PLANSPONSOR - April/May 2019 - 40

Kimley-Horn and Associates, Inc.
Corporate 401(k) >$500mm
Plan at a Glance
TOTAL PLAN ASSETS/PARTICIPANTS: $835 million/4,270
PARTICIPATION RATE: 98.1%
AVERAGE DEFERRAL RATE: 7.4%
DEFAULT DEFERRAL RATE: 4%
DEFAULT INVESTMENT: T. Rowe Price Target Date Trust
AUTOMATIC ENROLLMENT/ESCALATION: Yes/No
EMPLOYER CONTRIBUTION: 200% on 4%, plus profit-sharing
contribution, typically of 10%
philosophy as an employer. " We see it as a high level of responsibility
we have, " he says. " We take care of our people, not just for
their employment, but for the duration of their life. They've earned
the right to retire in comfort. We owe that to our employees: Many
of them have spent their entire careers serving our clients. "
When thinking about its 401(k) plan expense, the company
President and CEO Steven Lefton
K
imley-Horn and Associates, Inc., a planning, engineering
and design consulting company, in Raleigh, North Carolina,
offers an 18% annual contribution to employees' retirement
savings: a 200% 401(k) match on up to 4% of deferrals, plus a
profit-sharing contribution that is typically 10%. Last year, 99%
of participating employees received that 18% maximum benefit.
President and CEO Steven Lefton explains the business
rationale for Kimley-Horn's commitment to the large employer
contribution. " I joined the company 22 years ago, and it was in
place then, " he says. " It plays a big role in our recruiting approach.
That [contribution] is a big part of our story-getting people to
understand that even before they join us. And it's extraordinary
from a retention standpoint. "
Lefton says the financial commitment-which is also to
employees' retirement readiness-speaks to Kimley-Horn's
40 PLANSPONSOR.com April - May 2019
Photo by James Rajotte
does not look for a direct return on investment (ROI). " The way
we measure the return is less about ROI in the traditional sense
and more about the happiness of our employees and their retention, "
Lefton says. " And it's about the happiness of the clients our
employees are serving. That's very important, because 93% of
our new work comes from client referrals. "
An Increased Match
Participants in the plan have a median projected income-replacement
ratio of 64%, as of 2017, says Kimley-Horn Treasurer David
McEntee. " We automatically enroll at 4% because that's the level
to get the full match, " he says. " If employees put in 4%, we're
comfortable that a 22% total contribution is more than sufficient
for [them] to retire on time and with enough savings. " About half
of employees contribute more than 4%, he adds.
The match formula of 200% on 4%-including salary and
bonuses-started five years ago, following an employee survey,
McEntee says. Previously, Kimley-Horn had also, as a rule,
made an 18% total contribution, but in the form of a 100% on
4% match plus 14% profit-sharing contribution. The company
temporarily lowered its total contribution to 12% in the wake of
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PLANSPONSOR - April/May 2019

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