Time-Based Lifestyle Funds, Roth 401(k) Plans Also Increasing as Retirement Challenges Continue NEW YORK, July 22
NEW YORK, July 22 /PRNewswire/ -- Employers are taking decisive actions to
make 401(k) plan participation as easy as possible for employees, according to
the 2008 401(k) Benchmarking Survey, conducted by Deloitte, the International
Foundation of Employee Benefit Plans and the International Society of
Certified Employee Benefit Specialists (ISCEBS). Survey respondents addressed
such topics as eligibility and enrollment, contributions, matching formulas,
investment funds, revenue sharing, defined benefit plans, fees, vendors, plan
effectiveness, communications and administration.
Of the 436 plan sponsors surveyed, 42 percent now have an automatic
enrollment feature -- nearly double the 23 percent total in the last survey.
Another 26 percent say they are considering auto-enrollment. Step-up
provisions that automatically increase deferral percentages on the
participant's behalf also doubled, to 35 percent from 18 percent in the last
survey.
Time-based lifestyle funds remained popular, with 57 percent of
respondents offering programs, up from 44 percent in the last survey and 28
percent in 2004. The opportunity to contribute to Roth 401(k) plans, while
still not widespread, also jumped significantly as 23 percent of respondents
reported offering that feature, almost doubling from 12 percent in the
previous survey.
"Given today's economic uncertainties, employees may be tempted to stop
saving as they deal with their immediate financial needs," said Michael
Wilson, chief executive of the International Foundation. "It is critical that
employees take advantage of their 401(k) options. To this end, we're seeing
employers adjust their 401(k) offerings to be more appealing to employees.
They are also stepping up their education efforts."
Despite their efforts to improve the consumer appeal of plans, respondents
still believe most of their employees are not taking advantage of their 401(k)
plans to effectively fund their retirement. Fewer than one in five believe
"most" employees are adequately saving enough for retirement.
"The lingering question comes down to retirement responsibility," said
Mark Dzierzak, senior manager with Deloitte Consulting and director of the
survey. "It really is a two-way street. Employers and providers should not
only continue providing new tools and options that will create the most
effective participant experience, but should regularly evaluate whether or not
those approaches are effective and make the necessary adjustments. Employees
on the other hand, need to understand that investing in a 401(k) is not
without risk or effort, but that the greater risk may lie in not taking full
advantage of what employers have placed right in front of them."
You may download the full press release at
www.deloitte.com/us/401kpressrelease2008 and the full survey report at
www.deloitte.com/us/401k or www.iscebs.org.
About Deloitte
As used in this document, "Deloitte" means Deloitte Consulting LLP and
Deloitte Services LP, which are separate subsidiaries of Deloitte LLP. Please
see www.deloitte.com/us/about for a detailed description of the legal
structure of Deloitte LLP and its subsidiaries.
About the International Foundation
The International Foundation of Employee Benefit Plans is a nonprofit
organization, dedicated to being a leading objective and independent global
source of employee benefits, compensation, and financial literacy education
and information. With 35,000 members representing multiemployers, public
sector, corporate, and Canadian organizations, it is the largest association
of its kind. Services include the CEBS designation, online training, the
world's largest employee benefits library, publications, education programs,
and a jobs and resume service. For more information, please visit the
International Foundation Web site at www.ifebp.org
About International Society of Certified Employee Benefit Specialists
The International Society of Certified Employee Benefit Specialists
(ISCEBS) is a non-profit educational association whose members have earned the
Certified Employee Benefit Specialist (CEBS) designation, which is cosponsored
by the International Foundation of Employee Benefit Plans and the Wharton
School of the University of Pennsylvania. For more information on the Society
or CEBS, please visit the ISCEBS Web site at www.iscebs.org.
www.deloitte.com
Contact:
Britton JoseyBrenda Rood
Deloitte ISCEBS
Public Relations Public Relations
404-220-1334 262-373-7756
bjosey@deloitte.com brendar@ifebp.org
SOURCE Deloitte
