Retirement Survey Report

PEBA

November 1, 2001

The survey data was collected via the PEBA e-mail survey software in August 2001. The survey was sent to 324 member companies. 39 companies participated. An executive summary of the results can be found on the PEBA web site. The information below is a question by question analysis.

Demographics


Q 1. What is the nature of your company's business?

Responses

Count

Percent

Chemical

1

2.6%

Consulting

0

0.0%

Computer/Data Services

1

2.6%

Education

4

10.3%

Financial Services

3

7.7%

Professional/Consultancy

0

0.0%

Healthcare

8

20.5%

Manufacturing

6

15.4%

Law

3

7.7%

Pharmaceutical

0

0.0%

Other

13

33.3%


Q 2. What is the size of your company?

Responses

Count

Percent

Fewer than 100

0

0.0%

100-499

15

36.6%

500-999

8

19.5%

1000-2499

5

12.2%

250-4999

6

14.6%

5000 or more

7

17.1%


Q 3. How many employees does your company have in Delaware Valley?

Responses

Count

Percent

Fewer than 100

4

9.5%

100-499

18

42.9%

500-999

9

21.4%

1000-2499

4

9.5%

250-4999

4

9.5%

5000 or more

3

7.1%


Questions


Q 4. What is the approximate make-up of the employee population for your entire company? (percentages)

Responses

Mean

Non-exempt hourly

33.5

Exempt salary

20.7

Salary supervisory / managerial

9.6

Executives

4.5

 


Q 5. How many retirement/pension plans does your company offer?

Mean:

1.9

Standard Deviation:

0.9

Responses

Count

Percent

One

16

38.1%

Two

18

42.9%

Three

4

9.5%

More than three

4

9.5%


Q 6. What type of design?

Responses

Count

Percent

Defined Benefit

16

39.0%

Profit Sharing

11

26.8%

Age Weighted Profit Sharing

0

0.0%

Money Purchase

5

12.2%

Cash Balance

2

4.9%

401(k) or 403(b)

39

95.1%

Other

4

9.8%


Q 7. Defined Benefit

Mean:

1.9

Standard Deviation:

0.2

Responses

Count

Percent

P

1

5.6%

T

17

94.4%


Q 8. Cash Balance Plan

Mean:

2.0

Standard Deviation:

0.0

Responses

Count

Percent

P

0

0.0%

T

5

100.0%


Q 9. Profit Sharing Plan

Mean:

1.1

Standard Deviation:

0.3

Responses

Count

Percent

P

10

90.9%

T

1

9.1%


Q 10. Age Weighted PSP

Mean:

NA

Standard Deviation:

NA

Responses

Count

Percent

P

0

 

T

0

 


 

 

Q 11. Money Purchase Profit Sharing

Mean:

1.3

Standard Deviation:

0.5

Responses

Count

Percent

P

5

71.4%

T

2

28.6%


Q 12. 401(k) or 403(b)

Mean:

1.1

Standard Deviation:

0.2

Responses

Count

Percent

P

38

95.0%

T

2

5.0%


Q 13. Other

Mean:

2.0

Standard Deviation:

 

Responses

Count

Percent

P

0

0.0%

T

1

100.0%


Q 14. If your company currently has a defined benefit plan(s), are you anticipating or considering a conversion to a cash balance plan?

Mean:

2.2

Standard Deviation:

0.4

Responses

Count

Percent

Yes

0

0.0%

No

16

76.2%

DB plan is already a cash balance plan

5

23.8%


Q 15. If yes to questions 14, please comment on brief features, i.e., grandfather clause, investment structure, education/communications, etc.

No answers provided.


Q 16. What is the overall level of participation (%) in your 401(k) or 403(b) plan?

Minimum

Maximum

Mean

15.0

100.0

72.6


Q 17. What is the level of participation (%) in your 401(k) or 403(b) plan by employee type?

Responses

Mean

Exempt

44.2

Non-Exempt

63.5


Q 18. Do you have deferral restrictions on highly compensated (HCE) deferrals as a result of non-discrimination testing?

Mean:

1.7

Standard Deviation:

0.5

Responses

Count

Percent

Yes

12

30.8%

No

27

69.2%


Q 19. If yes, what is the amount or % of the annual allowable deferral?


Response

# of Times Given

2 %

1

4%

1

5%

1

6%

1

7%

1

8%

2

9%

1

10%

1

$ 9000

1

$ 10,500

2

 


Q 20. Do you return deferrals to HCE affected by a failed non-discrimination test?

Mean:

1.2

Standard Deviation:

0.4

Responses

Count

Percent

Yes

21

80.8%

No

5

19.2%


Q 21. Who performs your non-discrimination testing?

Responses

Count

Percent

Recordkeeper

26

68.4%

Internal

8

21.1%

Other

4

10.5%

Other responses:


PWC


Q 22. How many non-discrimination tests do you perform annually?

Mean:

1.4

Standard Deviation:

0.7

Responses

Count

Percent

One

22

64.7%

Two

9

26.5%

Three or more

3

8.8%


 

 

 

 

 

 

 

 

 

 

 

 

Q 23. If you have high levels of participation across certain populations in your company/firm, please list the top three reasons why you believe that the high level exists (i.e. good match, education program).


Response

# of Times Given

Education

14

Match

11

Tax benefits/advantage/ deferment

6

Communication

2

Good investment options

2

Plan design

2

Quality vendor

2

Varied investment elections

2

Employees are skeptical of the SS program

1

Immediately eligible

1

Many high paid employees (i.e. Lawyers)

1

Good support from management and union

1

High degree of participant flexibility in investment options

1

Business of the company itself (mutual funds)

1

Salaried participation is higher due to the level of financial sophistication in that group

1

Well marketed

1

Savvy employees

1

Investment Committee

1

Mandatory

1

Planning for the future

1

Supplemental retirement savings

1

Employees are investors

1

Non-contributory employer contribution

1

   


Q24. Please list the asset size of your plan:

Response

# of Times Given

4 million

1

5 million

2

10 million

1

15 million

3

16 million

17 million

17 million

1

20 million

1

25 million

2

26 million

1

30 million

1

35 million

1

39 million

1

50 million

2

58 million

1

65.7 million

1

68 million

1

84.5 million

1

170 million

250 million

250 million

1

267 million

1

290 million

1

600 million

1

5 billion

1

Individual annuity contracts

1

Don’t know

2

Q 25. Recordkeeping

Mean:

1.8

Standard Deviation:

0.4

Responses

Count

Percent

I

6

16.2%

E

31

83.8%


Q 26. Fund tracking/performance

Mean:

1.8

Standard Deviation:

0.4

Responses

Count

Percent

I

6

15.4%

E

33

84.6%


Q 27. Day to day administration

Mean:

1.4

Standard Deviation:

0.5

Responses

Count

Percent

I

23

59.0%

E

16

41.0%


Q 28. Legal and regulatory

Mean:

1.8

Standard Deviation:

0.4

Responses

Count

Percent

I

9

24.3%

E

28

75.7%


Q 29. Other

No answers provided.


Q 30. Do your participants have access to their accounts?

Responses

Count

Percent

Via the Internet?

36

87.8%

Via the Intranet?

7

17.1%

Via voice response?

35

85.4%

Customer service?

34

82.9%

Employee KIOSK?

1

2.4%


Q 31. Recordkeeping

Responses

Mean

Employer

39.9

Participant

31.9


Q 32. Loans

Responses

Mean

Employer

14.1

Participant

72.6


Q 33. Loan Maintenance

Responses

Mean

Employer

22.4

Participant

66.7


Q34. Transaction or utilization fees

Responses

Mean

Employer

40.2

Participant

136.4


Q 35. Support (Internet, automated telephone service)

Responses

Mean

Employer

48.7

Participant

27.3


Q 36. Withdrawal fees

Responses

Mean

Employer

25.2

Participant

68.8


Q 37. Rollover fees

Responses

Mean

Employer

30.8

Participant

60.0


Q 38. Please check the minimum age a participant must be to participate in your 401(k) or 403(b).

Responses

Count

Percent

no requirement

16

41.0%

18

4

10.3%

19

0

0.0%

20

0

0.0%

21 or over

18

46.2%


Q 39. Please indicate the length of service an employee must have in order to participate in your 401(k) or 403(b).

Responses

Count

Percent

Immediate

20

51.3%

Less than a year

10

25.6%

They become eligible on their 1 year anniversary

7

17.9%

Greater than a year

3

7.7%


Q 40. List any other requirements.

 

 

Q 41. Does your plan have Automatic Enrollment (also known as "Negative Election") for new hires?

Mean:

1.9

Standard Deviation:

0.3

Responses

Count

Percent

Yes

4

10.5%

No

34

89.5%


Q 42. If yes, what is the default deferral amount used? (%)

Minimum

Maximum

Mean

2.0

5.0

2.4


Q 43. What is the amount of compensation allowable for deferral (1-15%)?

Responses

Mean

Minimum amount

2.1

Maximum amount

15.8


Q 44. Do you offer a post-tax feature as part of your 401(k) or 403(b) plan?

Mean:

1.9

Standard Deviation:

0.4

Responses

Count

Percent

Yes

5

13.9%

No

31

86.1%


Q 45. Does your plan offer a match?

Mean:

1.3

Standard Deviation:

0.4

Responses

Count

Percent

Yes

28

73.7%

No

10

26.3%


Q 46. If yes, what is the amount or percentage of the match?

Response

# of Times Given

1%

2

1% up to 3%, ½ % up to 6%

1

2%

1

3%

2

4%

1

5%

1

6%

1

25% on first 6%

2

50%

3

50% up to 4%

3

50% on first 5%

1

50% on first 6%

2

50% on first 7%

1

50% up to 2000

1

60% on first 5%

1

60% on first 6%

1

75% on first 4%

1

100%

1

100% up to 5%

1

Q 47. How many years are required for full vesting in employer match?

Mean:

3.3

Standard Deviation:

2.5

Responses

Count

Percent

immediate

14

43.8%

1 year

3

9.4%

2 years

1

3.1%

3 years

1

3.1%

4 years

2

6.3%

5 years

8

25.0%

6 years

2

6.3%

7 years

1

3.1%


Q 48. Is there an employer discretionary profit sharing contribution feature?

Mean:

1.6

Standard Deviation:

0.5

Responses

Count

Percent

Yes

13

37.1%

No

22

62.9%


Q 49. Is the discretionary profit sharing contribution integrated with the social security wage base?

Mean:

1.9

Standard Deviation:

0.4

Responses

Count

Percent

Yes

2

14.3%

No

12

85.7%


Q 50. How many years are required for full vesting in employer discretionary profit sharing contribution?

Mean:

5.4

Standard Deviation:

2.2

Responses

Count

Percent

immediate

2

14.3%

1 year

0

0.0%

2 years

1

7.1%

3 years

0

0.0%

4 years

1

7.1%

5 years

5

35.7%

6 years

4

28.6%

7 years

1

7.1%


Q 51. 2000

Minimum

Maximum

Mean

0.0

6.0

2.1


Q 52. 1999

Minimum

Maximum

Mean

0.0

6.0

2.2

 

 


Q 53. 1998

Minimum

Maximum

Mean

0.0

6.0

2.1


Q 54. Is there a safe harbor contribution made to the plan regularly?

Mean:

1.9

Standard Deviation:

0.3

Responses

Count

Percent

Yes

4

11.4%

No

31

88.6%


Q 55. If yes, please list the percentage?


Q 56. Does your plan accept rollover contributions?

Mean:

1.1

Standard Deviation:

0.3

Responses

Count

Percent

Yes

34

91.9%

No

3

8.1%


Q 57. How many investment options are offered?

Mean:

9.7

Standard Deviation:

5.1

Responses

Count

Percent

5 or less

1

2.7%

6

1

2.7%

7

3

8.1%

8

1

2.7%

9

5

13.5%

10

3

8.1%

11

1

2.7%

12

2

5.4%

13

0

0.0%

14

2

5.4%

15

3

8.1%

16

2

5.4%

17

2

5.4%

18

0

0.0%

19

1

2.7%

20+

10

27.0%


 

 

 

 

 

 

 

Q 58. How many different fund families are offered?

Responses

Count

Percent

Aetna

0

0.0%

AIM

2

5.4%

Alger

1

2.7%

Alliance

1

2.7%

American Century

3

8.1%

American Funds

3

8.1%

Berger

0

0.0%

Black Rock

3

8.1%

CIGNA

2

5.4%

Dreyfus

1

2.7%

Evergreen

0

0.0%

Fidelity

17

45.9%

Franklin Templeton

1

2.7%

Great West

0

0.0%

Invesco

3

8.1%

Janus

7

18.9%

Lincoln National

2

5.4%

Loomis Sayles

1

2.7%

Mass Mutual

0

0.0%

Merril Lynch

1

2.7%

MetLife

1

2.7%

MFS

2

5.4%

Morgan Stanley

3

8.1%

Neuberger Berman

3

8.1%

Oppenheimer

0

0.0%

PBHG

3

8.1%

PIMCO

1

2.7%

Principal

0

0.0%

Prudential

3

8.1%

Putnam

2

5.4%

Smith Barney

0

0.0%

State Street Bank

1

2.7%

State Street Global Advisor

1

2.7%

State Street Research Group

1

2.7%

Strong

0

0.0%

Transamerica

0

0.0%

T. Rowe Price

1

2.7%

TIAA-CREF

8

21.6%

VALIC

1

2.7%

Vanguard

13

35.1%

Warburg Pincus

2

5.4%

Other

11

29.7%


Q 59. Loans for any reason

Mean:

1.3

Standard Deviation:

0.5

Responses

Count

Percent

Yes

25

71.4%

No

10

28.6%


 

Q 60. Loans for hardship reasons only

Mean:

1.7

Standard Deviation:

0.5

Responses

Count

Percent

Yes

9

29.0%

No

22

71.0%


Q 61. Hardship withdrawals

Mean:

1.1

Standard Deviation:

0.3

Responses

Count

Percent

Yes

32

88.9%

No

4

11.1%


Q 62. In-service withdrawals at 59 ½

Mean:

1.2

Standard Deviation:

0.4

Responses

Count

Percent

Yes

26

76.5%

No

8

23.5%


Q 63. Self-directed brokerage accounts

Mean:

1.8

Standard Deviation:

0.4

Responses

Count

Percent

Yes

7

21.2%

No

26

78.8%


Q 64. Life-style funds (asset allocation funds)

Mean:

1.4

Standard Deviation:

0.5

Responses

Count

Percent

Yes

19

57.6%

No

14

42.4%


Q 65. Social/environmental funds

Mean:

1.6

Standard Deviation:

0.5

Responses

Count

Percent

Yes

12

35.3%

No

22

64.7%


Q 66. Company stock (publicly held company)

Mean:

1.9

Standard Deviation:

0.4

Responses

Count

Percent

Yes

4

14.3%

No

24

85.7%


Q 67. Company Stock (privately held/for profit company)

Mean:

2.6

Standard Deviation:

0.5

Responses

Count

Percent

Yes

0

0.0%

No

11

35.5%

Not applicable

20

64.5%


Q 68. Check the frequency of employee contribution changes:

Responses

Count

Percent

Monthly

5

14.3%

Quarterly

12

34.3%

Annually

0

0.0%

Every pay period

17

48.6%

Other

1

2.9%

Other responses:


Q 69. Check the frequency of allocation changes (future and invested assets):

Responses

Count

Percent

Daily

26

76.5%

Monthly

6

17.6%

Quarterly

1

2.9%

Other

1

2.9%

Other responses:


Q 70. Is the number of allocation changes capped?

Mean:

1.9

Standard Deviation:

0.3

Responses

Count

Percent

Yes

4

11.8%

No

30

88.2%


Q 71. If yes, please explain.

Q 72. Who writes and monitors the Investment Policy for the 401(k) or 403(b) plan?

Responses

Count

Percent

Pension/Retirement Committee

18

52.9%

Trustees

8

23.5%

Fund Consultant (external)

7

20.6%

Fund Consultant (internal)

1

2.9%

Recordkeeper

4

11.8%

Fund Company

5

14.7%

Other

3

8.8%


Q 73. Who manages the fund performance and fiduciary responsibilities for the fund selection and the fund monitoring of the 401(k) or 403(b) plan?

Responses

Count

Percent

Pension/Retirement Committee

16

47.1%

Trustees

10

29.4%

Fund Consultant (external)

6

17.6%

Fund Consultant (internal)

0

0.0%

Recordkeeper

9

26.5%

Fund Company

6

17.6%

Other

2

5.9%


Q 74. Do you provide employee investment education?

Mean:

1.2

Standard Deviation:

0.4

Responses

Count

Percent

Yes

30

83.3%

No

6

16.7%


Q 75. If you provide investment education, how often do you provide it?

Responses

Count

Percent

Annually

5

16.1%

Bi-annually

3

9.7%

Quarterly

8

25.8%

Ongoing

10

32.3%

Other

5

16.1%

Other responses:


Q 76. What is the form of investment education?

Responses

Count

Percent

Employee meetings

25

78.1%

Software

8

25.0%

Written materials

25

78.1%

One-on-one

13

40.6%

Videos

14

43.8%


Q 77. If you provide investment education in a group meeting or one-on-one, who provides or presents the information?

Responses

Count

Percent

Outside consultant

12

40.0%

HR professional

13

43.3%

Recordkeeper

7

23.3%

Fund company

11

36.7%

Videos

4

13.3%

 

 

 

 

 


Q 78. Do you offer third-party investment advice to participants?

Mean:

1.7

Standard Deviation:

0.5

Responses

Count

Percent

Yes

9

27.3%

No

24

72.7%


Q 79. If yes to Q. 78, what is the level of employee participation?

Mean:

2.2

Standard Deviation:

2.1

Responses

Count

Percent

Less than 10%

7

70.0%

11-20%

0

0.0%

21-30%

1

10.0%

31-50%

0

0.0%

51-75%

1

10.0%

More than 75%

0

0.0%

No data available

1

10.0%


Q 80. If yes to Q. 78, it is through:

Responses

Count

Percent

Software advisory module (i.e. financial engines)

3

13.0%

Financial consultant

6

26.1%

Group benefit

4

17.4%

One-on-one meetings

4

17.4%


Q 81. If you offer third-party investment advice to participants, who pays?

Responses

Mean

Employer

14.0

Participant

0.0