PLANSPONSOR - September - October 2023 - 40
PLAN PROFILE | A 2018 PLAN SPONSOR OF THE YEAR
Continuous Improvement
I
Kimley-Horn and Associates, Inc., winner Corporate 401(k) >$800mm
n 2018, Tammy Flanagan, chief
financial officer at this planning
and design engineering
consulting firm, headquartered
in Raleigh, North Carolina,
told
PLANSPONSOR, " At Kimley-Horn
and Associates, Inc., we hire great
employees, we serve great clients,
and we work hard and run a successful
business. These strengths put us
in a position to reward our employees
with what we believe are the best
benefits in our industry. "
Steve
Lefton,
president
and
CEO of the company today, says
this still holds true five years later.
" Remaining on the 'Fortune 100
Best Companies to Work For' list for
16 years is a great source of pride for
us. We receive aggregated data back
from Fortune that helps us understand
where our benefits might need
to be, since 75% of the recognition is
based on anonymous feedback from
our employees. "
Kimley-Horn is a privately held C corporation. " There's a
is independent of our 401(k) and has
outperformed the Standard & Poor's
indexes over the past 20 years. We
have
approximately
800 owners
today and continually promote
employees to shareholders, on an
annual basis. "
Roughly 50% of active participants
are under age 30, and in 2018
the company contemplated automatically
enrolling new hires into a
Roth 401(k). Lefton notes the benefits
Kimley-Horn considered: participants
paying taxes upfront and withdrawing
contributions and earnings
tax-free in retirement, plus the fact
that younger workers are typically
earning less and in a lower tax bracket
than they would be when retired, etc.
In the end, Lefton says, " after
Steve Lefton, president and CEO, Kimley-Horn and
Associates, Inc.
clear path to ownership that is earned based on performance
whether an employee is practicing in the field of engineering,
accounting or whatever their vocation is, " Lefton says. " The stock
PLAN SNAPSHOT
PLAN SPONSOR: Kimley-Horn and Associates, Inc., Raleigh, North Carolina
PLAN ASSETS: $1.56 billion
PARTICIPANTS: 8,000
PARTICIPATION RATE: 97.9%
AVERAGE DEFERRAL RATE: 7.7%
DEFAULT DEFERRAL RATE: 4%
DEFAULT INVESTMENT: T. Rowe Price Hybrid Trust
EMPLOYER CONTRIBUTION: 200% of 4%, plus profit sharing-normally 10%
studying and studying, we concluded
that auto-enrolling folks into a Roth
account felt too close to giving financial
advice. Instead, what we've done
is work with recordkeeper T. Rowe Price to create a Roth microsite
that we're using to educate and inform our employees, particularly
the newer, younger ones. "
In 2021, the company expanded its relationship with its advisory
firm, CAPTRUST, from a 3(21) to a 3(38) relationship. " We
had used CAPTRUST as advisers beforehand, but, as fiduciaries,
we needed to go out to market, so we held an open request for
proposals. We ultimately selected CAPTRUST, " he says. " The
process allowed us to pool our assets with assets of other companies
that utilize CAPTRUST as a 3(38) adviser, to reduce fees.
This brought our [advisory] fees from .36, pre-3(38) to .27. "
Administration fees-which Kimley-Horn pays for participants
with under two years of service-have also decreased.
" We've been working hard with T. Rowe Price on that, " Lefton
says. The recordkeeping administration fees are $60 annually or
$15 per quarter, down from $88 annually in 2018.
Lefton likens the company's retirement plan to a good race
car. " It's running-it's been running-fast, and we look to how
we can make fine adjustments to further improve the plan. We
know already what's running well, and [those are the places]
where we had focused. " -Judy Faust Hartnett
40 PLANSPONSOR.COM September - October 2023
Art by Chris Buzelli
http://www.PLANSPONSOR.COM
PLANSPONSOR - September - October 2023
Table of Contents for the Digital Edition of PLANSPONSOR - September - October 2023
INSIGHTS
PARTICIPANT ANALYSIS
RULES & REGULATIONS
UPFRONT
Building Strength
2023 Defined Benefit Administration Survey
2023 Best in Class 401(k) Plans
If the Goal Is Engagement
Upgrading NQDC Plans
When to Amend?
PRTs’ New Notoriety
Continuous Improvement
PLANSPONSOR - September - October 2023 - Cover1
PLANSPONSOR - September - October 2023 - FC1
PLANSPONSOR - September - October 2023 - FC2
PLANSPONSOR - September - October 2023 - Cover2
PLANSPONSOR - September - October 2023 - 1
PLANSPONSOR - September - October 2023 - INSIGHTS
PLANSPONSOR - September - October 2023 - 3
PLANSPONSOR - September - October 2023 - PARTICIPANT ANALYSIS
PLANSPONSOR - September - October 2023 - 5
PLANSPONSOR - September - October 2023 - RULES & REGULATIONS
PLANSPONSOR - September - October 2023 - 7
PLANSPONSOR - September - October 2023 - 8
PLANSPONSOR - September - October 2023 - 9
PLANSPONSOR - September - October 2023 - UPFRONT
PLANSPONSOR - September - October 2023 - 11
PLANSPONSOR - September - October 2023 - 12
PLANSPONSOR - September - October 2023 - 13
PLANSPONSOR - September - October 2023 - 14
PLANSPONSOR - September - October 2023 - 15
PLANSPONSOR - September - October 2023 - Building Strength
PLANSPONSOR - September - October 2023 - 17
PLANSPONSOR - September - October 2023 - 18
PLANSPONSOR - September - October 2023 - 19
PLANSPONSOR - September - October 2023 - 2023 Defined Benefit Administration Survey
PLANSPONSOR - September - October 2023 - 21
PLANSPONSOR - September - October 2023 - 22
PLANSPONSOR - September - October 2023 - 23
PLANSPONSOR - September - October 2023 - 2023 Best in Class 401(k) Plans
PLANSPONSOR - September - October 2023 - 25
PLANSPONSOR - September - October 2023 - 26
PLANSPONSOR - September - October 2023 - 27
PLANSPONSOR - September - October 2023 - 28
PLANSPONSOR - September - October 2023 - 29
PLANSPONSOR - September - October 2023 - 30
PLANSPONSOR - September - October 2023 - 31
PLANSPONSOR - September - October 2023 - If the Goal Is Engagement
PLANSPONSOR - September - October 2023 - 33
PLANSPONSOR - September - October 2023 - 34
PLANSPONSOR - September - October 2023 - 35
PLANSPONSOR - September - October 2023 - Upgrading NQDC Plans
PLANSPONSOR - September - October 2023 - 37
PLANSPONSOR - September - October 2023 - When to Amend?
PLANSPONSOR - September - October 2023 - PRTs’ New Notoriety
PLANSPONSOR - September - October 2023 - Continuous Improvement
PLANSPONSOR - September - October 2023 - Cover3
PLANSPONSOR - September - October 2023 - Cover4
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