The document summarizes the results of a SHRM poll on the impact of the US recession on employee retirement. It finds that organizations are most likely to freeze employer contributions to 401(k) plans in response to economic challenges. Employees have increasingly extended their retirement dates, reduced 401(k) contributions, or suspended contributions due to fears about financial security and decreased income. Most organizations automatically enroll employees in retirement plans with a 3% default contribution rate, though 15-20% of employees typically opt out of participation.

1. July 2009 SHRM Poll – The U.S. Recession and Its Impact on Employee Retirement

2. 2 What, if any, action related to employee investments/retirement planning is your organization MOST LIKELY to take in the coming months in light of the current financial challenges to the U.S. economy? Note: Respondents who answered “Not applicable” were excluded from this analysis. Percentage s do not total 100% as multiple response options were allowed.

4. Decreases in household income.Note: Respondents who answered “Don't know” were excluded from this analysis. A dash (—) indicates that this particular option was not available in 2008

5. 4 Does your organization automatically enroll its employees into your organization’s defined contribution retirement savings plan (i.e., 401(k)), meaning that employees are placed into the plan unless they opt out? Source: 2009 Employee Benefits: A Survey Report by SHRM

6. In your automatic enrollment plan, what is the default percentage of salary that is deferred? 5 NOTE: Percentage does not total 100% due to rounding. Only respondents whose organization automatically enrolled employees in defined contribution savings plan where included.

7. Of the employees automatically enrolled in your defined contribution retirement savings plan, approximately what percentage have opted out or chosen not to participate? 6 NOTE: Percentage does not total 100% due to rounding. Only respondents whose organization automatically enrolled employees in defined contribution savings plan where included.

8. 7 Does your organization’s defined contribution retirement savings plan include a feature that automatically increases employees’ deferral rates (i.e., participant contribution rates are automatically increased each year)?

9. Have you seen an increase in the number of employees opting out of your organization’s automatic employee deferral rate? 8 n = 307 Note: Excludes respondents who answered “don’t know”.. Organization staff size: small = 1-99 employees, medium = 100-499 employees, large = 500 or more employees

10. Are employees at your organization more or less confident about the adequacy of their retirement savings now compared with six months ago? 9 n = 518 Note: Excludes respondents who answered “Not sure.”

11. In the past 12 months, has there been an increase, a decrease or no change in the number of employees at your organization getting more involved in the management of their retirement plan? 10 n = 518 Note: Excludes respondents who answered “Not sure.”

12. What do you see as the biggest threat to the retirement savings of employees at your organization? 11 n = 521

13. How confident are you that your organization’s retirement savings option is meeting your employees’ retirement needs? 12 n = 514 Note: Organization staff size: small = 1-99 employees, medium = 100-499 employees, large = 500 or more employees

14. What percentage of the employees at your current location are in each generation? 13 n = 440

15. 14 n = 502 Organization Staff Size

16. 15 Organization Sector n = 507

17. SHRM Poll – The U.S. Recession and Its Impact on Employee Retirement Response rate = 12% Sample comprised of 563 randomly selected HR professionals from SHRM’s membership. Margin of error = +/- 5%. Survey fielded the week of July 6, 2009. 16 Methodology