Photo credit: ©Todd Winters, All Rights Reserved
Annually, a 401(k) magazine, PLANSPONSOR, honors leading companies that offer the best retirement plans. The magazine announced the winners of the 2016 plan sponsors of the year awards. OSG is the winner of the asset class 25 million to 50 million in the Corporate 401(k) category!
What exactly is the Plan Sponsor of the Year Award?
Each year the PLANSPONSOR magazine recognizes the finalists of the 401(k) plan sponsors in 6 asset classes, and determines the winners for each class. In order to be considered for the finalists, 401(k) plan sponsors have to be nominated by financial advisors. We were nominated by our partner, Dan Peluse from Wintrust. This year, the PLANSONPOSIR magazine received 300 nominations and selected 5 finalists per asset class. OSG was one of the 5 finalists in the 25 million to 50 million asset class and we were chosen as the winner of the asset class!
OSG’s 401 (k) plan design and retirement preparedness
Total plan assets/participants: $ 25.1 million/440
Participation rate: 96.3%
Average deferral rate: 8%
Default deferral rate: 6%
Employer contribution: 100% on 6%
At OSG, all employees including new hires are automatically enrolled at 6%. Employees are able to adjust their deferral rate, but we utilize an auto-escalation system which increases deferral rate of each employee by 1% at the beginning of each year. This increase happens at the same time with the annual salary increase, so that employees see the small changes in their paycheck. Any employees who are contributing less than 6% are re-enrolled at 6% at the beginning of the year.
OSG’s 401 (k) plan was carefully selected and designed by its 401 (k) Committee. The committee members include: Jeff Tennant, the Chief Financial Officer, David Kwon, the Executive Vice President, Kelly Turk, Compensation and Benefits Specialist, Jennie Stephens, the Corporate HR Manager and Donna Gialo, the Business Intelligence Manager.
Turk said “our mission is to promote and encourage employees to achieve their financial savings goals by providing a flexible plan design, a variety of education options guidance tools and investment choices.”
In October, we hosted a Financial Wellness Fair with our financial advisor, Wintrust, to help our employees better understand financial planning. We went over 529 College Savings, budgeting, estate planning and social security, and employees were able to ask questions to our financial advisors.
Responsibility to support employees
As our parent company, OSG Corporation, is based out of Japan, we inherit their Japanese value of protecting and taking care of our employees. In this sense, we are responsible for supporting our employees by providing resources for financial wellness and retirement. In exchange, we are rewarded with long-term employees who are dedicated, and bring in valuable skills and knowledge to grow our business.
“It is a generous plan compared to what I hear in the market,” said Dan Dimenza who has worked for OSG for 36 years.
Anna Oczkowski has worked for OSG for over 8 years. She found OSG’s Financial Wellness Fair very beneficial.
“We have a lot of questions about financial wellness and retirement, but we do not really get an opportunity to ask,” Oczkoswki. “At OSG Financial Wellness Fair, I was able to get answers to all of my questions and I feel more clear idea for my retirement planning.”
Learn more about the award from here.