Monday, December 14, 2009
Brightscope 2009 Top 30 401(k) Plan List
Brightscope, an organization which rates 401(k) plans on how effective they are in getting participants to retirement, has announced their top 30 plans for 2009. As you might suspect, these are LARGE plans who have the resources to provide (if they want to) the highest possible quality plan, and some have the resources to provide a “can’t miss” experience.
For instance, the number one plan on the list provides a 100% match on the first 9% of contributions.
But the information IS useful when it comes to designing your own program. There are common themes and “best practices” which can be adopted regardless of your resources…like shortening the eligibility time. If you have a 6 month or one year wait because of high employee turnover, you may want to leave it be. However, if it’s 6 months and nobody knows why (“its always been that”), then you may want to revisit.
For a look at the complete list of top 30 plans and the criteria used, here is the link: http://tinyurl.com/y8rv5oz
