PLANSPONSOR - April/May 2019 - 24

2019
General Health System
Nonprofit DC Plan <$250mm
Plan at a Glance
TOTAL PLAN ASSETS/PARTICIPANTS: $143.5 million/2,480
PARTICIPATION RATE: 93%
AVERAGE DEFERRAL RATE: 6.58%
DEFAULT DEFERRAL RATE: 4%
DEFAULT INVESTMENT: JPMorgan SmartRetirement Funds
AUTOMATIC ENROLLMENT/ESCALATION: Yes/Yes
EMPLOYER CONTRIBUTION: 50% on up to 6%
They may carry the loan no longer than two pay periods. PayActiv
also provides an online portal and a mobile app with education
about managing money.
" We started educating employees about managing their
cash flow better and were surprised by how quickly the lesson
spread, " Johnson says. Only about 15% of GHS' nearly 4,000
employees utilize PayActiv.
Because student debt interferes with saving, in 2017, GHS
Executive Vice President and Chief Financial Officer Kendall Johnson
K
endall Johnson, executive vice president and chief financial
officer (CFO) of General Health System (GHS) in Baton
Rouge, Louisiana, tells employees that their financial well-being is
his top priority. " We've been working very hard at moving forward
employees' financial wellness, " he says by way of example.
The firm's adviser, Michael C. Perry, president of Retirement
Advisors LLC, concurs. " General Health System has a unique
company culture that tries to do all it can to help employees,
including [promote] physical fitness and financial wellness. "
The endeavor " has been a multi-year journey, " Johnson says.
To start it, GHS became one of the first clients of PayActiv, a
firm that allows employees to get an advance on wages earned as
an alternative to predatory payday lending firms. Johnson says
employees are allowed to take up to 50% of earned wages, to a
maximum of $500 per pay period, for a $5 fee with no interest.
24 PLANSPONSOR.com April - May 2019
Photo by James Rajotte
partnered with Vault, a student loan education platform, to help
employees and their children navigate refinancing, early pay-off,
consolidation and other options for their student loans.
The health system additionally started a program that
provides incentives for an employee to stay with the organization
for one year: It will match what the employee pays toward
student loans up to a certain dollar amount, depending on his
job title with GHS. " We found that employee retention has been
better due to the student loan repayment program than it was
from offering sign-on bonuses, " Johnson says.
Further, GHS is considering adding an emergency savings
benefit to reduce 401(k) plan loan and hardship withdrawals.
A Strong Support Network
Receiving steady support is also important for employees'
financial wellness. To that end, GHS' 401(k) plan recordkeeper,
Prudential, is active at the annual benefits fair and is on-site often
to answer employee questions and discuss retirement readiness.
Perry, too, is involved at the benefits fairs and has one-onone
sessions with employees.
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PLANSPONSOR - April/May 2019

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