CHICAGO--(BUSINESS WIRE)--The Defined Contribution System has been successful in helping millions of Americans save significant assets for retirement. There is $7.8 trillion dollars in DC accounts and IRA rollovers that are providing retirement income to millions of retirees.
“Those critical of the DC system in the past thought that the system would collapse during a sharp economic downturn,” stated Bob Benish, Plan Sponsor Council of America’s Executive Director. “They were wrong. Was the system impacted the same way everything else in the economy was? Sure, but it is recovering and becoming stronger as both companies and participants are refocusing on saving and looking at more holistic approaches to financial wellness.”
The results of 56th Annual Profit Sharing and 401(k) Survey from the Plan Sponsor Council of America demonstrate the continued success and improvement of the DC system. During the last couple of years, participation rates, deferral rates, and company contributions have increased steadily, and are now equal to or higher than they were before the recession:
Sponsors continue to add plan design features to help their employees save:
In light of all that benefits professionals are handling, particularly in the last year with fee disclosure and health care reform, it is remarkable that they are finding the time to spend 401(k) plan education and financial wellness programs. “It should be noted that through a collaborate effort of private industry, dedicated plan sponsors and service providers, they have created one of the best retirement systems in the world, and their work should be recognized and supported. We believe that millions of Americans will be better prepared for retirement by saving through employer-sponsored retirement plans,” Benish stated.
PSCA’s 56th Annual Survey reports on the 2012 plan-year experience of 686 plans with 10.3 million participants and $769 billion in plan assets. New topics in this year’s survey include:
The survey is available for purchase at www.psca.org. For more information, contact PSCA at email@example.com or 312.419.1863.