Date Added: Jan 2010
The Save More Tomorrow plan allows employees to allocate a portion of their future salary increases toward retirement savings. In the past decade, there has been a rapid shift among employers from defined benefit plans to defined contribution plans. As a result, employees now bear much more responsibility for their retirement savings. Under defined benefit pension plans, retirement benefits depend on how long an employee has worked at a given company and his or her salary by the time they retire. Firms using these plans are essentially doing the saving for their employees. Under defined contribution plans, which are much easier for companies to administer, employees must take the initiative to join.