Taylor Guitars has been awarded the “Best In Class” and “Plan Sponsor Of The Year” Awards for 2019 by PlanSponsor Magazine for the company’s U.S. 401(k) plan it offers its employees.
Taylor Guitars was one of 34 winners selected out of 3,495 401(k) plans nationwide which were rated based on more than 30 criteria related to plan design, oversight/governance and participant outcomes. The El-Cajon-based guitar maker was also awarded Plan Sponsor of the Year for 401(k) plans with assets between $25 million – $50 million.
As the only guitar manufacturer listed among the winners, Taylor boasts an extremely low opt-out rate of 2% for its retirement plan, which is very uncommon for a company located so close to a major market with a high cost of living like San Diego. As a result, 81% of employees 34 years old and under are projected to replace at least 70% of their income in retirement and, overall 61% of its employees are likely to replace at least 70% of pre-retirement income.
“We’re deeply invested in the future of all of our employees,” said Bryan Bear, vice president of Finance at Taylor. “That’s why it’s so important that we educate about their retirement plan options and try to make it as easy as possible for them to participate in a retirement plan that works for them and protects their future.”
“We want them to understand that getting into the plan is very beneficial to them in the long run, but also that the impact to their paycheck is much less than people expect it to be,” says Shaun Paluczak, the company’s vice president of human resources.
