PLANSPONSOR - June - July 2022 - 25

BEST PRACTICES | 2022 PLAN SPONSOR OF THE YEAR WINNERS
Total Retirement Offering
Hudson Valley Credit Union
Poughkeepsie, New York
H
udson Valley Credit Union,
its main
branch in Poughkeepsie, New York,
maintains a strong overall retirement
offering, including a 401(k) plan, a 457(b) plan
and a 457(f) plan, plus a defined benefit pension
plan.
" Most sponsors care about their employees
and about their ability to retire well, but few
devote the time, energy and resources as broadly
and passionately as HVCU does, " says Kendl
Fulco, relationship manager, customer care, at
Principal Financial Group. One example, she
says, is how generous and thoughtful HVCU
was when redesigning its 401(k) to minimize
the impact of freezing its DB plan.
In 2011, HVCU instituted a soft freeze
to the pension plan. The organization then
discussed restructuring the 401(k) plan, so new
hires would meet a target income replacement
ratio similar to that of the pension-holders, says
Diane M. Allenbaugh, senior vice president of
human resources and organizational development.
The sponsor determined it would match
75% of 6% of those participants' deferrals.
However, another analysis, in 2018, revealed
that those employees would still fall short of the
target income replacement rate of 70%, and some
found it hard to save at all, Allenbaugh says. So
HVCU changed its match to 50% of 6% of deferrals
and added a nonelective contribution of 2%
to 4%, depending on years of service.
HVCU has already announced that
the
DB plan will close as of December 31, 2023. All
DB participants will receive a 4% nonelective
contribution, because the service requirement
to receive 4% is seven years, Allenbaugh says.
The DB plan change was one of several
special
occasions where HVCU hosted
a
event for employees and their spouse to meet
with Principal, the 401(k) recordkeeper, and
Pentegra, the DB plan provider. The sponsor
wanted employees
to
fully understand the
impact to their retirement benefits, Fulco says.
The same attention was given to designing
the credit union's 457(b) plan, so highly
compensated employees, could save as much
as possible, Fulco observes. " HVCU asked
Principal to do an on-site employee education
meeting for those eligible for the 457(b) plan,
and wanted it customized to explain the specific
plan features and recorded for future playback. "
About four years ago, Agnes Covell, assistant
vice president of total rewards at HVCU,
created a health and retirement compliance
analyst position " because we were lacking in
the area of 'at retirement.' We have an aging
population, so it was a definite need, " she says.
Now, when pre-retirees ask, Sardo Lebron
meets with them for a one-on-one planning
session, giving them a pension benefit estimate,
a retirement planning checklist, and
information about Social Security, Medicare
and HVCU benefits, including the company's
employee assistance program, Covell says.
Further, because the credit union is a
financial services entity, she adds, it offers
wealth management, so employees may also
meet with a specialist adviser to help them plan
for retirement income. Between 90% and 95%
of retirees use this service, she says.
HVCU has an intranet portal for retirees
that provides regular communications, Covell
says. The credit union also reaches out to
schedule talks with retirees during open enrollment,
as HVCU offers retiree health care. " If a
retiree is younger than 65, he may remain on
our regular company health plan, " she explains.
" When 65 or older, they have Medicare, and we
offer a MediBlue Gap Plan. In addition, retirees
are given a $300 per month stipend toward the
cost of health care and a $10,000 life insurance
policy at no cost to them. "
There are currently over 70 retirees, and the
HR staff follows up with each one throughout
the year, Covell says.
" HVCU cares how its employees and families
are doing now and how they'll be doing
after retirement, " Fulco says. -Rebecca Moore
Diane M. Allenbaugh,
Senior Vice President of Human
Resources and Organizational
Development
" If a retiree is
younger than
65, he may
remain on
our regular
company
health plan. "
Finalists
Sacramento Credit Union
Sacramento, California
Vinik Sports Group
Tampa, Florida
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