BOSTON--(BUSINESS WIRE)--

Fidelity Investments, a leading provider of not-for-profit workplace retirement savings plans to higher education employees1, today published a best practices guide for plan sponsors in higher education. The insights in the report are based on plan data and millions of employee-level transactions from 415 higher education plans, representing more than $52 billion in assets and over one million participants. The reports purpose is to illustrate ways that Americas academic institutions can improve retirement readiness among employees.

The report, the first in a series, examines trends in mandatory and voluntary plan design, and highlights three key areas for improvements in plan design, employer and employee contributions, as well as plan participation rates.

Higher education plan sponsors are increasingly looking to their retirement plan to help them attract and retain top talent and increase employee engagement, while ensuring cost effectiveness, said John Ragnoni, executive vice president, Fidelity Tax-Exempt Retirement Services. In order to achieve these goals, its essential for employers to assess and benchmark how elements of their plan design could ultimately impact employees retirement readiness and satisfaction with their benefits offering.

Key Findings:

Fidelitys Six Best Practices for Higher-Education Plan Sponsors

1. Target employee and employer contributions totaling 1015 percent of an employees annual salary to increase retirement readiness.

2. Administer a combined benefits plan of contribution and employer match to increase total contributions, employee engagement and potentially lower costs.

3. Use employer match to increase voluntary participation rates and employee contributions.

4. Consider automatic enrollment to raise voluntary plan participation rates.

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Fidelity® Report Defines Best Practices for Retirement Plan Sponsors in Higher Education