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(HR) business partner, global innovation, and Amy Goldberg, vice president,
global treasury planning.
One recent achievement came out
of the long-term commitment the plan
has made to auto-enroll even those who
are lower on the pay scale. As the lesser-paid employees have directed more into
the retirement plan, aided by the 4%
match and the 2% automatic contribution, this has allowed highly compensated employees (HCEs) to gain more
control and flexibility in their own
“Effective beginning January 1,
2016, the HCE contribution limits were
raised from 10% pre-tax/Roth and 3%
after-tax to 12% and 7%, respectively, a
direct result of improved participation
and savings rates of the rank and file
through auto-enrollment and auto-esca-
lation,” Nevas observes. “This is one of
the real success stories to come out of our
responsive communication campaigns.”
A key challenge Nevas and his colleagues
faced when installing the features that
have contributed to the plan’s success is
that PB is structured around different
business units, each with its own objectives and approaches.
In 2014, when the latest round of
plan design changes were being considered, “[the] retirement plan committee
had to illustrate the financial impact of
everything we wanted to do and then
demonstrate the overall benefits of the
new plan design to each of its business
units as stakeholders,” Nevas explains.
“This was a big challenge, especially as
the company’s overall business strategy
was changing, and we were in the midst
of a major corporate action, spinning off
a business unit,” he says.
Armed with robust plan data and the backup analysis from
T. Rowe Price, each of the business units was won over in turn.
“Once the business units recognized the importance of retirement readiness and their responsibility of ensuring participants were saving appropriately, they were fully on board and
supported the changes,” Nevas concludes. “Today we have a fully
robust and generous retirement package that serves to recruit,
retain and reward top talent.” —John Manganaro
Orange, Connecticut – U.S. headquarters
Energy and utility company AVANGRID has been striving to
replace its pension plan with equally generous defined contribution plans. Its new global owner supports the effort and is also
committed to getting younger employees into the plan quickly via
aggressive automatic enrollment.
After experiencing bankruptcy and a merger, Delta still has a retirement plan that successfully generates significant savings for participants—providing a 9% match on 6% of salary, plus profit sharing.
Targeted delivery of financial wellness and investment information
is key to reaching its scattered, remote work force.
Read the full finalist profiles on plansponsor.com/PSOY2017.
pieces that impact
if not properly
partnership with T. Rowe Price, which has been developing since
2004. We have seen strong benefits up and down the pay scale.”
Kim insists that the PB executives are modest about their
outstanding retirement program, stressing that “Pitney Bowes
has taken the point of view of being very open to ideas and
suggestions that we have brought, … and they bring to the table
in a frank way their own objectives and challenges. They bring
us new situations and ideas that push our business forward, too.”
Case in point, the Pitney Bowes retirement plan committee
is proud of the retirement income manager tool recently imple-
mented to help participants visualize their post-retirement
income picture in a clear and compelling way. Working with
Kim, the PB benefits team was among the first of T. Rowe Price
Retirement Plan Services’ clients to adopt the tool.
Kim further observes that Nevas and the PB retirement
plan team have pushed T. Rowe Price to consider expanding
its capabilities in terms of student loan repayment assistance
programs. “They want to know: What can T. Rowe do here?
They are constantly pushing us to come up with the latest and
Kim commends Pitney Bowes for crafting a plan that serves
highly compensated and lower-compensation employees fairly and
generously. “The plan is so clearly communicated that it is actu-
ally used as a recruiting tool,” he observes. “Through the stand-
alone website, even prospective employees can understand what
benefit offerings are available at the company. We also see this as
unique because the amount of data the firm can source from this
is just tremendous. It offers us a chance to do highly targeted and