Case Study 3
Reduce Turnover With Corporate Match
A large east coast grocery store chain employed pharmacists in each of their stores. They were experiencing 40% turnover each year within this group and wanted a benefit plan that would increase their retention. A deferred compensation plan was designed allowing the pharmacists each to defer $10,000 of pre-tax income and the company agreed to make a matching deposit in the same amount. The corporate match vested over a ten-year period. It was thought the plan would increase retention by as much as 50%. The unvested funds that are forfeited due to termination of employment are used to fund benefits for newly hired pharmacists.