Plan Sponsor Interview with Paul Visconti on Plan Design Hacks

How do you determine financial literacy within your participant base? What kind of training/programs do you offer to help them along the way?

Great question.  Historically, we have surveyed employees or relied on our record-keeper to assist.  We are currently in the process of developing mandatory financial training modules internally (as part of a much broader comprehensive wellbeing roadmap) for employees to help increase awareness, engagement, and literacy. Hoping to do a new module each quarter, with the first one being rolled out by Q2 2023.  Each module will have educational materials to reference later, tips, and knowledge tests at the end. 

You recently conducted a survey on student loan debt – can you share some of the results with us? Was any of that surprising?

First, we engaged Fidelity to do a study on our population to understand the demographic impact of student debt at AVANGRID.  Once we had statistical support, in addition to conceptual buy in that the program fits with our culture and long-term Rewards vision, we sent a short survey to all non-union employees inquiring into their student debt situation and thoughts on a Company sponsored program.  Around 25% (or 1,000) of non-union employees responded, and the feedback was exceptionally positive.  The service went live 2/1, and ~ 5% of eligible non-union employees have already registered or in process of completing their registration. 

Are you happy with the current participation rate? What are you doing to increase it (if anything)?

We have an incredible participation rate - ~ 94%, along with double digit deferral rates, and very high average balances.  We auto enroll all employees, and effective 1/1/23 increase the auto enroll rate for non-union employees to 8%.  We also periodically re-enroll employees and do personalized communications.  When you have an incredible non-union match like 150% on 8%, we don’t have to try too hard. 

What kind of personalized investment options do you offer your participants?

Our Core line up consists of a very low cost passively managed target fund series, which ~70% of participants invest in, as well as a selection of institutionally priced passive and active options.  There is also access to a brokerage window with thousands of mutual funds and ETF’s.  We also offer Fidelity’s Managed Account Solution for an additional participant paid fee.  Both the Brokerage Window and Managed Account solution have very low utilization, which I consider a positive thing due from fiduciary perspective.