Tennessee-based Newport Utilities recognized for delivering an
outstanding retirement plan benefit to employees
KNOXVILLE, Tenn.–(BUSINESS WIRE)–Newport Utilities, a provider of electricity, water, wastewater and
broadband services, was named a finalist for the 2019 PLANSPONSOR Plan
Sponsor of the Year award thanks to its impressive efforts in delivering
a 401(k) plan that boasts 100% of employees on track to replace at least
70% of their income in retirement. The Tennessee-based company
implemented Unified Trust Company’s UnifiedPlan® Managed Account
Solution as the default investment in 2011. Unified
Trust Company (“Unified Trust”), a national bank trust company, is a
discretionary trustee, which provides the highest level of fiduciary
oversight under ERISA.
“Replacing 70% of your income in retirement is a major industry
challenge. Research shows that, on average, only 31%
of retirement plan participants are on track to achieve that goal.
Participants need a more hands-on approach and that’s where the
UnifiedPlan comes in,” says Unified Trust CEO and Founder Dr. Gregory
Kasten.
The UnifiedPlan Managed Account Solution defines a goal for each
participant, replacing 70% of pre-retirement income, adjusted for
inflation and targeting as close to the normal Social Security
retirement age as possible. Employees are automatically enrolled into
the plan with the least amount of risk necessary to succeed. Unified
Trust, as a discretionary trustee, makes adjustments as needed along the
way to help keep each of the more than 100 Newport Utilities
participants on track to achieve their retirement goals.
A fiduciary “outcomes-focused” plan design lays the groundwork for
success, but it must also be delivered with an advisory group that
shares the plan’s mission to help each and every participant be prepared
for retirement. Jeff Hall, CFP®, CIMA®, Partner
and Senior Advisor at Rather & Kittrell, the plan’s advisory firm, says,
“I’ve been personally engaged with nine out of every 10 participants at
Newport Utilities since I took over the plan 14 years ago. The
conversations have encompassed just about every personal financial
planning topic imaginable beyond their quarterly retirement income
projections. These include investment management, rollovers, college
savings accounts, Roth IRAs, inherited trusts, Social Security claiming,
wills, powers of attorney, living wills and long-term-care insurance.
I’ve even been involved in meetings with participants and their children
at the same time to discuss financial issues.”
Through its dedication to employees, Newport Utilities has created a
culture of savers. “Our employees want to retire and see the value in
saving. Nearly 60% of our participants utilize the auto-escalation
feature of our plan called ‘Progressive Savings’ so that they can
automatically save a little bit more every year. We also have older
employees who mentor the younger generations about the importance of
saving for retirement. It’s amazing to know that we deliver a benefit to
our employees that will last them for the rest of their lives,” says
Connie Frisbee, Human Resources Manager at Newport Utilities.
Newport Utilities has conducted two re-enrollments over the years,
increasing participation and allocations to the default investment. The
first took place in 2005 after a recordkeeper conversion, and the second
occurred in 2011, when the plan introduced its recordkeeper Unified
Trust’s UnifiedPlan® Managed Account Solution as the new default
investment.
The 2019 PLANSPONSOR Plan Sponsor of the Year finalist information can
be found here.
About Unified
Trust Company
Unified Trust Company, N.A. (Lexington, Ky., $5 billion in assets under
management) is a national bank trust company and discretionary trustee,
serving individual, institutional and retirement plan investors. As a
fiduciary, the firm is dedicated to helping people achieve successful
financial outcomes. It is the first trust company in the U.S. and among
the first globally to be certified for fiduciary best practices by the
Centre for Fiduciary Excellence.
Contacts
Press Contact:
Tara Berardi for Unified Trust
[email protected]
215-337-4195
