The 401(k) turned 27 this year, and like any young adult, it went through its bad-boy phase, where guidance was absent, fees were high and solid investment choices were paltry. But over the last few years, more companies have helped the 401(k) and other defined contribution plans grow up by adding wise features like auto enrollment, auto escalation, default options and targeted investment advice. Devon Energy Corp of Oklahoma City gave employees the option to give up their pension plans and go into a "super 40 1(k)" this past year. Those who chose to stay in the defined benefit plan could still access the regular 401(k) plan, but employees who opted out would have one of the best offerings around, with generous employer contribution levels, auto everything and low fees. At IBM Corp, Armonk, NY, there is a three-tier contribution system. For employees close to retirement, the firm matches 100% up to 6% of pay plus 4% automatically, totaling 10%.
401(k), new and improved Ilana Polyak Workforce Management; Nov 2008; Docstoc pg. 10 Reproduced with permission of the copyright owner. Furt
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