New research from the Government Accountability Office shows that restrictive vesting, matching, and participation policies in 401(k) plans is squeezing a more mobile workforce’s ability to adequately save for retirement.
The GAO’s review of 80 plans ranging in size from 100 to 5,000 participants found that 57 plans have vesting policies that require participants to work for a set amount of time before employer contributions to accounts can be claimed.
And 19 plans require participants to be employed on the last day of the year before they can receive their employer’s matching contributions. Also, 33 plans require workers to be 21 to participate in plans.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
