U.S. public- and private-sector employers are largely maintaining employee retirement plans and implementing features that aim to increase enrollment, according to a survey of the membership of the International Foundation of Employee Benefit Plans.
Seventy-nine percent of the 1,315 corporate, public, multiemployer and professional service firms surveyed said they currently do not have defined benefit plans that have been terminated or frozen. Three percent of respondents said they had terminated a plan.
“We thought that was encouraging,” Julie Stich, senior information/research specialist at the IFEBP, said in a telephone interview.
DC plans were most common among corporations with 83% offering them, followed by 77% of professional service firms, 61% of public employers and 58% of multiemployer plans. Conversely, 88% of both multiemployer and public plans offered DB plans, followed by 41% of corporate plans and 19% of professional services firms.
Eighty-one percent of corporations offer DC plan matches, as do 68% of professional service firms, 57% of public employers and 9% of multiemployer plans. Ms. Stich noted that 6% of respondents said they have ceased matching contributions to their defined contribution plans over the last two years. “Again, we thought that was a good sign,” she said.
Twenty-four percent of respondents with DC plans said their employer match is 50 cents on the dollar, the most common match reported.
The survey also noted that 72% of respondents use automatic features; 71% offer target-date funds, 51% use automatic enrollment, 32% have automatic portfolio rebalancing, and 17% have automatic escalation.