What does a well-run retirement plan actually look like from the inside? At a recent TPSU program held at the Thunderbird School of Global Management at Arizona State University, one benefits administrator offered a candid answer — and it started at the top.
Jerry, Benefits Administrator for McKenna Corporation, shared what he believes is one of the biggest strengths of his company’s retirement plan: leadership engagement.
With approximately 300 employees, McKenna Corporation’s leadership team takes its fiduciary responsibilities seriously. Company leaders actively participate in quarterly retirement plan committee meetings, reviewing investment performance, monitoring underperforming funds, and evaluating whether changes are needed to better serve participants. Despite competing priorities, senior management consistently makes time to stay informed and involved in the plan’s oversight.
That commitment is also reflected in the company’s generous matching contribution. McKenna provides a 100% match on the first 3% employees contribute and a 50% match on the next 2%, helping employees accelerate their retirement savings. That visible support sends a clear message to employees: leadership genuinely cares about their financial future.
Read the Full Transcript Here:
Fred Barstein: This is Fred Barstein, CEO and Founder of 401kTV and TPSU. We just completed a program in downtown Phoenix at the Thunderbird School of Global Management at Arizona State University, and I’m here with Jerry. Welcome, Jerry.
Jerry: Hello.
Fred: Is it okay if we ask you a few questions?
Jerry: Absolutely.
Fred: Okay. Before we do, tell our audience a little bit about yourself, your role, and the size of your company.
Jerry: My name is Jerry. I work for a company called McKenna Corporation as a Benefits Administrator. We have approximately 300 employees.
Fred: Today we’re talking about what’s working and what’s not working. One thing you mentioned is that senior management is engaged in your retirement plan. How are they engaged? What do they do?
Jerry: We’re really fortunate. The whole idea behind today’s seminar was learning about 401(k) plans and helping our employees prepare for retirement. We’re fortunate that our leadership takes that responsibility very seriously.
They take their fiduciary role seriously. We hold quarterly meetings to review the performance of our plan, look at investments that are performing or underperforming, evaluate how long they’ve been on watch lists, and determine whether any changes need to be made.
A significant part of that is the commitment from our leadership team. These are busy individuals with many competing priorities, yet they make the effort and take the time to attend these meetings and understand what’s happening within the plan for the benefit of our participants.
As I mentioned, they take their fiduciary responsibilities very seriously, and their involvement is a clear demonstration of that commitment.
Fred: How do employees know that senior management cares about the 401(k) plan? What do they do that demonstrates that?
Jerry: I think it starts with their commitment to the plan and their encouragement of participation. It’s also demonstrated through the company’s matching contribution.
Our company provides a 100% match on the first 3% employees contribute. If an employee contributes an additional 2%, bringing their total contribution to 5%, the company matches that additional amount at 50%.
So, for someone earning $100, if they contribute $5, they’re receiving an additional $4 from the company. That’s significant. It’s a tangible demonstration that the company is invested in helping employees save for retirement.
Fred: Final question. What did you think of TPSU? Maybe share one or two things you learned, and would you recommend the program?
Jerry: I think it was a great opportunity to spend time hearing about the concerns and challenges that our peers in similar roles are facing.
It was also very informative to hear from the knowledgeable speakers and panelists who participated in the event. The program provided an opportunity to learn what’s working for other organizations, understand the concerns others are experiencing, and exchange ideas and experiences.
That sharing and mutual exchange of information has been extremely beneficial.
Fred: Very good. Thank you for your time.
Jerry: Absolutely.
Fred: And thank you for watching 401kTV. Please stay tuned.
