5 ways advisors can help employers improve their 401(k) plans

The report reveals that plan sponsors’ offering the Roth feature has increased to 52 percent in 2014 from 19 percent in 2007. Very small (“micro”) (50 percent) and large (49 percent) companies are similarly likely to offer this feature. This compares to 63 percent of small non-micro companies, which are somewhat more likely to do so.

4. Extend eligibility to part-time workers to help expand retirement plan coverages

Nearly 8 in 10 employers (79 percent) offer a 401(k) or similar plan to their employees, including: 98 percent of large employers, 95 percent of small non-micro employers, and 73 percent of micro employers.

• Only 49 percent of 401(k) or similar plan sponsors say they extend eligibility to part-time workers to save in their plan.
• Large employers (80 percent) are more likely to extend eligibility to part-time workers.
• This compares to compares to a bare majority of small non-micro companies (52 percent) and micro companies (39 percent).

Among plan sponsors not extending eligibility to part-time employees, 90 percent do not plan to do so in the future and their most frequently cited reasons include: generally impractical (49 percent), concerns about cost (36 percent), and employees not interested in (34 percent).

5. Address communication gaps between employers and workers

The survey findings reveal “major disconnects” between employers and workers which, if addressed, could help employers maximize the value of their benefits offering while also helping their employees achieve retirement readiness.

Nearly all (95 percent) of employers that offer a 401(k) or similar plan agree that their employees are satisfied with the plan, including 63 percent that “strongly agree” and 32 percent that “somewhat agree.” In contrast, only 80 percent of workers who are offered such a plan agree that they are satisfied with their employers’ plans, including 27 percent who “strongly agree” and 53 percent who “somewhat agree.”