The Total View - (Page 21) Participation Rates Employer Match Makes an Impact Employee participation rates increased as the average employer match increased. Participation rates were more than 10% higher for plans with an employer matching contribution than those without a match. Participation rates also increased as years of service increased. Similar to average salary deferral rates and average account balance, participation rates were higher for highly compensated employees. Various industries had higher rates than others. Mining and finance; insurance; and real estate were the industries leading in highest participation rates, while transportation; communication; utilities and sanitary services; retail trade; and construction had the lowest participation rates. Participation in the retirement plan was the one area where females were higher than males. Female participation rates were 4 percent higher than males. Those aged 50-64 participated at higher rates. At The Principal and across the industry, smaller organizations had higher participation rates than larger organizations. $30K-50K <10K 10% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 9% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 8% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 71% 71% 71% 68% 68% 68% 7% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 6% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 5% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 4% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 3% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 2% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 1% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 0% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 2004 2005 2006 Average Participation by Gender Male Female While males deferred at a higher rate than females, female participation rates were 4% higher than males. Participation Rates by Compensation 27% 27% 27% 41% 40% 40% 41% 39% 37% 81% 74% 74% 82% 88% 88% 86% 86% 86% $10K-15K 2004 2005 2006 $15K-30K Employees with annual compensation over $30,000 tended to participate at nearly double the rate of those with salaries below $30,000. $50K-75K $76+K 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 21
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