(Photo: Shutterstock)
A new research report from T. Rowe Price Retirement Plan Services Inc. on 401(k) participant behavior and plan design showed employers last year had increased their match formulas and overall plan participation among employees was greater than 79%.
T. Rowe Price's annual Reference Point report, based on data from 2019, said rising plan participation could be driven by employers' increased match decisions, personalized experiences, wage growth and plan design.
More than 61% of T. Rowe Price plans automatically enroll participants, the Reference Point report said. Of those, more than half enroll at a 6% default deferral. Employers, according to the report, bumped up match formulas from 3% to a 4% to 5% range "in an apparent move to incentivize more employees to save."
Continue Reading for Free
Register and gain access to:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Mike Scarcella
Mike Scarcella is a senior editor in Washington on ALM Media's regulatory desk. Contact him at [email protected]. On Twitter: @MikeScarcella. Mike works on a slate of newsletters: Supreme Court Brief | Higher Law | Compliance Hot Spots | Labor of Law.
