Eryn Schultz, a former supervisor at H-E-B grocery stores, left her position after identifying shortcomings in the company's 401(k) plan, including a complex matching formula, insufficient Spanish-language educational materials, and high mutual fund fees. Schultz, who held a master of business administration degree, worked for the Texas-based company, which employs over 165,000 workers, for several years in and around Houston. Her concerns stemmed from observing hourly employees struggling to understand the benefits of the company's retirement plan.

Schultz believed the complexity of the matching formula hindered employees' ability to fully grasp the value of the benefit. She also noted the lack of adequate educational resources in Spanish, a primary language for many of H-E-B's workers. In addition, Schultz felt the fees associated with the plan's mutual funds were excessive.

"Some of my hourly employees didn’t quite grasp how good the match was," Schultz said, adding that the absence of Spanish-language materials further compounded the issue.

After identifying these issues, Schultz raised her concerns with the decision-makers responsible for the retirement plan. However, she felt her concerns were largely dismissed. Disappointed with the lack of action and facing the demanding hours of retail work, Schultz resigned from her store leadership role overseeing perishable products approximately one year later.

The H-E-B 401(k) plan, like many offered by large employers, aims to provide employees with a vehicle for long-term savings and investment. Employer matching contributions are a common feature intended to incentivize participation. However, the effectiveness of such plans can be undermined by factors such as complex plan designs, communication barriers, and high fees, according to industry analysts. These factors can disproportionately affect lower-income workers and those with limited financial literacy.

While Schultz's specific concerns were not addressed during her tenure, the broader issue of retirement plan accessibility and affordability remains a significant focus within the financial services industry. Experts continue to advocate for simpler plan designs, improved financial education, and lower fees to ensure that 401(k) plans effectively serve the needs of all participants. It is not immediately clear if H-E-B has made any changes to its 401(k) plan since Schultz's departure.