Research

2015 NQDC/457(f) Buyer’s Guide

Helping eligible employees explore the value of these plans

Published in PLANSPONSOR July 2015

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Industry Snapshot

NQDC INDUSTRY SNAPSHOT
Total NQDC plans18,313
Total NQDC participants1,354,125
Total NQDC liabilities$162,146MM
NQDC BUNDLED STATS
Single NQDC plan clients42%
Multiple NQDC plan clients19%
NQDC + DC clients23%
NQ + DC + DB clients6%
Other NQDC bundles10%
NQDC PLANS BY PARTICIPANT SIZE
§457(F)*§409A
<5 participants5,8264,421
5 – 25 participants3,0234,160
26 – 100 participants8842,302
>100 participants3611,444
Footnote: *Includes §457(f) and nongovernmental §457(b) plans
NQDC PLANS BY ASSET SIZE
§457(F)*§409A
<$1M 4,5826,186
$1MM - $5MM1,0223,183
>$5MM – $25MM3171,978
>$25MM78981
Footnote: *Includes §457(f) and nongovernmental §457(b) plans
NQDC PARTICIPANTS BY PLAN TYPE
401(k) mirror plans (subject to §409A)124,186
Deferred compensation plans671,045
DB restoration programs/SERPs210,503
Long-term incentive programs34,991
§457(f) and nongovernmental §457(b)293,813
Other §409A plans33,933
PERCENT OF §409A PLANS BY VALUATION METHOD
Daily valuation92%
Non-daily valuation8%

Methodology

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The 2015 PLANSPONSOR Nonqualified Deferred Compensation (NQDC)/457(f) Buyer’s Guide questionnaire was completed in May by providers of NQDC plan administrative services. All data are as of December 31, 2014. References to NQDC plans/liabilities/participants include only corporate plans subject to Section 409A, Section 457(f) plans, and nongovernmental Section 457(b) plans—i.e., ineligible plans. Service providers for state/local governmental 457(b) NQDC plans—i.e., eligible plans—will be profiled in our August issue. Profiles are meant to be representative of provider experience/capabilities. More extensive data is available for purchase or by contacting providers directly. For information on full survey results, email Brian O’Keefe at bokeefe@assetinternational.com.

Archive

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NQDC BUYER'S GUIDE

It is not surprising to find a certain nexus between the administrative underpinnings of today's deferred comp programs and that of the most widely utilized deferred compensation arrangement: the 401(k) plan. In fact, the services offered to participants in deferred compensation programs are much like those offered to qualified plans. This buyer’s guide provides a listing of which plan types, financing vehicles and service channels each provider offers as well as a survey of plan sponsors' experiences with deferred compensation plans.

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