Headquartered in Shelton, Connect- icut, Pitney Bowes Inc. (PB) is a global provider of shipping and
mailing products, location intelligence,
and customer-engagement and customer-information-management solutions.
Like many of the nation’s publically
traded large-cap corporations, Pitney
Bowes has a long history, in this case
stretching back to 1902, when Arthur
Pitney patented a “double-locking hand-cranked postage-stamping machine” and
worked with his attorney to found Pitney
Postal Machine Co.
Times have changed, but the current
leadership says it is proud to carry on a
rich tradition of innovation, into the
digital age. According to Nate Nevas,
director of global financial benefits and administration, the
firm is pushing hard to make sure the business success of
recent decades can be sustained, “and we know this will require
a healthy, happy and financially educated work force.”
Early Move Toward Advanced Plan Design
It is clear that Pitney Bowes is committing more than just lip
service to the ideal of “serving the employee,” commonly cited
by large and small businesses alike. The 401(k) plan in many
ways is an archetypical streamlined and progressive defined
contribution (DC) plan.
In 2004, the firm adopted automatic enrollment—years
prior to the implementation of the Pension Protection Act of
2006 (PPA). More recently, Nevas says, the company doubled
down and enhanced the auto-enrollment feature by implementing an increased default deferral rate of 6%, tying this to
Corporate 401(k) >$1B
Pitney Bowes Inc.
an automatic deferral escalation feature.
In addition to the company match of
100% on deferrals up to 4% of salary, PB
provides a year-end true-up contribution
and a 2% contribution to all employees
after one year of service, regardless of their
elective deferrals into the 401(k) plan.
“The message to employees is that it
is crucial to save early and save as much
as possible,” Nevas notes.
With this, Pitney Bowes developed a
website, pbprojectliving.com, to communicate about all benefits—retirement and
health care—to current and prospective
employees and their families. Nevas is
especially proud that the website is publically viewable and uses Google Translate,
Beyond these features, Pitney Bowes offers Ernst & Young
financial planning services at no cost to all employees to help
with their one-on-one financial planning needs. “Our overall
wellness program views emotional, physical and financial wellness as interconnected pieces that impact employees and their
productivity if not properly maintained,” Nevas says.
Serving a Complex Employee Base
Some of the company’s success is thanks to the partnership the
PB retirement plan has formed with its administrator, T. Rowe
Price, particularly with Do Kim, a vice president and senior relationship manager. Alongside Kim and Nevas work a number of
other benefits professionals, including Pitney Bowes employees
Andrew Gold, vice president, total rewards and human resources
TOTAL PLAN ASSETS/PARTICIPANTS
$1.342 billion/15,370 total
( 9,594 active)
AVERAGE DEFERRAL RATE
DEFAULT DEFERRAL RATE
100% on first 4%, plus 2% core