PLANSPONSOR - February/March 2019 - 32

PLAN SPONSOR
FINALISTS
Total Retirement Offering Finalists
Occidental Petroleum Corporation Houston, Texas
Oil and gas exploration and production company Occidental Petroleum Corporation (Oxy) has two qualified
defined contribution (DC) plans. Its 401(k) features automatic enrollment at 5%, and an employer match
up to 7% of eligible deferrals. The plan has a 94% participation rate, with an average deferral rate of 10%.
The second plan is the Retirement Plan, which Oxy fully funds. It contributes 7% of a participant's eligible
earnings up to the Social Security wage base, plus 12% above the wage base. In 2016, Oxy outsourced the
plans to Voya Financial and gained a range of recordkeeping solutions and participant engagement strategies.
Last year, Oxy updated the plans' investment fund lineups and made them identical (except for the Oxy
Stock Fund, available in the 401(k) plan only); both now include indexed and actively managed investment
options plus target-date funds (TDFs). On average, participants are on track to replace 78% of their income
in retirement. RECORDKEEPER: Voya Financial; ADVISER: CookStreet Consulting
OOCL (USA) Inc. South Jordan, Utah
OOCL (USA) Inc., a provider of logistics and transportation services in the U.S., has acted on several plan
investment, design and governance decisions that it envisions as being a " new era " of world-class corporate
governance for Employee Retirement Income Security Act (ERISA) defined contribution (DC) plans.
Besides its 401(k) plan, with its employer match of 50% up to the first 6% of employee salary deferrals, it
has a DC pension plan, fully funded, with contributions made twice a year. It has re-enrolled participants
to a new qualified default investment alternative (QDIA) solution, InvestMap, which employs customized
age-based investment models " with a risk-based flare. " The solution includes a menu of 18 individual
investment options, both indexed and actively managed, that were selected to represent key asset classes.
Additionally, OOCL conducts two-day governance meetings semi-annually, requiring reporting and representation
from all providers and stakeholders. RECORDKEEPER: Milliman; ADVISER: CookStreet Consulting
Southwest Airlines Dallas, Texas
Southwest Airlines has two qualified plans. In its 401(k), employees can receive a dollar-for-dollar match up
to 9.3% of their salary deferrals. It also has profit sharing for eligible employees-for the past three years,
each has received an allocation ranging from 10% through 15.6% of compensation. The 401(k) has a 93%
participation rate, an average deferral rate of 9.7%, and a median lifetime income score of 102%. The
Southwest company culture is reflected in the care the retirement team takes with participants. Southwest
believes its people come first-which in turn affects customers and shareholders. The team attends " state of
the company " events held in multiple cities each February; conducts multimedia communication campaigns
for its " profit sharing day " ; and holds pre-retirement workshops in various locations throughout the year.
It also partners with Empower Retirement to offer targeted communication campaigns, addressing participants'
specific financial wellness needs. RECORDKEEPER: Empower Retirement; ADVISER: NEPC
Sumitomo Machinery Corporation of America Chesapeake, Virginia
The leadership team at Sumitomo Machinery Corporation of America (SMA) is committed to its employees
and to becoming an employer of choice. Having maintained both a 401(k) and a fully funded defined
benefit (DB) pension plan through the Great Recession to the present is strong evidence. The company,
which manufactures power transmission and control products, enables employees to meet personally with
a financial consultant to tailor and monitor their account to help them adequately prepare for retirement.
Employees have access to a wide array of educational tools and services, via the website of the plans'
recordkeeper Principal Financial Group, and in-person educational sessions. SMA regularly monitors the
defined contribution (DC) plan participant retirement wellness scores Principal provides. These consistently
show that approximately 60% of participants are on track to replace 70% or more of their income from
their DC plan account upon retirement. RECORDKEEPER: Principal; ADVISER: Capitol Financial Group
Madelaine Pfahler,
director benefit planning
and communication
Veronica Thompson,
vice president human
resources and administration
Julie Weber,
vice president and
chief people officer
James Solomon,
president and CEO
32 PLANSPONSOR.com February - March 2019

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