Nearly two-thirds, 63.8%, of plan sponsors have changed the investment lineup in their 401(k) plan in the past year, up markedly from a mere 20% in 2008, according to the Profit Sharing/401(k) Council of America.
“This is dramatic. I have not seen anything like this in 25 years of working with plan sponsors,” said David Wray, PSCA president. “That so many plan sponsors are reviewing and reworking their investment lineups demonstrates the importance they see in delivering the very best investment opportunity as part of the 401(k) plan benefit for their employees, especially in these unusual times.”
PSCA also revealed, in its “401(k) and Profit Sharing Plan Responses to Current Conditions” report, that of the 14% of plans that suspended their match in the past four years, half have fully restored it. Among these companies, 66.7% reverted back to their previous match, and 12.1% increased it. Only 13.9% of companies that cut back on their suspended or reduced matching contributions have not restored them.
-- This article first appeared on Money Management Executive.