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How to Increase 401k Participation with Plan Advisor Assisting

Increase 401k Participation with Plan Advisor Assisting

How to Increase 401k Participation is a question being asked by many CEOs and Human Resources Managers. Part of the solution for the Plan Sponsor should be coming from their Retirement Plan Advisor. After a recent Plan Sponsor University (TPSU) Fiduciary Education Program at University of Memphis, Mr. Fred Barstein, Founder and CEO of TPSU interviewed Joanne, a Payroll and Benefits Manager at a company that employs approximately 625 employees.  Joanne stressed the personal one-on-one consulting as being very helpful in improving their 401k plan participation rates.

Full Transcript Here

Fred Barstein with 401K TV at the University of Memphis. I’ve just finished a TPSU program and I am here with Joanne. Welcome Joanne.

Thank you.

Okay if we ask you a few questions.

Yes, not a problem.

Okay. Before we do, why don’t you just introduce yourself briefly.

Yes, I am Joanna and with a company which employs about 625 staff. And we do the 401K program.

What’s your role?

And I am payroll/benefits.

There you go. All in one.


So one of the things you mentioned the program, I thought was interesting is you’re able to increase participation by having your advisor come out and talk to your employees.


What did he do? What did that advisor talk about?

Oh well talks about the importance, the contribution of in your retirement and what your plan is and will really just advise you on what’s good for you [crosstalk 00:01:13] at the time and definitely individual advice.

Right, and why did you start that program?

Well we started it actually about earlier this year.


And because we were looking at the numbers and it wasn’t increasing kind of year by year. And so when we got together with the advisor, that was one of the suggestions, and with that suggestion it worked out great.

So what is the effect? How … what’s the …?

I mean, the percentage went up like 18%. It went up literally 18%, really in a matter of a few months.


And so, and that was just being the one on one kind of coaching them or just really like you said, advising them on what to do.

Right, that was that. So great. Well congratulations.

Yes thank you.

A couple of things you picked up, you may want to take back from the program?

But for sure the stretching because we will be implementing …

Stretching the match.

Yes, stretching the match and we will be implementing the auto enrollment.


And so and that was a really, really good point for me. I really took away from that and just grabbing the little notes, and so we can further educate which was a huge, huge thing. And to really educate so that would know because I did hear some people say, “Well, what was a 401K? How is it really gonna benefit me? I can put my money in a shoebox.” And that would be great. But that was a big help.

Very good.


Well thanks for your time today.

Okay. Thank you.

And thank you for watching.

[inaudible 00:02:49]

Thank you. Thanks for watching 401K TV.



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