Company size, cost cited as stumbling blocks to offering DC plan

For employers not currently offering a defined contribution plan, 11% said they were very likely to sponsor a plan within the next two years, according to a survey of employees and employers conducted by the Transamerica Institute in November and December that it released earlier this month. Another 31% claimed it was somewhat likely they would offer a retirement plan.

Instead of sponsoring a plan, 10% and 44% of employers said it was very likely and somewhat likely, respectively, to join a pooled plan (e.g., pooled employer plan or multiple employer plan).

The most popular reason employers cited for not offering a DC plan was the company's small size, named by 76% of the respondents. Uneasiness about the cost was mentioned by 31%.

For the majority of employers that offer a DC plan, 58% extended it to part-time employees. It was a similar portion across employer size, ranging from 57% to 60%. Among those not offering retirement plans to part-timers, 46% named a higher turnover rate, and 43% mentioned the cost.