Case Study: Agricultural

Optimizing plan design to motivate behavior and improve participant outcomes

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The Challenge

A chicken farm offered employees a generous profit sharing plan, contributing 15% annually. Yet, the employer wanted to improve the retirement benefit for employees – while allowing more flexibility with profit sharing contributions in difficult years.

The Solution

Took a holistic approach

centered on plan design changes aligned with the employer’s objectives.

Identified providers

A new recordkeeper and TPA were hired to encourage participation from employees and complement the profit sharing plan.

Newly designed plan

was a Safe Harbor with 6% up to 100% employer match, a New Comparability Profit Share allocation and Roth deferral option to help participant outcomes.

Coordinated

Conducted individual retirement projections and helped recommend an action plan to help employees reach their retirement goals.

Education plan

Due to the shift from a purely employer-supported retirement benefit, fiduciary training and employee awareness and education was a focus.

Improved engagement

  • Employees received one-on-one meetings along with spouses to educate them in their retirement benefit.
  • Another round of one-on-one meetings was conducted to further engage employees and their families.

CLIENT PROFILE:

INDUSTRY TYPE: Agricultural

GEOGRAPHY: Central Pennsylvania

NUMBER OF EMPLOYEES: 37

PLAN TYPE: Safe Harbor 401(k) and Profit Sharing Plan

“Conducted individual retirement projections and helped recommend an action plan to help employees reach their retirement goals.”

Results

  • 100% Attended a one-on-one meeting and received a personalized action plan.
  • 100% acted as a result of the one-on-one meetings.
  • 100% of employees are participating in the plan at a 6% deferral rate, which increased the participant annual savings and contribution rate from 15% to 21%.

Action plans included steps to better participant outcomes, including:

  • Diversifying investments
  • Retirement income projections
  • Paying down high interest debt and college debt
  • Social security maximization
  • Understanding Medicare options
  • Household budgeting best practices
  • Education planning for children

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