Almost 77% of defined contribution plan executives have continued making matching company contributions to their 401(k) plans, while 73.2% continue to make non-matching company contributions in 2008 and 2009, according to a survey by the Profit Sharing/401k Council of America.
Also, 46.7% of companies that suspended DC contributions in 2008 and 2009 said they have already restored them or plan restoration in the first quarter of 2010.
And more than half (54.3%) of the 508 companies that responded to the survey have increased efforts to educate employees about their retirement.
“The plan sponsors in the midst of very difficult times stepped it up,” PSCA President David Wray said in an interview. “The economy is never totally dire for every single company, but this particular event was as close as any. Every company was looking to reduce their expenses and that so few chose their DC plans is remarkable.”
The survey also showed 72.9% of companies that suspended their company match had a decrease in employee participation, while 14.4% of companies that maintained the match experienced a decrease.
The survey of 508 sponsors of DC plans was conducted in October.