Trends in 401(k) Plans and Retirement Rewards

Source: WorldatWork and the American Benefits Institute, March 2013

From the press release:
Even through volatile economic conditions, employers have demonstrated an unwavering commitment to the 401(k) system according to a study released today by WorldatWork, a global HR association, in partnership with the American Benefits Institute, the research and education affiliate of the American Benefits Council. Despite anecdotal reports of companies suspending or eliminating their 401(k) match to cut costs during the depths of the recession, 88% of respondents said their company maintained matching contributions during the previous five years.

The 2013 Trends in 401(k) Plans and Retirement Rewards survey of 476 American Benefits Council and WorldatWork member companies provides a snapshot of defined contribution plan activity at major American companies. The report summarizes findings on participation and contribution rates, plan design and withdrawal activity. The 2013 Study is a continuation of a survey released first in 2002 and most recently in 2009….

Key Findings:
– For more than three-quarters (77%) of surveyed companies, there has been no change in the 401(k) matching formula during the past 12 months, nor are they currently considering a change in the near future.
– In 2012, for companies providing investment advice services to employees, 67% reported that advice is provided through an independent adviser. This is a significant increase from the 47% who reported using an independent adviser to provide investment advice in 2008.
– A strong majority (73%) of companies in the survey reported that 70% or more of their eligible employees currently participate in their organization’s 401(k) plan.
– Compared to 2008, fewer employees are now taking hardship distributions and loans from their 401(k) plans.