Easier access to cash. More ways for workers to obtain plan information. The use of voice response systems has grown dramatically over the past several years. They are now in use at 85 percent of companies surveyed, up from 35 percent in Buck's 1993 survey. Another growing trend is the use of Web sites to disseminate general plan information, now in use at nearly 40 percent of firms surveyed.
Flexibility is key.
A full 71 percent of plans permit participants to change their investment elections on existing account balances on a daily basis, whether such account churning is helpful or not. In fact, six out of 10 respondents initiated education programs because their employees were asking for more information. Nine out of 10 employers have taken steps to teach their workforce about savings and retirement principles. About one-fifth of companies surveyed allow participation after six months. Six percent of firms use three-year cliff vesting.