The Department of Labor’s Bureau of Labor Statistics (BLS) has issued a report identifying which kinds of retirement plans have the highest takeup rates — ratios of participants vs. access. The September 2015 issue of BLS’ “Beyond the Numbers” report draws on data from private-sector employers during the third quarter of 2012 to the second quarter of 2013, the latest period for which data was available.
The BLS says that 18% of those employers offered defined benefit plans, and 16% of employees participated, for a takeup rate of 89%. Of the specific kinds of DB plans it measured, the BLS found that the highest takeup rates were for employer-contribution formula DB plans at 94% and DB plans that use a dollars x years formula, at 96%. Note, however, that few employers offer those kinds of DB plans — 1% and 4%, respectively.
A higher number of employers offered defined contribution plans: 61% overall, but with a lower takeup rate — 68%. The highest takeup rates among the various kinds of DC plans were:
The BLS says that 18% of those employers offered defined benefit plans, and 16% of employees participated, for a takeup rate of 89%. Of the specific kinds of DB plans it measured, the BLS found that the highest takeup rates were for employer-contribution formula DB plans at 94% and DB plans that use a dollars x years formula, at 96%. Note, however, that few employers offer those kinds of DB plans — 1% and 4%, respectively.
A higher number of employers offered defined contribution plans: 61% overall, but with a lower takeup rate — 68%. The highest takeup rates among the various kinds of DC plans were:
- employee stock ownership plans (85%);
- money purchase plans (86); and
- deferred profit-sharing plans (88%).
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