Companies that are weathering the economic storm are headed into the upswing with a bigger focus on restoring and maintaining 401(k) plans.
According to a recent survey from the Profit Sharing/401k Council of America, of the 14.8 percent of companies that suspended matching contributions in the last three years in the last three years, 39.3 percent have restored them and 37.8 percent are planning to restore them within the next six months.
More than 70 percent of companies made no changes to matching contributions and nearly 10 percent increased them.
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Employees are also paying closer attention to their 401(k) plans. More than 30 percent of companies indicated an increase in the number of workers increasing their contributions.
In the last year, companies were actively engaged in managing their plans, the nonprofit association reports. They increased employee education, added investment advice, and more closely monitored plan investments. For example, 94 percent of companies have a committee responsible for reviewing fund performance. More than half of plans changed their investment lineup in the last year as they replaced poor performing funds and increasingly scrutinized plan fees (72.2 percent of companies versus 55.4 percent in 2009).
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