PLANSPONSOR - February/March 2019 - 39

Corporate 401(k) Plan >$500mm Finalists
Abbott Abbott Park, Illinois
Abbott is a global health care company that creates new products to help people live fuller lives. It also
takes pride in the opportunities it creates for its employees. Every year, the company hires nearly 1,000
workers in the U.S. who are under age 35; a majority of them have a college degree and likely some
student loan debt. Employees are encouraged to enroll in the company 401(k) plan, whereby they receive
a 5% match if they defer 2% of compensation. Abbott became aware that two-thirds of Millennials had
nothing saved for retirement because many are grappling with student debt. The company sought out and
received a private letter ruling from the IRS to structure a strategy that would address this: the company's
newly created Freedom 2 Save program. Under this program, if an Abbott employee contributes 2% of
eligible earnings to pay down his student loan/s, the company can contribute the equivalent of 5% of his
pay to his 401(k) account. RECORDKEEPER: Alight Solutions; ADVISER/CONSULTANT: Aon
Kimley-Horn and Associates, Inc. Raleigh, North Carolina
Kimley-Horn and Associates' retirement plan reflects the company's core values and purpose. Due to its environment
of high expectations, this planning and design consulting firm provides exceptional client service,
which has led to its sustained profitability. This success is passed on to employees through its benefits and
retirement plan. All benefits-eligible employees automatically join the 401(k) at a 4% contribution level,
making them eligible for the employer's 200% match up to 4%. Further, Kimley-Horn makes a profit-sharing
contribution-typically, 10%. The firm expresses pride that 98% of workers participate in the plan and
that 99% of them defer at least the 4% necessary for the maximum 8% match-and, therefore, receive the
maximum contribution of 18% of their eligible compensation. Employees automatically join the T. Rowe Price
Target Date Retirement Trust, which gives professional investment management for 0.40%. Participants share
the administrative fees. RECORDKEEPER: T. Rowe Price; ADVISER: CAPTRUST
Leidos, Inc. Reston, Virginia
The foundation of the Leidos, Inc., retirement program strategy is proactive engagement, comprehensive
communications and holistic education. The information technology (IT) and engineering firm helps both
active and former employees benefit from the plan's investment management tools, operational functionality
and features. Leidos receives validation from knowing that over 55% of plan assets belong to former
employees. Its 35-year-plus partnership with Vanguard has produced a positive participant experience and
innovative retirement solutions. Leidos' plan is open to all employees, including temporary and part-time.
Most active employees receive a 100% match, up to a 5% contribution, on pre-tax and/or Roth 401(k) contributions.
Leidos says employees need to understand the benefit of saving in the plan-a concept it teaches
from participants' hire date. It also adopted Vanguard's " Enroll Now " solution, which enrolls employees at a
10% pre-tax deferral rate and in an age-appropriate target fund. RECORDKEEPER: Vanguard; ADVISER: Mercer
Marvell Semiconductor, Inc. Santa Clara, California
Many employees of Marvell Semiconductor, Inc., are highly engaged in the retirement plan and demonstrate
strong participation and saving, substantial engagement with on-site events, continued use of online
educational resources, and year-over-year increases in scheduled advice appointments. Benchmarking data
in its segment shows that Marvell, a manufacturer of integrated circuit solutions, is ahead in plan participation
(95%) and average deferral rate (12%). Based on recent compliance testing results, over 40% of Marvell
plan participants met the IRS 402(g) limit of $18,500, or $24,000 for those over age 50, for 2017. Last year,
the company increased its match by $1,000-to 100% of the first 4% and 50% of the next 2% up to $4,000
annually. To ensure a competitive plan design, Marvell has incorporated automatic plan features wherever
possible. The plan currently utilizes GuidedChoice advice services and makes this in-plan advice available
to all participants free of charge. RECORDKEEPER: Charles Schwab; ADVISER: SageView
Steve Fussell, executive
vice president of human
resources
Steve Lefton, president
Elizabeth A. Pattillo, director,
retirement programs
Heather Scott,
senior global benefits
analyst
PLANSPONSOR.com February - March 2019 39

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