Oil companies, airlines offer best 401(k) plans

December 14, 2010

It’s not the award for Best Picture, or the Nobel Peace Prize, but in certain circles, the nation’s top 401(k) plans carry some serious credibility.

This year’s list of winners, compiled by independent datatracker BrightScope, is dominated by oil companies — the Savings Plan of Saudi Arabia — ranks at the top. Other finalists include ExxonMobil, Anadarko, ConocoPhillips and even BP.

“People might be surprised to see BP on the list,” says Mike Alfred, CEO and co-founder of BrightScope. Since 2005, he says, BP has encouraged employees not to overload their portfolios with company stock. BP’s stock is down more than 20 percent since a major oil spill hit the Gulf Coast last spring.

And while financial services, pharmaceutical and airline companies also dominate the list, one firm that is noticeably absent is benefits-rich Google. The reason why? Brightscope looked at companies with 401(k) plan assets in excess of $1 billion. Google has not officially crossed that threshold…yet. “Next year you can expect Google to be in the top 20, maybe even the top 15,” Alfred says.

To evaluate 401(k) plans, BrightScope runs simulations using a hypothetical 44-year-old employee’s portfolio and assumes the employee has $40,000 in assets. (That’s the national 401(k) account average, according to the Employee Benefits Research Institute.)

Here are the Top 30 401(k) plans, according to Brightscope:

2010 Rank 2009 Rank Plan Name U.S. Headquarters BrightScope Rating™
1 1 The Savings Plan of Saudi Arabian Oil Company Houston, TX 93.17
2 N/A Southern California Permanente Medical Group Retirement Plan San Diego, CA 89.96
3 4 Southwest Airlines Pilots’ Retirement Savings Plan Dallas, TX 89.04
4 10 Amgen Retirement and Savings Plan Thousand Oaks, CA 88.4
5 2 United Airlines Pilots’ Directed Account Plan Chicago, IL 88.3
6 9 Employees Savings and Retirement Plan of Credit Suisse New York, NY 87.35
7 20 Bayer Corporation Savings and Retirement Plan Pittsburgh, PA 87.26
8 12 BP Employee Savings Plan Houston, TX 86.99
9 N/A Nucor Corporation Profit Sharing and Retirement Savings Plan Charlotte, NC 86.97
10 25 Avaya, Inc. Savings Plan for Salaried Employees Basking Ridge, NJ 86.88
11 21 UBS Savings and Investment Plan New York, NY 86.73
12 28 IBM 401k Plus Plan* Armonk, NY 86.66
13 8 ExxonMobil Savings Plan Irving, TX 86.45
14 N/A sanofi-aventis US Savings Plan Bridgewater, NJ 86.42
15 N/A Anadarko Employee Savings Plan The Woodlands, TX 86.35
16 N/A Novartis Pharmaceuticals Corporation Investment Savings Plan East Hanover, NJ 86.26
17 N/A Bechtel Trust & Thrift Plan San Francisco, CA 86.17
18 7 Chevron Employee Savings Investment Plan San Ramon, CA 85.95
19 N/A Genentech, Inc. Tax Reduction Investment Plan South San Francisco, CA 85.59
20 N/A Altria Deferred Profit-Sharing Plan for Salaried Employees Richmond, VA 85.35
21 6 ConocoPhillips Savings Plan Houston, TX 85.22
22 N/A American Airlines, Inc. Pilot Retirement Benefit Program Variable Income Plan Fort Worth, TX 85.11
23 27 Federal Express Corporation Pilots’ Retirement Savings Plan Memphis, TN 85.1
24 N/A Shell Provident Fund Houston, TX 84.8
25 N/A Sun Microsystems, Inc. Tax Deferred Retirement Savings Plan Santa Clara, CA 84.72
26 23 GlaxoSmithKline Retirement Savings Plan Philadelphia, PA 84.68
27 N/A Cisco Systems, Inc. 401k Plan San Jose, CA 84.66
28 N/A Goldman Sachs 401k Plan New York, NY 84.56
29 N/A AstraZeneca Savings and Security Plan Wilmington, DE 84.53
30 13 Pfizer Savings Plan New York, NY 84.52
* denotes a change in plan name since 2009

Post Your Comment

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/