Upon being selected to run the retirement plan for a national restaurant chain, we immediately recognized the need for a unique approach to the plan’s management. Restaurants typically have low participation and deferral rates due to the large number of employees who receive tips as a portion of their compensation (“tipped employees”). Auto enrollment would also not be a viable option, due to a high degree of employee turnover and the tipped employees.
In order to drive participant engagement, education and enrollment, LAMCO designed a customized enrollment and information program that focused on working with participants to teach them about their plan options and their financial futures. We created customized printed materials that showed each participant their potential retirement shortfalls and what their futures could look like with the proper amount of planning.
By providing onsite education and guidance sessions to help restaurant employees feel comfortable and confident about their retirement plan, LAMCO was able to increase enrollment by almost 500 percent and boost the average deferral rate from 2.7 percent to 6.5 percent.