Finally get that promotion? Get exclusive content, tips and tools to help you excel.
Implicit bias occurs when individuals make judgments about people based on gender, race or other prohibited factors without even realizing they’re doing it.
Is your employee handbook keeping up with the changing world of work? With SHRM's Employee Handbook Builder get peace of mind that your handbook is up-to-date.
Build competencies, establish credibility and advance your career—while earning PDCs—at SHRM Seminars in 12 cities across the U.S. this spring.
#SHRM18 will expand your perspective – on your organization, on your career, and on the way you approach HR. Join us in Chicago June 17-20, 2018
Members may download one copy of our sample forms and templates for your personal use within your organization. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organization’s culture, industry, and practices. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRM’s permission. To request permission for specific items, click on the “reuse permissions” button on the page where you find the item.
At a time when retirement security is at the forefront of many Americans' minds, new research suggests that retirement plan sponsors are missing opportunities to help their workers manage their "nest eggs" long-term.
Only one-third of U.S. plan sponsors at Fortune 1000 companies describe their retirement benefits philosophy as supporting employee efforts to “create retirement income for the future.” And while two-thirds of plan sponsors say that retirement income is an important objective, many are struggling to translate their intention into action, according to MetLife’s inaugural Qualified Retirement Plan Barometer, a study of Fortune 1000 defined benefit and defined contribution plan sponsors.
Among the key study findings, most plan sponsors (82 percent) do not set income replacement goals for their retirement plans. And while 77 percent of plan sponsors say that their employees are aware of company-provided materials and tools pertaining to the importance of saving for retirement, just 58 percent think that this support gives participants a clear idea of how to generate retirement income from their plans.
“Although most of the burden for retirement security has shifted to employees, plan sponsors still play a critical role,” said Robin Lenna, executive vice president, corporate benefit funding, at MetLife, a provider of financial services and employee benefits. “Most plan sponsors continue to skew their goals, plan design, communications and decision support tools toward savings, which favors accumulation over income.”
Retirement Benefits PhilosophiesFortune 1000 executives who make decisions regarding retirement benefits policy and design were asked which corporate philosophy best represented their company's views on retirement benefits:
To be successful in a competitive workforce environment by providing retirement benefits in the most cost‐efficient manner possible.
45% of respondents
To support employees’ efforts to create retirement income for the future when taken together with Social Security and their personal savings.
To offer financial and other resources that support our employees’ needs to determine and achieve their retirement savings goals.
Lump Sum vs. Periodic Payments
Even companies offering a defined benefit pension report that they do not communicate about retirement income; just 20 percent of these companies agree that they provide extensive materials on the pros and cons of taking a lump sum vs. a periodic income distribution from the plan.
“While the majority of plan sponsors provide education about the need to save for retirement and the risks of investing, very few concentrate on retirement income-related issues such as longer life spans/longevity risk, how to create retirement income, taking a lump sum vs. periodic payments, and when to begin taking Social Security benefits," said Cynthia Mallett, vice president, product and market strategies, for MetLife’s corporate benefit funding group. "Given their current focus, plan sponsors—even those who fund traditional DB plans—appear to be undercommunicating with employees about the importance of retirement income.”
Stephen Miller is an online editor/manager for SHRM.
Employees' Retirement Readiness Is Employer Priority, SHRM Online Benefits Discipline, January 2011
401(k) Contributions Rise Along with Concerns over Social Security, SHRM Online Benefits Discipline, December 2010
Study: Typical 401(k) Participant Can’t Retire Until Age 73, SHRM Online Benefits Discipline, December 2010
Americans Wish They Had a Pension, Would Consider Annuities, SHRM Online Benefits Discipline, August 2010
SHRM Online Benefits Discipline
• Sign up for SHRM’s free Compensation & Benefits e-newsletter
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Please sign in as a SHRM member before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
Join SHRM's exclusive peer-to-peer social network
SHRM’s HR Vendor Directory contains over 3,200 companies