Today we announce our second annual list of the 30 Most Generous Companies ranked by their 401k plans, showcasing companies that are placing an emphasis on helping employees prepare for their financial futures.
“Offering employees better packages encourages them to be proactive about their financial future, exemplified by how the participation rate for the most generous companies is over 10 percent higher than the average BrightScope rated plan. More and more, we’re seeing workers making retirement programs a bigger part of their decision when accepting jobs, and it’s great to see companies growing this part of their benefits year-to-year.”Brooks Herman, Head of Data & Research at BrightScope
BrightScope determined a company’s generosity by examining the vesting schedule, eligibility periods and all contributions to the plan made by the company for the sole benefit of the plan’s participants among BrightScope-rated plans.
The BrightScope Rating was developed by BrightScope, Inc. with the help of leading academics and independent 401k fiduciaries. By analyzing more than 200 individual data points, the BrightScope Rating algorithm calculates a single numerical value for each 401k plan. The data points examined cover broad categories such as total plan cost, company generosity and investment menu quality.
Noteworthy findings in the 2015 Most Generous Plans list include:
- Staying on top: Sullivan & Cromwell, LLP remains the most generous company in the U.S. for the second year in a row, with an average contribution of $48,666 to employees’ retirement.
- Warm welcome: Martin Resource Management Corporation, No. 6, Six3 Advanced Systems, No. 15, Seyfarth Shaw, LLP, No. 16, D & M Holding, Inc., No. 22, Anaesthesia Associates of Massachusetts, P.C., No. 23, Palo Alto Foundation Medical Group, Inc., No. 24, United Airlines, Inc., No. 27, Cerberus Capital Management, L.P., NO. 28, University of Wisconsin Medical Foundation, Inc., No. 30
- Making Moves: Garland Industries, Inc. moved from No. 26 to No. 14
- The average company generosity for plans listed is $31,661, which is impressive considering the average generosity of all BrightScope rated plans at $4,382.
- The average account balance for plans listed is $586,910,which is an increase of nearly 25 percent since last year
- The average participation rate for companies listed is 94 percent.
Most Generous U.S. Companies with the Best 401k Plans
Note: This data is accurate as of March 18, 2015.