Guy C. Lee Building Materials LLC

NOMINATOR COMMENTS

Jointly, the plan sponsor and I have redesigned the plan menu to allow for Mainspring Managed via The Standard to provide solutions that the majority of the company’s employees currently utilize. We simultaneously reduced participant costs while offering a complete lineup that will lead to better retirement outcomes. Utilization is at 89% of this program. Now in Year 2 of our partnership, we introduced the changes by way of a robust educational offering in which we covered dozens of locations—more than 500 participants. Roth deferrals increased by 100% from 2023 to 2024—to more than $100,000 from $50,000—participation is at 94%, and the saving rate almost tripled over that time, going to 5.59% from 2.31%. The average account balance went to $34,922 from $28,730.

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.

Guy C. Lee: Our plan had been stagnant for years. For the company as a whole, there was no desire to plan for retirement. A change was desperately needed, and two years ago, we switched our recordkeeper to The Standard and partnered with FNB Wealth Management for advisory services. We added Mainspring Managed via The Standard as the automatic enrollment default, as well as a 3% deferral default rate. Mainspring Managed is a formal, goal-based savings and investment plan that manages participant investments and contributions as a free service. It has an annual automatic escalation of 1% to 2%. We have maintained an 89% Mainspring Managed utilization rate as of June 2024.

We began our new partnership with more than 20 kickoff meetings, as members of The Standard, FNB Wealth Management and Guy C. Lee travelled to each location and met with participants in person. In May 2023, we introduced Mainspring Managed and its functionality; we also introduced FNB Wealth members as financial advocates for Guy C. Lee employees’ overall financial health, not just their 401(k) plan. Guy C. Lee associates were invited to the meeting and were offered one-on-one conversations, as well as gift cards for asking questions during the meeting! In 2023, our average saving rate was 2.31%, and by mid-2024, it had already increased to 5.59%.

In May 2024, we hit the trail again and offered more in-depth knowledge of saving and tips on investment and the services that are provided. We will build on this basic knowledge each year and educate our people into their retirement years.

An additional benefit of the partnership with The Standard and FNB is they work to ensure that the plan’s administration and fiduciary responsibilities are in compliance.

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

Guy C. Lee: We feel that employee education leads to engagement, and that leads to understanding of retirement plans and investment options and overcomes the complexity of the “How?” and “Where?” to save.

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.