PLANSPONSOR - June/July 2021 - 20

BEST PRACTICES | 2021 PLAN SPONSOR OF THE YEAR WINNERS
Nonprofit DC
Howard University
Washington, D.C.
I
n November 2019, Howard University consolidated
its three 403(b) recordkeepers to one
and streamlined the investment menu from 150
options to approximately 25. One result of simplifying
the plan was the participation rate growing
from 62% in October 2018 to 92% this January.
" If you're going to do a big consolidation,
you need to do it right-because you only get
one chance to get it right, " says Larry Callahan,
who served as associate vice president and chief
human resources (HR) officer at the school
until this April. Founded in 1867, Howard is
a private, federally chartered historically Black
research university composed of 13 schools and
colleges in Washington, D.C.
Callahan arrived at Howard in May 2018 to
find a 403(b) in need of fixing. " I had never seen
anything as complex as Howard's plan, " he says.
" It had morphed over time, and it created confusion
for our participants. The plan was way too
complicated, and I believe in simplification. "
Prior to the consolidation, 403(b) participants
had not only three recordkeepers, but
each one's investment lineup to choose from,
notes Faleasha Carter, director of retirement
programs at Howard. Many participants
utilized multiple vendors, she says, in hopes of
finding better-performing investments from
among a broader array of choices.
Having just one recordkeeper now eliminates
much participant confusion, Carter says.
It also enables participants to benefit from lower
fees. " From a fee perspective, you get more bang
for your buck when you have all of the money
with the same recordkeeper, " she says.
Howard chose TIAA as the plan's recordkeeper,
and the university and TIAA closely
collaborated on implementing the transition.
The streamlining has also been supported
by a robust governance structure and processes,
as the Howard fiduciary committee meets regularly
to oversee the consolidated 403(b) plan.
" In my experience, you need to manage a plan
consistently, " Callahan says. It was important to
20 PLANSPONSOR.COM June - July 2021
have processes in place for monitoring investments
quarterly and reviewing plan administrative
issues regularly.
With the transition, Howard also could
better explain the 403(b) plan to employees and
engage them, Carter says. " Because of all of the
touches we had with our participants, we really
had an opportunity to reintroduce the benefit, "
she says. " With that came increased employee
interest in it. With the financial health of our
faculty and other staff, we're now in a much
better place, and we're continuing to improve. "
For eligible employees, Howard's 403(b)
includes a 6% nonelective employer contribution
that vests immediately. It also matches 50% of
up to 4% of pay that an employee defers, and the
employer match vests immediately.
Sixty-six percent of the plan's participants
currently maximize the match by deferring
at least the 4%, TIAA data show. " Typically
in 403(b) plans, we see approximately 50% of
participants making a voluntary contribution at
or above the employer match level, " says Timothy
Rodgers, managing director of institutional
solutions and relationships at TIAA.
Howard University aims for its employees
to receive at least a 12% total contribution every
year, to help them accumulate enough to retire
on time. The 12% savings target also is meant
to help them retire with benefits similar to what
they would have had in their defined benefit
(DB) plan, which was frozen in 2010.
TIAA's Plan Outcome Assessment analysis
shows that, as of this March 31, participants in
Howard's 403(b) plan were on track to replace
an average of 79% of their income in retirement,
factoring in Social Security. And the plan's 92%
participation rate exceeds many peer university
plans, Rodgers says. " Think about the fact
that the participation is that high, and [the plan]
doesn't utilize automatic enrollment, " he says.
" So, people are making a conscious decision to
participate. A 92% participation rate without
auto-enrollment is tremendous. " -JW
Faleasha Carter,
Director of Retirement Programs
" If you're going
to do a big
consolidation,
you need to
do it right-
because you
only get one
chance to get
it right. "
Finalists
The Anglican Church in
North America
Ambridge, Pennsylvania
Kirby Medical Center
Monticello, Illinois
Norton Healthcare
Louisville, Kentucky
More on PLANSPONSOR.com/
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PLANSPONSOR - June/July 2021

Table of Contents for the Digital Edition of PLANSPONSOR - June/July 2021

2021 Plan Sponsor of the Year Winners
2021 Recordkeeping Survey
The Right Provider Team
For the Best Collaboration
2021 PLANSPONSOR Service Stars
PLANSPONSOR - June/July 2021 - Cover1
PLANSPONSOR - June/July 2021 - Cover2
PLANSPONSOR - June/July 2021 - 1
PLANSPONSOR - June/July 2021 - 2
PLANSPONSOR - June/July 2021 - 3
PLANSPONSOR - June/July 2021 - 4
PLANSPONSOR - June/July 2021 - 5
PLANSPONSOR - June/July 2021 - 6
PLANSPONSOR - June/July 2021 - 7
PLANSPONSOR - June/July 2021 - 8
PLANSPONSOR - June/July 2021 - 9
PLANSPONSOR - June/July 2021 - 2021 Plan Sponsor of the Year Winners
PLANSPONSOR - June/July 2021 - 11
PLANSPONSOR - June/July 2021 - 12
PLANSPONSOR - June/July 2021 - 13
PLANSPONSOR - June/July 2021 - 14
PLANSPONSOR - June/July 2021 - 15
PLANSPONSOR - June/July 2021 - 16
PLANSPONSOR - June/July 2021 - 17
PLANSPONSOR - June/July 2021 - 18
PLANSPONSOR - June/July 2021 - 19
PLANSPONSOR - June/July 2021 - 20
PLANSPONSOR - June/July 2021 - 21
PLANSPONSOR - June/July 2021 - 2021 Recordkeeping Survey
PLANSPONSOR - June/July 2021 - 23
PLANSPONSOR - June/July 2021 - 24
PLANSPONSOR - June/July 2021 - 25
PLANSPONSOR - June/July 2021 - 26
PLANSPONSOR - June/July 2021 - 27
PLANSPONSOR - June/July 2021 - 28
PLANSPONSOR - June/July 2021 - 29
PLANSPONSOR - June/July 2021 - 30
PLANSPONSOR - June/July 2021 - 31
PLANSPONSOR - June/July 2021 - The Right Provider Team
PLANSPONSOR - June/July 2021 - 33
PLANSPONSOR - June/July 2021 - 34
PLANSPONSOR - June/July 2021 - 35
PLANSPONSOR - June/July 2021 - For the Best Collaboration
PLANSPONSOR - June/July 2021 - 37
PLANSPONSOR - June/July 2021 - 38
PLANSPONSOR - June/July 2021 - 2021 PLANSPONSOR Service Stars
PLANSPONSOR - June/July 2021 - 40
PLANSPONSOR - June/July 2021 - Cover3
PLANSPONSOR - June/July 2021 - Cover4
https://www.plansponsordigital.com/plansponsor/august_september_2021
https://www.plansponsordigital.com/plansponsor/june_july_2021
https://www.plansponsordigital.com/plansponsor/april-may_2021
https://www.plansponsordigital.com/plansponsor/february-march_2021
https://www.plansponsordigital.com/plansponsor/december-january_2021
https://www.plansponsordigital.com/plansponsor/october-november_2020
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https://www.plansponsordigital.com/plansponsor/april-may_2019
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https://www.plansponsordigital.com/plansponsor/december_2018-january_2019
https://www.plansponsordigital.com/plansponsor/october-november_2018
https://www.plansponsordigital.com/plansponsor/august-september_2018
https://www.plansponsordigital.com/plansponsor/june-july_2018
https://www.plansponsordigital.com/plansponsor/april-may_2018
https://www.plansponsordigital.com/plansponsor/february-march_2018
https://www.plansponsordigital.com/plansponsor/december_2017-january_2018
https://www.plansponsordigital.com/plansponsor/november_december_2017
https://www.plansponsordigital.com/plansponsor/october_2017
https://www.plansponsordigital.com/plansponsor/september_2017
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