PSCA Announces a Celebration of 401(k): An Island of Stability in the Economic Crisis

CHICAGO--(BUSINESS WIRE)--The Profit Sharing/401k Council of America (PSCA), announced as part of its 2009 401(k) Day celebration that 401(k) has been an island of stability during the current economic crisis.

“The 401(k) system remains stable in these times of economic uncertainty”

“The 401(k) system remains stable in these times of economic uncertainty,” stated David Wray, PSCA’s President.

Unlike many other investors, 401(k) participants have continued to save and invest for the long term even in these challenging times. In a recent study of its 11.2 million accounts, Fidelity Investments found, for the second quarter of 2009, 5 percent of participants had increased their contributions while only 3 percent had reduced them.

“401(k) participants have continued to be net buyers of equities during this entire period as over half of all new 401(k) contributions go to purchase stocks,” Wray added.

This did not happen by accident. During this period nearly every large plan sponsor, many small plans sponsors, and all the providers of 401(k) services united in what some have called a "calm the waters" communication campaign directed at 401(k) participants.

Plan sponsors across the country remain dedicated to providing education and communication to their employer-sponsored defined contribution plan participants, and it has made a difference. 401(k) participants continue to dollar-cost average into their plans and are committed to diversifying their investments. Tens of thousands of professionals are working every day to help these participants save for their future.

To help support this continuing commitment by plan sponsors who have less money to spend this year on participant communications, PSCA is making its annual 401(k) Day education and communication tools available for free to everyone. Now more than ever it is important for plan sponsors to keep their participants informed so they are able to make the best decisions about their personal retirement needs. PSCA’s 401(k) Day campaign delivers a suite of resources that employers can use to communicate the benefits of saving and investing for retirement in an employer-sponsored defined contribution plan.

PSCA sponsors National 401(k) Day, which falls on the first Friday following Labor Day but can be celebrated any day of the year. Now in its 14th year, 401(k) Day is an annual celebration that encourages employers to set aside time at the workplace to spotlight the importance of their 401(k) plans.

This year’s exciting new campaign, “Make Wise Choices,” draws a connection between lifestyle and investment decisions to position the 401(k) plan as one of the essential elements of overall health and reminds employees that today’s choices shape tomorrow’s well-being. The materials feature a playful cartoon owl as spokesperson, colorful images, and messages that are clear and direct.

A comprehensive program of materials is offered to support 401(k) Day. Employers of any size and industry can use the 401(k) Day materials to celebrate 401(k) plans on the day of their choosing. A series of posters and postcards compare saving for retirement with other wise decisions people make every day. Customized articles offer healthy retirement tips and can be customized to include a company name or Web site. Targeted communications remind participants to make investment and asset allocation changes that are appropriate for their lifestyle and career stage.

A variety of electronic tools help plan sponsors send valuable information to their participants with just the click of a button. Webcasts, including a video by PSCA President David Wray, will educate participants on an array of retirement participation and investment topics. An online, interactive 401(k) quiz game covers the basics of 401(k) saving and investing. Users can also access an annual retirement check-up and a retirement planning calculator to make sure they are on track to meet their savings goals.

In addition to the above materials, plan sponsors will find of Roth 401(k) Tools designed to help participants navigate the ins and outs of retirement planning and investing in a Roth 401(k) account.

Many of the materials are customizable and are available in English and Spanish. All of the materials are available at PSCA’s special 401(k) Day Web site, http://www.401kday.org.

401(k) Day is supported by the nation’s leading retirement plan providers and is sponsored in part by ADP Retirement Services, Fidelity Investments, Principal Financial Group, Putnam Investments, The Hartford, and Wells Fargo. Special thanks to Putnam Investments for the graphic design of the employee education materials.

About the Profit Sharing/401k Council of America

The Profit Sharing/401k Council of America (PSCA), a national, non-profit association of 1,200 companies and their six million employees, advocates increased retirement security through profit sharing, 401(k), and related defined contribution programs to federal policymakers. PSCA makes practical assistance available to its members with profit sharing and 401(k) plan design, administration, investment, compliance, and communication materials. PSCA, established in 1947, is based on the principle that “defined contribution partnership in the workplace fits today’s reality.” PSCA's services are tailored to meet the needs of both large and small companies with members ranging in size from Fortune 100 firms to small, entrepreneurial businesses.