Workers’ Compensation Insurance Rating Bureau of California

NOMINATOR COMMENTS

The Workers’ Compensation Insurance Rating Bureau of California is committed to providing world-class retirement solutions that ensure financial security, personal fulfillment and the freedom for employees to enjoy their retirement years.

Through a partnership with Empower, WCIRB delivers a total retirement solution, integrating a defined contribution plan and a defined benefit plan, which are viewed holistically as a single plan design. WCIRB’s internal retirement committee goes beyond its fiduciary requirements with a dedication to driving superior retirement outcomes for all employees. Plan participants are at the center of all decisions, including plan design and offerings. Through continued communication and personal interaction, committee members ensure each employee can make the most of their retirement.

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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.

WCIRB of California: WCIRB implemented significant changes, including:

• Reduced the DB formula to 1.00% of final average pay;
• Increased the 401(k) plan match;
• Added automatic enrollment and automatic escalation, with a default deferral rate of 6% and 1% increases annually up to 12%;
• Introduced a prudent DB plan funding policy, contributing the value of benefit earnings annually, even when the plan was overfunded; and
• Adopted a liability-driven-investment policy for the DB plan to reduce funded status volatility and maintain improvements.

The DB plan is now 135.49% funded on an ERISA basis, reducing risk and lowering premiums to the Pension Benefit Guaranty Corporation. 401(k) plan participation increased to 94% from 84%, with average employee contributions rising from 7.6% in 2016 to an exceptional 11.1% in 2024 — a rate that far exceeds benchmarks for plans in any industry. Average retirement income replacement ratios are 87%, well above the 75% benchmark for retirement readiness. However, ratios do not include assets outside WCIRB plans, suggesting actual readiness may be even higher.

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

WCIRB of California: WCIRB remains focused on continuous improvement and employee engagement. Key initiatives include periodic educational sessions to empower employees with financial knowledge; proactive outreach by the HR team to employees not participating in the 401(k) plan, ensuring no one misses out on employer contributions; and a general culture of encouragement, as reflected in the words of our CEO: “I don’t want any person leaving free money on the table!”

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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.