Toledo, Ohio — Kowalski Plumbing & Heating improved its employees’ retirement outlook Tuesday by approving a more optimistic investment projection after determining that a larger company match would cost money.
The decision followed a benefits review in which advisor Brent Kessling showed owner Dan Kowalski two ways to close a projected savings gap: increase employer contributions, or adopt Five Star Fund Company’s Maximum Growth target-date series and assume higher long-term returns.
The match proposal included an annual expense. The growth proposal included a shaded range of possible outcomes.
“We’re asking the money already in the plan to work harder,” Kowalski said. “We’ve had success applying that principle to the staff.”
“We’re asking the money already in the plan to work harder.”— Dan Kowalski, Kowalski Plumbing & Heating
Kessling explained that the new series held more stocks and exposed employees to greater losses if markets performed poorly. He showed Kowalski a lower line representing a less favorable result.
Kowalski asked whether the company would be required to make up the difference. Kessling said it would not.
“I think we should give people the opportunity,” Kowalski said.
The company’s announcement described the decision as an enhanced commitment to employees’ futures. It included the improved projection and instructions for attending a webinar on accepting market volatility.
One employee asked whether the company would be putting any additional money into his account. Kessling offered to walk him through the new chart.
No investments had been moved by press time. The employees were already listed as better prepared.