Bloomberg Business ranked Boeing’s Voluntary Investment Plan (VIP) second among large companies’ 401(k) plans in its new 401(k) rankings.
According to Bloomberg, “401(k) plans have replaced pensions as the way most companies help employees save for retirement. Workers make before-tax contributions and pile up tax-deferred cash, and employers often match part of what they put in. But some plans are more generous than others.”
Boeing provides a 75 percent match on the first 8 percent of base pay that most nonunion employees save in their VIP accounts. Only five companies on the list offer a higher matching contribution.
New hires are automatically enrolled in the VIP at 4 percent of base pay. Unless they make a change or opt out, this rate automatically increases by 1 percent each April until they are saving 8 percent of base pay and receiving the full Boeing match.
Bloomberg’s scoring was based on matching contributions, additional company contributions, investment features, vesting and automatic enrollment. The maximum potential match represented half of the score.
The study looked at the 50 largest companies in the S&P 500 and used 2013 data, the most recent information publicly available. View a Bloomberg story about the study.