Allstate Canada Boosts Young Employee Retention with Marmot's Innovative Student Loan-Retirement Savings Program

Allstate was looking to improve employee recruitment and retention, and recognized the need to address employees’ financial wellness:

• Increase engagement with one of their CAP plans (Deferred Profit-Sharing Plan/DPSP), which had low participation rates among younger employees.

• Additionally, the company required confirmation that eligible student loans belonged to the employee and that the employee was making regular payments on their loan.

Allstate realized the positive impact that the Marmot Student Loan Repayment Benefit could have on their younger employee base:

• As a retention incentive offer a benefit that provides employees with an annual retirement savings contribution while they are repaying their student loans.

• Remove the barrier that Employees are not required to contribute to the savings plan themselves to get the Allstate contribution.

• Marmot customized the benefit to include confirmation of loan ownership and repayment status.

Allstate implemented a Retirement Savings Match program that offers a retirement savings contribution without requiring any employee repayment or personal contributions.

For Employees

• While continuing to make student loan payments, participants receive Allstate’s contribution to their retirement savings each year. Employees don’t need to contribute anything to benefit from the Retirement Savings Match program.

• Younger employees with limited budgets didn’t have to choose between paying off student debt and saving for retirement.

• Over the past three years, employees have accumulated over $139,000 in retirement savings.

For Allstate

• Allstate achieved higher than expected employee engagement with their DPSP, employees were enthusiastic about being able to save for their retirement earlier than expected.

• By providing annual payments towards student loans, Allstate helps employees who previously couldn’t afford to participate in company retirement plans due to their loan obligations.

• This targeted approach ensures that employees carrying student debt receive comparable benefits to their peers who are able to take advantage of traditional retirement savings plans.