PLANSPONSOR - March - April 2023 - 40

PLAN PROFILE | A 2014 PLAN SPONSOR OF THE YEAR
Staying the Course
S
ince 2014, both the deferral
rate and participation rate have
increased for the O.C. Tanner
Company's 401(k) plan, but the plan
design has remained intact, according
to Richard Clegg, the company's
vice president of finance, corporate
treasurer and retirement committee
chair. " Our bread and butter is to help
employees thrive at work, " he says.
Clegg started at the employee
recognition solutions firm-which,
besides its Salt Lake City headquarters,
has offices in Australia, Canada,
England, India and Singapore-in
2014, just after it was honored as a
PLANSPONSOR Plan Sponsor of the
Year. He points to education about
both the plan and personal finance as
key to the plan's continued success.
Probably the most significant
factor, Clegg says, is the one-on-one
time the company gives participants
with a financial adviser. The firm
providing for that counsel in 2014, 401(k) Advisors Intermountain,
has since merged with OneDigital, but O.C. Tanner has been able
to keep working with the same team. " Whether it be budgeting
or asset allocation, [or] anything ... financially speaking, I think
that's been a big driver of participation, but also of the increase in
deferral rates, " Clegg says.
Brady Dall, O.C. Tanner's plan consultant at OneDigital, says,
" Though we began offering financial wellness programs to clients
in 2016, we are now a planning forward organization that believes
every employee should know that right, next financial step. "
Clegg stresses that the plan committee primarily focuses on
PLAN SNAPSHOT
PLAN SPONSOR: O.C. Tanner Company, Salt Lake City
PLAN ASSETS: $314 million
U.S. ELIGIBLE EMPLOYEES: 1,233
Richard Clegg, vice president of finance, corporate
treasurer and retirement committee chair, O.C. Tanner
O.C. Tanner, Plan Sponsor of the Year, Corporate 401(k) $50mm - $1b
the company's general population, but
an improvement it has made is integrating
its nonqualified plan education
through OneDigital. " Previously,
we had used Fulcrum Advisers, and
they've melted into this OneDigital
conglomerate. Through that joint
relationship, our executives who have
access to the nonqualified plan now
have one source for advice. It's been
very beneficial for that population. "
The retirement committee looks
carefully at average account balance
across participants, and, even with the
market downturn last year, the average
participant balance is still significant,
Clegg says. " It was close to $200,000
last year at this time, and now it's about
$160,000. Given the broad demographic
of our employee population
and the diverse wage [tiers], the participant
balance at that level is telling of
the plan and the participation rates. "
In 2018, O.C. Tanner introduced
the SmartDollar financial wellness program. The program was
made available to all employees and their families, free of charge,
and an estimated 38% of employees participate, says Paula Nielsen,
O.C. Tanner's benefits manager and a retirement committee
member. Around 100 employees plus their family members
use the debt and savings feature. The total debt they have eliminated,
as of January, was $1,316,303, and their savings added was
$1,824,788, for a total turnaround of $3,141,091, Nielsen says.
OneDigital,
additionally, provides monthly
" Financial
Academy " webinars about inflation, estate planning, income
tax strategies and other general financial wellness topics along
with those related to the 401(k).
" To have our employees concerned about their financial
well-being has the potential to detract from focusing on the
work that they have to do, " Clegg says.
The company is privately held by family shareholders, who
PARTICIPATION RATE: 98.78%
AVERAGE DEFERRAL RATE: 10.2%
EMPLOYER MATCH: 100% of 3%, 50% of next 7%, + 4% profit sharing
continue the legacy of founder Obert C. Tanner, Clegg notes. " He
felt that anyone who spent a career at this company should retire
with dignity. His legacy has carried on from then with support
from our executive team and our board members who approve the
plan and the profit sharing. " -Judy Faust Hartnett
40 PLANSPONSOR.COM March - April 2023
Art by Chris Buzelli
http://www.PLANSPONSOR.COM

PLANSPONSOR - March - April 2023

Table of Contents for the Digital Edition of PLANSPONSOR - March - April 2023

INSIGHTS
PARTICIPANT ANALYSIS
RULES & REGULATIONS
UPFRONT
PLAN DESIGN
PARTICIPANTS
INVESTMENTS
PLAN ACCESS
GOVERNANCE
FIDUCIARY FORUM
INSIDE ANGLE
PLAN PROFILE
PLANSPONSOR - March - April 2023 - Cover1
PLANSPONSOR - March - April 2023 - Cover2
PLANSPONSOR - March - April 2023 - 1
PLANSPONSOR - March - April 2023 - INSIGHTS
PLANSPONSOR - March - April 2023 - 3
PLANSPONSOR - March - April 2023 - PARTICIPANT ANALYSIS
PLANSPONSOR - March - April 2023 - 5
PLANSPONSOR - March - April 2023 - RULES & REGULATIONS
PLANSPONSOR - March - April 2023 - 7
PLANSPONSOR - March - April 2023 - UPFRONT
PLANSPONSOR - March - April 2023 - 9
PLANSPONSOR - March - April 2023 - 10
PLANSPONSOR - March - April 2023 - 11
PLANSPONSOR - March - April 2023 - 12
PLANSPONSOR - March - April 2023 - 13
PLANSPONSOR - March - April 2023 - PLAN DESIGN
PLANSPONSOR - March - April 2023 - 15
PLANSPONSOR - March - April 2023 - 16
PLANSPONSOR - March - April 2023 - 17
PLANSPONSOR - March - April 2023 - 18
PLANSPONSOR - March - April 2023 - 19
PLANSPONSOR - March - April 2023 - PARTICIPANTS
PLANSPONSOR - March - April 2023 - 21
PLANSPONSOR - March - April 2023 - 22
PLANSPONSOR - March - April 2023 - 23
PLANSPONSOR - March - April 2023 - 24
PLANSPONSOR - March - April 2023 - 25
PLANSPONSOR - March - April 2023 - INVESTMENTS
PLANSPONSOR - March - April 2023 - 27
PLANSPONSOR - March - April 2023 - 28
PLANSPONSOR - March - April 2023 - 29
PLANSPONSOR - March - April 2023 - PLAN ACCESS
PLANSPONSOR - March - April 2023 - 31
PLANSPONSOR - March - April 2023 - 32
PLANSPONSOR - March - April 2023 - 33
PLANSPONSOR - March - April 2023 - GOVERNANCE
PLANSPONSOR - March - April 2023 - 35
PLANSPONSOR - March - April 2023 - 36
PLANSPONSOR - March - April 2023 - 37
PLANSPONSOR - March - April 2023 - FIDUCIARY FORUM
PLANSPONSOR - March - April 2023 - INSIDE ANGLE
PLANSPONSOR - March - April 2023 - PLAN PROFILE
PLANSPONSOR - March - April 2023 - Cover3
PLANSPONSOR - March - April 2023 - Cover4
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