PLANSPONSOR - April/May 2018 - 34

Corporate 401(k) >$800mm
Harris Teeter, LLC
H
arris Teeter, LLC, a supermarket
chain headquartered in Matthews,
North Carolina, is in a competitive
marketplace, facing not only changing
technology and consumer demands but
also heightened competition on prices
from giants such as Amazon.
" A tremendous amount of competition
has entered the grocery industry, and
Harris Teeter has responded by investing
in the consumer shopping experience
and by reducing prices, " says Douglas
Yacenda, director of retirement plans for
the company. " Because of that, there's a
premium on high-performing experienced
associates such as those that work
for Harris Teeter. "
Despite being acquired by mega
retailer The Kroger Co. in 2014 and experiencing
significant growth, Harris Teeter
has maintained its vision for offering
great customer service and high-quality
products; supporting local communities;
and helping its associates attain retirement
readiness.
Founded in 1960 by North Carolina
grocers W.T. Harris and Willis Teeter,
Harris Teeter operates over 230 retail
grocery stores and 14 fuel centers in seven
states and the District of Columbia. Each
of its stores, in the community it serves, is
known for supporting local schools, youth
sports associations and other nonprofit
organizations.
Its commitment to its associates is
exemplified by the 401(k) plan. Thanks
to the plan design enhancements the
Harris Teeter team has implemented over
the last decade, the plan is competitive in
the retail space and drives strong, positive
outcomes for participants.
" Since we switched from an opt-in
auto[matic] increase to opt-out autoincrease
in August 2016, to raise the
average deferral rate in the plan, the
average salary deferral has increased by
21%, " Yacenda notes.
Embracing New Ideas
Harris Teeter helps participants save by
contributing 50% on deferrals up to 4%
of compensation, plus a noncontributory
annual retirement contribution (ARC) of
2% through 5% of eligible plan compensation.
There are four age/service-point
brackets that determine the percent an
eligible participant's account will receive.
In June 2016, the company reduced
the number of loans participants could
take and implemented a $500 minimum
hardship distribution to discourage unnecessary
requests. Last year, it replaced its
target-date funds (TDFs) with retirement
trusts to lower costs. And, at participants'
request, it modified the plan so those
taking their company pension as a lump
sum could roll it into the 401(k).
The company encourages participants
34 PLANSPONSOR.com April-May 2018 Art by Chris Buzelli
TOTAL PLAN ASSETS/PARTICIPANTS:
$864.9 million/30,442
PARTICIPATION RATE: 83.8%
AVERAGE DEFERRAL RATE: 6.3%
DEFAULT DEFERRAL RATE: 4%
DEFAULT INVESTMENT: Age-appropriate
T. Rowe Price Retirement Trusts
AUTOMATIC ENROLLMENT: Yes
AUTOMATIC ESCALATION: Yes
EMPLOYER CONTRIBUTION: 50% on 4%,
plus 2% - 5% contribution based on
age/service points
to be properly diversified in their retirement
assets and implemented a 20%
restriction on how much employer stock
participants could own in their account.
" We're in the process of developing an
annual communication alerting participants
to the need for investment diversification,
and we plan to implement this
annual message this year, " Yacenda says.
" We constantly look for ways to improve
the plan for our participants and increase
their engagement. We quickly embrace
new ideas that make sense for our participants. "
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