Prestage Farms, Inc.

FINALIST

Kiley E. Jones
Director of Human Resources

Location:

Clinton, North Carolina
Industry:

Agriculture/Farming
Plan(s) Offered:

401(k)
Plan Assets:

$113.5M
Number of Participants:

2,258
DC Plan Participation Rate:

84.5%
DC Plan Average Deferral Rate:

6.5%
Automatic Enrollment:

Yes
Automatic Escalation:

Yes
Default Deferral Rate for Auto-Enrollment:

4%
Default Investment Fund:

American Funds Target Date Retirement funds
DC Plan Employer Contribution:

100% of 4%
Recordkeeper:

Principal Financial Group
Plan Adviser:

Kathleen Kelly, managing partner, Compass Financial Partners, a division of MMA Securities LLC
Financial Wellness Educator(s):

Kathleen Kelly, Compass Financial Partners, a division of MMA Securities LLC

Engagement and proper asset allocation were challenges for the 401(k) plan at Prestage Farms, a family-owned producer and processor of pork and turkey. After a targeted communication proved inadequate, the plan committee, working with the plan’s adviser, in 2024, performed a target-date reenrollment. Groundwork included a webinar with human resources staff, communications displayed on TVs in break rooms, and a targeted flyer in English and Spanish. Over six months, the percentage of target-date fund assets grew from 31.1% to 75.3%. Prestage then increased its match, raised the default deferral rate to 4% and performed a recordkeeper request for proposals that lowered fees 20%.

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