Swanson Group Inc.

Swanson Group Inc. is a multigenerational family-owned business headquartered in Roseburg, Oregon. The company owns timberland, operates mills, and produces lumber, plywood, wood siding and other wood products. Having grown from a small business in the early 1950s to over 800 employees at its three locations, Swanson Group provides for their retirement with a 401(k) plan and a nonqualified deferred compensation plan.

MacKenzie Perry, Swanson Group’s chief financial officer, cites several particular factors influencing the company’s retirement plans. “The timber Industry, like any commodity industry, can be very volatile,” Perry says. “We work incredibly hard to avoid layoffs and provide above-average employee benefits, but we cannot control all the forces in our marketplace.” That realization leads the company to enroll new hires quickly—employees age 18 and older are automatically enrolled at a minimum of 2% following 60 days of service, and their contributions are automatically escalated at 1% a year to a cap of 10%.

“Our firm matches up to 6%, and through a study with our retirement plan advisers, we determined that many of our rank-and-file employees can have a dignified retirement[—i.e., 75% pre-retirement income replacement—]if they can save 6% to earn the full match, coupled with average Social Security benefits based on their income, even if they don’t start saving until their mid-40s,” Perry says.

A second factor is that most Swanson Group employees are not office- or home-based knowledge workers sitting at computers. “While online tools and resources are exciting and can be helpful, they will not [make a significant impact for] the majority of Swanson Group’s participants,” says Phil Sherman, senior retirement plan consultant with Deschutes Investment Consulting LLC. “This is a group that still prefers the comfort of having hard copy statements and the ability to ask questions face to face.”

Deschutes meets participants at least twice yearly at each location to provide plan updates. Advisers allow ample time for one-on-one meetings with participants during those visits. Participants may also contact the advisers anytime to schedule a retirement planning session.

Moreover, Swanson Group has launched a project to assess the “retirement health” of employees age 50 and older. Perry explains that the report fits on one page and shows participants their retirement readiness based on their current deferral rate, plan and savings balances, and projected Social Security benefits. She says the result is an easy-to-review summary page that avoids compiling information from multiple online sources.

Companies may claim that they treat employees like family, but Sherman says Swanson Group follows through: “They truly treat their employees as an extension of their family, and we consider ourselves lucky to be a part of their legacy. Many timber product companies have come and gone over the years, and the impact is felt on the towns in which these mills operate, when they leave. Swanson Group clearly understands the importance of their firm to the employees and take it upon themselves to ensure their people are taken care of not only while they are employees but also after they leave and retire.”

—Ed McCarthy