Defined Contribution in Review

Industry developments over the last 90 days

2Q18

Quarterly Highlights
A summary of plans and sponsors making the news

Quarterly Highlights

A summary of plans and sponsors making the news

Best in Class 401(k) Plans: What do they have in common

PLANSPONSOR announced the 2018 Best in Class 401(k) Plans based on a 2017 survey of more than 3,000 plans. Common themes included:

Participation Rate

Best in Class Plans: 95%
All other 401(k) Plans: 80%

Deferral Rate

Best in Class Plans: 9.0%
All other 401(k) Plans: 6.6%

Eligibility Within
Three Months

Best in Class Plans: 95%
All other 401(k) Plans: 60%

Learn more about these awards in the 2Q18 edition of the 

Hearst Corporation Partners with Morningstar to Create Target-Date Funds

Officials at the Hearst Corporation conducted an extensive analysis of 20 active and passive target-date funds and found that none had outperformed three Morningstar indices that were used as a benchmark. The company approached Morningstar, which agreed to make the indices investable, and the target-date series was launched in July 2015. The company estimates that, over 35 years, the average participant cost savings realized from a reduction in the target-date fund’s expense ratio would be at least $200,000.

Abbott Laboratories offers unique solution
to helping employees with student loan debt

The health care company, located in Lake Bluff, Illinois, introduced the Freedom to Save program recently. Details include:
The program provides a 5% employer contribution into the company 401(k) for any U.S.–based employee who puts at least 2% of their salary toward student loan payments
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The program provides a 5% employer contribution into the company 401(k) for any U.S.–based employee who puts at least 2% of their salary towards student loan payments
According to company officials, only about a third of millennials are currently contributing to the 401(k) plan, compared with 90% of the workforce overall
Next
The program provides a 5% employer contribution into the company 401(k) for any U.S.–based employee who puts at least 2% of their salary towards student loan payments
According to company officials, only about a third of millennials are currently contributing to the 401(k) plan, compared with 90% of the workforce overall
Research conducted by the Society for Human Resources Management found that more than 100 companies put some money toward employees’ student loans; however, the money in these cases is treated as taxable income
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