Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • October 2015
10

US employers increase DC contribution rates

Open-access content Monday 26th October 2015 — updated 5.50pm, Wednesday 29th April 2020

More US employers have increased the amount they are paying into workplace pensions and are now matching contributions “dollar-for-dollar”, according to Aon Hewitt.

2

In a report the firm said 42% of employers were matching contributions "dollar-for-dollar", up from 31% in 2013. Before 2013, most employers paid 50 cents for every $1 from employees. 

Aon Hewitt said employers were helping workers save more in order to facilitate adequate retirement income and attract and retain employees. 

Based on a survey of 367 employers, the report said defined contribution (DC) schemes were changing in other key areas including auto-enrolment and the "back-sweeping" of existing employees into schemes.

Aon Hewitt also said more than half of automatic enrolment schemes (52%) signed up workers at a savings rate of 4% or more, up from 39% of employers in 2013. 

The firm said most employers automatically enrolled only new hires, but many were taking action to ensure all eligible workers joined the plan. Some 16% of employers use a "back-sweep" to enrol non-participants into a scheme, compared with 8% in 2013.

Rob Austin, director of retirement research at Aon Hewitt, said: "With more workers falling short of their retirement savings needs, employers are being more aggressive about making plan design changes that will help workers close the savings gap.

"While these tweaks to the plan may seem small, they can have a profound impact on workers' ultimate retirement wealth."

Meanwhile, in the UK, the Department for Work and Pensions and The Pensions Regulator (TPR) have launched a campaign to raise awareness about workplace pensions. 

The campaign features "Workie", a cuddly character representing workplace pensions, who visits people in different settings and asks them not to ignore him. 

Pensions minister Ros Altmann said: "This is a fun and quirky campaign but behind it lies a very serious message. We need everyone to know they are entitled to a workplace pension - and we need all employers to understand their legal responsibility to their staff, but also to feel more positive about engaging with workplace pensions."

According to TPR there are currently 1.8 million small and micro employers that are required to automatically enrol their staff.

This article appeared in our October 2015 issue of The Actuary.
Click here to view this issue
Filed in
10
Topics
Global

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

New Fast-Growing Team - Actuarial Systems Development

London (Greater)
Excellent Salary Package
Reference
143762

Actuarial Pension Consultant – Scotland/Remote – Up to £90,000 plus bonus

Edinburgh / Glasgow / Remote working
Up to £90,000 + Bonus
Reference
143761

Part Qualified Pensions Actuary– Specialised Pensions Consultancy - Scotland/Remote - Up to £70,000

Edinburgh / Glasgow / Remote working
Up to £70,000 + Bonus
Reference
143760
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ