The DOL famously noted that 75% of 401(k)s they audited were dirty, resulting in plan sponsors being fined, penalized or forced to make reimbursements for plan errors. You won’t find the Clorox Company among them.
The company was recognized on Monday at the 2015 White House Conference on Aging as one of the companies with a “best in class” retirement plan for its employees. The conference, held once every 10 years, featured an open dialogue on retirement and aging issues. Over 200 stakeholders were in attendance, including President Barack Obama, cabinet members and other CEOs, with thousands more participating through webcasts.
“Clorox’s relentless focus on attracting and retaining smart, values-driven people is one of the reasons the company has been able to thrive for more than a hundred years. It’s also why employees at Clorox are more engaged than others in the consumer goods industry,” said Jacqueline Kane, executive vice president of Human Resources and Corporate Affairs. “Our benefits programs have been designed to support the long-term well-being of our people because each and every person contributes to our success.”
The Obama administration has long encouraged employers to help employees better prepare for retirement through best practices like automatic enrollment of employees in 401(k) plans starting at levels such as 5% or 6% of pay; automatic escalation of contributions, substantial employer matching and other contributions; flexible distribution options; and comprehensive financial education programs.
The Clorox Company claims to have taken the lead in adopting such clean practices. For example, Clorox provides a total company contribution of 10% of pay, consisting of a 4% employer match and a 6% annual company contribution, and has included auto-enrollment and auto-escalation features for many years. This has led to 97% employee participation with an average employee contribution of more than 10%. Clorox also offers financial planning services to help employees manage their retirement-plan assets and other aspects of their personal finances to ensure their financial well-being.
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With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
