The match is back — but is it enough to boost 401(k) contributions?
Despite some positive economic signs, many employees are reluctant to begin making sizable contributions to their 401(k) plans again. Result: More employers are taking action to encourage them.
One thing companies are doing to boost employee participation in their retirement plans: reinstating the 401(k) match.
In fact, a recent Hewitt Associates survey of mid- to large-sized organizations found that 80% of employers that reduced or suspended their 401(k) match last year are planning to restore it in 2010.
That’s a huge increase from the findings in an earlier Fidelity Investments survey about companies that had suspended their 401(k) match.
Employers are also looking to automatic enrollment to help bolster participation rates. Hewitt found that 59% of companies now offer automatic enrollment — that’s an 8% increase from the 51% that offered this feature in 2009.
In addition, 27% of firms that don’t currently offer this feature are “very or somewhat likely” to add automatic enrollment this year.
What has your company done to boost employee participation in its 401(k) plan? Share it with us in the Comments section.
- Share on
Free Training & Resources
Further Reading
While the IRS can assess penalties under the Affordable Care Act (ACA), it can’t issue the certifications required beforehand, a court ha...
What company wouldn’t opt for an employee benefit that helps new families out and pays for itself in various ways? A recent report on...
Employees may not understand lifestyle spending accounts (LSAs) as well as you think. That can lead to questions or just confusion. Thi...
If your company’s employees are like most, they’d score a big fat F on a financial literacy test. Every year, the Teachers ...
Believe it or not, more than 80% of workers like their employers’ Paid Time Off (PTO) packages. But that doesn’t stop a surpris...
Now that you have a feel for what positions at your firm should be hybrid, you might be considering giving employees the ultimate work sche...
