Fully supportive of the idea for the provision of further knowledge, such as seminars and written materials, to the employees on the 401(k)s benefits. Less employees, nowadays, are fully aware of the long-term benefits this option provides them. More information on the matching rule, the tax incentives and the penalties on early withdrawal are amongst the vital moments that require detailed explanations. Thus the 401(k)s education will help employees make better decisions about their retirement funds and help them realise that it is not just a save for the rainy days.
Employers have a responsibility to educate their employees and prepare them for a financially healthy retirement. It is to the benefit of the employer, because if an employee feels secure about their retirement they are more likely to stick with the company. The benefit to the employee of course, is that they can not worry too much about retirement.
Not only should employers educate their employees about the long-term benefits of investing in a 410(k) plan, but attendance should be mandatory for all new hires before they can actually start work. With loss of defined benefit pension plans the 401(k) is going to be the cornerstone of retirement planning for the next generation of retirees.
I do not believe it's an employers job to educate employees about 401(k)s. People need to take care of themselves and understand the benefits of saving for retirement on their own. It's not their employers responsibility to make sure they're aware of these things. They should provide plenty of information about their 401(k)s if they have them, but they shouldn't have to "educate" people.