After a two-year hold on 401(k) matching, employers come back from recession ready to help plan participants save. –

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The employer match is one of the most important features that encourage employees to save more for their retirement. For many retirement is a long way off but time passes quickly, just ask a baby boomer looking to retire.

According to the analysis, 75% of 260 employers that suspended their 401(k)matching contributions have now restored them. Among those employers, about three in four (74%) reinstated the matching contributions to their previous level, while 23% of employers restored them at a lower rate. Just 3% increased their matching contributions to a higher rate. The most frequent employer match formula before and after the suspension matched 50% of employees’ salary deferrals, up to 6% of pay. The median duration for match suspensions was 12 months.”We know that most employers are looking to reinstate when they can afford to. When that will happen is a bit of a challenge because it’s contingent on the economy and how the company is doing within the economy,” says Robyn Credico, a senior retirement consultant at Towers Watson.

This is great news and evidence that employers see the value of their retirement plan benefit.

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