PSCA Rates McDonald’s 401(k) as No. 1

The Profit Sharing/401(k) Council of America has honored McDonald’s for having the best retirement plan, in its inaugural Plan Sponsor of the Year Award.

PSCA said it developed the program to “recognize plan sponsors who demonstrate a special effort to deliver innovative and extraordinary commitment to employer-sponsored defined contribution plans” and that McDonald’s has been a defined contribution “thought leader” for a number of years.

McDonald’s permits workers to contribute up to 50% of their pay and matches each $1 of the first 1% of their contributions with $3. For the next 4% of their salary that they contribute to the 401(k), McDonald’s matches each $1 with a $1.

Eligible employees also receive a match for profit-sharing, of up to 4% of their salary for the first 1% of pay they contribute. In addition, the plan has a money market fund specifically designed for it, Mc$ave, managed by T. Rowe Price, and a direct McDonald’s stock-purchase plan called MCDirect Shares.

Richard Floersch, EVP and chief human resources officer, accepted the award on behalf of the company.

The Profit Sharing/401(k) Council also honored TIAA-CREF with two awards, an Education Award, and, along with Rice University, whose plan TIAA-CREF manages, a Language and Cultural Diversity Award for providing Spanish language financial education materials, seminars and consultations.

In accepting the award, James Nichols, vice president of enterprise advice at TIAA-CREF, said: “We believe the personalized, non-commissioned, objective advice we offer individuals throughout every phase of their career and into retirement is unique in our industry.”