Hines Interests, LP

Hines Interests Limited Partnership is a real estate investment and development firm based in Houston, and its business sometimes brings unique challenges to benefit planning. Cory Fitts, Hines’ senior director of benefits, says employees in real estate investment can be difficult to impress, while workers in investment management “are savvy and have high expectations” because of their experience in investment. That means workers often ask questions about investment options in the plan, and this feedback has been included in plan meetings and has turned into an asset by informing investment menu decisions, Fitts says.

One such decision was making the T. Rowe Price Trust Fund, a target-date fund, the plan’s default option. Fitts says the fund had been in the menu for some time as a choice, but it was promoted to the default in part because it was so popular with participants.

Junaid Karimi, Hines’ vice president of total rewards, says he enjoys being challenged by knowledgeable employees to improve the plan. He says Hines develops assets for the long term, and its 401(k) plan is treated like a long-term investment too.

Fitts emphasizes that she wants participants to feel valued, which is evident in Hines’ responsiveness to participant inquiries and its investment in a generous retirement plan. Hines offers a 6% match on employee contributions up to $7,500 annually, and the match vests right away, because, Fitts says, “We want them to see that match immediately.” Hines employees maintain an average tenure of 7.4 years, which demonstrates that its approach to vesting has not been an obstacle to retention.

Karimi and Fitts agree that the quarterly plan meetings at Hines are essential, and committee members keep a close eye on developments in the legislative and research spaces. They are also constantly looking to make positive changes to the plan. For example, Karimi expects to implement a mega backdoor Roth option into the plan and said he takes pride in having twice cut fees in the last 18 months. He explains that the plan committee sought a more fee-efficient investment lineup.

Hines also values financial education as part of its benefits package. Karimi says educating participants on the impact of Social Security and Medicare on their retirement security has been a popular topic so that workers from different generations can get a more comprehensive analysis of their long-term financials.

Karimi says it is important that participants have a financial wellness administrator so they have “someone they can turn to” when they have questions about their account, especially in uncertain economic times when participants might instinctively pull back from their contributions. He credits strong engagement and personal relationships with the plan for allowing the company to maintain high participation in a volatile economy.

—Paul Mulholland