Employers are committed to providing 401(k)s to their workers, a survey from the human resources group WorldatWork, conducted with the American Benefits Institute, found.
It found 94% of respondents offered a 401(k) plan to their employees and 92% offered a matching contribution.
The American Benefits Institute is a research and education affiliate of the American Benefits Council. WorldatWork and ABI polled 476 member companies for the survey.
The report noted that the high number of companies that offer a plan may be due to the high number of member companies that have more than 1,000 employees (71%). It may also be a result of how data was gathered: the survey sent to respondents was titled “Trends in 401(k) Plans,” possibly indicating to some would-be respondents that they shouldn’t respond if their firm doesn’t offer a plan.
Still, the survey found participation rates were high, as 73% of companies reported at least 70% of their work force participated in the plan. Furthermore, 77% of respondents said their workers were contributing at least 5% of their salary from each paycheck, and two-thirds said more than half of their work force is taking advantage of the full employer match. More than half of respondents said their workers were unlikely to contribute the maximum level to their retirement plan, though.
“Because 401(k) plans have become such a vital component of employees’ financial security, it is essential that we strengthen the system by building on those successes,” Lynn Dudley, American Benefits Council senior vice president, retirement and international benefits policy, said in a statement.
Over three-quarters of firms have made no changes to their company match in the last 12 months and have no plans to change them in the near future, the report found. In fact, when asked specifically about cuts to the company match during the recession, 88% of respondents said they neither suspended nor eliminated their match in the last five years.