Article Abstract:
A survey by Buck Consultants on 401(k) plans has revealed significant developments in plan design and administration. The study stressed the importance of assigning an adequate employer contribution rate in obtaining employee participation. Moreover, the research showed that over 40% of plan participants vary their contribution and balance patterns on a quarterly basis. The survey also showed that the mean participation rate among the respondents was 78% and that the mean employer match is $0.59 per dollar contribution.
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Article Abstract:
Phoenix-Hecht in Research Triangle conducted a telephone survey among 1,008 employees from medium-sized to large companies on their perception of participant-directed defined contribution plans. Findings show that the participants received more investment counseling than was previously estimated. About 1/3 of the participants wanted other people to manage their funds. Participants have very little knowlege of even simple investments. About 86% of the participants intend to use their plan savings for retirement.
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Article Abstract:
Surveys by Hewitt Assoc. and Buck Consultants show increased employee participation in 401(k) plans. The Buck survey shows that about 86% of employers are educating employees on investment and savings options while the Hewitt survey shows that 74% of employees match their employees' contributions. Other factors encouraging participation are the wide variety of investment options and increased plan flexibility.
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