Google Among 20 Companies With the Best Retirement Plans

The modern 401(k) was invented by accident in 1978. Lawmakers inserted the provision into the IRS tax code in an effort to quell rising anxieties about the tax status of profit-sharing plans. It was, according to Morningstar News, a minor item that would affect a handful of companies. Originally, 401(k)s were expected to have a “negligible” impact on tax revenue.

By 2013, that “negligible” amount was $57 billion. That’s enough money to run the Army Corps of Engineers; the Departments of the Treasury, the Interior, and Labor; the National Science Foundation; and the Social Security and Small Business administrations — at the same time.

Today, most company retirement plans come in the form of 401(k)s, and companies with pension plans are becoming harder and harder to come by. When comparing retirement plans, keep in mind that the amount your employer matches will have a big impact on your life after your earning years have passed. According to Bloomberg News, the difference of just three percentage points of an employer’s matching contribution could mean the difference of hundreds of thousands of dollars over the course of a career.

Related: 5 Jobs That Still Come With a Pension

10 of the Best Plans Offered by the Largest Companies

1. ConocoPhillips may just be the best company to retire from in the world. The company matches up to 9 percent, depending on age and years of service, for employees who contribute just 1 percent of their salary.

2. Amgen provides a core contribution of 5 percent and matches 100 percent of employee contributions of up to 5 percent.

3. Caterpillar states that its retirement packages vary by location, but in 2014, Bloomberg conducted an exhaustive survey of 401(k)s offered by the 250 largest companies. Caterpillar ranked near the top, with a 6 percent potential match and an additional contribution of between 3-5 percent.

4. Visa’s most recent data says the company contes $2 for every $1 employees save, up to 3 percent of their pay. That’s a complicated way of saying it’ll match up to 6 percent.

5. DuPont will match 100 percent of up to 6 percent of its employees’ eligible before-tax or after-tax compensation.

6. McDonald’s has a super-sized benefits program that lets employees save up to 50 percent of their pay in a 401(k). The company matches $3 for every $1 an employee contributes up to 1 percent, and it matches on a dollar-for-dollar basis up to 4 percent.

7. Aetna employees are immediately eligible for matching contributions. The company will match up to 6 percent, according to Bloomberg.

8. Halliburton matches on a dollar-for-dollar basis up to 4 percent of employee contributions. It will match 50 cents on every dollar after that, up to 6 percent. 

9. Monsanto matches 80 cents on every dollar up to 8 percent of eligible pay. Employees can save up to 25 percent of their pay.

10. Time Warner matches 66 cents on every dollar up to 10 percent of employee salary after a year of service with 1,000 hours worked.

Related: 5 Major Employee Perks That Help You Save Money

Tech Companies: Retirement in the Digital Age

Although modern tech giants like Google are lauded for their employee-centric work cultures, creative incentives and all-around awesome benefits (think travel insurance for personal vacations and free access to legal counsel), they don’t always shine when it comes to retirement plans. One reason for this, according to Bloomberg, is because their highly skilled employees often share in stock ownership.

Here is how the biggest tech companies stack up:

1. Google is known for offering what may be the perkiest perks in the world. Its 401(k), while not remarkable, ranked in Bloomberg’s top 25 with a potential 6 percent matching contribution.

2. Apple is also in the upper echelon with a 6 percent match of eligible employee pay. Its 401(k) consists of 14 funds.

3. Amazon offers great benefits that aren’t common outside of the tech world, but its 401(k) matches just 2 percent for employees who save at least 4 percent.

4. Oracle lets employees save 40 percent of eligible compensation, and it matches 50 percent up to 6 percent saved. However, employees can’t fully transfer matching contributions if they leave within four years.

5. Facebook ranked dead last in a recent Bloomberg survey of the best 401(k)s. That’s because Facebook offered no matching contributions at all until April 2014 (retroactive to January). Even then it was only 50 cents on the dollar up to 3.5 percent — but only for employees who save 7 percent of their salaries.

Related: Why You Shouldn’t Bank on Social Security Retirement Benefits

Lesser-Known Companies with Amazing Retirement Plans

The best retirement plans aren’t always hosted by the most well-known companies. Here are some of the best by companies that may not be household names.

1.  Navy Federal Credit Union matches 100 percent of up to 7 percent of pre-tax savings. Employees are vested after two years.

2. Perkins Coie matches 50 percent of the first 6 percent that employees save.

3. JM Family Enterprises offers a 3 percent match and a supplemental pension plan.

4. TMG Health offers a 100 percent match of the first 1 percent saved, and then a 50 percent match for the next 5 percent. Employees are 25 percent vested after one year and 100 percent vested after two years.

5. Gilead matches 50 percent of employee contributions up to $7,500 a year. Employees are fully vested immediately and can buy stock at 85 percent of fair market value.

Companies with pension plans used to be the key to aging comfortably. But with the arrival of the 401(k) in 1978, workers took more control over their retirement savings — and the best candidates began expecting more from their employers. Today, millions of Americans depend on their 401(k)s for security and independence in life after their earning years, and companies that lure the top talent are often the companies with the best retirement plans.

This article originally appeared on GOBankingRates.com: Google Among 20 Companies With the Best Retirement Plans

This article by Andrew Lisa first appeared on GoBankingRates.com and was distributed by the Personal Finance Syndication Network.