The challenge
Our client was a NASCAR team with a workforce that brought together designers, builders, and a pit crew. The team was seeing low retirement plan participation and limited employee engagement.
The plan started with 2% automatic enrollment, 1% automatic annual contribution increases up to 10%, and an employer match of $0.50 for every $1 contributed, up to 4% of pay. The client wanted to improve plan health outcomes by increasing participation, average deferral rates, and investment diversification.
The solution
Marsh Agency served as the client’s investment advisor. We developed a two-part approach focused on plan design updates and increasing employee education.
Plan design updates included:
- Streamlining the investment menu
- Adding a Roth feature and an in-plan lifetime income option
- Increasing automatic enrollment to 4%
- Refining automatic contribution increases to 2% annually, up to 10%
- Redesigning the employer match to $0.33 for every $1 contributed, up to 9% of pay
Employee education efforts included:
- Conducting an employee survey to identify interests and opportunities
- Leading group and one-on-one education sessions
- Encouraging employees to meet with financial advisors
- Distributing participant mailers
- Helping employees estimate their retirement income needs
The result
Over time, these initiatives were associated with the following improvements:
- Participation index increased by 20%
- Diversification index increased by 31%
- Contribution index increased by 70%
- Plan health index increased by 158%
The client also received the 2018 Plan Sponsor of the Year award in the $50 million to $100 million Corporate 401(k) category. The award recognizes retirement plan sponsors that show a commitment to participants’ financial well-being and retirement readiness.
Results may vary by plan and are not guaranteed. Product features and availability are subject to plan terms and issuer approval.
