Retirement Plans Become More Important for Insurance Employees

August 17, 2011    

The recent volatility in the stock markets has once again shifted employees’ focus to retirement savings plans. While saving for the future is important, employees are questioning which options are the most beneficial. The 2011 Compensation Data Insurance survey results indicate that 83 percent of employees are enrolled in a defined contribution plan, up from 81.5 percent in 2010. Less than 1 percent of insurance employers surveyed reported offering a defined benefit plan only, 57.1 percent offer a defined contribution plan only and more than 42 percent offer both.

“Fifty-four percent of employers expect between 25 and 75 percent of their staff to contribute to a retirement plan in 2011 according to an informal poll conducted on the our website earlier this year,” said Amy Kaminski, director of marketing for Compdata Surveys, the nation’s leading pay and benefit survey data provider. “Another 18.6 percent anticipate more than 75 percent of their staff will utilize retirement plans this year.”

The most common plans for insurance organizations according to the 2011 survey are 401(k) with employer contribution and 401(k) employee savings only. More than 90 percent of organizations offer a 401(k) plan with employer contribution while 19.1 percent offer 401(k) plans with employee savings only. Nearly 15 percent of companies offered profit sharing plans in 2011, down from 16.2 percent last year.

The way organizations contribute to employee retirement plans varies with 67.5 percent of organizations utilizing a standard match formula in 2011. Insurance employers are moving away from tiered matched formulas. More than 22 percent of organizations reported using a tiered match formula in 2009, 21.7 percent in 2010 and just 20.6 percent this year.

All 401(k), 403(b) and 457(b) and (f) plans were reported as fully vested within six years with 23.9 percent vested immediately. For other plans, 23.1 percent of plans were vested immediately while 56.4 percent were vested after five full years of employment.

About the Survey
Compensation Data 2011 Insurance contains data on more than 100 industry-specific job titles and 350 benchmark titles ranging from entry-level to top executives. Data is collected annually from Insurance employers across the country. The results provide a comprehensive summary of pay data, benefit information and pay practices with an effective date of January 1, 2011.

Compdata Surveys is the nation’s leading compensation and benefits survey data provider. Thousands of U.S. organizations provide data each year ensuring the reliability of our results. Compdata Surveys has been providing comprehensive data at affordable prices to organizations from coast to coast since 1988. For further information about the compensation and benefits surveys, contact Michelle Willis at (800) 300-9570.

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