COVID-19 hit health-care sector retirement plans particularly hard, according to a poll of 75 defined contribution plan sponsors in March.
Of the 12% of sponsors that suspended employer matches in 2020 because of the pandemic, 44% were health-care organizations, NEPC found.
Employers in the health-care sector also implemented furloughs to a much greater extent than employers in other industries. Two-thirds of health-care organizations furloughed employees last year compared with 50% of all plan sponsors that did so, according to the poll, released Tuesday.
Nevertheless, all health-care employers that suspended matches in 2020 are planning to reinstate them this year, and none are planning any furloughs.
Overall, 40% of plan sponsors anticipate business as usual in terms in of their investment priorities this year. One-third said they will consider retirement income solutions and 19% said they will look into the role of active and passive offerings within their plans. Few, 5%, said they will add environment, social and governance investments as options for participants.