PLANSPONSOR - July - August 2023 - 23

Corporate DC <$25mm
Precision Associates, Inc.
Minneapolis, Minnesota
in educating our employees about the benefit of
retirement savings. ... We hold their hands as
they navigate systems where [they've had] little
knowledge and often outright mistrust. "
Support begins for new workers at their
mandatory 401(k) meeting, where the sponsor
explains and helps them enroll in the plan.
Annual lunch-and-learns reinforce the benefits
of saving, and semi-annual one-on-ones with the
plan's adviser allow for personalized instruction.
Some new hires balk at enrolling, though.
Kadue says they often cite the daunting prospect
of having to save so much, starting at $0.
To lessen this objection, the company
Brad Kadue, President
Plan Snapshot
PLAN TYPE AND SIZE: 401(k); $13.3mm
PARTICIPANTS AND PARTICIPATION RATE: 276; 83%
DEFERRAL RATE: 6% default; 8.4% average
EMPLOYER CONTRIBUTION: 3.5% of 6%, profit sharing
IF YOU WANT workers to save in the retirement
plan, sometimes they just need a " jump start. "
This is what Precision Associates, Inc., learned,
and the strategy, plus " intensive individual
employee education, " is making a difference.
Precision, a family-owned company, headquartered
in Minneapolis, manufactures molded
rubber and other products used in a range of
industries. Most of its 401(k) plan participants
are entry-level production workers, often inexperienced
with 401(k)s; just 6.3% are college graduates,
says company President Bradley Kadue. For
many, English is a second language.
" I feel we do an excellent job of getting
participation from demographics that have
traditionally been underserved in terms of the
teaching of financial literacy, and participation
with long-term financial management, " Kadue
observes. " We invest a lot of time and resources
gives employees a " sizable discretionary match
contribution. " These are largely lump sums, not
dependent on the employee's earnings, Kadue
says. " This ensures that even our lowest-paid
employees receive a reasonable contribution to
help jump start their account balance. "
Beyond this, during the pandemic, Precision
shared with participants money it received in a
Paycheck Protection Program loan. " We used
that [money] as an opportunity to overcome the
barrier to entry and prefund some employee
accounts, " Kadue says. And, since the plan is a
profit-sharing plan, last year the sponsor made
a profit sharing contribution of a percentage
of pay to each eligible participant to help jump
start account balances, where needed.
Precision " has always been employee first, "
notes the plan's adviser, Jessica Ballin, principal
in 401k Plan Professionals.
Company employees have a strong supporter
in Kadue, who once was an auditor at Deloitte. In
filing clients' Form 5500s, he says, he developed
an understanding of the key components of a
retirement plan, so, while president, he has made
a point to remain engaged in the plan's design,
administration and compliance. Additionally, " I
talk to the opt-outs to make sure they understand
what they could be giving up, " he says.
" To be frank, I don't think many employers
with our demographics invest nearly as much in
promoting their plans as we do. " -Amy Resnick
Finalists
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Management, LLC
Chapel Hill, North Carolina
More on PLANSPONSOR.com/
awards/2023psoy
" To be frank,
I don't
think many
employers
with our
demographics
invest
nearly as
much in
promoting
their plans
as we do. "
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PLANSPONSOR - July - August 2023

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