Administration July 12, 2002

Employers Find Workers Clueless About EGTRRA Benefits

December 19, 2001 (PLANSPONSOR.com) - Most plan sponsors have yet to inform their participants about the changes that the Economic Growth & Tax Relief Reconciliation Act (EGTRRA) has made for retirement plan limits effective January 1, a new survey finds.
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According to the Workplace Report on Retirement Planning by CIGNA Retirement & Investment Services, the new rules are getting little attention in the workplace, with less than a third of employers having taken action to promote awareness of pension reform.

The survey also found that, of the human resources executives interviewed:

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  • over 85% believe their employees are concerned about how the downturn has affected investment in their workplace retirement plan,
  • two-thirds say their employees are worried they will not have enough money – and other financial resources when they retire,
  • almost a third say their employees are unaware that EGTRRA allows them to increase contributions to their retirement plan, and
  • some 86% say that EGTRRA has not changed the number of questions they receive from employees

Results of the survey also show that:

  • two-fifths get the majority of their pension reform information from retirement plan providers,
  • 17% get their information from the media
  • 16% cite employee benefits consultants as their best source of information.

The phone survey comprised the input of 504 retirement plan administrators.

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