Seventy-three percent of 403(b) plans maintained their employer matches since the end of 2007, according to a Profit Sharing/401k Council of America survey.
Since the end of 2007, 73.3% held the match steady while another 2.9% either added or increased the match. Matches were reduced by 9.3% of plans, while 14.5% suspended them.
However, among those organizations suspending their match, 40% have restored it. Most plans that reduced the match have kept the reduced levels, the survey said. Responses from 345 organizations were used to measure employer matches.
“We saw real stability in the midst of volatility,” David Wray, PSCA president, said in a news release issued by Principal Financial Group, which sponsored the survey.
“The survey shows that 403(b) plans appear to have adapted remarkably well to challenging economic times and major regulatory change,” Aaron Friedman, national non-profit practice leader for Principal, said in the release.
Other survey results, based on responses by 599 plans, reported that 37.9% of plans had an increase in the number of participants in the last year, while 14.5% reported a decrease. Forty percent said there was no change and 7.7% said they were not sure.
There was no change in participant deferral rates among 53.9% of plans within the last year; 11.4% saw increases, 13.1% reported decreases, and 21.6% weren’t sure.
Mr. Wray could not be reached by press time to provide additional details about the survey.
