ROI on increasing 401(k)participation

[Guest weslie kary]

I am looking for studies that support value of increasing participation in the 401(k) plan. Why should we, the employer, care that participation levels are falling now that we've gone to safe harbor?

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weslie

[SMB]

Had the same thought regarding both SIMPLEs and safe-harbor 401(k)s when first introduced. From a purely financial aspect, there is absolutely no incentive for an employer to promote either type of program, especially if the employer is making the required match (vs. a non-elective contribution). In a small plan - single HCE/owner - who is happy with a $10,500 deferral and a 3% match, doesn't really care if no one else "shows up".

[rcline46]

People will not save unless sold on the idea. No selling, no saving. SHows what a crock 401ks are doesn't it.

[Guest [Pat M]]

Maybe include studies that can reflect increased retention resulting from employee perception of benefits value. It's a tight labor market. Let's face it, most 401(k) plans exist because of an "everybody else has one" competition mentality, more so than imaginary goodwill on the part of executives losing sleep over how CSRs are going to retire in 2045.

[This message has been edited by [PAT M] (edited 02-24-2000).]