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 Banking & Finance survey results indicate that 78.6 percent of employees are enrolled in a defined contribution plan, compared to 2010 where that number was 75.6. A little more than 1 percent of banking and finance employers surveyed reported offering a defined benefit plan only, almost 63 percent offer a defined contribution plan only and 35.8 percent offer both.
“Fifty-four percent of employers expected 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,” said Amy Kaminski, director of marketing for Compdata Surveys, the nation’s leading pay and benefit survey data provider. “Another 18.6 percent anticipated more than 75 percent of their staff will utilize retirement plans last year.”
The most common plans for banking and finance organizations according to the 2011 survey are 401(k) with employer contribution and employee stock ownership plans (ESOP). Ninety-two percent of organizations offer a 401(k) plan with employer contribution while 20.7 percent offer ESOPs. More than 14 percent of companies offered profit sharing plans in 2011, down from 17.9 percent the year before.
The way organizations contribute to employee retirement plans varies with 69.4 percent of organizations utilizing a standard match formula in 2011. Banking and finance employers apply tiered matched formulas, too. More than 20 percent of respondents reported using a tiered match formula last year.
All 401(k), 403(b) and 457(b) and (f) plans were reported as fully vested within six years with 27 percent vested immediately. For other plans, more than 30 percent of plans were vested after three years while 45.8 percent were vested after five full years of employment.
About the Survey
Compensation Data 2011 Banking & Finance contains data on more than 450 titles ranging from entry-level to top executives. The results feature data from more than 200 banking and finance organizations reporting on nearly 7,300 locations across the country. The results provide a comprehensive summary of pay data, benefit information and pay practices with an effective date of February 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.