Bread Financial™ earns prestigious PLANSPONSOR of the Year Award for 401(k) transformation

"Prior to implementing these changes, more than a quarter of our associates were saving nothing for their retirement, and an internal survey told us that many were stressed about their finances," said Lindsay Madaras, senior manager of associate well-being, Bread Financial. “Creating a better associate experience drove a majority of what we did. But then the second piece of it is really about being inclusive of all associates.” 

The first step of the transformation was to rebrand Bread Financial’s 401(k) plan under its holistic well-being program, LivingWell, to help boost associate trust and recognition. Then, to ensure all associates can save for retirement, the company increased its employer contribution to 6%, providing associates with a 3% non-discretionary contribution, along with the opportunity to receive a 3% company match ($0.50 for every $1 contributed, up to 6%). Other key changes included eliminating the six-month waiting period, covering the cost of the plan’s recordkeeping fees and offering associates free investment advice through BrightPlan.

Deanna Allison, director of benefits, well-being and financial programs, further explained the genesis behind the changes which included approval and feedback from numerous company leaders, including Chief Financial Officer Perry Beberman. 

"For a while, I had a vision that a 401(k)-offering needed to be part of our holistic wellness approach,” she said. “Lindsay and I talked at length about how we’d really love the 401(k) to be a judgment-free zone where people are proud of their savings progress no matter how big or small.” 

"When Deanna and Lindsay approached me with ideas for revitalizing the company’s retirement benefits, we knew we had to find a way to make it happen,” Beberman added. “As leaders, we care deeply about the well-being of our associates. As evidenced by the many benefit enhancements made over the past several years, we are continually looking for ways to invest in what matters most to our associates and an opportunity that stood out was to further support and invest in our associates’ long-term financial future. The transformation of our retirement benefits does just that, and Deanna, Lindsay and their team deserve a ton of credit for initiating and executing this change. We hope our associates take full advantage of the enhanced benefit.” 

With leadership’s buy-in, the team efficiently and successfully rolled out the newly formatted benefit. Since March 2024, participation in the 401(k) plan has increased by seven percent and 13% since 2022, prompting Bread Financial’s PLANSPONSOR award nomination and win.  

"A winner in a different category described how winning this award was the highlight of her career,” said Madaras, who represented Bread Financial at the award ceremony. “That’s when it hit me how much of an everlasting impact these changes will make for associates. I felt extremely grateful that we have a company that invests these kinds of dollars and puts the right people in the right place to make this successful."