Impact of Economic Conditions on 401(k) and Profit Sharing Plans (PDF; 177 KB)
Source: Profit Sharing / 401k Council of America
From press release:

Despite challenging economic times and heavy criticism of the defined contribution system, companies and participants remained committed to their retirement plans in 2008 and 2009. Plan sponsors maintained company contributions, stepped up employee education efforts, and reevaluated plan design features to make plan participation more beneficial for employees.

According to the just-released Impact of Economic Conditions on 401(k) and Profit Sharing Plans survey from the Profit Sharing/401k Council of America (PSCA), more than three-fourths of plan sponsors continued their matching company contributions (76.8 percent) and almost three-fourths continued their non-matching company contributions (73.2 percent). The majority of participants continued to participate in their employer’s plan and maintained deferral levels.

More plan sponsors suspended or reduced non-matching company contributions than matching contributions and more large companies (companies with more than 5,000 participants) than small companies suspended contributions. Of companies that suspended matching contributions, almost half (46.7 percent) have restored the match or plan to restore it within the first quarter of 2010, with more large companies (52.7 percent) doing so.

See also: Impact of Economic Conditions on 403(b) Plans (PDF; 184 KB)

This entry was posted on Monday, December 14th, 2009 at 10:35 pm and is filed under Business and economics, Investments, Labor. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.