According to a recent survey by the Profit Sharing/401k Council of America, 401(k) plans will remain a top priority in 2011 as many companies plan to restore contributions that were reduced or suspended due to economic troubles.

Of the 14.8 percent of companies forced to shelve matching contributions during 2008–2010, over a third have already restored contributions, with an additional third planning to restore contributions by mid-2011.  During that same two-year period, over 70 percent of companies’ matching contributions remained unchanged, while 10 percent actually increased.

The survey also found employee participation in 401(k) plans rests largely on matching funds. Of companies with suspended matches, 78.1 percent reported a decrease in employee participation.  Of companies with non-suspended 401(k) matches, nearly a third reported an increase in employees contributing to the plans.

Additionally, the survey showed that companies are more actively involved in managing their 401(k) plans and disseminating information to their employees.  Companies also focused on employee education, investment advice, and monitoring their plans for optimal returns.  In 2010, the vast majority of 401(k) plans changed their investment lineups to replace underperforming funds.  Plan fees have also come under greater scrutiny.  This increased attention to plan management may be a result of companies appointing committees to review fund performance—94 percent of surveyed companies used such a committee.