Fellowship Evangelical Free Church

When Mike Long, executive director of business, stewardship and generosity ministries at Fellowship Church, in Knoxville, Tennessee, learns that church employees aren’t contributing the 6% required for an employer match in the 403(b), he finds them and asks for $5.

Then, he turns around and hands them $10 back.

“For some reason, holding that $10 in their hand, knowing they only put in $5, makes all the difference in the world,” Long says. “That little demonstration has caused so many people to immediately enroll in our 403(b) plan or increase their contribution.”

Since the current committee, led by Long, began working on the plan in 2018, the plan balance has nearly doubled and participation has increased from 61% to 83%, with average participant contributions being 9%.

The committee meets regularly to review plan data and statistics, and has opted to allow plan adviser Rather & Kittrell to reach out directly to individuals who aren’t participating or taking full advantage of the 6% match, or to those who have made investment decisions that seem counter to their demographic profile.

“At our regular staff meetings, we make sure our staff knows that Rather & Kittrell is there for them, and they have a regular presence in front of our staff,” Long says. “That creates a level of trust, that these folks are not here just to sell us something; they’re here to help us plan for our financial well-being.”

In those meetings, Rather & Kittrell help plan participants take a more holistic look at their finances.

“We go through the plan and how they can use it, but we also provide a financial planning perspective, helping them with questions on things such as tax and insurance,” says Skee Orr, a senior adviser with the firm. “In the church world, pastors have specific tax planning they need to be conscientious about.”

The adviser also looks at participants’ asset allocation and discusses where they might make changes if, for example, it appears a young participant is investing too conservatively, or a near-retiree’s portfolio has too much risk. Orr believes those participant meetings are a factor in the plan’s success.

“Technology is great, but, at the end of the day, it can’t replace meeting with a human,” Orr says.

Three-quarters of participants are on track to replace their paycheck in retirement, which Long attributes to overall education about the 403(b) and other personal finance topics, along with financial wellness seminars, targeted by age group, and those individual one-on-one meetings. But the plan isn’t ignoring the 25% who could make improvements to their financial security.

“I know who they are, and I’m talking to them on a regular basis and encouraging them to meet with Rather & Kittrell and to think about stepping up what they’re doing,” Long says. “We also talk to them about how, when they get a compensation increase, that’s the perfect time to increase the percent they’re putting into the 403(b).”

—Beth Braverman