Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news.
Data & Research March 25, 2009
Third of Polled Sponsors Dropped, Reduced DC Match
Just more than a third of U.S. employers responding to a recent survey said they have cut back or cut out their defined contribution plan match since January 2008.
Reported by Fred Schneyer
A Spectrem Group news release about its study said 34% of 150 plan sponsors polled in February had taken steps to change their match policies.
Some 29% of plan sponsors in the poll said they intend to reduce or eliminate the match in the next year. Spectrem said the 29% includes some employers who have already reduced matches and might be planning to make further reductions or eliminate the match.
Meanwhile, Spectrem found in a separate survey that 20% of employees participating in defined contribution plans have decreased their deferral rates, and another 5% intend to do so over the next 12 months.
The participant survey was based on an online poll of 400 participants nationwide in February.