Annual 401(k) Benchmarking Survey: 2009 EditionStaying the course through uncertain economic times: Employers take a “wait and see” approach towards their 401(k) plans |
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Against the challenging backdrop of the economic downturn, the results of this year’s annual 401(k) Benchmarking Survey reveal that plans are bent, but not broken. Employers continue to be concerned regarding employees’ financial preparations for retirement, sufficiently supporting their plans, and considering them important tools in overall benefit program design. However, the ongoing effects of the economic downturn are a source of anxiety for employers and employees alike. Combined with the uncertainty of what recovery will eventually mean to participants, it is understandable that both employers and employees are taking a “wait and see” approach to their 401(k) plans.
The Survey results offer a detailed snapshot of the 401(k) policies, features, objectives and expectations of hundreds of diverse employers. A total of 606 companies responded to the survey, representing a wide distribution of employers in terms of geography, size, and industry and ownership structure (publicly or privately held). Among the notable findings:
- 17 percent of plan providers surveyed indicated an uptick in deferral rate changes, hardship withdrawals, loans, and other similar activities.
- A third (38 percent) reported their employees decreased their deferral rates for 2009, with the majority (60 percent) holding steady at their current level of contribution.
- 12 percent of employers surveyed indicated an upswing in opt-outs from auto-enrollment programs.
- Almost one-fifth (19 percent, up 2 percentage points from last year) of plan sponsors believe “very few” of their employees will be financially prepared for retirement.
- More than three-quarters (79 percent) of employers surveyed are still fairly confident that their plan is effective for recruiting talent, and 68 percent say it helps with retention.
The survey sheds light on the collective “frame of mind” of employers. For the majority, plan designs have remained relatively consistent from last year. This comprehensive survey offers a detailed examination of 401(k) policies and practices, and how plan sponsors and participants intend to utilize these powerful retirement savings instruments.
Download the full report below or explore industry data from the survey. Data is available for:
- Consumer & Industrial Products / Services
- Energy & Resources
- Financial Services/ Insurance
- Health Care & Life Sciences
- Public Sector / Not for Profit
- Technology, Media & Telecommunications
The survey was conducted jointly by Deloitte Consulting LLP, the International Foundation of Employee Benefit Plans, and the International Society of Certified Employee Benefit Specialists. To learn more, download the complete report below.
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401(k) Annual Benchmarking Survey: 2009 Edition
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