December 2000 Jan. Feb. Mar. Sources of Health Insurance and Apr. Characteristics of th n ed: e U insur May Jun. Analysis of the March 2000 Current Population Survey Jul. by Paul Fronstin, EBRI Aug. Sep. • This Issue Brief provides summary data on the insured and uninsured populations in Oct. the nation and in each state. It discusses the characteristics most closely related to an EBRI individual’s health insurance status. Based on EBRI estimates from the March 2000 Nov. Current Population Survey (CPS), it represents 1999 data—the most recent available. EMPLOYEE Dec. BENEFIT • In 1999, for the first time since at least 1987, the percentage of Americans with health insurance increased: 82.5 p Ja ercen nuary t o 2f n 00on 1 elderly Americans (under age 65) were covered 2000 RESEARCH Jan. by some form of health in Vsu ol.ra 2nc 2 e, u Nump fro ber 1m 81.6 percent in 1998. The percentage of INSTITUTE ® nonelderly Americans without health insurance coverage declined from 18.4 percent in Feb. 1998 to 17.5 percent in 1999. Mar. • The main reason for the decline in the number of uninsured Americans is the strong Apr. economy and low unempR loym e entir t. Betw em een 19 e 98 an nt P d 1999la , the perc n P entage of n artic oneldip erlyation, p. 1 Americans covered by employment-based health insurance increased from 64.9 percent May to 65.8 percent, continuing a longer-term trend that started between 1993 and 1994. IRA Assets Grow, p. 5 Jun. • In 1999, 34.1 million Americans received health insurance from public programs, and an additional 15.8 million purchased it directly from an insurer. Twenty-five million Jul. Americans participatedWa in the Ms edicaid p hin rogram gto , an n d U 6.5 millio pd n ra eceived te, their health p. 8 Aug. insurance through the Tricare and CHAMPVA programs and other government programs designed to provide coverage for retired military members and their families. Sep. EBRI in Focus, p. 11 • Despite expansions in the State Children’s Health Insurance Program (S-CHIP), public Oct. health insurance coverage did not increase overall between 1998 and 1999. The percentage of nonelderly Americans covered by Medicaid and other government- Nov. New Publications & Internet Sites, p. 12 sponsored health insurance coverage did not change between 1998 and 1999, though Dec. some children benefited from expansions in government-funded programs. The percentage of children in families just above the poverty level without health insurance All Wage and Salary Workers Retirement Plan 2001 coverage declined dramatically, from 27.2 percent uninsured in 1998 to 19.7 percent The percentage of wage and salary workers uninsured in 1999. Some of the decline can be attribu Pted ar to ex ticipan pa sions in M tion: F edica ullid -T and ime, EBRI covered by an employment-based retirement S-CHIP, but it appears that expansions in employment-based health insurance and Full-Year Workers plan was virtually unchanged in 1999 from individually purchased cover EM agP e ha LO d an YE even E larger effect than expansion of S-CHIP. 1998, at 46.8 percent (table 1). However, the Ages 18–64 BENEFIT total participation rate has increased more • Even though the number and percentage of uninsured declined substantially between RESEARCH by Craig Copeland, EBRI than 2 percentage points since 1994. Fur- 1998 and 1999, more than 42 million Americans remain uninsured. As long as the thermore, the number of workers who economy is strong and unem INS ploym TITU ent T is low E ® , employment-based health insurance participated in a retirement plan increased coverage will expand and the uninsured will d Introdu ecline gction radually. If the economy from 55.0 million in 1994 to 62.7 million in continues to soften or comes close to a recession, the nu In a previo mber of u us issue of ninsured E w BR ou I N ldotes easily , pension 1999; this includes an increase of 1.2 million and quickly start to increase again as unemploymen participation w t rises. Should a sev as exam ere d ined for all w ownturnage and workers just from 1998 to 1999. in the economy occur, causing the uninsured to repr salary w esent 25 percen orkers.1 H t of the n owever, m oneld any sponso erly rs of The one divergence in the retire- population, 63 million Americans would be uninsu retirem red. ent plans choose to follow the ment plan participation rate trends for 1999 minimum participation standards set out by is the decline in the sponsorship rate. In the federal government, which include EBRI Issue Brief Number 228 • December 2000 • © 2000. EBRI 1998, 60.7 percent of workers worked for an December 2000 • EBRI Issue Brief waiting periods upon commencing a job1 and employer sponsoring a plan, compared with a minimum number of hours worked per 59.7 percent in 1999, which was still larger year in order for workers to be eligible for than the 1997 rate (table 1). Thus, despite the plan. Consequently, the focus of this the decrease in the sponsorship rate, the Notes article is on employment-based total participation rate still maintained its retirement plan participation for full-time, 4 1998 level. full-year wage and salary workers ages 18–64 years old, as this is the group that is generally targeted for benefit program Full-Time, Full-Year Wage and Salary participation under federal law and by Workers Ages 18–64 employers and unions. The retirement plan Although total participation rates remained total participation rates of these workers are virtually unchanged from 1998 to 1999 for investigated across various worker demo- all wage and salary workers, some interest- graphic and employer characteristics.2 But ing trends that have not been previously first, this article provides the latest retire- explored have emerged for full-time, full- ment plan participation numbers for all year workers.5 In 1999, 60.8 percent of wage and salary workers available from the full-time, full-year wage and salary workers March 2000 Current Population Survey ages 18–64 were participants in a retirement (CPS).3 plan through their employer6—up slightly A monthly newsletter from the EBRI Education and Research Fund EBRI Notes • January 2001 1 Jan. February 2001 Feb. Welcome t EBRI Issue Brief o the Emplo (ISSN 0887-137X) is published monthly at $300 per year or is included as part of a membership subscription yee Benefit Research Institute On-Line by the Employee Benefit Research Institute, 2121 K Street, NW, Suite 600, Washington, DC 20037-1896. Periodicals postage EBRI Chart 1 Table 8 Mar. Chart 2 Table 1 Table 2 Chart 3 Chart 22 Table 5 Table 10 Table 4 Y rate paid in Washington, DC. POSTMASTER: Send address changes to: ou have more way Chart 17 s t Chart 14 Chart 4 o subscribe t EBRI Issue Brief o EBRI Issue Briefs , 2121 K Street, NW, Suite 600, Chart 19 Table 7 Table 3 Chart 10 Chart 7 Table 6 401(k) Plan Asset Allocation, Chart 12 Chart 5 Chart 20 Now Chart 9 401(k) Plan Characteristics by Number of Participants: Percentage of Participants With No Participants by Age and Tenure, 1999 EMPLOYEE EBRI/ICI Database: 401(k) Plan Characteristics by Plan Assets, 1999 Distribution of Account B EBRI/ICI Database: 401(k) Plan Characteristics by Loan Balances as a Percent alances by Size of Account B age of Account Average Asset Alloca alance, 1999 tion Washington, DC 20037-1896. Copyright 2001 by Employee Benefit Research Institute. All rights reserved, No. 230. Average Asset Allocation by Plan Size and Investment Options, 1999 Average Asset Allocation by Salary and Investment Options, 1999 Average Asset Allocation by Age and Investment Options, 1999 Loan Balances as a Percentage of Account Balances Loan BPercent alances as a Percent Age Composition of Selected Account B age of Eligible P Ra Asset Allocation Distribution of Participant Account tio of Account B Aver Avage Account B ailage of ability of Pl articip alance ants W aan Loans lance to S ith Loans a by A lary by Pl ge and aby A lance C an Size, 1999 by Account B ge and Tenure, 1999 ategories, 1999 Tenure, 1999 alance, 1999 Imp Impact of Company Stock on Asset Allocation by Age, 1999 act of A Average Asset Allocation by Age, 1999 Rage and tio of Account B Tenure on Account B alance to Sa al lance, 1999 ary ------------ EBRI/ICI Database vs. Cerulli Estimates for All 401(k) Plans, 1999 Equity Fund Balances Who Have Equity ------------ BNumber of Plan Participants, 1999 alances for Participants With Loans for All Plan Balances, 1999 Apr. and EBRI Notes — two monthly publications that go be for Participants With Loans y by ond t Tenure, 1999 he BENEFIT Account Balances for P Balances to Equity Funds by Age, Tenure, and Salary, articipants ------------ for Participants in their 40s by Tenure, 1999 By Age (percentage of plans offering loans) (percentage of participants with account balances more than $100,000) $250,000 400% (percentage of participants with account balances in specified ranges) 30% Total Exposure by Age and Tenure, 1999 Total Equity Total Balanced Bond Total Money Average Account Company Back Forward Home Reload Images Open Print F Equity Balanced Bond Money ind Stop Company by Salary, 1999 Other With Loans Median Age: 42 by AY ge, 1999 ears Plan Assets 1999 24% RESEARCH 4% 250% 100% a a Plan Assets Plans Participants Assets Balance Salary Plan Size by Number of Plan Total Equity FundsTotal 7%Funds Balanced Funds 25% Funds Total Bond Funds Average Account Funds Money Funds FundsGICs GICs Company Stock Stock 50% The Employee Benefit Research Institute (EBRI) was founded in 1978. Its mission is Age 100% 50% Equity Balanced Bond 26% Money Equity Balanced Company Stable Bond 22% Money 94% Company 26% 26% headlines to examine, analyze, and interpret the vit Age al issues in May Account Balances, and Loan 100% 19% 25% 12% Company Stock Tenure a Percentage With Company 25% INSTITUTE ho we ar 20% Age e a 24% a Number of Participants ® Participants Plans Funds Participants Funds Assets Funds Funds Balance GICs 88% Stock Cohort 30% Age Cohort Funds 60s Funds Fundsto contribute to, to encourage, and to enhance the development of sound employee benefit Funds Funds GICs Funds Stock Value Funds Funds Other Funds Unknown GICs Total Stock W Equity Funds 86% 24% 14% 20s Zero < 20% 20%–80% > 80% 24% Total 19% 25% 0–2 Years 20s 16% $0 to $250,000 10,946 174,503 $1,242,456,864 23% $7,120 25% $200,000 20s Stock and/or Balanced Funds 83% 18% 6% 82% 20% (percentage of account balances) (percentage of account balances) 53% programs and sound public policy through objective research and education. EBRI is the only private, nonprofit, Age http://www.ebri.org 12% 80% 30s employee benefits. 42% 14% >$250,000 to $625,000 300% >2 16% –5 Years a 6,405 23% 190,105 $2,591,474,259 14% $13,632 Jun. 76% 25% 200% All Ages Combined Plans Without Company Stock or GICs 1–10 6,006 40,339 $ 1,165,569,050 (percentage of account balances) $28,894 30s 80% 80% (percentage of account balances)(percentage of account balances) 40% 20s 74% (percentage of participants) 13% nonpartisan, Washington, DC-based organization committed exclusively to public policy research and education on Age Cohort >$625,000 to $1,250,000 40s 4,311 211,161 $3,836,066,871 $18,167 14% >5–10 Years 13% 19% Investment options All Plans $20,000–$40,000 11–25 8,943 62.3% 152,220 10.3%15% 3,582,781,631 12.8% 23,537 10.7% Plans With Employer-Directed and Participant-Directed Balances 20% 40% 11% 18% 18% Age 60% 30s 40s economic security and employee benefit issues. EBRI’s membership includes a cross-section of pension funds, 66% 20s 49.8% 37% 20s20% 50s 63.4% >$1,250,000 to $2,500,000 7.3% 12% 3.8% 3.9% 3,370 3.8% 288,290 16.4% 0.3% $6,004,263,0810.7% $20,827 0.4% 100.0% 50s Activity in 1999 What’s New? What’ Total s Cool? Destinations Net Search People Software 27.3% 5.9% 36.5% 30.3% 100.0% equity, bond, money, and/or balanced funds >$40,000 1–100 $150,000 –$60,000 26–50 >10–20 Years 5,972 65.5% 70.3215,061 71.1 12.4% 9.5 5,699,770,855 9.7 5.9% 9.8 9.0 6.2% 26,503 7.3 7.7 8.6% 10%0.2% Jul. Total balances (employer-directed and participant-directed) 26% 21% 60% 60s EBRI Issue Briefs EBRI Issue Briefs EBRI Issue Briefs EBRI Issue Briefs EBRI Issue Briefs—provide exper 40st evaluations of emplo 30s yee benefit issues and trends, as 57.8 9% 30s 60.6 businesses, trade associations, labor unions, health care providers and insurers, government organizations, and >$2,500,000 to $6,250,000 6.7 3.6 a 3.4 3,140 4.9 492,464 19.5 $12,490,160,412 0.3 0.7 $25,363 0.3 100.0 Balanced 58% 50s60s 14% equity, bond, money, and/or balanced funds, and GICs >$60,000 101–500 150% –$80,000 14% 51–100 4,281 67.3 72.8303,120 62.3 10.68.5 10% 9,311,884,229 10.6 6.88.1 3.7 6.4 30,720 6.6 3.9 6.2 16.8 0.8 20s 36.6% 5.5% 0.6% 3.4% 5.4% 48.1% 60% Age Cohort 15% 30% 40% 8% 40s 60.2 Funds 7% 40s 55.9>$6,250,000 to $12,500,000 60% 6.7 3.9 3.8 1,548 7.9 509,329 20.4 $13,700,040,542 0.4 50s 0.8 $26,898 0.3 100.0 15% service firms. 200% 50s 51% equity, bond, money, and/or balanced funds, and company stock >$80,000 501–1,000–$100,000 11% 63.1 74.8 44.5 9.77.8 3.9 7.07.2 6.7 6.46.3 5.5 6.8 5.0 36.3 well as critical analyses of employee benefit policies and proposals. Eac EBRI/ICI h issue, rang- 30s 32.1 5.3 0.7 2.2 7.0 52.4 60s 20s 26.8 3.9 35.0 34.3 100.0 101–250 3,488 547,842 36% 18,159,287,861 33,147 Aug. 47% 50s 61.7 50s 51.7>$12,500,000 to $25,000,000 6.7 4.7 a 4.0 1,023 11.6 571,865 19.4 $18,067,959,967 0.9 0.8 $31,595 0.4 100.0 9% 40s by Sarah Holden, ICI, and Jack V 30% 11% 60s anDerhei, Temple University equity, bond, money, and/or balanced funds, GICs >$100,000 1,001–5,000 $100,000 , 58.6 76.4 9.57.3 5.37.0 5.76.5 10.1 8.8 5% 10% 40s 30.2 5.6 1.1 3.3 8.4 50.9 30s 23.1 5.1 37.6 34.2 100.0 4% Cerulli ing in length from 16–28 pag 20% 251–500 es, thoroughly e 1,561 60s xplores one t 544,857 opic. R 19,868,122,578 ecent t 51.2 opics include: 36,465 60s 44.2>$25,000,000 to $62,500,000 6.7 6.8 4.9 840 19.2 953,096 15.6 $33,411,710,020 1.7 0.7 $35,056 0.3 100.0 > 5,000 and company stock 49.6 47.9 5.2 5.5 3.9 1.8 3.1 30s1.6 11.6 18.7 25.4 23.9 All 71.1 9.7 9.0 7.7 50s 100% 29.8 6.4 1.5 4.5 11.2 46.4 10% 40s 26.0 6.3 37.9 29.8 100.0 40% 501–1,000 962 675,972 28,779,711,171 42,575 Guaranteed All 57.1 All 53.4 20% >$62,500,000 to $125,000,000 6.7 4.6 4.0 440 10.5 956,664 19.1 $38,556,418,212 0.7 0.8 $40,303 0.3 100.0 EBRI’s work advances knowledge and understanding of employee benefits and their 0 Sep. Health Insurance Por 5% All tability, ERISA, Sources of Healt 53.4 h Insurance & Characteris 6.7 4.6 4.0 tics of 10.5 19.1 20s 60s a 40% a 28.8 7.2 2.9 8.7 15.9 36.1 0 Investment 0 50s 33% 29.5 7.1 36.4 27.0 100.0 Plans Without Company Stock or GICs Plans With GICs hat we do 1,001–2,500 764 1,185,425 55,576,358,100 46,883 and EBRI Fellow participant-directed eds., participants without equity funds Chart 9, Impact of small plans offer company stock as an investment Model for Predicting Employee Contributions to Portfolios in the United States. Living with Defined Contribution Pensions. The remain->$125,000,000 to $250,000,000 100% Age and Tenure on ” Finance and Econom- With $1.7 trillion Account 303 • 1,097,146 Chart 18, Percentage of Eligible Participants The asset allocation of participants’ account balances Twenty-First Century. $51,588,119,334 62 percent for participants Philidelphia, PA: The Pension any equity funds (table $47,020 participants’ invest- W 30s tion. balances greater than $100,000. Individuals with ” Finance and Economics Discussion Series 0–2 >2–5 >5–10 >10–20 >20–30 >30 . No. All importance to the nation’s economy among policymakers, the news media and the public. Tenure Tables and Charts All $50,000 $20,000 >$40,000 >$60,000 30.2 >$80,0006.0 1.4 4.2 10.2 Contracts 10% 47.6 >$100,000 All 60s 40.9 7.4 31.1 20.6 100.0 the Uninsur 20s ed, Results of the 199a7 Retirement Confidence Sur 79.1 vey, Defined Contribu- 7.2 6.9 5.6 $20,000–$40,000 <100 100–500 52.2 501–1,000 14.6 1,001– 3.5 37% 5,000 4.1 >5,000 18.9% Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. 0 > $250,000,000 30% 348 4,887,332 Years $391,954,569,279 Years Years Years$80,198 Years Years Tenures Plans Without Company Stock or GICs 20% 38 –$40,000 –$60,000 –$80,000 –$100,000 5% 2,501–5,000 332 1,179,585 57,020,461,195 48,339 der of this paper is balances invested in Philadelphia, PA: The Pension Research Council, The still have 46 percent 401(k) Plans. ics Discussion Series. option. Balance, 1999 (balances more than $100,000) ”It does this by conducting and publishing policy research, analysis, and special reports on employee benefits issues; North American Actuarial Journal of account No. 2000-26.in assets, 401(k) Washington, DC: 0–2 years ........ 20 varies with age. Younger participants tend to concen- 1999-5. W Research Council, The Wharton School of the Univer- ith Loans by Plan Size, 1999 50.4 Washington, DC: Federal Reserve Board, earning between $20,000 and 7). The percentage of ment portfolios; and ................................. 24 account balances of less than $10,000 are primarily Check Out EBRI’s Web Site! Oct. a 50% Participants Participants Participants Participants Participants 30s >$40,000–$60,000 58.3 78.3 12.2 8.1 2.6 6.8 3.2 5.4 16.4 20% Guaranteed investment contracts. Participant-directed balances only 1 20s –100 All 30s 40s 50s 60s All Ages 74.0 32,674 8.2 10,331,955 8.8 $573,443,238,841 8.5 $55,502 Over Table of view and 10% 15% tion Pension Plans, Medicare, L Tenure (years) ump-Sum Rollovers & Cashouts, Trends in Health 5,001–10,000 195 1,364,702 70,543,930,228 51,692 Years of Tenure >2–5 years Salary Range 51.2 holding educational briefings for EBRI members, congressional and federal agency staff, and the news media; and Table 1, EBRI/ICI Database: 401(k) Plan balances in equity-related Chart 10, Ratio of Federal Reserve Board, April 2000. Account Balance to Salary The Employee Benefit Research Institute (EBRI) and the Investment Company 13% 31% Chart 19, Loan Balances as a Percentage $40,000 per year to 76 percent for asset values attrib- organized as follows. equity securities • Wharton School of the University of Pennsylvania and January 2001 (Vol. 5, no. 1): pp 80 Employer contributions in the form of company stock 40s >$60,000–$80,000 retirement plans –94. 60.0 73.9 10.5 trate their assets in equity fund investments, while January 1999. young workers or workers with short tenures. In sity of Pennsylvania and University of Pennsylvania 9.3 2.2 8.0 3.2 6.7 16.8 participants not holding 20s 47.2 7.0 0.8 3.9 6.1 34.8 101–500 20% 72.7 9.5 8.3 7.3 Bond Funds 5% 0–2 years 22.5 3.2 39.2 35.1 100.0 Source: Tabulations from EBRI/ICI P > 10,000 articipant-Directed Retirement >5 170 –10 years 4,122,832 303,735,361,944 54.6 73,672 0 sponsoring public opinion surveys on employee benefit issues. EBRI’s Education and Research Fund (EBRI-ERF) Insurance Coverage, Analyzing & Comparing Social Security Policies, and more. 50s >$80,000 Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. –$100,000 39 63.3Particip 68.5 ants 9.8 Source: 10.5 T2.3 abulations from EBRI/ICI P 9.5 3.4 8.3 articip 14.5ant-Directed Retirement Plan 0 0 Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Characteristics by Number of Plan Nov. 30s 46.6 7.5 1.0 2.8 8.6 33.3 Cerulli Associates, Inc. investments (table 9). by Age and T 501–1,000 enure, 1999 “Market Update: The 401(k) Institute (ICI) have been collaborating for the past four years to collect data on ........................................... 71.8 21 9.5 of Press, 1997, pp. 67 Account Balances for Participants W 9.6 7.4 –90. those earning more than uted to those funds. ith Loans The next section (defined as company University of Pennsylvania Press, 1998, pp. 98 Weisbenner, Scott. affect participants’ asset allocations. In plans where Plan Data Collection Project. “Do Pension Plans with Participant >2–5 years are a significant –112. 24.9 4.4 Sund older participants invest more in fixed-income é contrast, those with account balances in excess of n, Annika, and Brian Surette. 37.8 32.9 100.0 equity funds increases “Household Borrow- >10–20 years 61.6 Money Funds 4% 0–2 Years 23%>2–5 Years >5–10 Years >10 Data Collection Project. –20 Years >20–30 Years >30 Y > ears performs the charitable, educational, and scientific functions of the Institute. EBRI-ERF is a tax-exempt organization Collection Project. 60s >$100,000 <$10,000 10% 0 $10,000 All 0–>$20,000 2 Years >$30,000 8% >2–5 Y 32,674 >$40,000 ears >$50,000 >5 62.9 10,331,955 –10 Years 58.1 >$60,000 10.1 >10 573,443,238,841 >$70,000 –20 Y 12.1 ears 2.5>$80,000 >20 14.1 –30 Y 55,502 >$90,000 3.6 ears 12.2 >30 Y 14.0 ears All Account 0 100% 40s 1,001–5,000 0 70.5 44.2 10.4 7.9 8.8 1.6 8.8 4.5 10.4 30.9 Summar Contentsy >5–10 years 25.0 6.2 37.6 31.2 100.0 40s Participants, 1999 ....................................................... 6 www >20–30 years .ebri.or 62.6g Leibowitz, Martin L., J. Benson Durham, P. Brett provides a detailed stock, equity funds, and data are drawn from plan administrators and record Chart 1 Industry. the employer contribution must be invested in com- Investment Choice Teach Households to Hold More 1, Ratio of ” The Cerulli Report. Account Balance to Salary participants in 401(k) plans. This effort, known as the EBRI/ICI Participant-Directed Boston, MA: Cerulli part of the securities. Gustman, Alan. L., and Thomas L. Steinmeier. ing from 401(k) Plans. by Age, 13% 1999 .............................................................. ” $100,000 per year (table 10, top Just the Facts On Retirement $100,000 with age and tenure. An account balance “What 25 $100,000 are primarily older workers or workers with –$20,000 $20,000 –$30,000 >$30,000–$40,000 >$40,000 –$50,000 6% >$50,000 –$60,000 >$60,000 –$70,000 >$70,000 –$80,000>$80,000 –$90,000 >$90,000 –$100,000> $100,000 Balances EBRI Asset Allocation by Age and Investment All 1–10 supported by contributions and grants. 62.3 The American Savings Education Council 3% Years of 10.6 Tenure 3.7 3.9 (ASEC) and the 16.8 Consumer Health 50s 11–25 26–50 51–100 101–250 251 41.0 –500 501–1,000 8.2 1,001–2,500 2.1 2,501–5,000 5,001 6.0 –10,000 >10,000 13.4 All Plans 28.8 > 5,000 31% a 71.9 4% 8.8 11.5 7.0 >10–20 years 28.0 7.6 37.0 27.4 100.0 Plans With GICs Dec. – 0$30,000 –2 Years >2–5 Y –ears $50,000 > 30 years >5 –$60,000 –10 Years –$70,000 >10–20 Y –$80,000 ears59.4 >20 –$90,000 –30 Years –$100,000 >30 Years Other Stable Value –$40,000 Years of Tenure EBRI Notes EBRI Notes EBRI Notes EBRI Notes EBRI Notes—provide up-t 0%o-date information on a variety of emplo T3% able 2, EBRI/ICI Database: 401(k) Plan yee benefit topics. Each Size of Account Balance Associates, September 1999. for Participants in Their 20s by T Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Retirement Plan Data Collection Project, has obtained data for 401(k) plan enure, 1999 ......... 21 Chart 20, Loan Balances as a Percentage 3% panel). In contrast, among plans for each participant description of the the equity portion of keepers and therefore do not suffer from errors in Hammond, and Michael Heller. pany stock, participants have a higher percentage of Equity?” Finance and Economics Discussion Series 80% “The Personal Fund- private pension . • Investment options offered by plan sponsors influence Issues long tenures, who have accumulated larger account People Don . No. 1. Boston, MA: Center for Retirement ’t Know About Their Pensions and Social 2% For example, 27 percent Asset Allocation by 60s All Education Council (CHEC) are programs of EBRI-ERF. They are coalitions of private- and public-sector institutions 71.1 35.6 9.7 8.7 9.0 3.6 7.7 2% 10.6 18.5 22.6 2% Source: Tabulations from EBRI/ICI P >20–30 years articipant-Directed Retirement Plan Data Collection Project. 33.6 8.4 401(k) plan participants at year-end 1999 were in plans 33.9 24.2 100.0 Funds, Other, or 20s Plans With Company Stock 70.2 12.3 3.2 3.2 8.6 Distribution of Plans, Participants, and All Number of Participants in Plan 57.1 Options Less than $10,000 >$40,000 Years of Salary Range –$50,000 Tenure More than $100,000 Project. EMPLOYEE All 42.1 Characteristics by Plan 8.1 2.0 Assets, 1999 5.6 12.5 ......................... 29.3 7 issue includes a f Source: Tabulations from EBRI/ICI P eature article on an impor articipant-Directed Retirement Plan Data Collection Project. tant benefit topic; a statistical article high-Unknown 2% Choi, James J., David Laibson, and Andrew Metrick. Chart 12, Ratio of with the goals of public education on saving, retirement planning, health insurance, and health quality. Account Balance to Salary for participants from certain of EBRI and ICI members serving as plan record keepers and > 30 years 41.5 8.0 of Security: An Analysis Using Linked Data from the 29.8 Account Balances for Participants W 20.7 100.0with GICs, the percentage of is the sum of the ith Loans 1999 EBRI/ICI 401(k) balanced funds). landscape in the United States. For many U.S. house- participant recall. ing Ratio. their self-directed account balances in company stock No. 1999-61. Washington, DC: Federal Reserve Board, 30s” Prepared for presentation at the Wharton 70.0 participants’ asset allocations. Participants in plans Research at Boston College, June 5, 2000. balances through years of contributions and the 11.4 3.1 3.0 of participants in their 10.3 Text $20,000–$40,000 By Tenure 32.7 4.6 5.2 7.6 49.3% 0 Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. with 100 or fewer participants, 45 percent were in plans a 2001 Salary Plans With GICs 60% participants with loans in differing plan sizes. balances in excess of $100,000 is only 7 percent Source: Tabulations from EBRI/ICI Participant-Directed Assets by Plan Size Source: 40s T >$40,000 abulations from EBRI/ICI P –$60,000 Median: 7 Y articip earsant-Directed Retirement Plan Data Collection Project. 31.9 65.8Chart 1, 401(k) Plan Characteristics by Number of 3.0 10.7 2.6 3.5 4.8 3.6 13.9 56.1 Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. database, compares Similarly, participants holds, 401(k) account balances represent an important School of the University of Pennsylvania Pension lighting new benef “ and a much lower percentage invested in equity funds, November 1999. Participants in Their 40s by T Does the Internet Increase Trading? Evidence from Plans With Company Stock Investment Option Source: < $10,000 its data; highlights of legislativ T Source: abulations from EBRI/ICI P >administrators. $10,000 Tabulations from EBRI/ICI P enure, 1999 >$20,000 articip >$30,000 ant-Directed Retirement Plan Data Collection Project. .............. articip >$40,000 ant-Directed Retirement Plan Data Collection Project. e, r22 egulat >$50,000 Toder, Eric, Cori Uccello, John O or not offering GICs or company stock tend to have the ySource: Tabulations from EBRI/ICI Participant-Directed Retirement Plan ,>$60,000 and judicial activities; by T Health and Retirement Study. enure, 1999 >$70,000 >$80,000 ......................................................... participant account balances >$90,000 20s do not have equity ’Hare, Melissa participant ” > $100,000 NBER Working Paper ’s assets 25 compounding of investment returns. Salary Chart 23 BENEFIT 1–100 60.5 14.5 Participant asset allocation varies considerably with age with between 101 and 5,000 participants, and 39 percent 4.6 5.1 13.7 EBRI/ICI Retirement Plan Data Collection Project. –$20,000 –$30,000 –$40,000 –$50,000 –$60,000 –$70,000 –$80,000 –$90,000 –$100,000 50s Loan ratios tend to decrease as age increases, >$60,000–$80,000 37.4 60.9 2.6 (chart 21). Similarly, 10.3 2.6 3.9 4.2 loan ratios tend to decrease as 4.1 18.3 50.1 But No Employer-Directed Contributions Note: Components may not sum to 100 percent due to rounding. Overview and Summary >30 Y .................................................. ears 4 Data Collection Project. 5 $20,000–$40,000 26.1 6.4 Participants: EBRI/ICI Database vs. Cerulli 39.8 27.7 100.0 101–500 59.4 12.7 27 4.3 4.6 16.6 Chart 13, Ratio of Investor Behavior in 401(k) Plans. Account Balance to Salary Loan Ba” l ances as a Percent NBER Working age of Account B in all funds. Chart 21, Loan Balances as a Percentage Plan balances are constructed as the sum alances invested in GICs declines as the 1999 data with the estimated universe of 401(k) in plans without component of their financial net worth and will be a Research Council Symposium, Yakoboski, Paul, and Jack VanDerhei. research and activities taking place at EBRI; and a lis when compared with participants in plans without 40% “Innovations in Manag- “Contribution t of new benef • highest allocations to equity funds. Participants in Favreault, Caroline Ratcliffe, Karen Smith, Gary The ratio of account balance to 1999 salary varies 7368. Cambridge, MA: National Bureau of Economic it-related publications fund investments, Salary information is available EBRI Issue Briefs are monthly periodicals providing expert evaluations of The Typical 401(k) Plan Participant (table 3). Younger participants tend to favor equity 60s >$80,000–$100,000 40.3 48.4 2.7 were in plans with more than 5,000 participants (chart 1, 10.1 3.4 4.8 4.1 5.2 29.0 46.9 6% The 1999 database contains 32,674 401(k) plans with Total balances RESEARCH Size of Account Balance dropping steadily from 25 percent for participants in ur publications >$40,000–$60,000 25.6 7.0 salary increases, falling from 19 percent for participants 38.9 28.5 100.0 501–1,000 58.4 12.6 3.9 4.0 18.1 Asset Allocation ........................................................... ? About EBRI 4 than $10,000 have loans outstanding (chart 17). This is percentage of participants with account balances of less O for Participants With Loans balances as a percentage of account balances (net of the by Pl Estimates for an Size, 1999 For a given age group, a longer tenure means a All 401(k) Plans, 1999.......................... 8 Employee Benefit Research Institute Paper 7878 for Participants in Their 60s by T . Cambridge, MA: National Bureau of The EBRI/ICI database is large and representative of the 401(k) plan participant enure, 1999 ......... employee benefit issues and trends, as well as critical analyses of employee 22 of participant balances. Plan size is estimated as the sum of Research, September 1999. Account Balances for Participants W salary increases (table 10). ith Loans plans, and summarizes other recent research on retire- employer-directed significant source of income in retirement. This ing the Financial Risks of Retirement, employer-directed contributions. Rates and Plan Features: An Analysis of Large 401(k) >$100,000 ” May 2000. Issue 44.6 3.1 plans offering GICs but not company stock have lower Burtless, and Barry Bosworth. with age and tenure. Older participants, who have 4.2 4.7 compared with 41 per- Modeling Income in the 42.0 and int for a subset of participants in the 1999 EBRI/ICI ernet sites. 0–2 Years 20s 58.6 funds, and older participants prefer to invest in fixed- middle panel). In the 1999 EBRI/ICI database, 7 percent 8.3 1.7 6.2 4.4 17.7 >$60,000–$80,000 21.4 7.5 41.0 30.0 100.0 bit likely reflects the influence of two competing forces. $573.4 billion of assets and 10,331,955 participants Plans With Company Stock 1,001–5,000 59.9 11.0 greater propensities to save are tax code contribution 3.8 3.3 20.0 20% their 20s to 9 percent for those in their 60s (chart 19). earning up to $40,000 a year to 11 percent for partici- Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. Account Balances >20–30 Years ........................................................ 17% 5 All benefit policies and proposals. Each issue, ranging in length from 16–28 pages, thoroughly explores one topic. ? Benefit 44.5 Chart 2, Participants by 3.9 6.7 5.5 Age and Tenure, 1999 36.3 ............. EBRI 9 well below the 18 percent for all participants and less $100,000. However, about 38 percent of participants in Participants in 401(k) plans cover wide ranges of age and than $10,000. For example, 88 percent of participants in INSTITUTE 40 30s 56.5 salary for participants in their 20s with two or fewer unpaid loan balance) for participants with loans are higher percentage of people with account balances 8.6 1.9 5.1 5.9 19.5 ment plan participants. The following three sections contributions have Madrian, Brigitte C., and Dennis F. Shea. Brief • Chart 14, examines asset allocation, account balances, and Economic Research, September 2000. The allocation of plan balances to equity funds varies Plan Data. Availability of Plan Loans by Plan ” EBRI Issue Brief ® universe, as it pulls data from a variety of plan record keepers and administrators and no. 174 (Washington, “The Power of of active participants in the plan and, as such, does not ________. allocations to bond, money, and equity funds. Alterna- Near Term by Account Balance, 1999 “Pensions and Retiree Health Benefits in – Projections of Retirement Income ......................................... cent of those in their 25 >$80,000–$100,000 18.3 7.1 accumulated larger balances, have higher ratios than 41.2 33.4 100.0 database. EBRI 20s > 5,000 Because asset allocation is influenced by the 68.0 50.2 7.6 4.4 3.1 3.5 3.7 5.1 14.6 35.8 18% 17% Chart 13 income securities such as GICs and bond funds. On of participants are in plans with 100 or fewer partici- Cerulli participants in the plan). Of those participants in plans plans with more than 5,000 participants offer a loan 12% behavior in retirement accounts using data from the Empirical research suggests that higher earners tend to (table 1). Most of the plans in the database are small, Examining the interaction of both age and more than 20 years of tenure. The increase in account limits and nondiscrimination rules, which aim to assure 38 Similarly, loan ratios tend to decrease as tenure in- pants earning in excess of $100,000 (chart 22). 53 40s Notes is a monthly periodical providing current information on a variety of employee benefit topics. a 51.1 Estimated as the sum of the 41.3 percent of account balances that is in 9.2 2.3 5.5 8.6 EBRI’s Washington 20.9 Plan Loans ................................................................... 5 than half the percentage for participants with account tenure. The bulk (61 percent) of participants are in their their 20s with two or fewer years of tenure have account >$100,000 15.8 6.3 Chart 3, 14 percent (chart 19). greater than $100,000 (chart 9). For example, about 39.8 Average 38.2Asset 100.0 Allocation for However, there is variation All Plan their 60s with 21 30s Plans With Company Stock and GICs All –30 years of tenure with their current 0 62.3 49.5 10.6 years of tenure is 15 percent, while the average ratio for 4.0 3.7 3.9 3.9 4.5 16.8 36.7 Copeland, Craig, and Jack VanDerhei. Size, 1999 ................................................................... Fundamentals covers a wide range of plan sizes. This report includes 1999 information on 10.3 million “Personal Account 23 necessarily represent the total number of employees at Chart 22, Loan Balances as a Percentage present findings from the 1999 EBRI/ICI database. The 75 percent of their loan activity of a large number of 401(k) plan partici- Suggestion: Inertia in 401(k) Participation and across participants. About one-third of participants DC: Employee Benefit Research Institute, June 1996). 15% tively, participants in plans offering company stock Through 2020 for the 1931-60 Birth Cohorts younger participants. Similarly, for a given age group, Household Wealth: Changes From 1969 to 1992. 16 60s. Similarly, 23 per- . Washing- ” The investment options available to participants, table 10 “To contribute to, to encourage, and Ratio of Account Balance 48 to Salary for Particip average, participants in their 20s have 63 percent of ants in their 60s by Tenure, 1999 provision. 15% offering loans, the highest percentages of participants pants, 40 percent are in plans with between 101 and Researchers interested in the behavior of older 50s 45.9 SCF. company stock and 63 percent of the 8.0 percent of account balances that is in 10.4 3.1 6.2 12.1 20.4 tenure with account balances reveals that for a given age whether their size is measured by the number of plan EMPLOYEE balance as tenure increases is largest for participants in contribute higher percentages of salary, Subscription Options: Bulletin provides sponsors with short, timely updates on major federal developments in employee benefits. and thus, one that employees of all income ranges attain the benefits of EBRI’s creases, falling from 24 percent for participants with two 40s 14% 46.7 4.0 Loan ratios vary only slightly when participants 4.8 5.2 37.2 $20,000–$40,000 36.0 8.5 1.7 1.6 21.0 30.9 The EBRI/ICI Database .................................................. <100 100–500 6 501–1,000 1,001–5,000 >5,000 balances between $10,000 and $20,000. Finally, partici- 30s and 40s, but 12 percent of the participants are in balances of less than $10,000, compared with 54 percent ? around this average with age, tenure, account balance, Balances, 1999 8 percent of participants in their 60s with 10 or fewer ............................................................. 9 14% employer have account balances greater than $100,000. Chart 15, Percentage of Eligible Participants Retirement Plans: An Analysis of the Survey of 15% active participants in 32,674 plans with $573.4 billion in assets. The 1999 EBRI/ICI 14% the sponsoring firm. participants in their 60s with two or fewer years of of Journal of Human Resources. Account Balances for Participants W 14% Vol. 35. No. 1 (Winter ith Loans first of these sections examines the asset allocations of assets invested in pants in 1999. This research uses data gathered by the Savings Behavior. Yuh, Yoonkyung, Sherman Hanna, and Catherine direct more than 80 percent of their account balances ” ? NBER Working Paper 7682 Fellows . (but not GICs) have substantially lower allocations to ton, DC: The Urban Institute, September 1999. balanced funds. participants with more years of tenure have higher cent of participants with presents asset allocation by salary range and investment 60s 38.2 11.3 4.1 8.4 17.6 18.7 Plans With Company Stock their account balances invested in equity funds, com- 5,000 participants, and 53 percent are in plans with 13% 49 Fundamentals of Employee Benefit Programs Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection offers a straightforward, basic explanation of employee benefit programs with outstanding loan balances are among participants households use another household survey, the Health 50s >$40,000–$60,000 Participants Participants 40.3 to enhance the development of sound Particip 42.9ants 7.0 P 3.9 articip 1.5 ants 13% 7.4 P 1.3 articipants 5.7 20.1 29.6 36.6 group, average account balances increase with tenure would expect the ratio of account balance to salary to rise participants or by total plan assets. Indeed, 46 percent of BENEFIT their 50s and 60s. This is expected because the annual the 401(k) plan. 400% while less than one-fifth are in their 50s or 60s (chart 5). balances around the average. Approximately three- or fewer years of tenure to 9 percent for those with more are grouped based on the size of their 401(k) plans Source and Type of Data ............................................. Tenure 1 6 You can subscribe to both Issue Briefs & Notes, Issue Briefs Table 3, Average onlyAsset , or Notes Allocation by only. Age, 1999 ........... 10 pants in smaller plans that offer loans are less likely to The percentage increases to 49 percent for those in their their 20s and 6 percent are in their 60s (chart 2). The of participants in their 20s with between five and 1– All 100 50.4 48.7 7.2 tenure is 35 percent. Furthermore, for a given age group, and salary. In addition, loan ratios vary slightly among years of tenure have account balances of more than 9.7 8.9 2.7 11.2 6.1 10.4 22.2 20.2 401(k) participants. The following section examines equity securities. Employee Benefit Research Institute (EBRI) Cambridge, MA: National Bureau of Economic Re- to equity funds, while about one-quarter does not hold Consumer Finances. Phillips Montalto. With Loans by Age, 1999 “Mean and Pessimistic Projections ” EBRI Issue Brief database accounts for 11 percent of all 401(k) plans, 26 percent of all 401(k) partici- Project. .......................................... no. 223 and the 23 Uccello, Cori E. all other investment options, especially equity funds. by Salary 2000). Investment options are grouped into nine , 1999 “Do Spouses Coordinate Their Invest- .......................................................... two or fewer years of 26 39 ratios than those with less tenure. option. The data show that asset allocation differs 60s >$60,000 in the private and public sectors. –$80,000 The EBRI 44.7 Databook on Employee Benefits 38.0 6.4 3.9 1.6 12.6 is a statistical reference volume on employee 1.1 6.5 17.2 28.7 33.2 ? How to Join EBRI pared with 44 percent for participants in their 60s. more than 5,000 participants. In addition, the distribu- Among participants with no equity funds who have company stock and/or in their 30s, 40s, and 50s (chart 15). In addition, indi- and Retirement Study (HRS), which is administered by (chart 7). For example, the average account balance of with salary. However, constraining these individuals the plans in the database have 25 or fewer participants, RESEARCH 0–2 Years >10–20 Years’ increase in account balance consists of both contributions Characteristics of Participants With quarters of the participants in the 1999 EBRI/ICI than 30 years of tenure (chart 20). employee benefit programs and Similarly, about half of those with account balances (measured by the number of plan participants). On 101–500 57.7 12.9 7.0 7.9 13.7 Distribution of Plans, Participants, and 12% 2 Assets Plans have taken out a loan than participants in larger plans median age of the participants in the 1999 EBRI/ICI 10 years of tenure (chart 8). Older workers display a Table 4, Average Asset Allocation by Age 60s with more than 30 years of tenure. >$80,000–$100,000 48.4 the ratio of account balance to salary rises as tenure 6.0 balanced funds, company stock represents 52.9 percent of their plan assets 1.5 1.0 16.3 26.7 Chart 16, Percentage of Eligible Participants (Washington, DC: Employee Benefit Research Insti- benefit programs and work force related issues. pants, and about 35 percent of the assets held in 401(k) plans. Key findings include: a categories. Chart 23, Loan Balances as a Percentage Equity funds consist of pooled investments participant account balances and shows how account However, the diversifi- Investment Company Institute (ICI) search, May 2000. equity funds. However, more than half of the partici- of Retirement Adequacy.” Financial Services Review. in their collabora- • • Participants’ asset allocations appear to vary with Hewitt Associates, LLC. ment Decisions in Order to Share Risks? The ratio of account balance to 1999 salary varies Trends & Experience in 401(k) 17 tenure have no equity ” Prepared for somewhat with salary. For example, the percentage of Plans With Company Stock and GICs Participants in their 20s invest only 4 percent of their ? Media >2–5 Years >20 Years viduals with five or fewer years of tenure or more than the University of Michigan. tion in the number of plans is virtually identical between In addition, ICI recently Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. 501–1,000 47.5 6.3 5.1 9.6 29.7 participants in their 60s with two or fewer years of and 31 percent have 26 INSTITUTE –100 participants. In contrast, and investment earnings, and those with larger account ® 100% greater than $100,000 are in their 50s and 60s, while database have account balances that are less than the Furthermore, loan ratios tend to decrease as >$100,000 21 49.1 6.7 average, participants in plans with 100 or fewer partici- and balanced funds account for 10.3 percent. Thus, 59.3 percent of their 1.6 1.1 15.5 25.9 Outstanding Loans by Plan Size ............................................................ 7 (chart 18). database is 42 years old. similar pattern. For example, 71 percent of participants Thirty-eight percent of the sound public policy through and Investment Options, 1999 ..................................11 Montalto, Catherine P. balances relate to age, tenure, and salary. The final cation of these equity investments varies significantly tive effort, known as the EBRI/ICI Participant-Directed pants without equity funds hold equity securities tute, July 2000). Vol. 7 (1998): 175 With Loans by T 20s enure, 1999 –“193. Retirement Savings of American ..................................... >2–5 Years 23 53.3primarily investing in stocks. These funds include equity increases. For example, for participants in their 60s with fund investments, compared with 42 percent for those plan size; however, much of the variation is due to of Plans Account Balances for Participants W 5.6 . Lincolnshire, IL: Hewitt Associates, 1999. 1.7 2.0 6.7 ith Loans 29.9 Deliv Note: Minor investment options are not shown; therefore, row percentages will not add to 100 percent. Employer-directed balanc ery Options: presentation at the Second Annual Joint Conference with salary, increasing slightly as salary rises from es are invested in the plan sponsor’s account balances invested in equity funds tends to rise 1,001–5,000 >5–10 Years 54.5 7.3 46 6.0 8.4 21.9 assets in GICs and 4 percent in bond funds, while the EBRI/ICI database and the universe estimate. 30 years of tenure do not use the loan provision as often released information from a survey of 401(k) participant accounts is invested in equity securities. Two possible explanations for the low account balances among this group ? All ? Members Only 47.9 5.5 1.8 1.6 18.7 23.9 tenure is $15,919, compared with $198,595 for partici- only 4 percent of the plans have more than 1,000 partici- balances would experience larger investment earnings in 300% 9% only 13 percent are in their 30s and virtually none are in average. Indeed, 42 percent of participants have account account balances increase. Indeed, the loan ratio for 21% pants borrowed 17 percent of their account balance, 30s 53.1 52 5.4 1.5 1.5 8.9 29.0 Relationship of Database Plans to the Universe 48 3 49 company stock. Table 5, Average Asset Allocation by Plan Size and participants have five or fewer years of tenure, while in their 60s with two or fewer years of tenure have See VanDerhei and Copeland (January 2001); Kusko, Poterba, and Wilcox > 5,000 43.0 3.6 at least 30 years of tenure, the ratio of account balance to The median loan balance outstanding is $4,400 at year-end 1999. Specifically, contributions of high-income participants are constrained by 6.8 4.9 38.7 section discusses availability and use of plan loans and between the two plan groups. Retirement Plan Data Collection Project. Households: Asset Levels and Adequacy Duflo, Esther, and Emmanuel Saez. Chart 17, Percentage of Eligible Participants through balanced funds and/or company stock. Overall 80% • For all 401(k) participants in the 1999 EBRI/ICI database, three-quarters of plan “Participation and This research .” Report to mutual funds, bank collective trusts, life insurance with more than 30 years of tenure. In contrast, the differences among plans’ investment options. For Holden, Sarah, Jack VanDerhei, and Carol Quick. for the Retirement Research Consortium, are: (1) It may be that their employer by Plan Size, 1999 ..................................................... ’s 401(k) plan has only recently been “The 26 objective research and education.” $20,000 to $80,000. The ratio tends to fall a bit for Relationship Between Account Balance as income increases, regardless of the investment Choose to receive your publications either in print Contact EBRI Publications, (202) 659-0670; fax publication orders to ed format—mailed to you each month, or in pdf as other participants (chart 16). Furthermore, only 40 a households that identifies characteristics of 401(k) plan pants in their 60s with at least 30 years of tenure. pants. Because most of the plans have a small number of Most participants in 401(k) plans have borrowing 40s 49.71999. For the most part, the asset allocation of participants missing salary 5.6 1.6 1.5 14.2 27.0 ? Programs balances of less than $10,000, while 15 percent have (1998); and Yakoboski and VanDerhei (June 1996). Although Munnell, participants with account balances of less than $10,000 Guaranteed investment contracts. All Cerulli 44.5 3.9 election deferral limits in Internal Revenue Code Section 402(g) and Actual their 20s. while participants in the largest plans, on average, had a 6.7 5.5 36.3 ubscriptions/orders established (indeed, 49 percent of all 401(k) type plans in existence in 1995 of Plans .................................................................... 7 6 percent have more than 30 years of tenure. The median account balances of less than $10,000. In contrast, only Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. 53 Investment Options, 1999 ........................................ 12 S salary is 330 percent. Investment Decisions in a Retirement Plan: The With Loans by Account Balance, 1999 balances are invested directly or indirectly in equity securities. Specifically, ..................... 24 separate accounts, and other pooled investments. analyzes the characteristics of participants with out- Average Loan Balances extends the previous findings of the project for 1996, the Consumer Federation of America and equity-related investments of those without equity When total account balances are considered, the(202) 775-6312. Subscriptions to percentage of participants holding no equity funds falls In the 1998 EBRI/ICI database, the ratio of loan balance to account example, as plan size increases, the percentage of plan Outlook for Retirement Income, salaries greater than $80,000, largely because of “401(k) Plan Asset Allocation, Account Balances, and EBRI Issue Briefs ” Washington, DC, are included as part of options offered. Specifically, among participants in plans >10–20 Y 50s ears 47.7 21 information is similar to the asset allocation for those with such information, 5.7 1.8 1.6 19.9 23.1 Sunden, and Taylor (December 2000) find a negative correlation between format—e-mailed t 6% o you each month. You must provide an e-mail address f The 1998 EBRI/ICI database has a similar breakdown of participants by Deferral Percentage and Actual Contribution Percentage (ADP/ACP) 11 percent of participants with account balances of less participants, their awareness of plan features, their or delivery of pdf files (pdf and Salar ay were established after 1989 (U.S. Department of Labor (Spring 1999), table Similarly, the average account balance of participants in participants, the asset size for many plans is modest. privileges. In the 1999 EBRI/ICI database, 82 percent of 60% Comparison W The distribution of account balances underscores ith Other Participant-Level Guaranteed investment contracts. Tenure (or years of participation) and account account balances greater than $100,000 (chart 4). is 37 percent, while the loan ratio for those with account ? Publications 22 loan ratio of 13 percent (chart 23). a Comparison W 24% 4 ith Other Participant-Level balance (net of loans) was 14 percent. Tabulations of the 1998 SCF find a 36 tenure at the current employer is seven years. 18 percent of those in their 60s with more than 20 years EBRI membership, or as part of a $199 annual subscription to In Table 6, Impact of Company Stock on in aggregate. The only dramatic difference is the percentage of account EBRI Notes and EBRI Issue Briefs. Asset Individual copies are 60s Plans With Company Stock and GICs 42.0 5.4 2.0 1.7 32.4 16.1 standing loan balances. overall exposure to equity securities through company 1997, and 1998. DirectAdvice.com income and contributions, they acknowledge that it is because they do not Influence of Colleagues funds represent almost half of plan balances. . Columbus, OH: The Ohio State ’ Choices. 53 percent of plan balances are invested in equity funds, 19 percent in company stock, ” Working Paper. No. Similarly, age. In the year-end 1998 database, 12 percent of participants are in their 20s, as salary increases. nondiscrimination rules in IRC Sections 401(k) and 401(m). assets invested in equity funds falls, while the share Loan Activity in 1998. The ratio of account balance to salary varies bond funds are pooled accounts primarily For example, 26 percent of partici- ” ICI Perspective. Vol. 6, no. 1; May 17 B.10)), or (2) The employee may have only recently joined the plan. In either contribution and nondiscrimination rule constraints. –18, 2000. not offering company stock or GICs, the percentage of Site Map Search types of activities since joining their current plan, and their 40s with two or fewer years of tenure is $13,389, About 34 percent of the plans have assets less than participants were in plans offering loans. However, only format requires the free Adobe Acrobat viewer sof similar result: The loan ratio was about 16 percent among households (with the effects of age and tenure on account balances. For a tware to read the files. This software can be down- EBRI/ICI balance also should be positively correlated, as long-term balances invested in company stock, which is higher for participants with The variation in account balances partly reflects 200% 46 For those participants with outstanding loans at the end control for the impact of the $10,000 contribution limit (in 1998) on high- 1–100 available with prepayment for $25 each (for printed copies) or for $7.50 (as an e-mailed electronic file) by calling 39.8 17.8 31 percent in their 30s, 31 percent in their 40s, 20 percent in their 50s, and Databases 0.3 1.5 28.6 10.1 Databases ................................................................ ? What's New 7 event, job tenure would not accurately reflect actual 401(k) plan participation. Allocation by Age, 1999 ............................................. 13 addition, salary information is available for a subset of of tenure have account balances of less than $10,000. somewhat with salary. For example, among participants stock and pooled investments is significantly higher for • University, April 26, 2000. Asset allocation varies with participant salary. As 00-07, The 1999 EBRI/ICI database contains Working Paper Series 40% 10 percent in guaranteed investment contracts (GICs), 7 percent in balanced funds, . Cambridge, MA: Massa- invested in bonds, and balanced funds are pooled ac- U.S. Department of Labor. Pension and Welfare Benefit pants earning between $20,000 and $40,000 a year do in company stock rises. This trend occurs because few and EBRI Issue Brief no. 218. Washington D.C: This section examines how the ratio of 1999 account 3% 18 different ways. For example, asset allocation does not account balances invested in equity funds rises from the head of the household age 20 plans tend to invest a higher percentage of their self- –69 years old) participating in 401(k) and/or salary information than for those missing such information. © 2001. income participants. Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. 101–500 51.4 6 percent in their 60s. The median age of the participants in the 1998 EBRI/ 8.8 their asset allocation in the plan. 1.6 3.4 22.9 11.2 compared with $96,250 for participants in their 40s with $250,000, and another 33 percent have plan assets 18 percent of those eligible for loans have loans outstand- 52 given age group, fewer years of tenure means a higher 51 loaded from EBRI’ EBRI or from www.ebri.org. s web site or directly fr Change of Address: om Adobe EBRI, 2121 K Street, NW, Suite 600, Washington, DC 20037, (202) ’s web site). the effects of participant age, tenure, contribution employees have had more time to accumulate account In the 1998 EBRI/ICI database, only 16 percent of participants in plans of 1999, the average unpaid balance is $6,815. Loan The Typical 401(k) Plan Participant ........................ 10 participants and the median annual salary among that 403(b) plans with loans outstanding. Table 7, Asset Allocation Distribution of Participant a in their 20s, the ratio tends to increase slightly with chusetts Institute of Technology, Department of 5 percent in bond funds, 4 percent in money funds, and 1 percent in other stable value counts invested in both stocks and bonds. Company stock Munnell, Alicia H., Annika Sunden, and Catherine participants in plans with employer-directed contribu- balance to 1999 salary varies with age and tenure and 10.3 million active 401(k) plan participants in 32,674 appear to be related to the number of plan participants salary increases, the percentage of account balance ICI database is 42 years. not hold equity funds, compared with 16 percent of directed balances in company stock than do participants Administration. Investment Company Institute, January 2000, and Private Pension Plan Bulletin, Guaranteed investment contracts. 501–1,000 44.3 6.5 3.1 2.9 25.0 15.3 Employee 51 Source and Plan Loans offering loans had loans outstanding. Tabulations of the 1998 SCF find a Household surveys, despite offering a more 43 775-9132; fax number, (202) 775-6312; e-mail: Publications Subscriptions@ebri.org. The EBRI/ICI database is the most comprehensive Membership Information: Inquir- between $250,001 and $1,250,000 (table 2). However, ing at the end of 1999 (chart 15). 20% balances. The participant’s tenure with the employer behavior, rollovers from other plans, asset allocation, Among participants in plans offering both 23 cent higher than the average account balance at year- 0 >5–10 Years Asset Allocation ............................................................. 10 group is $34,600. 1,001–5,000 These median characteristics are 47 47.1 Chart 21 8.5 Account Balances to Equity Funds by 1.9 2.0 20.8 17.7 Age, tions. For example, company stock, equity funds, and the plans with $573.4 billion in assets. The 1999 EBRI/ICI Taylor. Economics, May 2000. invested in equity funds tends to rise, while the “What Determines 401(k) Participation and funds. is equity in the plan salary for low-to-moderate salary groups (chart 11). participants earning more than $100,000. similar result: 13 percent of households (with the head of household age Abstract of 1995, Form 5500 Annual Reports. Employee Benefit Research Institute, February 2000. ’s sponsor (the employer). Money Wash- across different income groups. among plans not offering company stock or GICs (table 5, The ratio of partici- 22 in plans without employer-directed contributions. Benefit 1 ies regarding EBRI membership, and/or contributions to EBRI-ERF should be directed to EBRI President Dallas Table 9 The 1998 EBRI/ICI database has a similar breakdown of participants by 20% The Employee Benefit Research Institute is a nonprofit, nonpartisan, public comprehensive picture of households’ finances and 1–100 101–250 251–500 501–1,000 1,001– source of 401(k) plan participant-level data available to 2,501– 41 5,001– >10,000 All Plans participants and assets are concentrated in large plans. Loan activity varies with age, tenure, account Type of serves as a proxy for length of participation in the 401(k) withdrawals, loan activity, and employer contribution > 5,000 Loan B 100% alances as a Percentage of Account B 48.5 5.3 end 1998. alances for P 1.8 The median account balance was $15,246 at articip 1.6 ants W 18.6ith Loans 24.0 company stock and GICs, the percentage of participant The EBRI/ICI Subscription Rates: 20–69 years old) participating in 401(k) and/or 403(b) plans with a loan Asset Allocation by Age and Investment Options ....11 Chart 11 0 Tenure, and Salary, 1999 .......................................... 14 similar to those found for households holding partici- Now it’s easier than ever to find exactly what y tenure. In the year-end 1998 database, 18 percent of participants have two or However, at high salary levels the ratio tends to decline • Fifty-eight percent of plans, accounting for 82 percent ou’re looking for with our equity portion of balanced funds represent 82 percent of database accounts for 11 percent of all 401(k) plans, Engen, Eric M., William G. Gale, and Cori E. Uccello. Contributions? ? percentage invested in GICs tends to decline. ” CRR Working Paper. Salisbury at the above address, (202) 659-0670; e-mail: salisbury@ebri.org No. 2000-12. 2,500funds policy research organization that does not lobby or take positions on legislative Hurd, Michael, Lee Lillard, and Constantijn Panis. ington DC. U.S. Government Printing Office, Spring 5,000 are funds designed to maintain a stable share Some participants without equity fund balances 10,000 “An pant account balance to salary is positively correlated Research Average Asset Allocation for Participants Without Equity Fund Balances by Age and Tenure, 1999 second panel). Some variation is observed among partici- Chart 8Company stock represents 29 percent of the participant- Chart 6 44 All 47.9 5.5 activities, generally define asset categories too feature had borrowed from their plan accounts. date. The EBRI/ICI data are unique because they cover a 1.8 1.6 18.7 23.9 For example, 76 percent of participants are in plans with balance, and size of plan (measured by the number of by Account Balance, 1999 account balances allocated to company stock tends to rates. Information in the EBRI/ICI database can be used 24 fewer years of tenure at the current employer, 21 percent have between two and year-end 1999, which is 17 percent higher than the plan. For participants in the 1999 EBRI/ICI database, Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Ra 100 tio of Account B –500 501–1,000 proposals. alance 1,001 to S –5,000 alary >5,000 Asset Allocation by Plan Size and Investment <100 Data pant-directed pension accounts in the 1998 SCF. Issue Briefs & Notes printed & mailed = $199/y Chart 18Table 8, Percentage of Participants W ear pdf & e-mailed = $89/y ith No Equity ear Sarah Holden is senior economist, Research Department, at the Investment Company Institute (ICI), and Imp ? act of Age and Number of P Tenure on Account B articipants in Plan somewhat. For participants in their 20s with two to five of participants, offer loans to plan participants. The alance, 1999 ? Institute- “The Adequacy of Household Saving. • The average account balance (net of plan loans) for all participants was $55,502 at ” Brookings price. Guaranteed investment contracts (GICs) are with age and tenure. Participants in their 60s, having the total account balances for participants in plans with 26 percent of all 401(k) participants, and about 35 per- Boston, MA: Center for Retirement Research at pants in plans offering both company stock and GICs Tenure Composition of Selected Account B still have exposure to the stock market through company directed account balances in plans with employer- 1999. a Analysis of the Choice to Cash Out Pension Rights at lance C 19 ategories, 1999 extensive search engine and site map. Just type in the key words participants in their 60s invest 19 percent of their assets Participants Participfive years, 22 percent have between five and 10 years, 23 percent have between antsbroadly. Participants The EBRI/ICI database focuses exclusively Participants Data Collection Project. Participants Participants in plans that also offer GICs lower their wide variety of plan administrators and record keepers Other more than 1,000 participants, and these same plans for Participants in their 20s there is a positive correlation between account balance by Tenure, 1999 decline as salary rises (table 10). For example, partici- to examine the relationship between account balances $13,038 median account balance at year-end 1998. The Percentage of Eligible Participants W 2 ith Loans by Plan Size, 1999 Options .................................................................. 12 Database 40% Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. The Investment Company Institute is the national association of the Fund Balances Who Have Equity Exposure 34 Education Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. probability of a plan sponsor offering plan loans to its employer-directed contributions, compared with a cent of the assets held in 401(k) plans. The EBRI/ICI Boston College, December 2000. Papers on Economic Activity Jack VanDerhei, Temple University, is research director of the EBRI Fellows Program. Special thanks to Issue Briefs only year-end 1999, which is 18 percent higher than the average account balance at year- . Vol. 2. Washington, DC: ? printed & mailed = $99/y insurance company products that guarantee a specific 10 and 20 years, 11 percent have between 20 and 30 years, and 5 percent have years of tenure, the ratio of account balance to salary _________. stock or balanced funds. Indeed, 57 percent of partici- Job Change or Retirement. ear Private Pension Plan Bulletin, Abstract of pdf & e-mailed = $49/y ” RAND Working Paper ear . had more time to accumulate assets, have higher ratios, (table 5, bottom panel). However, few small plans fall (percentage of participants with account balances less th directed contributions (table 6, middle panel), an $10,000) ? com- Editorial Board: 37% Balanced Dallas L. Salisbury, publisher; Steve Blakely, managing editor; Cindy O Bond Money Company Stable ’Connor, production and distribution. Any Account Balances in GICs and 7 percent in bond funds. Company stock on the assets in the 401(k) plan of the individual at his a 2% allocations to equity, bond, and money funds when and, therefore, a wide range of plan sizes offering a account for 85 percent of all plan assets (table 1). 0 and le Several plan t us do the work for you. Guaranteed investment contracts. 80% 6% American investment company industry. Its membership includes and tenure. Indeed, 63 percent of participants with 8,433 and age, tenure, and salary of participants. 100% reported account balance represents retirement assets in pants earning between $20,000 and $40,000 a year have amore than 30 years of tenure. The median tenure in 1998 is seven years. Asset Allocation of Employee and Employer and Research Funds Funds Funds GICs by Age and T Stock Value Funds enure, 1999Other ........................................... Unknown Total 15 25% Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. views expressed in this publication and those of the authors should not be ascribed to the officers, trustees, members, or othe 100% On average, rises from 25 percent for salaries between $20,000 and employees increases with plan size. Indeed, 91 percent r Poterba, James M., Steven F. Venti, and David A. Wise. 75 percent exposure in plans without employer-directed database is large and representative of the 401(k) plan The Brookings Institution, 1999, pp. 65 Luis Alonso, research associate at EBRI, who loaded and tabulated the data; Janet Thompson-Conley, $20,000 >$30,000 end 1998. The median account balance was $15,246 at year-end 1999, which is >$40,000 –187. >$50,000 >$60,000 rate of return on the invested capital over the life of the pants without equity funds have investments in either 1997, Form 5500 Annual Reports >$70,000 DRU-1979-DOL. Prepared for the Department of >$80,000 >$90,000 > $100,000 . Washington DC: while those in their 20s have the lowest ratios (chart 10). Notes only printed & mailed = $99/year pdf & e-mailed = $49/year into this category, and it is possible that these figures pared with 20 percent in plans offering company stock 23% Chart 16 Chart 15 open-end investment companies (“mutual funds”), 491 closed-end investment ?? 6% shows a more mixed pattern by age, accounting for 35% compared with the base group, with the greatest reduc- variety of investment alternatives. Other recent studies or her current employer, and features more detail than activities. One of the more frequently analyzed house- administrators 17% –$30,000 –$50,000 –$60,000 –$70,000 –$80,000 –$90,000 –$100,000 31 percent of their account balances invested in company sponsors of the Employee Benefit Research Institute, the EBRI Education and Research Fund, or their staffs. Nothing herein is –$40,000 the 401(k) plan at the participant account balances of less than $10,000 have five years of ’s current employer. to Tenure 23 Fund. Contributions 35 ........................................................ 13 37 • The average account balance (net of plan loans) for all participants in T For the purposes of some of our analyses, the subset is restricted to able 9, Average Asset Allocation for Participants administrative assistant at ICI, who prepared the tables and charts; and Mike Bogdan, research analyst and 30% companies, and eight sponsors of unit investment trusts. Its mutual fund $30,000 to 35 percent for salaries between $80,000 and of plans with more than 5,000 participants offer plan Even, William E., and David A. Macpherson. 17 percent higher than the median account balance at year-end 1998. The reported The Impact contract. Other stable value funds Percentage of Eligible P include synthetic articipants For example, the average ratio of account balance to contributions. participant universe, as it pulls data from a variety of “ may be influenced by outliers. Pre-Retirement Cashouts and Foregone Retirement Percent This higher allocation to equity securi- age of Eligible Participants 14% company stock or balanced funds (table 8). but not requiring that employer contributions be in- U.S. Government Printing Office, forthcoming. Labor, October 1998. As a result, Age 16 percent of the plan balances of participants in their 0–2 Years (percentage of account balances) household surveys regarding asset allocation. Further- be construed as an attempt to aid or hinder the adoption of any pending legislation, regulation, or interpretative rule, or as 13% Salary Rangetion in relative percentage of account balance occurring of participant-level data on 401(k) plans have focused on 20% legal, that are either EBRI or ICI members provided records on hold surveys is the Survey of Consumer Finances (SCF), participants earning $20,000 or more. The median salary in that sub-sample tenure or less, while 84 percent of participants with stock, compared with 26 percent for participants earning Asset Relationship of Database Plans to the members have assets of about $6.8 Retirement savings held in plans at previous employers trillion, accounting for approximately All rights Relationship of Age and T Distribution of Equity Fund Allocations and enure to 6 With Loans by Tenure, 1999 participants was $55,502 at year-end 1999, which is 30% the 1999 EBRI/ Without Equity Fund Balances by 19% Age and With Loans by Age, 1999 loans, while less than half of plans with 10 or fewer 20s ties holds across all age groups. plan record keepers and administrators and covers a Saving: Implications for 401(k) Asset Accumulation. of Rising 401(k) Pension Coverage on Future Pension data specialist at ICI, who tabulated the Survey of Consumer Finances data. This document is being pub- account balance represents retirement assets in the 401(k) plan at the participant’s ” GICs $90,000. Thereafter, the ratio falls to 24 percent for U.S. General Accounting Office. Investment Company Institute. or similar instruments. The “401(k) Pension Plans: Quarterly Supplemental “other fund” category And, y Age Cohort 20% ou can order many of our publications online — with deliv vested in company stock (table 6, lower panel). Overall 18% 30 ery within accounting, actuarial, or other such professional advice. 80% >2–5 Years 10 80% 15 is about $46,400. 20s, rising to 20 percent for participants in their 40s, and 26% 95 percent of total industry assets and over 83 million individual more, household surveys can suffer from data problems 18% in bond and money funds. the plans of a particular record keeper, Alternatively, participants a few large active participants in 401(k) plans administered by their 11 12 14 which is administered by the Federal Reserve Board. 60% account balances greater than $100,000 have more than reserved. or rolled over into individual retirement accounts (IRAs) plans, more than $100,000 a year. Similarly, among partici- or a single large plan, and thus have not been gain insight into participants’ behavior as a group. Participant Exposure to Equities ........................ 14 Tenure 30s 20s 11.1% 8.1% 17.2% 14.0% 36 Tenure, 1999 47.1% .............................................................. 0.8% 1.3% 0.6% 100.0% 15 Universe of Plans 18 percent higher than the average account balance at Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. ICI database have salaries greater than $100,000. Similarly, for partici- participants do so. wide range of plan sizes. The results for year-end 1999 NBER Working Paper 7314 Income lished simultaneously by the Investment Company Institute as 25%. Report submitted to U.S. Department of . Cambridge, MA: National current employer. Retirement savings held in plans at previous employers or rolled is the residual for other investments such as real estate shareholders. Goodfellow and Schieber (1997) observe that the percentage of participants Loan Provisions Enhance Participation But May Data. 30% ICI Perspective. Any views expressed in this Account Balances >5–10 Years 20 holdings, and GICs appear to displace other fixed-income 23% plans offer company stock as an investment option. For exposure to equity securities is similar between the two 28% 27% 16% 2416% Asset Allocation of Employee and 45 tapering off to 16 percent for those in their 60s. The 25% 48 hours! It 22% ’s as easy as clic Tabulations of the public-use 1998 SCF data indicate that the median age in plans that offer company stock but not GICs have due to inaccurate participant recall. king a button! The EBRI/ICI organizations in 1996, 1997, 1998, and 1999. These Several authors have closely examined household Issue Brief/Notes Subscrip 13 tion Issue Brief onl 28%y Subscription Notes only Subscription 30s EBRI Issue Brief 9.3 is registered in the U.S. Patent and Trademark Office. ISSN: 0887-137X 0887-137X/90 $ .50+.50 6.9 12.8 15.7 52.7 0.7 > 30 Y1.4 ears 0.5 100.0 pants in plans offering company stock but not GICs, Agnew, Julie, are not included in this analysis. 10 years of tenure (chart 6). tute, October 2000. 40s representative of the 401(k) universe. ORDER In addition, without fixed-income fund investments generally tends to rise as income rises. Surveys have also been used to analyze house- Asset Allocation by Salary ........................................ 15 Allocation 32 Table 10, Average Asset Allocation by Salary year-end 1998. The median account balance was report are those of the authors and should not be ascribed to the officers, trustees, or other sponsors of EBRI, 20% 53 percent of pants in their 40s with 11 • Only 18 percent of eligible participants have outstand- 23% –20 years of tenure, the ratio of 47 Labor, Pension and Welfare Benefits Administration, over into individual retirement accounts (IRAs) are not included in this analysis. funds. The final category, 3 “unknown,” consists of funds investments. are generally similar to those for previous years. Bureau of Economic Research, August 1999. These effects tend to occur across all ages 20% 32% among heads of households that have 401(k) plan accounts, 403(b) plan ________. Affect Income Security for Some. “401(k) Plan Participants: Characteristics, ” Letter Report. The ratio of 401(k) account balance (at the current employer) to salary 14% example, less than 1 percent of participants in plans In this effort, EBRI and ICI have collected data from some of their members groups, suggesting that the higher allocations to com- Distribution of Equity Fund Allocations 15% 14% 25% 40s 8.4 6.6 11.3 22.6 48.1 1.1 1.5 0.5 100.0 tendency for younger participants to favor equity funds Similarly, the percentage of participants with more than 80 percent of their dramatically lower allocations to equity and balanced >20–30 Years administrators include mutual fund companies, insur- 50s The 1999 EBRI/ICI database appears to be a representa- Employer Contributions 60% ? Printed/mailed—$199/year 18% ? Printed/mailed—$99/year Printed/mailed—$99/year participants earning between $20,000 and $80,000 have 20% Pierluigi 13% Ameriks, John, and Stephen P. Zeldes. However, there is wide variation in account ? “How Do House- 18% 18% other researchers have relied on aggregate plan data to Account Balances Age and account balance should be positively related ........................................................... rd 16 accounts, and/or supplemental retirement annuities (SRAs) is 41 years. The hold 401(k) account and overall asset ownership 7 alone is not an indicator of preparedness for retirement. However, Leibowitz, $15,246 at year-end 1999, which is 17 percent higher 60% their account that serve as plan record keepers and administrators. The data include 8 and Investment Options, 1999 ................................. 16 20% 12% ing loans at the end of 1999. Loan activity varies with Profit Sharing/401(k) Council of America. March 1998. EBRI-ERF, or their staffs. Neither EBRI nor EBRI-ERF lobbies or takes positions on specific policy propos- 43 Annual that could not be identified. account balance to salary rises from 132 percent for 10/01/97, GAO-HEHS-98-5. Washington, DC: U.S. Preliminary update of data originally presented in Cerulli Associates Contributions, and Account Activity.” ICI Research of participants. 50s 8.0 7.5 10.2 28.2with 100 or fewer participants are offered company stock account balances invested in fixed-income funds tends to fall as income rises. pany stock are offset by lower shares of assets in equity 42.3 2.0 1.6 0.6 31 100.0 >10–20 Years and older participants to prefer fixed-income securities 16% 60s 18% 11% 11% funds when compared with the base group. Finally, in ance companies, and consulting firms. The universe of and Par 15FORM ticipant Exposur 40% e to Equities median tenure at the current job is seven years. Among households with such 42 20% Durham, Hammond, and Heller (May 2000) define a tive sample of the estimated universe of 401(k) plans. ? Pdf/e-mailed—$89/y “personal funding ratio ear ” demographic information, annual contributions, plan balances, asset Pdf/e-mailed—$49/year Pdf/e-mailed—$49/year ? hold Portfolio Shares Vary With Age? ? ” Working Paper. higher allocations to company stock, compared with because younger workers, who are early in their careers, For an overview of the 1998 SCF results, see Kennickell, Starr-McCluer, Balduzzi, and with 100 or fewer participants offer borrowing privileges (1999). bibliography of papers using HRS data, see www.umich.edu/~hrswww/pubs/ Approximately 1 percent of the participants in the database have a birth Relationship of 60s Age and Tenure to 7.1 Account 10.6 9.7 39.6 28.2 3.5 1.1 0.4 17%100.0 Chart 4, Distribution of Account Balances Asset Allocation balance invested in equity funds, 19 percent invested in than the median account balance at year-end 1998. EBRI Members — check out the special passw Availability salaries between $30,001 and $40,000 to 192 percent for age, tenure, and account balance. Participants be- ord-prot 14% ected area where you Survey of Profit Sharing and 401(k) Plans: Reflecting Federal Reserve Board. als. EBRI invites comment on this research. Survey of Consumer Finances • Investment options offered by plan sponsors influence participants’ asset allocation. 29% General Accounting Office, 1997. Series (Spring 2000). 37 13% >5–10 Years 14% as an investment option, while more than three-quarters accounts, the median household income in the 1998 SCF is $54,000, which is funds and balanced funds. Participants in plans with (the ratio of required assets in hand to salary) as a simple measure of Typically in a 401(k) plan, an employee contributes a allocation, and loan balances. Data for year-end 1998 presented in Holden, VanDerhei, and Quick 15% 8 Did you read this as a pass-along? Stay ahead of employee benefit holds up even when accounting for investment options and Surette (January 2000). For a full description of the SCF and recent SCF 15% date that is missing or are younger than 20 years old or older than plans offering both GICs and company stock, company biblio.html 13% plan administrators varies from year to year; thus, 10% 12% All 8.0 7.9 10.8 28.1 41.3 1.9 1.4 0.5 100.0 participants earning more than $80,000. Cerulli Associates Could we send a friend or colleague a complimentary estimates that there were 303,893 New York, NY: Columbia University, September 2000. are likely to have lower incomes. They have also had less Bibliography Annika Sundén. and three-quarters of the plans with 101 9 15% –1,000 partici- Balances ................................................................ 17 higher than the median participant income in the EBRI/ICI database but by Size of The latest U.S. Department of Labor (forthcoming) estimate of the universe Account Balance, 1999 ............................. 17 retirement savings adequacy analogous to the funding ratio concept used in company stock, 10 percent in GICs, 7 percent in balanced (The reported account balance represents retirement 40% salaries between $80,001 and $90,000, then falls to (January/February 2000) have been revised. At year-end 1998, 58.6 percent of tween the ages of 30 and 59 are more likely to borrow >2–5 Years (www.federalreserve.gov/pubs/oss/oss2/scfindex.html). 11% Participants in plans not offering GICs or company stock tend to have the highest data, see www.federalreserve.gov/pubs/oss/oss2/scfindex.html 1999 Plan Year Experience. Chicago, IL: Profit Shar- University of Michigan. 69 years old; they are not included in this analysis. ________. “Mutual Funds and the Retirement Market. Health and Retirement Study EBRI Issue Briefs for only $49/ ” Among individual participants, the allocation of account of Plan of participants in plans with more than 5,000 partici- 41 employer-directed contributions have 77 percent of their issues with your own subscription to Name portion of his or her salary to a plan account and deter- have access to hundreds of EBRI publications and researc 4 Title h online! Asset Allocation by Plan Size and 11 9% offered by the 401(k) plan sponsor. For year-end 1998 results, see Sarah Holden, Jack VanDerhei, and Carol A wide range of average account balances is reported for 401(k)-type plans. stock appears to displace equity and balanced fund 18 aggregate figures should not be used to estimate time For example, Choi, Laibson, and Metrick (September 2000) studied the 401(k) plans at the end of 1999 with about 39.3 million copy of EBRI Issue Brief? 40% may represent two earnings combined. Thaler (forthcoming), which analyzes portfolio asset allocation decisions by of 401(k)-type plans is for plan-year 1997. For 1997, it reported 265,251 Investment Company Institute, 401(k) Plan Participants: Characteristics, defined benefit pension plans. A complete analysis of preparedness for • For all 401(k) participants in the 1999 EBRI/ICI Tenure “Portfolio Choice, Benartzi, Shlomo. participants with no equity funds had exposure to equities through company “Excessive Extrapolation and the pants offer loans to employees, whereas 91 percent of time to accumulate a balance with their current em- Relationship Between Account Balance 0–2 Years funds, 5 percent in bond funds, 4 percent in money funds, assets in the 401(k) plan at the participant’s current Chart 5, Age Composition of Selected 39% Account 10% 10% year electronically e-mailed to you or $99/year printed and mailed. than older or younger workers. Individuals with 10% 16 Fidelity Investments. Building Futures: How American allocations to equity funds. Participants in plans offering GICs but not company 155 percent for salaries in excess of $100,000 (chart 12). 5 43 ICI Fundamentals. Vol. 9, no. 2 (May 2000). ing/401(k) Council of America, 2000. 27% pants are offered company stock as an investment Data for the universe of 401(k)-type plans compiled by the Department of Quick, “401(k) Plan Asset Allocation, Account Balances, and Loan Activity in (www.umich.edu/~hrswww/). 7% balances to equity funds varies widely around the impact of Internet access to the 401(k) plan account on participant trading mines how the assets in the account are invested, Recent papers include: Ameriks and Zeldes (September 2000); Copeland surveying employees of the University of California about different investment Account balances are net of unpaid loan balances. Thus, unpaid loan Contributions, and Account Activity 401(k)-type plans covering 34 million active participants with $1,264 billion A rollover from a previous employer (Spring 2000). The complete report is ’s plan could interfere with this positive retirement would require estimating projected balances at retirement by also Company In general, however, the mix of investment 9 stock or balanced funds. In addition, 49.1 percent of participants in their 20s Phone # 0–2 years 15.9 8.7 19.8 17.6 35.2 1.1 1.0 0.8 100.0 trends. Records were encrypted to conceal the identity of 20% Loans Investment Options participants and $1,640 billion in assets. The 1999 25 5% database, three-quarters of plan balances are invested 5% Allocation of 401(k) Accounts to Company Stock.” The average Trading, and Unless otherwise indicated, all asset allocation averages are expressed as a ployer. In addition, they are less likely to have rollovers Plan Loans and Salary ............................................................. 20 Labor from the Form 5500 for 1997 imply an average account balance 1998,” Perspective For more information about subscriptions, visit our Web site at , Vol. 6, No. 1 (Investment Company Institute, January Balance Categories, 1999.......................................... 18 activity in two corporate 401(k) plans. and 2 percent in other stable value funds and other or and VanDerhei (July 2000), which examines the role of retirement assets in employer. Retirement savings held in plans at previ- Finally, for participants in their 60s with 11 options and by examining the aggregate asset allocations of several savings balances are not included in any of the nine asset categories described. correlation because a rollover could give a short-tenure employee a high available on ICI in assets. Investment Company Institute (May 2000) estimates that 401(k) relatively short or long periods of tenure are less ’s Web site at www.ici.org/pdf/rpt_401k_planp.pdf –20 years of considering retirement income from Social Security, defined benefit plans, Samwick, Andrew A., and Jonathan Skinner. Companies Are Helping Their Employees Retire, A stock have lower allocations to bond, money, and equity funds. Alternatively, “How Will VanDerhei, Jack, Russell Galer, Carol Quick, and John with no equity funds had exposure to equities; 59.3 percent of participants in Kennickell, Arthur B., Martha Starr-McCluer, and Brian >2–5 years 14.3 8.1 18.8 15.3 40.5 1.0 1.7 0.6 100.0 average of 53 percent for all participants in the 1999 Send an issue to option.5% choosing among investment options made available by 20% Address options offered by a plan sponsor significantly affects 5% dollar-weighted average. employers and employees but were coded so that both 2000), and (including loan balances as a part of account assets) per active participant of 28 EBRI Issue Brief no. 218 (Employee Benefit Research Institute, 5% 50 EBRI/ICI database accounts for 11 percent of all 401(k) households directly or indirectly in equity securities. Specifically, ’ balance sheets; Sundén and Surette (June 2000), which analyzes 25 account balance plans. account balance. Working Paper assets totaled $1,723 billion at year-end 1999. For convenience, minor investment options are not shown. www.ebri.org or complete the form below and return it to EBRI. . Los Angeles, CA: The Anderson IRAs, and other defined contribution plans, possibly from previous employ- from a previous job Returns in A Large 401(k) Plan. ’s pension in their current plan ” CRR Working Paper. their 30s; 62.5 percent of participants in their 40s; 63.9 percent of participants Plan-specific information on loan provision is available for the majority of Plan Loans ..................................................................... 22 33 12 EBRI P >5–10 years eriodicals subscr 10.8 Summing the asset 8.0ibers also ha 15.4 19.3 ve Chart 6, T 6 a passw 43.8 enure Composition of Selected ord that allo 0.6 1.8ws them t 0.6Account o 100.0 unidentified assets (chart 3). ous employers or rolled over into individual tenure, the ratio rises from 186 percent for salaries 19 Source of contribution (employer versus employee) can be matched to fund likely than other participants to have a loan outstand- Report on Corporate Defined Contribution Plans participants in plans offering company stock (but not GICs) have substantially lower . For example, Madrian and Shea (May 2000) studied a large 401(k) plan Defined Contribution Pension Plans Affect Retirement A synthetic GIC consists of a portfolio of fixed-income securities Rea. For example, the SCF asks households to group their retirement plan assets J. Surette. “401(k) Plan Asset Allocation, Account Balances, “Recent Changes in U.S. Family Finances: “wrapped” EBRI/ICI database. Indeed, 30 percent of participants 20% Fifty-eight February 2000). Summary figures for year-end 1997 are available on ICI’s $37,330 (U.S. Department of Labor, forthcoming), a figure that is within When plans are grouped by plan size and Participants the plan sponsor (employer). In many plans, the em- ’ asset allocations appear to vary with plan household borrowing from 401(k) plans; Uccello (May 2000), which looks at Account Organization 0 ment. For such research, see Montalto (April 2000); the Social Security asset allocation. Table 4 presents four combinations of 34% 26 the plans in the sample (including virtually all of the small plans). Some in their 50s; and 52.2 percent of participants in their 60s. Furthermore, could be tracked over multiple years. City/State/ZIP 13 At the end of 1999, approximately 63 percent of balanced mutual fund 44 plans, 26 percent of all 401(k) participants, and about 53 percent of plan balances are invested in equity No. 2000-06. Boston, MA: Center for Retirement >10–20 years 8.3 (net of plan 7.3 12.4 23.8 School at UCLA, June 2000. 10 29 information for a subset of the data providers in our sample. Of those plans in 44.8 1.2 1.9 0.5 100.0 0% that introduced automatic enrollment into the plan and found that the default accounts. Availability of Plan Loans 0 ........................................ 22 with a guarantee (typically by an insurance company or a bank) to provide Refer to the January 1999 into the following general categories: Approximately 10 percent of the participants in the database have a tenure For example, see Hewitt Associates (1999), which focuses on 401(k) plans at Plans falling into this category cover 24 percent of the participants in the Issue Brief for earlier references to research “mostly or all stock [including company shares of equity funds, company stock, and the equity retirement accounts (IRAs) are not included in this16% Web site at www.ici.org/pdf/per06-01_appendix.pdf For year-end 1996 10 percent of the $41,156 average balance estimate from the 1997 EBRI/ICI Balance Categories, 1999.......................................... 18 ing. Participants with account balances of less than the interaction of spouses in their investment decisions; Bertaut and Starr- Boston, MA: Fidelity Investments, 1999. 0 allocations to all other investment options, especially equity funds. between $30,001 and $40,000 to about 237 percent for Results from the 1998 Survey of Consumer Finances.” Administration Income?” ’s Modeling Income in the Near Term (MINT) projections NBER Working Paper 6645 access all online 28 . Cambridge, EBRI Issue Briefs investment option, participants in plans of differing sizes plans without this information are classified as having a loan provision if any 48.6 percent of participants with two or fewer years of tenure with no equity and Loan Activity. and/or 0–2 >2–5Notes ” EBRI Issue Brief >5–10 !>10–20 >20– no. 205 and 30 >30 AllICI have more than 80 percent of their account balances percent of the 12% size; however, much of the variation is due to differences ployer also makes a contribution to the participant 0 ’s assets were invested in equities. See Investment Company Institute, Name Quarterly investment offerings, >20–30 years starting with a base group of 7.1 6.9 9.2 31.2 the 1999 EBRI/ICI database for which the appropriate data are available, 42.2 1.5 1.7 TM 0.5 100.0 0 contribution rate and default investment allocation chosen by the plan Address Data provided for each participant include 1–10 11–25 26–50 51–100 101–250 251–500 using other participant-level databases. benefit payments according to the plan at book value. 501range that is missing and are not included in this analysis. In addition, for database and 17 percent of the assets. very large employers; the Hewitt 401(k) Index stock] – ”; 1,001 “mostly or all interest-earning assets – 2,501– 5,001– >10,000 ”; “ All Plans split between stock and interest- (updated monthly), which E-Mail Address (required for pdf subscribers) 35 percent of the assets held in 401(k) plans. The distri- <$10,000 $10,000 >$20,000 >$30,000 >$40,000 >$50,000 >$60,000 results, see Jack VanDerhei, Russell Galer, Carol Quick, and John Rea, database. Cerulli Associates estimates an average account balance (including >$70,000 >$80,000 >$90,000 > All Account funds, 19 percent in company stock, 10 percent in Benartzi, Shlomo, and Richard H. Thaler. “Naïve Diver- McCluer (April 2000), which examines household portfolio asset allocations; Research at Boston College, May 2000. loans) for all Years Years Years Years Years Years Tenures summarized in Toder, Uccello, O Characteristics of Participants W For participants in the 1999 EBRI/ICI database, 20s 30s ’Hare, Favreault, Ratcliffe, Smith, Burtless, 40s 50sith 60s All Ages participant in the plan has an outstanding loan balance. This may understate funds had exposure to equities through company stock or balanced funds; Chart 7, Average Account Balance by Age and portion of balanced funds shows that just over three- analysis.) $20,000 >$40,000 >$50,000 >$60,000 Supplemental Data salaries between $70,001 and $90,000, then falls to $10,000 tend to borrow less frequently. >$70,000 . >$80,000 >$90,000 > $100,000 Goodfellow, Gordon P., and Sylvester J. Schieber. MA: National Bureau of Economic Research, July >$30,000 less than 0.5 percent require employer contributions to be invested in company Perspective Federal Reserve Bulletin , Vol. 5, no. 1 (Washington DC: Employee (January 2000). > 30 years 4.9 10.0 29 6.7 5% 38.6 1,000 34.5 2,5003% 5,000 4.3 10,000 0.8 0.4 100.0 invested in equity funds, while 27 percent do not hold plans for which loan data are available in the 1999 sponsor have a strong influence on the savings behavior of the 401(k) plan –$20,000 –$30,000 –$40,000 –$50,000>5 –– $60,000 10 Yearsgenerally do not seem to behave in systematically –$70,000 one data provider, earning assets. shows the trading activity of 401(k) plan participants at large corporations –$80,000 ” Furthermore, households are not asked to indicate whether the –“$90,000 years of participation –$100,000>30 Y $100,000 ” are used for the tenure variable. ears Balances among plans account, generally matching a portion of the employee ’ investment options. For example, as plan 0–2 Years >2–5 Years ’s “401(k) Plan Asset Allocation, Account Balances, and Loan Activity,” loan balances as part of account assets) of $47,721 for 1999. Profit Sharing/ >10 1%–20 Years >20–30 Years Engen, Gale, and Uccello (1999); and Weisbenner (November 1999). plans that do not offer company stock or GICs. Age Partici- 14 7 Organization and Bosworth (September 1999); or Yuh, Hanna, and Montalto (1998). participant date of birth, from which an age cohort is the number of plans offering loans (or participants eligible for loans) because 47.9 percent of participants with between two and five years of tenure; 30 Balances –$30,000 –$40,000 –$50,000 –$60,000 –$70,000 –$80,000 –$90,000 –$100,000 Years of Tenure ? Check enclosed Please ch bution of assets, participants, and plans in the EBRI/ICI guaranteed investment contracts (GICs), 7 percent in City/State/ZIP arge m 0% y?? VISA participants in MasterCard Amex Card # ? Some administrators supplying data were unable to provide complete asset For example, Benartzi (June 2000) uses plan filings with the Securities and sification Strategies in Defined Contribution Saving Plans falling into this category cover 25 percent of the participants in the Ameriks, John. there is a positive correlation between age and account “Trends in TIAA-CREF Participant stock. However, most of the plans with this feature are large, covering 7 per- Outstanding Loans All ............................................... 8.0 7.9 10.8 23 28.1 41.3 1.9 1.4 0.5 100.0 participants; and Agnew, Balduzzi, and Sund quarters of plan balances are invested directly or This document is available electronically in pdf format. To order online, visit www.ebri.org/store/ebriib.htm én (May 2000) examine portfolio plan sponsor required some of the assets to be invested in company stock. with daily transfer options; or Fidelity Investments (1999), which focuses on Tenure, 1999 .............................................................. 19 • Forty-two percent of participants have account 27 Perspective 401(k) Council of America (2000) suggests that the average account balance 184 percent for salaries in excess of $100,000 (chart 13). • For those with outstanding loans at the end of 1999, , Vol. 5, No. 1 (Investment Company Institute, January 1999), and “Investment of Assets in Self-Directed Retirement • The asset allocation of participants’ account balances varies with age. Younger 1998. Years of Participants in their 20s hold approximately 1 percent of the assets in the Tenure 45 Kusko, Andrea L., James M. Poterba, and David Benefit Research Institute and Investment Company Furthermore, two other papers have addressed the projected role of 401(k) EBRI/ICI database offer a plan loan provision to partici- Number of Particip some plans may have offered, but had no participant take out, a plan loan. It 56.3 percent of participants with between five and 10 years of tenure; ants in Plan size increases, the percentage of plan assets invested in contribution. Some employers require that the employer 17 pants in these plans—typically having four basic Size of Account Balance Exchange Commission (SEC) to analyze employees allocation detail on certain pooled asset classes for one or more of their clients. database and 17 percent of the assets. There is some discernible evidence of rollover assets among the participants ’ allocations to company Less than $10,000 >$40,000–$50,000 Salary Range cent of participants and 11 percent of plan assets in the subset. More than $100,000 assigned; participant date of hire, from which a tenure Source: 42 Tabulations from EBRI/ICI Participant-Directed Retirement choice, trading activity, and asset returns of participants in one large 401(k) For example, see Gustman and Steinmeier (Winter 2000); Engen, Gale, and Address defined contribution plans, more generally. For examples of studies of database for 1999 is similar to that reported for the balanced funds, 5 percent in bond funds, 4 percent in Premium and Asset Allocations: 1986 26 the EBRI/ICI –2000.” Research EBRI Issue Brief (also including loans) for participants in their 1999 survey, which includes Plans.” American Economic Review no. 205 (Employee Benefit Research Institute, January . Forthcoming. Exp. Date Signature balance. A Your Name verage Loan Balances Fifty-six percent of participants with account ............................................. 24 1999 EBRI/ICI database; participants in their 30s hold 16 percent; plans in retirement: Even and Macpherson (March 1998), and Poterba, Venti, indirectly in equity securities. balances of less than $10,000 in the 401(k) plan at the or call EBRI Publications at (202) 659-0670. Chart 8, Impact of is likely that this omission is small as the U.S. General Accounting Office 65.2 percent of participants with between 10 and 20 years of tenure; 67.2 per- 20 Source: Tabulations from EBRI/ICI P Age and Tenure on articipant-Directed Retirement Plan Account 50 the level of the unpaid balance represents 14 percent Plans.” In Michael S. Gordon, Olivia S. Mitchell, and participants tend to concentrate their assets in equity fund investments, while older stock. In addition, the Profit Sharing/401(k) Council of America (2000) Only plans in which at least 90 percent of all plan assets could be identified with account balances greater than $100,000, as 1 percent of them have two or For research covering the confusion evidenced in the survey responses of W.Wilcox. The tendency of the ratio of account balances to “Employee Decisions with Respect to 401(k) Starr-McCluer, Martha and Annika Sund Plan Data Collection Project. én. “Workers’ Institute, January 1999). pants (chart 14). The loan feature is more commonly equity funds falls, while the share in company stock rises plan. Also see Duflo and Saez (May 2000), which analyzes the impact of Uccello (1999); and Hurd, Lillard, and Panis (October 1998). For an extensive contribution be invested in company stock, rather than Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. participant behavior in 403(b) participant-directed plans, see Ameriks investment options of equity, bond, balanced, and money Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. Source: Visit EBRI on-line t Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. oda 1999). All issues of profit-sharing and combination plans, as well as 401(k) plans, is approxi- y 31 : www.ebri.or Perspective are available on ICI’s Web site at www.ici.org/ g 34 range is assigned; outstanding loan balance; funds in 32 participants in their 40s hold 34 percent; participants in their 50s hold Plans falling into this category cover 20 percent of the participants in the Data Collection Project. and Wise (August 1999). In addition, Samwick and Skinner (July 1998) universe of plans estimated by Cerulli Associates. For (1997) finds that more than 95 percent of 401(k) plans that offer loans had at cent of participants with between 20 and 30 years of tenure; and 62.8 percent For this group, the participant-directed portion of the account balances money funds, and 1 percent in other stable value Source: Tabulations from EBRI/ICI P Source: Tabulations from EBRI/ICI P articipant-Directed Retirement Plan Data Collection Project. articipant-Directed Retirement Plan Data Collection Project. Bertaut, Carol, and Martha Starr-McCluer. “Household database was $55,502 at year-end 1999, which is 18 per- balances of less than $10,000 are in their 20s and 30s, Dialogue. No. 65. New York, NY: TIAA-CREF Insti- surveys its members and reports on characteristics and offerings of plan were included in the final EBRI/ICI databases. Plans falling into this category cover 31 percent of the participants in the City/State/ZIP fewer years of tenure and 3 percent of them have between two and five years of households, see Gustman and Steinmeier (September 1999) and Starr-McCluer Bibliography a ................................................................... Source: Tabulations from EBRI/ICI Participant-Directed Retirement Plan Data Collection Project. 26 Balance, 1999 (balances less than $10,000) ............ 19 35 colleagues on choices among participants at a university; and Benartzi and participant’s current employer, while 15 percent have salary to peak at higher salary levels and then fall off a (October 2000) and Ameriks and Zeldes (September 2000), which study the of the account balance, net of the unpaid loan balance. Knowledge of Their Pension Coverage: A Reevalua- Marc M. Twinney, eds., Guaranteed investment contracts. Positioning Pensions for the participants invest more in fixed-income securities. 33 economy/perspective.html and back issues of mately $96,000. VanDerhei, Jack, and Craig Copeland. Plans.” In Olivia S. Mitchell and Sylvester J. Schieber, EBRI Issue Briefs “A Behavioral are available associated with large plans. Fifty-four percent of plans Percentages are derived from data presented in table 6. 36 percent; and participants in their 60s hold the remaining 13 percent. database and 25 percent of the assets. (table 5, top panel). This trend occurs because few small analyze defined contribution plan benefits more generally. as directed by the participant. Participants in these least one plan participant with an outstanding loan. of participants with more than 30 years of tenure. represents 69 percent of the total account balances. funds—have the highest allocation to equity funds. Fax to: (202) 775-6312 Or database and 41 percent of the assets. sponsors, which describe the environment facing participants. tenure. and Sund der Online: www én (January 1999). .ebri.org/ebrisub.htm example, Cerulli Associates estimates that 16 percent of funds. behavior of participants in TIAA-CREF. by contacting EBRI at publications@ebri.org Mail to: EBRI, 2121 K Street, NW, Suite 600, Washington, DC 20037 Mail to: EBRI, 2121 K Street, NW, Suite 600, Washington, DC 20037-1896 Mail to: EBRI, 2121 K Street, NW, Suite 600, Washington, DC 20037 or Fax to: (202) 775-6312 or Fax to: (202) 775-6312 EBRI Issue Brief Number 230 • February 2001 • © 2001. EBRI 28 2 32 14 6 16 26 22 30 12 10 8 24 20 18 4 February 2001 • EBRI Issue Brief February 2001 February 2001 • EBRI Issue Brief February 2001 • EBRI Issue Brief February 2001 • EBRI Issue Brief February 2001 • EBRI Issue Brief February 2001 • EBRI Issue Brief February 2001 • EBRI Issue Brief February 2001 • EBRI Issue Brief February 2001 • EBRI Issue Brief February 2001 • EBRI Issue Brief February 2001 • EBRI Issue Brief February 2001 • EBRI Issue Brief February 2001 • EBRI Issue Brief February 2001 • EBRI Issue Brief February 2001 • EBRI Issue Brief • EBRI Issue Brief February 2001 • EBRI Issue Brief February 2001 • EBRI Issue Brief February 2001 • EBRI Issue Brief February 2001 • EBRI Issue Brief February 2001 • EBRI Issue Brief February 2001 • EBRI Issue Brief February 2001 • EBRI Issue Brief February 2001 • EBRI Issue Brief February 2001 • EBRI Issue Brief February 2001 • EBRI Issue Brief February 2001 • EBRI Issue Brief February 2001 • EBRI Issue Brief February 2001 • EBRI Issue Brief February 2001 • EBRI Issue Brief February 2001 • EBRI Issue Brief February 2001 • EBRI Issue Brief 11 27 15 31 19 13 29 23 17 21 25 7 3 1 5 9 ib230 Issue Brief Notes Issue Brief Issue Brief (percentage of plans) (percentage of participants) (percentage of plan assets)

Volume 230

Pages 32

EBRI Issue Brief

Sarah Holden

Jack VanDerhei

Retirement