Proctor & Gamble to close Kansas City Plant
Procter and Gamble announced that they will close the doors of their Kansas City, Kan., plant and move operations to West Virginia by late 2020.1
Approximately 280 employees in Kansas City, Kan. Location will be affected.
1 Fox 4 News KC
The Procter & Gamble Profit Sharing Trust and Employee Stock Ownership Plan is a defined contribution plan with a stock bonus component, ESOP component, and leveraged ESOP component. This plan has a BrightScope Rating of 78. This plan is in the top 15% of plans for Account Balances, Company Generosity, and Total Plan Cost.
For the average 401k participant, the 12 point difference between this plan’s BrightScope Rating (78) and the top rated plan (90) could equate to: 8 additional years of work and $69,271 in lost savings.
The plans administrator is Kyle Scheidler and is handled in Cincinnati, Ohio. The recordkeepers are Aon Hewitt and Empower. The corporate trustee is Northern Trust and the investment advisor is J.P. Morgan.
One of the key concerns is also that the plan only has 15 investment options which is common for most 401k type plans.
Most 401k, Profit Sharing or ESOP plans do not have active management so there is really no one specifically guiding the plan investments. What this means is that like most traditional investment companies, in the event of a severe downturn the investment advisors have no method for moving to a lower risk profile automatically.
With the WealthSentry system we participate in, retiree’s accounts are automatically re-balanced to lower risk portfolios in the event of an economic downturn. Learn more in our guide, 6 Critical Steps You Must Take Now.
For an in depth analysis of your options feel free to make an appointment, read one of our guides or participate in one of our workshops.
Wishing you the best.
Doug Reed, CRPC, AAMS