McDonald’s Corp., Oak Brook, Ill., received the Profit Sharing/401k Council of America’s first Plan Sponsor of the Year award, confirmed David Wray, PSCA president.
Mr. Wray said in a telephone interview that the restaurant chain was honored in part because it offers a 3% company match for a 1% salary contribution from the employee. The company match is capped at 7% for an employee contribution of 5%. A discretionary profit-sharing contribution can give the employee up to an additional 4%.
“That’s a pretty generous arrangement,” Mr. Wray said.
He noted that McDonald’s also has committed to increasing the percentage of African-American and Hispanic employees in management positions and launched a financial literacy program with credit card company Visa USA to help employees better manage their personal bank accounts.
“If people have their basic financial situation squared away, they are able to save more in their 401(k) plans,” he said.
The award was given at PSCA’s annual meeting Sept. 21-23 at Amelia Island, Fla. Mr. Wray said the award will be given annually to “highlight extraordinary practices” and help other companies think beyond traditional retirement strategies.
Also at the conference, Ira Finn, benefits manager of Komatsu America Corp., Rolling Meadows, Ill., was named PSCA board chairman. Mr. Finn, who oversees $159 million in defined contribution assets at Komatsu America, was elected for a one-year term. He succeeds Daniel Madden, former vice president for global pensions at Illinois Tool Works Inc., Glenview, Ill.
Annette Grabow, manager of retirement benefits for the $121 million DC plan at M.A. Mortenson Co., Minneapolis, was elected first vice chairwoman, and Shirley Zabiegala, responsible for $2.3 billion in defined contribution assets as savings plan manager for Nestle USA Inc., Glendale, Calif., was elected second vice chairwoman.