PLANSPONSOR - July - August 2023 - 22

AWARDS | 2023 PLAN SPONSOR OF THE YEAR WINNERS
Nonprofit DC $300mm and Greater
The Jackson Laboratory
Bar Harbor, Maine
So, in 2020, the 403(b) plan implemented
automatic enrollment at 5% and automatic escalation
at 1% per year, up to 10%; the plan also
reenrolled, at 5%, all nonparticipating eligible
employees, as well participants deferring less
than 5%. Since then, participation has jumped
from 82% to 95%; 71% of auto-enrolled participants
have opted to stay enrolled; and the average
account balance reached $90,868.
Further, before the conversion, the retireAdelia
Soremekun, senior director benefits, health
and wellness
Plan Snapshot
PLAN TYPE AND SIZE: 403(b), 457(b), 457(f); $450mm
for 403(b)
PARTICIPANTS AND PARTICIPATION RATE: 4,300; 95%
DEFERRAL RATE: 5% default; 9.2% average
EMPLOYER CONTRIBUTION: 100% of 5%, 5% nonelective
THE JACKSON Laboratory, headquartered in
Bar Harbor, Maine, has been involved in a series
of efforts to become " 'an employer of choice.'
We're in the biomedical space, and, like for
everyone else, it's a challenge to recruit, " says
Catherine Longley, executive vice president and
chief operating officer of the nonprofit research
organization. " Benefits such as a rich retirement
plan help to distinguish us. " A participant who
contributes 5% receives a total of 10% from JAX.
Before the 2018 conversion to recordkeeper
Vanguard, JAX officials reviewed benchmarking
data, comparing its 403(b) plan with peers'. " We
saw that our overall plan health was strong but
that we could have better participation, particularly
among our newer and younger employees, "
recalls Martha Munhall, JAX's executive director
of human resource operations.
22 PLANSPONSOR.COM July - August 2023
ment committee did a holistic investment menu
review and streamlined the plan menu from
40-plus options to 24. " The committee recognized
a direct correlation between the number
of investments offered and decreased participation
rates, increased rates of misallocation, and
higher average investment expenses, " Munhall
says. To help make the decision, the committee
considered participant-utilization data, data on
the historical correlation between asset classes,
and behavioral-finance research.
The organization now is looking to other
perks that help attract and keep employees.
Many on staff have advanced degrees-and
student debt-so JAX partners with Tuition.io
Inc. to provide student loan consulting and assistance
services. The aid includes help with navigating
the process of public service loan forgiveness;
tools and guidance on student loan debt
management and refinancing; and coaching on
financial preparation for college. Currently, 7%
of JAX employees participate in that program,
but Munhall expects to see the percentage grow.
" Student debt, and the inability to find
helpful resources in tackling it, can create
mental and financial anxiety. It affects proper
financial decision-making, given that any
financial goal is often short term and focused
on paying off that debt. The constant shuffling
of funds to pay off debts can lead to less-thanoptimal
decisions to forgo saving for retirement, "
Munhall says. " Financial stress can also
lead to behavioral and productivity issues at
home and work. Providing this benefit is aimed
at helping alleviate these issues. " -Judy Ward
Finalists
Ithaca College
Ithaca, New York
Point32Health
Canton, Massachusetts
More on PLANSPONSOR.com/
awards/2023psoy
" ... like for
everyone
else, it's a
challenge
to recruit.
Benefits such
as a rich
retirement
plan help to
distinguish
us. "
http://www.Tuition.ioinc http://www.Tuition.ioinc http://www.PLANSPONSOR.com/awards/2023spoy http://www.PLANSPONSOR.com/awards/2023psoy http://www.PLANSPONSOR.COM
PLANSPONSOR - July - August 2023

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