PLANSPONSOR - February/March 2019 - 64

PLAN PROFILE
Student Loan Repayments
I
A plan sponsor offers a benefit that helps ease financial stress
n 2016, the senior team of Natixis
Investment Managers, in Boston,
decided that it wanted to find a
way to help employees overburdened
with student debt. " We talked about
how Millennials are finishing school
with significant debt and how our
organization's mission is to help
people lead better financial lives, "
says Senior Vice President of Human
Resources (HR) Maureen O'Neill.
An executive on the team had
given a presentation at his alma
mater about saving for retirement,
which prompted this discussion and
decision. During his presentation,
students in attendance questioned
the possibility of saving for retirement
while paying off their student
loans. And so, the idea of a student
loan repayment benefit for employees
at Natixis was conceived.
No one questions that student
loan debt is a problem. According to
2018 Federal Reserve statistics, 44.7
million Americans bear a combined
Maureen O'Neill, senior vice president of HR,
Natixis Investment Managers
$1.56 trillion in such debt-and not all concentrated among
Millennials.
O'Neill says, " In mid-2016, we connected with Gradifi's SLP
[Student Loan PayDown] plan. This product allows employers to
contribute to help pay down an employee's student debt. "
When a person is hired by Natixis with either federal or
private student loan debt, O'Neill explains, " we provide Gradifi
with a basic census file. Then employees are contacted by Gradifi;
they go into the website and provide their loan information. "
Employees receive the benefit immediately after hire,
although it can take four to six weeks to become active. O'Neill
says the company contributes $83.33 monthly-$1,000 annually,
up to a total lifetime benefit of $10,000. It is sent directly
SNAPSHOT
PLAN SPONSOR
Natixis Investment
Managers, Boston
KEY PLAYER
Maureen O'Neill,
senior vice president
of human resources
PLAN
401(k)
to the employee's loan provider.
Seventeen percent-90 employees-of
the organization's eligible
population are currently enrolled in
this voluntary benefit. Fifty signed
on within the first 48 hours it was
offered, O'Neill says.
At the start, the organization
worried that employees without
student loans might consider the
benefit unfair, O'Neill says, but this
group has had only positive reactions.
The more employees can unload
their debt, the more they can take
advantage of Natixis' generous 401(k)
plan provisions, which the firm offers
to its own employees, its holding
company employees and employees of
a few affiliates. It makes a retirement
account contribution equal to 5% of
a participant's base salary, up to the
Social Security wage base, and 10% of
base salary in excess of that amount,
subject to the IRS compensation limit,
regardless of whether an employee
makes deferrals to the plan. Along
with making its other contribution, the company matches 100%
of the first 4% of participant deferrals.
Regarding employee retention numbers or return on investment
(ROI) for the benefit, O'Neill says, " It's hard to quantify, "
but she likes to cite a comment made at a quarterly lunch for new
hires: " Having this benefit tells me a lot about the organization
and that it cares about the employees. "
She notes, " The return we've gotten is much more qualitative " -the
case with many wellness benefits. " We are a progressive
company; we think about the employees and their ability
to save for retirement and help them with their student loans.
We know that today's student loan burden is the underfunded
retirement plan of tomorrow. " -Judy Faust Hartnett
NUMBER OF
PARTICIPANTS
933
PARTICIPATION
RATE
96.8%
PLAN
ASSETS
$383mm
AVERAGE
DEFERRAL RATE
12%
64 PLANSPONSOR.com February - March 2019
Art by Chris Buzelli
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PLANSPONSOR - February/March 2019

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