401(k) Plan Design for Temporary Agency

[Guest Lesley Sifers]

I am trying to find information on temporary agencies that offer retirement plan benefits to their employees. (By that, I mean the people who are assigned to the agencies client locations.) In particular, what eligibility criteria is most common? Also, what is considered a termination for purposes of distribution of the account? Do the temp agencies make any matching contributions? I will appreciate any experiences or ideas you can share with me. There doesn't seem to be much real information on the web - just that temporary workers are beginning to get more benefits from their employers. Thanks.

[mbozek]

The eligibility crieteria is usually salary reduction availability upon entry or first day of following month. Some offer a match of 25-50% with graded vesting over 5 years and lump sum only distribution option. Investment options are usually limited and some agencies offer opportunity to invest in company stock.