LifeLock, a provider of identity theft protection, has
created a product specifically to protect 401(k) investors from fraudulent
withdrawals and transfers, as well as identity theft to obtain loans, credit or
services. Called LifeLock Benefit Elite, the service is available through
employers and brokers, and is funded through payroll deduction at a competitive
price.
If suspicious activity is detected, LifeLock will send the
employee an alert via email, text or phone. In the event that an employee
becomes a victim of identity theft, LifeLock will spend up to $1 million to
hire the necessary lawyers, accountants and investigators to help with
recovery, with the insurance provided by State National Insurance Company.
Nearly 80% of
employees view benefits such as a retirement plan as being key considerations
when accepting a new position, the ADP Research Institute found. However, only
50% of companies provide a retirement option. While some employers are concerned
about cost and disinterest among management and employees alike, the size of
the company itself may be another reason it does not offer a retirement savings
vehicle, according to ADP.
“Employers with
less than 50 employees need to balance the benefits of plan sponsorships with [their]
costs, time commitments and fiduciary responsibilities,” ADP says in its
report, “Retirement Savings Trends: How Employers Can Extend Coverage and Simplify
the Retirement Readiness Process.”
In terms of
industry, the percentage of employers that provide retirement benefits varies
widely. Manufacturing leads the field with 67.1% of manufacturers offering
retirement benefits, which could be due to “the prevalence of unions in this
sector, where certain benefit offerings may be contractually mandated,” ADP
says. “On the other hand, in the leisure and hospitality sector, only 23.3% of
the companies offer retirement benefits, consistent in an industry with a high
percentage of temporary, part-time and seasonal workers.”
After
manufacturing, the top five industries for providing retirement benefits are information
(63.0%); professional and business services (55.9%); financial activities (52.4%);
education and health services (51.5%); and transportation and utilities (49.7%).
Similarly, there
is a disparity between smaller and larger companies, which “could be attributed
to cost, administrative complexity and the fiduciary responsibilities that
accompany offering a retirement plan,” ADP says. “Small employers also lack the
bargaining power of larger firms because they generally have less assets
invested in their plans.”
Employers with 5,000 or more workers were most likely to provide retirement benefits (98.4%), followed by those with 1,000 to 4,999 employees (96.0%). For companies with fewer than 1,000 employees, the percentage offering retirement benefits steadily declines according to their size. Nine in 10 (93.3%) of those with 500 to 999 workers offer these benefits, as do 85.3% with 50 to 499 workers, 60.3% with 20 to 49 workers, and just 33.0% with one to 19 workers.
The data
represents 10 million employees at 161,000 companies, all between the ages of
20 and 69 and earning at least $20,000 annually.