The Salvation Army Southern Territory

NOMINATOR COMMENTS

Under the leadership of Scott Strobel, pension and retirement plan director, and in collaboration with its recordkeeper, The Salvation Army Southern Territory executed a comprehensive strategy over the last 18 months that included simplifying the retirement plan structure, automating key plan features, increasing matching contributions and ensuring all changes were communicated effectively to employees. Given the diverse workforce, materials were made available in multiple languages. These efforts have led to considerable increases in employee account balances, reflecting a strong commitment to helping employees maximize their retirement potential.

The Salvation Army truly values its employees and has demonstrated that by making retirement plan changes that make it easier for them to participate and lead them to stronger financial futures.

Carolyn Nichols, Divisional Financial Director, The Salvation Army Southern Territory
Photograph by Matt Kalinowski

PLANSPONSOR: How would you describe your organization?

Salvation Army Southern Territory: The Salvation Army is an international charitable organization serving those in need in over 100 countries. William and Catherine Booth organized The Salvation Army in 1865 in London. Characterized by the red kettle bell ringers, The Salvation Army assists all those in need equally regardless of their situation.

From store clerks to adult rehabilitation resident managers, human resource professionals, investment professionals and Army officers dedicated to serving wherever they are assigned around the world, there’s an extreme level of diversity [The Army needs to accommodate] to help all employees [best achieve] their retirement aspirations.

PLANSPONSOR: What are you most proud of in relation to your retirement plan offering?

Salvation Army Southern Territory: The retirement plan office recently took measures to reduce the complexity of the retirement program. We froze a 401(a) plan and plan to terminate it by 2028. It had the same contribution qualifications as the 403(b) match. The existence of both caused confusion among employees. It also created duplicative expenses maintaining two plans, and it was difficult for human resource personnel to explain the two plans to new hire candidates.

We moved the 401(a) contribution to the 403(b) in the form of a match and now have an extremely competitive match there, while having reduced expenses and improved employee understanding of their retirement plan. Because of our employee diversity, we made the materials that explained the changes available in multiple languages. Now, our HR professionals can better communicate how the 403(b) plan can assist employees and employment candidates in planning for retirement. And employees are more engaged with the plan; we’re seeing considerable increases in their account balances.

PLANSPONSOR: Please cite any noteworthy initiatives you have taken in the past 24 to 36 months that have produced results to improve your plan, and describe the results.

Salvation Army Southern Territory: We have frozen a 401(a) plan, with plans to terminate it by 2028. The 401(a) had the same contribution qualifications as the 403(b) match. The existence of both caused confusion among employees, there were duplicative expenses maintaining two plans and it was difficult for HR personnel to explain the two plans to new hire candidates. We moved the 401(a) contribution to the 403(b) in the form of a match and now have an extremely competitive match in the 403(b), while reducing expenses and improving employee understanding of their retirement plan.

PLANSPONSOR: What does winning Plan Sponsor of the Year mean to you and your employer?

Salvation Army Southern Territory: After recognizing the need to simplify such an important employee benefit so its users can understand how to use it, there is gratification in recognition of the success of the changes made and how employees interact with the retirement plan program. For all its employees who are “Doing the Most Good” at The Salvation Army Southern Territory, the retirement plan office is happy to return the favor.

PLANSPONSOR: Is there anything else you would like to share?

Salvation Army Southern Territory: After many years in the employer-sponsored retirement plan business, one of the major reasons observed for the success of a retirement plan is the ease of employees understanding how the plan works. That was not an attribute of the program prior to the changes we made in late 2023. By freezing and eventually terminating the 401(a) plan and focusing the retirement program in the 403(b) plan, employees are more engaged and HR staff can more easily communicate the program to hired candidates.

This year, for our Plan Sponsor of the Year profiles, we are publishing Q&As based on the finalists’ applications and nominator comments. Responses are edited and may be paraphrased. In cases where the finalist self-nominated or, on its application, referred judges to the nomination for the answer, we have attributed those nominator answers to the plan sponsor.