More Employer 401(k) Matches
After cutbacks in 401(k) matching contributions over the past few years, 30% of employers are planning to reinstate previously eliminated or reduced matching contributions during 2011. Forty two percent do not have plans to reinstate their match this year.
According to the 7th annual Retirement Plan Survey conducted by Grant Thornton LLP, Drinker Biddle & Heath LLP, and Plan Sponsor Advisors LLC, when asked about matching contributions one year ago, over half (53%) of employers had not decided whether to return to previous contribution levels and 33% had no plans to do so.
Despite cutbacks by both plan sponsors and participants, 83% of plan sponsors reported that either very few or none of their employees had expressed concerns about their retirement readiness.
The survey also showed that when it comes to choosing asset classes, plan sponsors are focused more than ever on emerging market (EM) equities, with 77% reporting inclusion or consideration for 2011. This marks a 30% increase since last year when EM was only included or under consideration by 46% of plan sponsors. Real estate investment options were second to EM with 53%, followed by global bonds at 48%.
Find out how Connecticut employers are handling matching contributions. Buy your copy of CBIA’s Benefits Survey Report (12th Edition) today.
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