Compdata Surveys & Consulting Blog

Retirement Plans More Prevalent for Insurance Employees

Posted by Amy Kaminski on Sep 11, 2012 11:50:23 AM

The continued fluctuation in the stock markets has once again shifted employees’ focus to retirement savings plans. While saving for the future is important, employees are questioning which options are the most beneficial. The 2012 Compensation Data Insurance survey results indicate that 83.5 percent of employees were enrolled in a defined contribution plan. More than 61 percent of insurance employers surveyed reported offering a defined contribution plan only and 38.5 percent offer a defined benefit and contribution plan.

“Employees are watching their investments closer than ever as the economy and stock markets fail to make lasting improvements,” said Amy Kaminski, director of marketing for Compdata Surveys, the nation’s leading pay and benefits survey data provider. “It will be important for employers to ensure they’re offering attractive retirement plans in order to retain their best employees.”

According to the 2012 survey, the most common plan for insurance organizations were 401(k) with employer contribution. More than 90 percent of organizations offer a 401(k) plan with employer contribution. The second most common plan offered in 2012 was profit sharing at 17 percent, up from 14.8 percent last year.

The way organizations contribute to employee retirement plans varies with 64.8 percent of employers utilizing a standard match formula in 2012. More than 21 percent of insurance employers are using a tiered match formula, while 12 percent reported using a fixed percentage of employee’s pay. The average match limit for the first tier in tiered plans saw an increase from 2.5 percent in 2010 to more than 3 percent this year.

All 401(k), 403(b) and 457(b) and (f) plans was reported as fully vested within seven years, while just 19.3 percent were vested immediately. For other plans, 9.4 percent of plans were vested immediately while 59.4 percent were vested after five full years of employment.

About the Survey
Compensation Data 2012 Insurance contains data on 115 industry specific job titles and 400 benchmark job titles ranging from entry-level to top executives. Data was collected from nearly 1,900 insurance providers reporting on 232,000 incumbents. Companies in other industries provided data on 400 benchmark titles for more than 32,000 locations across the country. The results provide a comprehensive summary of pay data, benefit information and pay practices with an effective date of January 1, 2012.

Compdata Surveys is the nation’s leading compensation and benefits survey data provider. Thousands of U.S. organizations provide data each year ensuring the reliability of our results. Compdata Surveys has been providing comprehensive data at affordable prices to organizations from coast to coast since 1988. For further information about the compensation and benefits surveys, contact Michelle Willis at (800) 300-9570.

Topics: dataLink, Insurance, Retirement Plans

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