In June 2005, ACS began advising a leading North American paper manufacturer on optimizing its employee benefits program for 250 U.S.-based employees. Despite having a long-standing relationship with a previous advisor, the client chose to partner with ACS after seeing the potential for significant cost savings. Through a strategic alternative pooling arrangement, ACS demonstrated an 11% reduction in medical costs—immediately improving the company’s financial position while maintaining robust employee coverage.

Over the next decade, ACS continued to drive substantial value by negotiating medical insurance renewals, containing premium increases to an average of 4.7% per year. This was a remarkable achievement during a period when industry-wide medical cost increases ranged from 12% to 15% annually. ACS achieved these results through aggressive carrier negotiations, innovative risk-pooling strategies, and careful plan design, all while ensuring employees continued to benefit from high-quality, copay-based health plans.

Navigating Expansion & Integration

By 2007, the company underwent significant expansion, acquiring multiple firms and increasing its workforce to over 950 employees across 26 states. With this rapid growth came new challenges in benefits integration and risk management. ACS played a critical role in advising on the transition, particularly in restructuring the acquired firm’s medical benefits. The company’s existing self-funded medical program was converted to a fully insured model, yielding an 18% cost reduction, minimizing risk exposure, and providing greater predictability in cash flow management.

Recognizing the increasing financial strain of retiree healthcare costs, ACS also spearheaded the transition of the retiree medical plan into a Medicare Advantage program. This move not only produced significant cost savings but also reduced the company’s long-term claims exposure—ensuring sustainable retiree healthcare support without jeopardizing the company’s broader financial health.

During the 2009 economic downturn, ACS became an indispensable partner in supporting the company’s finance and legal teams throughout corporate restructuring and the divestiture of certain business units. ACS ensured a seamless transition by establishing mirrored benefits within the newly formed entity, maintaining stability for employees and preserving workforce morale amid uncertainty.

Strengthening Retirement & Employee Engagement

Beyond healthcare benefits, ACS provided strategic guidance on the company’s defined contribution and defined benefit retirement plans. Between 2008 and 2016, the firm’s retirement assets grew from $130 million to over $200 million, a testament to ACS’s sound investment guidance and the successful implementation of strategies that encouraged greater employee participation.

During the company’s restructuring phase, ACS played a pivotal role in safeguarding retirement plan engagement. By developing targeted communication strategies and support programs, ACS helped retain 95% of pre-restructuring 401(k) plan participants (excluding retirees), ensuring continuity in employee retirement planning.

Additionally, ACS launched a series of employee education initiatives designed to enhance benefits awareness, increase retirement readiness, and encourage higher deferral rates into the retirement plans. These programs empowered employees with a clearer understanding of their financial future and reinforced the company’s commitment to their long-term well-being.

Ongoing Partnership & Strategic Advisory

Today, ACS continues to serve as a trusted advisor, overseeing the company’s benefits programs and providing strategic counsel on key financial and operational decisions. ACS supports the company’s long-term stability through business continuation planning, proactive benefits management, and rigorous due diligence on potential acquisitions.

Through a combination of deep industry expertise, innovative cost-containment strategies, and a commitment to delivering long-term value, ACS has helped this paper manufacturing leader navigate complex challenges, optimize financial performance, and foster a resilient and engaged workforce.

This is a case study for illustrative purposes and should not be construed as a recommendation. It may not be representative of your experience.