According to the Hay Group poll of 400 Canadian
companies, projected pay hikes ranged from 2.7% for trade
jobs to 3.3% for executive and senior management
positions.
The survey also highlighted geographic pay raise
differences: from a high of 3.6% in Alberta to a low of
2.7% in Manitoba. Other Canadian areas include Vancouver at
3.1%, Saskatchewan at 3.3%, Toronto at 3.2%, and Montreal
at 2.8%.
The poll found that despite considerable economic
volatility this year, projected bonuses for 2003 do not
differ radically from last year’s forecasts.
For 2003, bonus targets (as a percentage of base pay)
range from 5.3% for trade jobs to 13.1% for middle
management to 46% for the President/CEO. Based on survey
results, most organizations are expecting to pay out their
employee bonuses this year, the survey found.
October 8, 2002 (PLANSPONSOR.com) - Participants in
profit sharing and 401(k) plans have more investment choices
from which to choose than they did in past years, an industry
survey found.
According to the 45th Annual Survey of Profit Sharing
and 401(k) Plans from the Profit Sharing/401(k) Council of
America (PSCA), 70% of plans offer 10 fund choices or more
– up from 61.5% in 2000 and 51.2% in 1999. Fund lineups
average 15 options, the study found.
The most common lineup includes: active domestic equity
funds (76.1% of plans), active international equity funds
(71.4% of plans), indexed domestic equity funds (63.9% of
plans) and balanced stock/bond funds (63.8% of plans).
The PSCA survey found that the typical plan has
approximately 64% of assets invested in equities. Assets
are most frequently invested in:
active domestic equity funds (30.9% of
assets)
stable value funds (11.8%)
indexed domestic equity funds (11.0%)
balanced stock/bond funds (8.5%)
company stock (6.6%).
Figuring a Company Match
In plans allowing participant contributions, the most
common company match formula is a fixed match only, in
29.1% of plans (including plans with safe harbor matches).
The most common type of company contribution for profit
sharing plans is a discretionary profit sharing
contribution only, which is present in 70.9% of plans.
For plans with fixed matches, the most common formula
is:
$0.50 per dollar up to the first 6% of pay (26% of
plans)
$0.50 per dollar up to the first 4% of pay (7.6%
of plans)
$0.25 per dollar up to the first 6% of pay (8% of
plans).
Other highlights of the PSCA survey include:
Deferral amounts for non-highly compensated
workers averaged 5.4% of pay while highly compensated
employees deferred, on average, 6.4%. The average
deferral was $3,514 in 2001.
Company contributions average 4% of payroll. They
are highest in profit sharing plans (8.1% of pay) and
lowest in 401(k) plans (2.5% of pay).
Advice is offered most frequently at small
companies and least frequently at large companies.
Advice is offered in 55.5% of plans with fewer than 50
participants, but only in 25.7% of plans with 5,000 or
more participants. Of companies providing investment
advice, the most common methods of delivery are
one-on-one counseling (52.7% of plans), Internet
providers (38.3%) and telephone hotlines (27.1%).
Smaller companies generally use one-on-one counseling
(74.3%), while larger companies tend to use Internet
providers (58.1%).
Self directed brokerage windows are offered in
11.4% of plans, while open mutual fund windows are
offered in 7.7% of plans. 0.2% of plan assets are
invested through brokerage windows and 0.1% of plan
assets are invested through mutual fund windows.
Some 9.1% of respondents have automatic
enrollment, up from 8.1% of plans in 2000. Automatic
enrollment is most common in large plans – 17% of plans
with 5,000 or more participants report having automatic
enrollment, while only 3.5% of plans with fewer than 50
participants have it.