PLANSPONSOR - December 2018/January 2019 - 58

PLAN PROFILE
Digital Engagement
L
iebherr USA Co., a subsidiary
of Liebherr Group in BadenWürttemberg,
Germany, has
been working with Voya Financial
for 40 years-a testament to the
confidence the company has in
that recordkeeper. Liebherr USA,
headquartered in Newport News,
Virginia, is one of the largest crane
companies in the world. The parent
company was established in 1949 by
the Liebherr family, which still owns
and manages the business.
According to Kevin Old, director
of human resources (HR) at Liebherr
USA's Washington, D.C., offices,
there were 930 employees the retirement
plan committee wanted to
help: 170 who were not contributing
enough to receive the 100% match up
to 6% of their earnings deferred, and
760 contributing below 10%.
Old says he worked closely with
Paige Fitzpatrick, his Voya client relations
manager, and Ken Rogers, the
Kevin Old, director of human resources
firm's adviser and president of Rogers Financial Pensionmark
in Greenville, S.C., to try to move the needle through traditional
education. But " some participants were still leaving a lot of
money on the table, " he says.
To improve the savings rate, the plan sponsor began using
automatic enrollment for all employees who were deferring
below 6% and/or re-enrolled all participants who were below the
match level up to the match and added an automatic escalation
feature with a cap of 10%.
" We weighed the pros and cons and took a leap of faith
starting with auto-enrollment, " Olds says. " By using this feature,
we bumped up to a 97% participation rate, leveled off to 95%, and
we're averaging a 7.5% deferral rate. Most people stick around at
SNAPSHOT
PLAN SPONSOR
Liebherr USA Co.,
Newport News,
Virginia
KEY PLAYER
Kevin Old,
director of
human resources
PLAN
401(k)
PARTICIPATION RATE
95%, with
1,488 participants
PLAN
ASSETS
$139 million
AVERAGE
DEFERRAL RATE
7.5%
A plan sponsor improves participant engagement via web tools
Liebherr for a long time, so I'm happy
the folks are going to have something
when they leave, " he says.
The plan also initiated an on-site
participant education and engagement
campaign demonstrating usage
of the participant website and retirement
savings tools. The goal was to
further increase plan engagement
and action, this time using digital
tools-specifically myOrangeMoney,
a Voya proprietary savings calculator.
Combined use of the tools and
one-on-one sessions with the firm's
adviser produced a strong jump in
participants' interest and involvement
in saving to the plan.
Besides having the individual
sessions, " my thinking was that we
wanted to give employees a group
interaction with Voya, explaining its
tools, processes, customer service
contacts, and instructions for how
to interact with its online tools, " Old
says. " Two different vehicles and two
environments. And my goal was to provide both. We had to have
Voya reps stay several extra days because the employees were so
excited about the opportunity. It was well-received. "
Liebherr USA conducted an initial analysis of the on-site
engagement efforts. Looking at a four-week period after the
digital campaign, the sponsor found a 38% increase in digital
engagement compared with the same period a year ago.
The data also showed a significant increase in engagement
and action taken on the myOrangeMoney online participant
website. For example, 19% of participants took action within
four weeks of using the tool after the 2018 campaign, compared
with only 4% doing so during the same time period in 2017.
-Judy Faust Hartnett
56 PLANSPONSOR.com December 2018 - January 2019
Art by Chris Buzelli
http://www.plansponsordigital.com/plansponsor/december_2018-january_2019/TrackLink.action?pageName=56&exitLink=http%3A%2F%2FPLANSPONSOR.com
PLANSPONSOR - December 2018/January 2019

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