SmartAssets ranks best communities with best retirement packages | nnbusinessview.com

SmartAssets ranks best communities with best retirement packages

NNBW Staff

Fallon ranks as the best community in Nevada for the best employees benefits at 80.4 percent, according to a report released by SmartAsset, using data from the U.S. Department of Labor.

Statistics revealed employers contribute 80.4 percent to their 401(k) plans in Fallon. Sparks ranked third on the list of Nevada communities at 42 percent while Reno ranked eighth at just under 29 percent.

To answer that question SmartAsset looked at employer and employee 401(k) contributions to determine employer contribution percentage. This is the sum of employer 401(k) plan contributions divided by the sum of total 401(k) plan contributions. It then indexed the ratio to 100, with a score of 100 representing the highest employer contribution percentage. This index reflects how generous companies are to contribute to employee 401(k) plans.

SmartAsset then created an investment performance index by calculating annual earnings on investments as a percentage of average total assets. We indexed these values to 100, with a value of 100 reflecting the highest return on assets. It created an administrative fee index by calculating annual administrative fees as a percentage of average total assets. We indexed these values to 100, with a value of 100 reflecting the lowest administrative fees. This helps determine where employees pay the lowest fees in their 401(k) plan.

Finally, a weighted average of the indices for employer contributions, investment performance, and administrative fees to yield an overall score was calculated.

For the complete study, go here.