As of 2015, one of the main 401K plans offered by United Technologies (UTC) is the option of a lifetime income plan with new employees automatically enrolled at a six percent contribution rate, notes CFO.com. After five years, the contribution automatically increases to 10 percent, depending on the age of the employee. UTC matches 60 percent of the first six percent that an employee contributes as part of all of its 401K plans.
The UTC Savings Plan includes flexibility for employees to contribute based on their individual financial knowledge and risk tolerance, notes UTC.com. The company also offers a 3 percent to 5.5 percent age-based payout to all employees, even if they are not enrolled in a 401K plan.
UTC uses target-date mutual funds as part of its 401K plans. These funds become increasingly conservative over time. The company also includes annuities, which offer a guaranteed payout each month after an employee retires. These new plans replaced the traditional pension plans offered by UTC. They keep the responsibility of saving for retirement primarily on employees but also give them a guaranteed minimum income amount for life after they retire. UTC began offering the annuities in 2012 and was one of the first large employers to do so, notes the NY Times.