Allete, Inc. 401(k) Review & Grade
Allete and Affiliated Companies Retirement Savings and Stock Ownership Plan
Duluth, MNUtilities1,601 active participantsPlan year 2024✓ Auto-enroll
Estimate from the plan's Form 5500 filing · How we grade
$9,868Employer $ per active participant
$10,979Employee $ saved per active participant
0.10%Direct admin cost, % of plan assets
$605.7MNet plan assets, end of year
$261,969Average balance per account
Score breakdown
- Employer generosity42.6 / 5085th percentile for employer $ per participant
- Low cost18.7 / 2575th percentile for low admin cost vs. same-size plans
- Employee saving6.7 / 1545th percentile for employee $ per participant
- Plan features10 / 10Auto-enrollment, Default investment
- Red-flag deductions-13 pts2 issues reported on the filing
Total score65 / 100 · Grade B
This plan vs. peers
Peers: Utilities plans with 500–2,499 active participants (75 plans).
| Measure | Percentile |
|---|---|
| Employer $ per participant | 85th |
| Lower admin cost | 75th |
| Employee saving | 45th |
| Peers that auto-enroll | 76% |
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Red flags from the filing
Late deposits: the filing says some employee contributions were not sent to the plan on time ($383 reported). That's money taken from paychecks that sat with the employer longer than the law allows.
Corrective distributions: the plan refunded $61,283 in contributions, which usually means it failed annual nondiscrimination testing.
What to do if you're in this plan
- Allete put in about $9,868 per active participant, more than the typical peer ($6,264). Contribute at least enough to collect the full match. Skipping it leaves part of your pay on the table.
- 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.
- Fund expense ratios aren't in the filing. Look them up in your 404(a)(5) fee disclosure and favor low-cost index or target-date funds.
- The plan auto-enrolls employees. Check your default contribution rate. Defaults are often lower than what it takes to get the full match.
- The plan reported late deposits of employee contributions. Compare your pay stubs with your account statements, and contact the plan administrator if money shows up late.
- 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 | $15,798,010 |
| Participant (employee) contributions | $17,577,019 |
| Other contributions (incl. rollovers in) | $3,172,753 |
| Administrative expenses paid from the plan | $554,470 |
| Investment advisory & management fees | $589,868 |
| Other admin expenses | −$900 |
| Benefits paid out | $48,717,595 |
| Net assets, start / end of year | $546.2M / $605.7M |
| Active participants, start / end of year | 1,569 / 1,633 |
| Participants with account balances | 2,312 |
| Auto-enrollment (feature code 2S) | Yes |
| Auditor | Reilly Penner & Benton LLP |
| Employer stock held by plan | $89,960,090 |
Largest service providers (Schedule C)
| Empower Annuity Insurance Company | $292,277 reported compensation |
| Empower Advisory Group, LLC | $205,676 reported compensation |
| Geneva Capital Managmeent, LLC | $97,408 reported compensation |
Source: DOL EFAST2 Form 5500 filing, acknowledgment ID 20250729111547NAL0001546291001, received 2025-07-29, EIN 41-0418150, plan #002, plan year 2024-01-01 to 2024-12-31. Verify at efast.dol.gov.