Small Parker & Blossom, Inc.

Blossom: The firm was originally founded in the 1960s as Small & Parker. The firm focused on retirement plans, with heavy emphasis on life insurance and life insurance products within those plans. Owen Ackerman joined Mr. Small and Mr. Parker very shortly, followed by John D. Blossom, Jr. The firm's name became Small, Parker, Ackerman, Blossom, Inc. When I was hired in 1974, the firm had grown from four to nine employees. Ackerman decided to split off to focus more on the individual investment market. At that time, the name changed to Small Parker & Blossom, Inc. In 1996, the firm was bought by Citizens Trust. By then, we had grown to be about 38 employees; the bank's name changed to Civitas along the way. In the latter half of 1999, Fifth Third Bank bought Civitas. Fifth Third already had a third party administration/ recordkeeping division. Rather than letting ourselves be sold off, Small Parker & Blossom, Inc. bought the company back through an ESOP in October 1999.

We formed our own board of directors and held our first board meeting in June 2000. Along the national front, in 1999, John, along with several other independent third party administrators, founded a national organization called Alliance Benefit Group. It's grown to 12 offices in various geographic locations. John continues to be president of that organization. We operated as Small Parker & Blossom, Inc., Illinois' regional service office for Alliance Benefit Group. In January 2002, the firm finally changed its name to be Alliance Benefit Group of Illinois, Inc.

How has the company grown to include consulting services? What services do you provide?

Blossom: In the early years, the focus was on defined benefit, money purchase, and profit sharing plans. As the firm began to grow and the two senior partners prepared for retirement, more of the firm's responsibilities were turned over to Ackerman and Blossom. New, more diverse employee benefits were added to services already provided. The main focus remained on retirement benefits, evolving with the industry into the defined contribution arena of thrift and savings plans and, eventually, 401(k) plans. Along the way, the firm developed a major line of business in health insurance and Section 125 plans.

Investments within retirement plans evolved from life insurance to guaranteed/fixed income accounts to variable annuity-type products to separate accounts to mutual funds. Recordkeeping evolved from annual to quarterly to daily and from downloads of bulk data to direct links of individual data and the ability to trade direct in-house.

Investment services evolved also. As the 401(k) industry moved towards the mutual fund arena, allowing employees to choose their own blend of investments from a selection of funds, employer/fiduciaries have asked for more guidance in choosing funds from which the employees choose. New rules were developed to help protect employers within their fiduciary roles. Investment advice can't be legally given if you're not a registered investment advisor (RIA). Becoming an RIA was a big responsibility that we resisted for a number of years, providing lots of information to educate but steering clear of actual advice.

However, as clients kept asking for such assistance, as technology continued to change, and as mutual funds began sharing revenue, the time came for our firm to become an RIA. This has allowed us to meet our clients' needs and provides a revenue stream that keeps clients' out-of-pocket costs down.

We have a block of corporate clients with whom we work directly. However, since we don't have an official sales force, we've developed great working relationships with intermediaries such as other individual RIAs and registered representatives. We support their role with corporate clients providing administration, recordkeeping, and compliance services. We can also assist in employee communications materials and meetings as needed. Our major geographic area of operation is a diamond surrounding Peoria: Milwaukee, Indianapolis, St. Louis, and Des Moines.

In the late 1980s and early 1990s, we got out of the traditional health insurance line of business. Recently, however, we've contracted with a sales person who can market a new consumer-driven health care benefit plan. We continue to administer Section 125 plans. We also provide payroll services to our clients who want a seamless link between payroll and the often cumbersome task of providing data required for IRS Form 5500 and required compliance testing.

Tell what each of your responsibilities are with Alliance Benefit Group.

Weitzel: I'm the chief operations officer. I often refer to myself as the office cheerleader because motivation is key in our daily routine. Our office consists of multiple service units, each with a specific role in the company. With a staff of 60 full-time employees, it's my job to make things happen and keep us focused on serving our clients' needs. I'm fortunate to have a very competent management team that shares common goals to maintain quality while always looking for improvement in products and services.

Blossom: My title is vice president-investment services. In a nutshell, that encompasses overseeing compliance requirements of the firm's being an RIA and overseeing the procedures for and the tracking of the annual investment policy review (IPR) process for clients with whom we have an investment consulting agreement (ICA). In addition, I have a few clients with whom I meet personally to go over their annual IPR, a few clients for whom I hold annual or semi-annual employee education meetings, and fill in, as I can, when our enroller can't be everywhere at once. Fairly frequently, I also interface as needed between John and other associates to follow through in the implementation or conversion of a plan after John has acquired a new plan or has met with an existing client for their annual IPR. I'm also corporate secretary, a member of the board of directors of our own firm, and serve as secretary and recording secretary of the national organization.

How did each of you become interested in pursuing a career in this industry?

Weitzel: I really had no intention in pursuing a career in the pension field. Terry and I relocated from Tucson to Peoria, where I had been working as a teller for a federal credit union. In searching for a job, I applied for a trust accounting position with Small Parker & Blossom, Inc., because I had just completed an accounting course. I was hired to reconcile assets and prepare form 5500 reports. Within six months, I was promoted to a client service representative, and the rest is history. I've been here 17 years and worked my way up the ladder. I understand the importance of each position and still jump in today wherever needed. I truly can say I love what I do, and our future growth potential is unlimited.

Blossom: The interest developed well after I began working here. My original position was strictly an entry-level, clerical position. I was hired to do nothing more than prepare 1099 Forms on an IBM Magcard machine. I quickly moved to being an overall secretary, then administrative assistant. I began attending staff conferences and then industry conferences, building confidence and value along the way. During some of the conferences in the early 1980s, I began hearing and learning about new legislation for a pre-tax savings plan. I began bringing ideas back to the firm. There was some resistance about moving into the arena, but being the entrepreneur and innovator he is, John began to see the light. He gives me credit for our being in the 401(k) world. I think he would've gotten there, but it's fun to think that, perhaps, I got him thinking about it sooner than he might have otherwise.

I've always liked math, and I've developed very good communication skills along the way. I enjoy learning and applying new things and jump in with both feet if my intuition tells me something's worth checking out. This has made for many role changes and transitions for me-some good, some not so good-but it's never been boring.

How has the administration and design of employee benefits plans changed in the last decade?

Weitzel: I don't think a single year has gone by in the last decade without Congress making some change that's affected administration or design of employee benefit plans. Looking back over 10 years, I would say I see cycles. Defined benefit plans were quite popular 10 years ago and provided a guaranteed stream of payments to an individual upon retirement. However, with volatility in the market, many clients chose to reduce or terminate this type of plan benefit and opted instead for a defined contribution model. In most cases, this was accomplished by establishing a 401(k) plan. However, the 401(k) plan provided only limited savings for many highly compensated employees who would need retirement income too. As rules governing these plans changed, we've seen many clients adopt a safe-harbor 401(k) plan. The IRS safe-harbor provided a meaningful employer benefit to employees and, in turn, gave the highly paid employees an opportunity to have greater deferral capability.

Another focus of plan design has been new comparability plans. These defined contribution plans allow for groups or tiers of employees to benefit at different levels, based on the ultimate projected retirement income of the group. Most recently, interest has sparked again in the defined benefit arena. Many baby boomers are looking at the account balances they managed to save and now realize it won't provide a comfortable retirement after all.

Is there anything new in the employee benefit/retirement plan arena?

Blossom: Mainly, there's a far greater focus on fiduciary responsibility and how to help our clients meet those responsibilities. That's why our move to becoming an RIA was so timely in our firm's development. The eight-step fiduciary due diligence process, established within the written investment policy statement we provide our clients, plays a significant role in establishing a prudent approach to investment selection for their plan and its participants. Being prudent or acting prudently in this arena is a requirement-as vague as that term currently is. In addition, effective communications to the rank-and-file participants, who often have no experience in the world of investing outside of their retirement plans, is an important focus.

Alliance Benefit Group is employee owned. Explain the ESOP. What do employees need to be aware of in regard to ESOPs?

Weitzel: Alliance Benefit Group became employee owned in November 1999 during a transition of ownership from Civitas Bank. Internally, we pondered what may happen next. How do we stabilize what we've built and insure future growth? In our case, we have a great history of retaining and even rehiring good employees. Many of us have put years of dedicated service into this organization and had openly discussed our need for a secure future-if there's such a thing. Working in the retirement field, we've administered many ESOP plans for strong companies in the Midwest. Our overall experience and exposure has been very positive. So the decision was made to allow all employees an option to buy stock and an additional amount of stock was set aside with the establishment of a loan to Alliance Benefit Group. As the loan has paid off, this stock has been released, and our final payment will occur in 2004.

By establishing the ESOP, we're extending capital ownership to each individual within our company. We were careful in establishing the ESOP to retain employee 401(k) deferrals separately. We can't guarantee where stock values will go, so personal deferred savings was considered carefully. We didn't want stock ownership to become the only retirement accumulation an employee may rely on, but rather an additional resource.

It isn't easy to make 60 employees all comfortable with ownership. We hold quarterly employee meetings to keep each associate informed of our financial standing and give them an opportunity to ask questions. We engage an independent firm to appraise our value annually and share those results. We established a board, including outside directors, to insure a well-rounded approach to our business plan and a level of comfort for some. What's essential is that communication remain open between all associates. If we want associates to act like owners and believe in our future, then they must be treated accordingly.

How would you advise a single woman to prepare for retirement? How concerned are today's employees with retirement plans?

Blossom: My advice about preparing for retirement isn't gender specific because we all must take responsibility for our future comforts. Therefore, my advice is simply to save as much as your budget will allow as soon as you're eligible to participate-assuming a 401(k) plan is available. Also, employees must be active investors-not just savers. They should develop a diversified allocation process or strategy with which they're comfortable, and then stick to it. Leave emotions out of it as much as possible.

Beyond that, participants must not let inertia take over. At every opportunity, they must increase their contribution amount-in annual increments or as pay increases occur-and, at least once per year, look at their asset allocation.

The future level of Social Security benefits has been very much a concern to retiring workers. Now that 401(k) savings plans have been around a while, our industry is looking at statistics and projections. So many participants begin by putting in 3 to 5 percent of their pay and think that they're set for life. This isn't enough. Unless workers save at increasing levels, they aren't going to have assets accumulated to support themselves comfortably or for the length of time they live beyond their retirement date.

People take retirement seriously, looking forward to it for years. However, I'm not sure that they take planning for it as seriously. There are lots of projection worksheets and computerized calculators that can easily help participants get a better grasp on how much to set aside for retirement.

Linda, tell us about your involvement with the Ephphetha Camerata Chorale. How many in the community are involved, and what are its future plans?

Blossom: I met Mary Ann Fahey about 15 years ago through my participation in a Cursillo music event. She had recently formed an ecumenical choir with co-director Reese Nelson. They were planning a trip to Europe the following year; she asked me if I was interested, and I said yes. John came along as one of the spiritual directors, since he's an ordained Episcopal priest, and there have been many wonderful trips and adventures ever since. At that time, we were known as Ephphetha Choir and were about 50 voices.

Over the years, many changes occurred. The music is very much the same, but the structure is different. We changed our name to Ephphetha Camerata Chorale. The term "camerata" means "room" and, of course, "chorale" is "singers." Together, "room singers" gives you the description of a smaller (16 to 20 voices) singing group. We've developed a nice ensemble sound and have a marvelous repertoire of music. During our three trips to Europe, we've visited Peoria's German Sister City of Friedrichshaufen twice and, two years ago, our Irish Sister City of Clonmel.

In 2006, we're considering a return to Rome as the featured part of a new itinerary.

Linda, you and your husband recently co-chaired a successful Salvation Army Tree of Lights Campaign. What was the key to your success?

Blossom: That was a tremendous experience. When the goals are first announced, it's fairly intimidating, but The Salvation Army staff, Tree of Lights Committee, and The Salvation Army Board all work so hard together making the burden very light. John and I attribute the success to the effectiveness of The Salvation Army's Mission and the generosity of the people of Peoria.

Daphne, you often consult on issues important to retirement plan sponsors. What are some of your topics?

Weitzel: In addition to my role as COO, I often travel to support intermediary relationships with on-site consulting for new or existing clients. The main topics generally are plan types, design for a specific demographic group, and legislative updates. Perhaps a merger or acquisition is going to take place and someone needs to help define the role for the retirement plan. I've been asked to speak on topics such as ESOPs or assist with training on topics such as 5500s or current trends; however, I haven't done much speaking of this type in recent years.

Statistics have shown more males than females enter the financial field, particularly the actuarial field. Do you think that's still true?

Weitzel: If the statistic is true, you wouldn't know it from our office. We currently employ 60 full-time employees, and two-thirds are female. In the actuarial field, our enrolled actuary is a male, but our other three employees with an actuarial science degree are female. However, I don't find the pension industry is strictly a financial field. Many talented employees come from liberal arts or English/journalism backgrounds. While math skills certainly play a role in recordkeeping functions, communication is the key to any well-maintained relationship. I wouldn't limit any consideration for employment by the area of study. Take me for example; I may have had an aptitude for math, but journalism was my focus in college. What's important is having the drive to make a difference and being willing to take what you've learned and apply it to a given situation.

What's the most common misperceptions people have when it comes to planning for retirement?

Blossom: They think they're setting aside enough money now to build their future "nest egg" and, somehow, it will just take care of itself. TPW