While it is imperative that plan sponsors continually gauge the success of their plans, some methods of measurement appear to work better than others. The largest impact to retirement outcomes is to measure income replacement ratio and retirement income. Yet only 4% and 6% of plans do. We do this with every plan and it helps our plan sponsors to pursue their ultimate goal of providing a benefit that will last their employees through retirement.
The most popular way to measure a plan’s success is by looking at its overall participation rate among eligible employees (64% of plans do so). This figure is easy to track, usually features very prominently on plan reports and is an obvious sign of a plan’s acceptance by employees.
This information is not intended as authoritative guidance or tax or legal advice. You should consult with your attorney or tax advisor for guidance on your specific situation.