Most 403(b) plans recorded no changes in participant behavior and/or employer contributions due to COVID-19, according to a survey by the Planned Sponsor Council of America and Principal Financial Group.
Based on a survey of 270 sponsors conducted in October, PSCA said 74.7% experienced no change in loan activity and 72.8% saw no changes in hardship withdrawals since the onset of the coronavirus. Results of the survey report were posted recently on the organization's website.
The report noted that 20.3% of sponsors recorded an increase in plan loans while 5% were unsure, and 22.4% noticed an increase in hardship withdrawals with 4.7%.
The survey report also said 83.6% of sponsors didn't change their contributions and had no plans to do so by year-end 2020.
The report said 6.3% suspended matching contributions and 3.4% reduced matching contributions during this period. Also, 4.1% suspended non-matching contributions. 3.4% reduced non-matching contributions and 0.8% were considering suspending or reducing contributions.
Among the respondents, 13% had 1,000 or more participants; 22.2% had between 200 and 999 participants; and the rest had fewer than 199 employees.