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 Healthcare survey results indicate that nearly 63 percent of employees are enrolled in a defined contribution plan, up from 61 percent in 2010. Just 1.5 percent of healthcare employers surveyed reported offering a defined benefit plan only, 59.8 percent offer a defined contribution plan only and nearly 38 percent offered 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 healthcare organizations according to the 2011 survey are 401(k) with employer contribution and 403(b) with employer contribution. Almost 45 percent of organizations offer a 401(k) plan with employer contribution while 41.3 percent offer 403(b) plans with employer contribution. Just 6.1 percent of healthcare companies offered profit sharing plans in 2011.
The way organizations contribute to employee retirement plans varies with 63.7 percent utilizing a standard match formula in 2011. Healthcare employers increasingly use tiered matched formulas. Just 11.5 percent of organizations reported using a tiered match formula in 2009, 16.9 percent in 2010 and nearly 18 percent in 2011.
All 401(k), 403(b) and 457(b) and (f) plans were reported as fully vested within six years with 12.4 percent vested immediately. For other plans, 6.7 percent of plans were vested immediately while 56.7 percent were vested after five full years of employment.
About the Survey
Compensation Data 2011 Healthcare surveyed 250 industry-specific job titles and more than 350 benchmark titles ranging from entry-level to top executives. Data was collected from more than 1,100 healthcare employers reporting on nearly 5,300 locations 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 more information about our compensation and benefit surveys, contact Michelle Willis at (800) 300-9570.