A comprehensive benefits program that includes an executive plan may tip the scales for candidates considering multiple job offers, according to a new study by Pentegra, which is endorsed by ABA for retirement plan services. Based on a survey of retirement and executive benefit plan trends among bank employees, the study also showed that a bank’s total rewards package is a key competitive resource for employee retention.
401(k) plans were far and away the most popular type of qualified retirement program, with just under 80% of respondents offering them to employees. Just under 20% offered ESOPs, while just over 20% offered profit-sharing plans. A majority—73%—reported offering bank-owned life insurance, primarily to help offset some or all of the expenses related to their employee benefit programs.
Additionally, 40% reported offering a supplemental executive retirement plan, while 27% offered deferred compensation arrangements. When asked to rank their most important reasons for offering an executive supplemental benefit plan, the number-one reason among respondents was to remain competitive with their peers.