What Grade Does Your 401(k) Get?

Just about every company has a 401(k) plan available to it’s employees. But have you ever wondered how your company-sponsored retirement plan compares to other companies?  If so, you are in luck - there is a website called BrightScope that has done just that. 

BrightScope has compiled a massive database of 401(k) plans, providing key information on many 401(k) plans.  Rankings are based on the design, costs, and performance of the plan.  Design attributes would include matching and vesting schedules as well as investment choices.  Performance of the plan is also based on employee deferral and participation rates.  Here are the 401(k) rankings of several local companies:

Company	401(k) Plan Ranking
IBM	88
Oracle	84
Bank of America	81
GlaxoSmithKline	88
Duke Energy	85
Wal-Mart	57
Citrix Systems	85
Target	62
Cisco Systems	87
Fidelity	73

Over the last several years, the plans have had to become more transparent - reporting key costs and so forth to their participants. Over that same period, the ratings have risen in many cases (especially for the larger plans). Just a few years ago, many of these plans had much lower ratings. It is good to know that transparency has had a positive effect on the overall 401(k) plan industry!