‘Active’ Sponsorship Contributes to Success of 403(b)s
A new report from The Principal suggests that actively sponsored non-profit plans, including 403(b) plans, are achieving the same level of success as their for-profit counterparts.
“The Total View 2009” said that among non-profit organizations that sponsor retirement plans with services provided by The Principal, participation and deferral rates held steady from 2007 (64.6%) to 2008 (64.9%) and the participation rate is comparable to the overall participation rate among for-profit and non-profit organizations at 66.1%.
In addition, in 2008, non-profit plans using The Principal’s program of one-on-one education at the worksite saw participants’ overall contribution level increase to the same level as for all DC plan participants (7.3%). The 7.3% rate in plans using the education program compared to an overall contribution level of 6.4% for those plans not using the education program.
The report is based on calendar-year 2007 and 2008 data from plans with services provided by The Principal, which includes 2008 data based on 2,358 non-profit plans and 2007 data based on 2,248 non-profit plans.
The report is available at www.principal.com/totalview.
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