When IBM spent millions settling a lawsuit based on its previous cash-balance retirement plan, the company was ready for a change. Although IBM chose the traditional 401(k) route, it is supplementing the program with numerous automated features, with a primary focus on establishing managed accounts as a default option in the 401(k).

While managed accounts have been increasing in popularity, it's still unusual for a company to set them as the default option since employees would be required to pay an added fee. The company hopes to avoid the fee issue by offering tiered pricing for managed accounts that are invested in collected trusts. Experts believe IBM is an optimal example for tiered pricing since their fees are unusually low - 11 to 16 basis points compared with the industry standard range of 25 to 88 points.

Additionally, IBM provides financial assistance for employees online. The information does not recommend specific funds, only types of funds, but the company hopes to provide more detailed information in the future. The company also has increased its 401(k) match to six percent for new employees.

Finally, IBM employees can obtain a price quote for fixed annuities, as well as credit ratings of the insurers and contact information. When employees have chosen the annuities they want, the retirement assets are transferred to an outside IRA account, thereby excluding IBM from any liability over the assets.