Case Study: Construction

Optimizing participant education and plan design to improve participant outcomes

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The Challenge

The plan’s participation rate was just 70%, and the participant education program needed help. There was no coordinated communication between the ESOP and the 401(k) plan, and participants didn’t understand the advantages of the plans.

The Stonebridge Financial Group Solution

The Stonebridge Financial Group strategy included adding automatic enrollment into the 401(k) plan at 3% with automatic escalation up to 6%, as well as implementing a coordinated education plan for both the ESOP and the 401(k). The strategy was designed to create positive outcomes for plan participants by driving increased deferrals.

Group meetings were held multiple times throughout the year at each of the company’s five main locations. Employees at remote locations also received guidance through webinars created by Stonebridge Financial Group.

One-on-one meetings were also made available to participants. This isn’t something the company was previously able to offer, so having Stonebridge Financial Group provide this service made a huge impact. Allowing participants to sit down with retirement experts boosted their confidence in their financial health.

Targeted communications to participants older than 50 were also developed. In addition to helping these participants achieve their retirement goals, helping participants retire on time will also save the company money in the long term by reducing the higher costs associated with employees age 65 and older.

To help soon-to-be-retirees prepare for the transition, Stonebridge Financial Group met with participants who were within five years of retirement. The participants’ spouses were included in the meetings to help couples make these important decisions together.

CLIENT PROFILE:

INDUSTRY TYPE: Construction

GEOGRAPHY: Pennsylvania, Ohio, Maryland

NUMBER OF EMPLOYEES: 420

PLAN TYPE: 401(k) / ESOP

“Allowing participants to sit down with retirement experts boosted their confidence in their financial health.”

"50-75 employees per year attended a one-on-one meeting and received a personalized action plan."

Results

  • Participation increased from 70% to 85%
  • 35% more employees are on track to retire successfully
  • Stonebridge Financial Group held 10 meetings per year at various locations
  • 75% of participants attended the meetings
  • 10% of participants watched a webinar
  • 50-75 employees per year attended a one-on-one meeting and received a personalized action plan. Action plans included steps to better participant outcomes, including:
    • Increasing deferral contribution
    • Diversifying Investments
    • Taking advantage of Roth contributions
    • Electing Do-it-for-me Investments
    • Paying down high interest debt

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