Electric Research and Manufacturing Cooperative, Inc. 401(k) Review & Grade
Ermco 401(k) Plan
Dyersburg, TNUtilities2,640 active participantsPlan year 2024✓ Auto-enroll
Estimate from the plan's Form 5500 filing · How we grade
$929Employer $ per active participant
$2,458Employee $ saved per active participant
0.26%Direct admin cost, % of plan assets
$71.7MNet plan assets, end of year
$29,731Average balance per account
Score breakdown
- Employer generosity1.4 / 503th percentile for employer $ per participant
- Low cost6.6 / 2526th percentile for low admin cost vs. same-size plans
- Employee saving0.0 / 150th percentile for employee $ per participant
- Plan features10 / 10Auto-enrollment, Default investment
- Red-flag deductions-3 pts1 issue reported on the filing
Total score15 / 100 · Grade F
This plan vs. peers
Peers: Utilities plans with 2,500–9,999 active participants (38 plans).
| Measure | Percentile |
|---|---|
| Employer $ per participant | 3th |
| Lower admin cost | 26th |
| Employee saving | 0th |
| Peers that auto-enroll | 82% |
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Red flags from the filing
Corrective distributions: the plan refunded $10,422 in contributions, which usually means it failed annual nondiscrimination testing.
What to do if you're in this plan
- Electric Research and Manufacturing Cooperative put in about $929 per active participant, below the typical peer ($6,490). Any match is still an instant return, so contribute enough to get all of it.
- The filing shows total dollars, not the match formula. Ask HR for the Summary Plan Description so you know the exact match and vesting schedule.
- Direct plan expenses (0.26% of assets) are well above similar-size plans (0.12%). Check your annual fee disclosure, choose low-cost index funds if you can, and think about whether savings beyond the match belong in an IRA.
- The plan auto-enrolls employees. Check your default contribution rate. Defaults are often lower than what it takes to get the full match.
- Changing jobs? You can usually leave the money in the plan, move it to your new employer's plan, or roll it into an IRA. Don't cash out: you'd owe taxes and possibly a 10% penalty.
The raw numbers from the filing
| Employer contributions | $2,453,174 |
| Participant (employee) contributions | $6,489,242 |
| Other contributions (incl. rollovers in) | $2,838,650 |
| Administrative expenses paid from the plan | $189,908 |
| Contract administrator fees | $189,908 |
| Benefits paid out | $9,267,966 |
| Net assets, start / end of year | $0 / $71.7M |
| Active participants, start / end of year | 2,492 / 2,789 |
| Participants with account balances | 2,412 |
| Auto-enrollment (feature code 2S) | Yes |
| Auditor | Bdo USA, P.C. |
Largest service providers (Schedule C)
| Principal Life Insurance Company | $189,908 reported compensation |
Source: DOL EFAST2 Form 5500 filing, acknowledgment ID 20260528134500NAL0008861091001, received 2026-05-28, EIN 61-0701489, plan #001, plan year 2024-01-01 to 2024-12-31. Verify at efast.dol.gov.