Mar 1, 1994

Pumping Up Employee Savings Plans

Benchmark showing percentages of employers who made specific changes to their 401(k) plans.

 

Money talks when it comes to boosting participation in employee savings plans: the most effective change cited in a recent survey was an increase in the company match. More than a third of the companies that had tried it reported a 10% or greater rise in participation.

Percentage of employers who made the following changes to their plans in the past two years:
Added investment options 63%

Increased employee communication 45%

Increased employer match 23%

Added loan feature 17%

Eased eligibility restrictions 9%

Removed investment options 6%

Accelerated vesting schedule 5%

Source: "Employee Savings Plans," Foster Higgins, New York City, 1993.

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