Three-quarters of 260 employers that suspended 401(k) matches due to the recession have restored them, Towers Watson said in a report Wednesday. Of these companies, 74% have brought these matches back to the levels they were before the recession, and only 23% have brought them back at a lower level.
The most common matching formula is 50% of contributions, up to 6% of a salary. The median suspension time was 12 months.
“Many employers are making it a priority to contribute to their workers’ retirement accounts,” said Robyn Credico, a senior retirement consultant at Towers Watson. “Employers understand the importance of helping and encouraging their employees to save for retirement. With 401(k) plans now the primary retirement savings vehicle for most workers, it is very encouraging to see that the vast majority of employers have reinstated their matching contributions.”
