401(k) Specialist Issue 3 - 2022 - 24

SEPTEMBER
KIM COCHRANE, Raffa Retirement Services
High Plan Participation
from Low Wage Workers
A COMMON THREAD throughout this year's group of Top Advisors by Participant Outcomes
(TAPO) is their focus on traditionally underserved and marginalized communities-whether it's
immigrant populations in Southern California, the Navajo Nation in the Southwest, or religious
organizations in the Northeast.
Kim Cochrane is no different. The Maryland-based Director of Client Services with Raffa Retirement
Services, a division of HUB Retirement and Wealth Management, works with government
contractors, nonprofits, and human services clients that hire foreign workers, many of whom intend
to retire outside the United States.
" Everyone in Washington D.C. is from somewhere else just because of the international nature of
the work in the city, " she noted before describing a case of which she's particularly proud.
The home healthcare industry in and around the Beltway primarily consists of older immigrant
" It's crucial to
them that they are
not 'funding what
they're fighting,'
and ESG demand
is very high. "
Kim Cochrane, QPA, TGPC, is
Director, Client Services with Raffa
Retirement Services, a division
of HUB Retirement and Wealth
Management in Rockville, Md.
women. While they work hard for long hours, their income is not high, making it sometimes
difficult to save, especially if they're remitting part of their paycheck to family members in other
countries.
Concerned over low participation rates with one company and looking to encourage enrollment,
she and the Raffa team offered 20-minute, one-on-one meetings with each employee. It took about
two weeks to meet with around 200 employees, and there was no shortage of participants willing to
sign up for assistance.
" The employee base was mainly older women from developing countries in Africa and they filled
every one of our meeting times, " Cochrane said. " Every employee said, 'Please, help me,' and participated
in the plan with extremely high deferral rates. Some decided to save 45% of their pay. I drove
away with tears in my eyes. I really felt like I made a difference in these ladies' lives. "
Getting workers to understand and save in employer-sponsored plans in countries with advanced
economies is difficult enough. We rightly wondered how she could get such a high participation rate
with employees from emerging economies with no formal retirement plan system.
Like many of this year's TAPOs, it involved understanding and respecting cultural differences.
" Instead of trying to fit our standard replacement ratio and savings rate metrics on all employees
regardless of their needs, we try to meet employees where they are and where they want to be in the
future, " Cochrane explained.
Not surprisingly, environmental, social, and governance (ESG) investing is popular in the communities
with which she works, especially with nonprofit clients in the D.C. area.
" It's crucial to them that they are not 'funding what they're fighting,' and ESG demand is
very high. "
We noted the recent ESG pushback and how the strategy might be a bull market luxury that
recedes with market performance, but Cochrane didn't hesitate.
" We're not seeing any decline in ESG adoption, " she concluded. " We act in either a 3(21) or 3(38)
fiduciary capacity and have extremely strict screens, just as we would with any other type of plan
investment. The funds we choose still have to be top performers compared to the standard benchmarks.
Many of the funds now aren't even marketed as ESG; they're integrated funds that focus on
the diversity of boards and inclusion of organizations that are good stewards of their communities
and employees. Companies appear to fare better financially and do well from doing good. "
24
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