Companies maintaining retirement plan matches: How much they’re paying
September 25, 2009 by Christian SchappelPosted in: In this week's e-newsletter - benefits, Latest News & Views, Pay and benefits
Here’s a sign things might not be as bleak as they seem: Three out of four employers that provide matches for employee 401(k) contributions are maintaining those contributions at the same level as last year.
That’s the news from a recent WorldatWork and American Benefits Council study.
It also revealed:
- 15% of employers have increased or are considering increasing their match level
- just 8% have reduced or are considering reducing their match, and
- only 3% have eliminated their match.
How much everyone’s paying
The most common employer matching contribution is 3% to 4% of a participating employee’s pay, while the most employees are contributing 5% to 7% of their pay.
October 1st, 2009 at 10:38 am
My employer has continued to match up to 5% contributions with
$2 for each 1$ contribution for those employed over a certain number of years
of service and to match contributions for those not yet at those years of service.
We feel truly blessed. Having a job is a blessing.
October 1st, 2009 at 11:02 am
My company matches dollar for dollar to 4% and we are fully vested after only two years (cliff vesting – no vesting at all until 2 years employment) – very generous and tops in our industry.
October 1st, 2009 at 2:10 pm
Our plan matches the percentage up to 3%. If you contribute 4% you get 3.5% and if you give 5% then the match is maxed out at 4%. We are 100% vested on day one for company contributions too. I have been told this is almost unheard of.