* Survey results from Culpepper and Associates show most high-tech companies offer some type of retirement plan
Most high-tech employers offer some type of retirement plan to help you plan for the future, according to a survey from compensation specialist Culpepper and Associates. By far the most common type of plan is the 401(k), which is offered by 94% of the 89 companies that responded to the survey.
Of those firms that offer 401(k) plans, 75% match employee contributions. In most cases, firms match half of an employee’s contribution up to a maximum of 6% of salary. According to Culpepper, the second most popular scenario is one in which employer’s match a full 100% of the employee’s contribution up to 3% of salary, then match 50% for another 2% of pay.
Matching levels on 401(k) plans have remained stable overall. However, a few companies are reducing retirement expenses during the economic slump. For example, some respondents said they have temporarily suspended matching contributions, while others noted that matching depends on hitting specific profit goals and is unlikely to occur this year.
Here is the breakdown of the percentage of high-tech employers offering other types of retirement plans:
* Profit sharing: 17%
* Employee stock ownership plan (ESOP): 8%
* Defined benefit plan: 4%
* SIMPLE-IRA: 1%
* Other: 4%
* None: 6%
Regardless of the type of retirement plan offered, not all employees are immediately eligible to participate. Companies often establish age and employment tenure contributions.
Only 31% of companies offer immediate enrollment with no minimum age, while 18% offer immediate enrollment with a minimum age. Another 21% of tech firms allow enrollment after a set employment period with no minimum age, and 21% permit enrollment after employment period with a minimum age. Finally, 11% have other requirements, such as allowing enrollment at the beginning of each quarter.
Survey results show the most common waiting period for those firms with employment requirements is three months. Meanwhile, companies with age requirements typically set the minimum age at 21.
For more information about Culpepper, please go to www.culpepper.com
