We like seeing real-life details of specific 401k plans, and especially of plans touted as being among the best in their respective industries.
So when GOBankingRates posted an piece recently titled, “Chick-fil-A and 23 More Companies With Surprisingly Great 401k Plans,” we were naturally curious.
The post focused on how employee benefits, including a strong 401k plan, play a big role in attracting and retaining good employees. It highlighted some of the specific features that make 401k plans at these companies “good,” using information from reviews on Glassdoor and other sources, including the companies themselves. Among those features were aggressive eligibility and vesting schedules, profit-sharing components, high average account balances, and of course, generous company matching contribution rates.
We decided to take a closer look at these plans, and in doing so culled that list of 24 down to eight we thought were worth sharing, adding in some details from their BrightScope Rating. Many of them frequently appear on lists of “best 401k plans” while others are a bit more under the radar.
We readily admit this list is not comprehensive and is not a ranking of plans, which appear in alphabetical order. It is merely meant to share some interesting information about a handful of notable 401k plans. Enjoy!
Accenture
New employees at Chicago-based global professional services company Accenture don’t have to wait to become active in the 401k program—everyone is immediately eligible to contribute, GOBankingRates notes. Employees do have to complete one year of service before matching kicks in. Once that happens, employees get a matching contribution for each dollar they contribute up to 6% of their eligible compensation. Employees are 100% vested in their own contributions immediately and have to wait only two years to become 100% vested in Accenture’s matching contributions.
The plan has a BrightScope Rating of 82, placing it in the top 15% of plans for Account Balances, Company Generosity, Salary Deferral, and Total Plan Cost. BrightScope lists it with over 84,500 active participants (with an average account balance of $110,000) and over $9 billion in plan assets.
Chick-fil-A
While the company also offers a defined benefit pension plan, all eligible full-time Chick-fil-A employees can opt to enroll in the company’s 401k plan, and Chick-fil-A matches up to 5%. The plan has a BrightScope Rating of 84, placing it in the top 15% of all plans in its peer group. The plan is also in the top 15% for Account Balances, Company Generosity, Salary Deferral, and Total Plan Cost.
Atlanta-based Chick-fil-A’s 401k plan ranks first among companies in the accommodations and food services industry, according to a June 2019 analysis conducted by Money and cited by GOBankingRates. A Chick-fil-A employee’s average 401k balance was $158,188, the analysis found, which was more than triple the industry average of $47,788.
Honeywell International
The Honeywell Savings and Ownership Plan is a defined contribution plan with a profit-sharing component, 401k feature, and ESOP component. The plan has a BrightScope Rating of 78, and is in the top 15% of plans for Account Balances, Company Generosity, Salary Deferral, and Total Plan Cost.
In 2018, Charlotte, N.C.-based Honeywell looked to bolster its workers’ retirement savings by increasing how much it matches employee contributions to its 401k plan, GOBankingRates notes.
According a Forbes article, Honeywell employees who had been getting a 75% match on the initial 8% of pay had their match boosted to 87.5%. The maximum company match for these workers rose to 7% from 6%. Workers who had been getting a 37.5% match on the first 8% of pay had their match hiked to 43.75%, while the maximum employer match climbed to 3.5% from 3%. BrightScope pegs the average Honeywell 401k account balance at $190,000.
Kimley-Horn
Fortune named this Raleigh, N.C.-based planning and design consultant 18th on its list of the 100 best companies to work for in 2019. GOBankingRates notes the company says right on its website that its average employee’s 401k plan is on track to replace 70% of their income in retirement, which is nearly triple the percentage of the average 401k plan.
Kimley-Horn provides a two-to-one 401k match on the first 4% an employee contributes. The company also offers a generous discretionary profit-sharing contribution. In 2018 alone, the company put more than $73 million into the retirement accounts of its staff.
Profit sharing in 2018 was 10%, the website says, leading to an employer contribution of 18% (assuming an employee contribution of at least 4%).
The plan has a BrightScope Rating of 84, and is in the top 15% of plans for Account Balances, Company Generosity, and Salary Deferral.
Lone Pine Capital
Greenwich, Conn.-based Lone Pine Capital is no stranger to lists of best 401k plans.
Lone Pine Capital’s average 401k account balance is $1.04 million, according to Money, which is far above the industry average of $148,684. Lone Pine’s 401k plan has more than $136 million in assets and more than 100 active participants.
The plan has a BrightScope Rating of 93, the highest rating of all plans in its peer group. It is also in the top 15% of plans for Account Balances, Company Generosity, Participation Rate, Salary Deferral, and Total Plan Cost.
Simpson, Thacher & Bartlett
Another frequent resident of best 401k plan lists, New York City-based law firm Simpson, Thacher & Bartlett boasts an average 401k account balance of $667,815—more than twice the industry average, according to the Money analysis.
The plan has a BrightScope Rating of 84, placing it in the top 15% of plans for Account Balances, Company Generosity, Salary Deferral, and Total Plan Cost.
UKG (formerly Ultimate Software)
Weston, Fla.-based Ultimate Software and Kronos Incorporated of Lowell, Mass., recently announced plans to rebrand the combined company as UKG (Ultimate Kronos Group), effective October 1, 2020. The company’s 401k plan features a 45% company match on every dollar an employee contributes, with no cap, up to federal limits.
The plan has a BrightScope Rating of 81, and is in the top 15% of plans for Salary Deferral. The plan has over 4,700 active participants and over $348.9M in plan assets.
Zeta Associates
Participants in Lockheed Martin-owned and Fairfax, Va.-based Zeta Associates’ 401k plan boast an average 401k account balance of $589,469, according to the Money analysis, more than four times the industry average of $137,698.
The plan has a BrightScope Rating of 93, the highest rating of all plans in its peer group. This plan is also in the top 15% of plans for Account Balances, Company Generosity, Participation Rate, Salary Deferral, and Total Plan Cost. BrightScope says the Zeta Associates Incorporated Profit Sharing Plan has over 500 active participants and over $285.5 million in plan assets.
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