Case Study for Businesses
Hefren-Tillotson Case Study: Strengthening Your Company’s 401(k) Plan
A major regional furniture company was experiencing a low 401(k) participation rate. Only 56% of eligible employees were participating in the plan, and the average deferral rate was approximately 2%. These figures were a concern for management.
Employees often don’t have a clear understanding of the 401(k)’s value or find the paperwork intimidating. Hefren-Tillotson Corporate Services designed a targeted employee education campaign that helped employees understand the benefits of participation and provided them with the tools to join, select appropriate investments, or increase the amount of their contribution.
Through these efforts, 56 out of 104 non-participating employees chose to enroll in the plan and 83 out of 155 participating employees chose to increase their contributions to the plan. After one year of managing the 401(k) plan, Hefren-Tillotson Corporate Services increased participation from 56% to 76%.