PLANSPONSOR - May/June 2024 - 40

PLAN PROFILE | A 2021 PLAN SPONSOR OF THE YEAR
Careful Consideration
COFCO International USA, 2021 winner Corporate 401(k) $25mm - $50mm
W
hen Sharon Kacsits,
director of human
resources,
began
at
COFCO International USA, in
August 2018, the company-
formed from two businesses
that merged-was still operating
two separate defined contribution
plans. She and her team
examined the fund lineups, fees,
benchmarks and returns of each
plan, she recalls, and ultimately
made a target-date fund the sole
default for the entire participant
population. In 2021, COFCO was
awarded Plan Sponsor of the Year
in the Corporate 401(k) $25 million
through $50 million category.
COFCO supplies agricultural
products around the world through
a globally integrated supply chain;
crops originating from surplusproducing
regions go to supply
regions with high demand.
" Our operations are heavily
influenced by global dynamics, "
Kacsits notes. " For instance, in
2023, Brazil and Argentina capitalized
on favorable economic
conditions to offer their grain to
China at a lower price than the U.S. could match. "
The employee makeup, she says, is everything from high
Sharon Kacsits, director of human resources,
COFCO International USA
COFCO but moved out of the U.S.,
and some employees come here
from other countries and are here
on visas, " Kacsits says. " I remind
them to take advantage of the
plan, and they can basically cash it
out when they leave. "
Kacsits and her team maintain
a highly organized operation,
mandating quarterly meetings
for all providers and fiduciaries.
COFCO's adviser Russell Wayre,
with Hub International in Kansas
City, Missouri, takes on 3(21)
co-fiduciary status to support the
COFCO team, a strategy Kacsits
sees as essential for working with
small businesses such as COFCO.
With Wayre's help, the committee
conducts comprehensive quarterly
reviews of the entire investment
lineup, assessing its performance
relative to benchmarks, including
scrutinizing expense ratios.
The lineup still includes the
target-date fund suite, alongside
26 other options. Included in that
group are also optional sustainable
fund selections, which were
introduced in 2021 " to accommodate
employees' passions about environmental, social and
school graduates working at the grain elevator, to traders, to
salespeople. Many people stay at the company for their full
career; the current superintendent in Chicago started at 18,
working in an elevator.
The participant base is also diverse in terms of location.
" We've had some employees who have continued to work for
PLAN SNAPSHOT
PLAN SPONSOR: COFCO International USA; Chicago
PLAN ASSETS: $37,577,100
AVERAGE DEFERRAL RATE: 14%
governance factors, " Kacsits explains.
" We thoroughly evaluate all mandatory aspects of the
plan, and we also explore opportunities that may benefit our
employees, " Kacsits says. Not all things considered are endorsed
or implemented, though.
Last year, COFCO delved into the concept of redirecting
PARTICIPANTS: 210
PARTICIPATION RATE: 91%
EMPLOYER CONTRIBUTION: 3% + 50% match of all employee deferrals
401(k) matching funds to aid in repaying school loans, a plan
feature approved in SECURE [Setting Every Community Up for
Retirement Enhancement] 2.0. " When we presented the idea to
our employees, their resounding response was that they wished
we'd initiated this program two decades ago, " Kacsits says. " Most
of our employees find themselves in the wrong age bracket to
fully benefit. Plus, integrating such a feature entails significant
work that affects our recordkeeping and plan administration.
We cannot simply adopt initiatives solely because they're available;
thoughtful consideration is paramount. "
-Judy Faust Hartnett
40 PLANSPONSOR.COM May - June 2024
Art by Chris Buzelli
http://www.PLANSPONSOR.COM

PLANSPONSOR - May/June 2024

Table of Contents for the Digital Edition of PLANSPONSOR - May/June 2024

Insights
The Proactive Adviser
Mastering the In-Plan Annuities
2024 Plan Sponsor of the Year Finalists
Why a Second Committee?
Savings Need to Last
DOL Finalizes QPAM Exemption
Filing a VFC Application?
Careful Consideration
PLANSPONSOR - May/June 2024 - Cover1
PLANSPONSOR - May/June 2024 - FC1
PLANSPONSOR - May/June 2024 - FC2
PLANSPONSOR - May/June 2024 - Cover2
PLANSPONSOR - May/June 2024 - 1
PLANSPONSOR - May/June 2024 - Insights
PLANSPONSOR - May/June 2024 - 3
PLANSPONSOR - May/June 2024 - 4
PLANSPONSOR - May/June 2024 - 5
PLANSPONSOR - May/June 2024 - 6
PLANSPONSOR - May/June 2024 - 7
PLANSPONSOR - May/June 2024 - 8
PLANSPONSOR - May/June 2024 - 9
PLANSPONSOR - May/June 2024 - 10
PLANSPONSOR - May/June 2024 - 11
PLANSPONSOR - May/June 2024 - 12
PLANSPONSOR - May/June 2024 - 13
PLANSPONSOR - May/June 2024 - 14
PLANSPONSOR - May/June 2024 - 15
PLANSPONSOR - May/June 2024 - 16
PLANSPONSOR - May/June 2024 - 17
PLANSPONSOR - May/June 2024 - The Proactive Adviser
PLANSPONSOR - May/June 2024 - 19
PLANSPONSOR - May/June 2024 - 20
PLANSPONSOR - May/June 2024 - 21
PLANSPONSOR - May/June 2024 - Mastering the In-Plan Annuities
PLANSPONSOR - May/June 2024 - 23
PLANSPONSOR - May/June 2024 - 24
PLANSPONSOR - May/June 2024 - 25
PLANSPONSOR - May/June 2024 - 2024 Plan Sponsor of the Year Finalists
PLANSPONSOR - May/June 2024 - 27
PLANSPONSOR - May/June 2024 - 28
PLANSPONSOR - May/June 2024 - 29
PLANSPONSOR - May/June 2024 - 30
PLANSPONSOR - May/June 2024 - 31
PLANSPONSOR - May/June 2024 - 32
PLANSPONSOR - May/June 2024 - 33
PLANSPONSOR - May/June 2024 - Why a Second Committee?
PLANSPONSOR - May/June 2024 - 35
PLANSPONSOR - May/June 2024 - Savings Need to Last
PLANSPONSOR - May/June 2024 - 37
PLANSPONSOR - May/June 2024 - DOL Finalizes QPAM Exemption
PLANSPONSOR - May/June 2024 - Filing a VFC Application?
PLANSPONSOR - May/June 2024 - Careful Consideration
PLANSPONSOR - May/June 2024 - Cover3
PLANSPONSOR - May/June 2024 - Cover4
https://www.plansponsordigital.com/plansponsor/may_june_2024
https://www.plansponsordigital.com/plansponsor/march_april_2024
https://www.plansponsordigital.com/plansponsor/january_february_2024
https://www.plansponsordigital.com/plansponsor/november_december_2023
https://www.plansponsordigital.com/plansponsor/september_october_2023
https://www.plansponsordigital.com/plansponsor/july_august_2023
https://www.plansponsordigital.com/plansponsor/excellenceawards_2023
https://www.plansponsordigital.com/plansponsor/may_june_2023
https://www.plansponsordigital.com/plansponsor/march_april_2023
https://www.plansponsordigital.com/plansponsor/december_2022_february_2023
https://www.plansponsordigital.com/plansponsor/october_november_2022
https://www.plansponsordigital.com/plansponsor/august_september_2022
https://www.plansponsordigital.com/plansponsor/june_july_2022
https://www.plansponsordigital.com/plansponsor/excellenceawards_2022
https://www.plansponsordigital.com/plansponsor/april_may_2022
https://www.plansponsordigital.com/plansponsor/february_march_2022
https://www.plansponsordigital.com/plansponsor/december_2021_january_2022
https://www.plansponsordigital.com/plansponsor/october_november_2021
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
https://www.plansponsordigital.com/plansponsor/august-september_2020
https://www.plansponsordigital.com/plansponsor/june-july_2020
https://www.plansponsordigital.com/plansponsor/april-may_2020
https://www.plansponsordigital.com/plansponsor/february-march_2020
https://www.plansponsordigital.com/plansponsor/december-january_2020
https://www.plansponsordigital.com/plansponsor/october-november_2019
https://www.plansponsordigital.com/plansponsor/august-september_2019
https://www.plansponsordigital.com/plansponsor/june-july_2019
https://www.plansponsordigital.com/plansponsor/april-may_2019
https://www.plansponsordigital.com/plansponsor/february-march_2019
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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