PLANSPONSOR - June/July 2019 - 52

PLAN PROFILE
Family-Owned and -Run
T
he IFP Group of Companies
(originally Iowa Fluid Power)
is a motion control corporation,
headquartered in Cedar
Rapids, Iowa, with three additional
locations and five brands. " The
company strives to be the leader in
hydraulics, pneumatics, robotics,
electronics-in mobile and industrial
markets, " says Valerie Burns,
director of human resources (HR).
The chairman of the retirement
committee is Account Manager Mike
Kaas, whose father, CEO Don Kaas,
founded the business in 1972 and
added the 401(k) plan in 1979.
" It's a very diverse group, " Burns
says. " We have a highly professional
group, including 35 engineers, and
a different group, composed of
assembly, repair and service. "
The plan was designed to
help employees who are unable to
contribute to the 401(k) and therefore
miss out on the match. For that
Valerie Burns, director of human resources
reason, IFP has a discretionary profit-sharing contribution calculated
prior to the deferral match, at its fiscal year-end.
" The goal is to have all employees reach a 10% to 15% annual
deferral to be on track for retirement, " Burns says. " Our average
profit-sharing contribution over the life of the plan is more than
7%, without considering the 401(k) match portion. In 2018, it
totaled 15%. " To encourage participants to contribute-on top of
receiving profit sharing-IFP also may match up to 25% of the
first 8% an employee defers.
The same thoughtfulness is apparent when Don Kaas
meets annually with each participant. Burns says he has a packet
containing the history of the employee's 401(k) account and prints
out a current online statement for the person from recordkeeper
Fidelity's website. " They discuss how the employee's account
SNAPSHOT
PLAN SPONSOR
IFP Group of
Companies, Cedar
Rapids, Iowa
KEY PLAYER
Valerie Burns,
director of human
resources
PLAN
401(k)
A plan sponsor provides a personal touch, plus varied education
has changed, plus he makes sure the
person is happy with where they fit into
things in the company, " she says. " It's
a very personable meeting. He's very
proud of the plan and that the company
can continue to offer it. "
Mike Kaas describes the plan
committee as diversified, having
representatives from purchasing,
manufacturing, sales, repairs and HR.
Qualified Plan Advisers (QPA) has
been the Employee Retirement Income
Security Act (ERISA) 3(38) adviser for
six years, managing the investment
lineup and offering one-on-one meetings
for participants who want advice.
" We have participants in four locations-Cedar
Rapids, Minneapolis,
Houston and Kansas City[, Kansas],
and nearly a third of our population
doesn't have regular access to
computers, " Burns points out. " We
arrange for the local QPA advisers to
visit each participant as that person
nears eligibility, to explain enrollment
and assist them in setting up an account if help is requested. We
offer biannual education sessions on financial wellness, as well as
one-on-one sessions any time. "
The company has worked to provide many forms of education,
such as presentations from experts in Social Security and
Medicare to paint employees a full picture of what is needed in
retirement. Burns says those were the best attended and most
informative sessions they have given.
IFP's investment lineup offers core funds along with targetdate
funds (TDFs) and risk-based collective trust options. The plan
also has a brokerage account window and in-service withdrawals.
" The company cares about the employees, " Burns says, " and
works continually to provide the tools for everyone to be prosperous,
every year and into the future. " -Judy Faust Hartnett
NUMBER OF
PARTICIPANTS
115
PARTICIPATION
RATE
92%
PLAN
ASSETS
$20mm
AVERAGE
DEFERRAL RATE
6.7%
52 PLANSPONSOR.com June - July 2019
Art by Chris Buzelli
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PLANSPONSOR - June/July 2019

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