PLANSPONSOR - April/May 2018 - 36

Ever since hiring T. Rowe Price as
plan recordkeeper in 2000, the Harris
Teeter administration team has had
biweekly calls with that firm's administration
team and the stores' ERISA [Employee
Retirement Income Security Act] counsel
" to discuss issues and opportunities and
to maintain great communication " with
those other parties, Yacenda says.
" We maintain a call log and track open
and closed items. This process has been so
successful, we have adopted it for keeping
track of open items with other vendors, " he
continues. " We've been invited to beta test
or be an early adopter of a number of products
and features for T. Rowe Price, and we
embrace anything that makes administration
and execution easier for our participants,
more effective and more accurate.
We also meet face to face with the T. Rowe
Price administration team annually to
discuss plans for the coming year. "
'Required Viewing'
To ensure that some participants were
not subsidizing the recordkeeping fee for
others, the company adopted a procedure
of giving a quarterly credit to all participants
based on the amount T. Rowe Price
received for administrative services in
connection with the plan's investment
options. Before this administration fee
credit, the in-effect subsidization was
allowing an artificially low recordkeeping
fee that did not reflect the true cost of
those services for each participant, says
Kimberly Johnson, T. Rowe Price relationship
manager.
A particular challenge for the sponsor
was communicating with its widespread
retail work force to encourage it to save,
Yacenda says. The company, therefore,
implemented several communication
programs, ranging from break-room
posters on plan topics, such as Roth contributions
and investments, to lunch-andlearn
seminars at the corporate office and
in other store locations, although these did
not receive the level of attendance necessary
to maintain that program, he says.
To increase participant engagement,
36 PLANSPONSOR.com April-May 2018
last year the company partnered with T.
Rowe Price to create a custom, mandatory
educational video on plan basics to help
employees understand the retirement
plan and its features. Covered were topics
such as the power of compound interest;
contribution limitations; the differences
between pre-tax and Roth contributions;
ARC rates; and benchmarking.
" The video was required viewing, "
Yacenda says, adding that the company
plans to repeat the requirement every two
years. " This is also part of new associates'
on-boarding training, " he says.
The company also sponsors an associate
portal that contains a single-sign-on
feature linking to participants' T. Rowe
Price accounts to simplify accessing their
balance and making changes. Johnson
says, " These efforts are in addition to the
planning features available to participants
on their plan website, and the 'smart
videos' created by T. Rowe Price that are
personalized for individual participants.
These smart videos have resulted in
action being taken by 25% of the participants
who viewed them. "
" Our participation rate is 26%
higher than for the retail industry and 6%
higher than T. Rowe Price's book of business, "
notes Yacenda, adding that Harris
Teeter also utilizes the recordkeeper's
Plan Meter, which estimates replacement
income based solely on plan assets. " T.
Rowe Price recommends that 50% of preretirement
income be replaced by 401(k)
savings, " he says.
Like most retirement plan participants,
those at Harris Teeter save less
than financial experts recommend.
According to Johnson, " We've taken action
to try to improve that. The educational
video provides age-based recommended
savings targets for our associates, and the
median pre-retirement income replacement
percentage was about 18% prior to
implementing the opt-out auto[matic]
increase. By the time auto-increase is fully
phased in, we project that the replacement
percentage will almost double, to about
33%, " she says.
As Yacenda puts it, " We feel there is
a premium on our people, and we hope,
by the benefits we offer, they recognize
how much we value them. If approached
by a competitor, we want them to understand
their benefits so they can make an
informed decision. " -Judy Faust Hartnett
Corporate 401(k) >$800mm Finalists
Humana Inc. Louisville, Kentucky
Humana Inc., which sells medical and related insurance, plus promotes workplace health
and well-being, has evolved its benefit offerings to support its associates and its own wellness
mission. That support includes an effort to reduce associates' financial stress, in part by
their engaging with the 401(k) plan. To motivate engagement, Humana began a program
of financial guidance activities rewarded with incentives. In the first six months, incentives
helped drive almost 13,000 associates to engage with the 401(k) plan's interactive retirement
modeling tool, and, last year, over 20,000 engaged with financial education webcasts.
Kimley-Horn and Associates, Inc. Raleigh, North Carolina
A fast-growing planning, design, engineering and consulting company with over 80 offices
nationwide, Kimley-Horn prides itself on hiring great, hardworking employees, on serving
great clients and having a successful business. All benefits-eligible workers are automatically
enrolled in the retirement plan at a 4% contribution level, which makes them entitled
to a 200% match. The retirement plan is an integral part of company culture and plays a
critical role in the firm's ability to attract and retain good employees.
Read the full finalist profiles on plansponsor.com/PSOY2018.

http://www.plansponsor.com/PSOY2018 http://www.PLANSPONSOR.com

PLANSPONSOR - April/May 2018

Table of Contents for the Digital Edition of PLANSPONSOR - April/May 2018