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 Manufacturing & Distribution survey results indicate that nearly 73 percent of employees were enrolled in a defined contribution plan, compared to 2010 where that number was a little more than 73 percent. Just 1.2 percent of manufacturers and distributors surveyed reported offering a defined benefit plan only, 68.9 percent offer a defined contribution plan only and more than 29 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.”
According to the 2011 survey, the most common plans for manufacturers and distributors were 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 20.4 percent offer 401(k) plans with employee savings only. Almost 19 percent of companies offered profit sharing plans in 2011, down from 20.7 percent last year.
The way organizations contribute to employee retirement plans varies with 67.8 percent of organizations utilizing a standard match formula in 2011. Manufacturing and distribution employers are slowly moving toward tiered matched formulas. A little over 18 percent of companies reported using a tiered match formula in 2009, compared to 18.5 percent in 2010 and 19.5 percent last year.
All 401(k), 403(b) and 457(b) and (f) plans were reported as fully vested within seven years with 23 percent vested immediately. For other plans, 7.7 percent of plans were vested immediately while 55.4 percent were vested after five full years of employment.
About the Survey
Compensation Data Manufacturing & Distribution 2011 contains data on more than 450 titles ranging from entry-level to top executives. The results feature data from nearly 1,100 manufacturers and distributors reporting on more than 9,500 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.