Tuesday, February 27, 2007
Tweet[IWS] Mercer: EMPLOYER MATCH RATES on 401(k) Plans RISE [26 February 2007]
IWS Documented News Service
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________
Mercer
Employers with 401(k) plans providing richer match rates, survey finds
United States
New York, 26 February 2007
http://www.mercerhr.com/pressrelease/details.jhtml/dynamic/idContent/1259715;jsessionid=UIXYBVTD35MSGCTGOUFCIIQKMZ0QUJLW
As more and more organizations move from a defined benefit pension plan to a defined contribution plan, the match rates for these plans are becoming more generous. The number of 401(k) plans with a match rate of 100% has steadily risen over the past five years, from 26% of plans in 2002 to 36% in 2006, according to a recent study by Mercer Human Resource Consulting.
The Spotlight on Benefits , an analysis of the benefit programs of more than 1,025 US employers, indicates that the majority of organizations offer pretax retirement savings plans90% sponsor either a 401 (k) or 403 (b) plan.
"While a 50% matching contribution continues to be the most prevalent match level, the number of employers matching at 100% has risen steadily," said Patricia Pou, a principal with Mercer Human Resource Consulting who specializes in defined contribution plans. "This increase is consistent with the move from defined benefit pension plans to 401(k) plans." (See Table 1.)
AND MORE...including the following TABLES....
Table 1: Five-year History of 401(k) Match Rates (percentage of plans)
Table 2: Benefit value comparisons by industry
(as a percentage of market median; median is 100% or $26,900)
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
****************************************
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________
Mercer
Employers with 401(k) plans providing richer match rates, survey finds
United States
New York, 26 February 2007
http://www.mercerhr.com/pressrelease/details.jhtml/dynamic/idContent/1259715;jsessionid=UIXYBVTD35MSGCTGOUFCIIQKMZ0QUJLW
As more and more organizations move from a defined benefit pension plan to a defined contribution plan, the match rates for these plans are becoming more generous. The number of 401(k) plans with a match rate of 100% has steadily risen over the past five years, from 26% of plans in 2002 to 36% in 2006, according to a recent study by Mercer Human Resource Consulting.
The Spotlight on Benefits , an analysis of the benefit programs of more than 1,025 US employers, indicates that the majority of organizations offer pretax retirement savings plans90% sponsor either a 401 (k) or 403 (b) plan.
"While a 50% matching contribution continues to be the most prevalent match level, the number of employers matching at 100% has risen steadily," said Patricia Pou, a principal with Mercer Human Resource Consulting who specializes in defined contribution plans. "This increase is consistent with the move from defined benefit pension plans to 401(k) plans." (See Table 1.)
AND MORE...including the following TABLES....
Table 1: Five-year History of 401(k) Match Rates (percentage of plans)
Table 2: Benefit value comparisons by industry
(as a percentage of market median; median is 100% or $26,900)
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
****************************************
# posted by SBasefsky : 1:34 PM
