Pension plans appear to be relics of the past, at least for workers in the private sector. The state of the economy and the general culture of many companies has made it very difficult for employers to pay for their workers' retirements, no matter how loyal those workers were nor how long they were tenured. However, that doesn't mean that businesses can't help their staffs out in some way.
Many employers contribute to 401(k) retirement funds in amounts that match what workers themselves put away. However, many organizations have pulled back the amount that they've put into such accounts in recent years. Some have cited financial burdens while others simply focused employee compensation on other areas.
However, the Profit Sharing Council of America has recently completed a study that illustrates the fact that companies are adding more to their 401(k) contributions. In fact, while two-thirds are keeping additions at previous levels, at least 12 percent are increasing their contributions. This demonstrates how important it is for employers to constantly revisit their employee benefit policies to determine how best to reward employees and where funds can best be deployed.
