Large and small plan sponsors appear to have divergent views on suspending matching contributions and which distribution and loan provisions under the CARES Act to adopt, a survey by the Plan Sponsor Council of America showed.
More than 20% of large plan sponsors — those with more than 5,000 participants — indicated they are suspending matching contributions compared with only 3.6% of small plan sponsors — those with fewer than 200 participants, according to the survey.
Plan sponsors are also divided over the implementation of the optional hardship withdrawal and loan measures under the Coronavirus Aid, Relief and Economic Security Act. Nearly 70% of large organizations are allowing COVID-19 hardship distributions vs. 20.7% of smaller employers. They also differ on the extension of coronavirus loans, with 46.8% of large employers making them available to participants compared with 17.2% of small employers.
Many employers, however, have not yet made a decision on whether and which provisions of the CARES Act to implement, with nearly half (44.1%) of the 152 sponsors surveyed on the fence about what to do.