That was but one statistic offered from a recent survey by National Association of Government Defined Contribution Administrators (NAGDCA) of 401(k), 401(a) and 457 programs.
The NAGDCA data indicates that by the end of 2010, responding 457 plans reported that 4.9 million employees were eligible to participate and 1.1 million of those employees actively made deferrals, giving responding 457 plans a participation rate of 22%. The 401(k) respondents reported that 2.7 million employees were eligible to participate and of those, 512,998 employees actively made deferrals, giving responding 401(k) plans a participation rate of 19%. Finally, 401(a) respondents reported that 885,817 employees were eligible to participate and of those eligible 218,047 employees actively made deferrals, giving responding 401(a) plans a participation rate of 25%.
Further, according to NAGDCA, as of December 31, 2010, the average participant account balance for the responding state and local government plans was $41,243, while the median was $23,497. The average/median participant account balance for responding 457 plans was $42,468/$24,804 and the average for 401(k) plans was $39,285/$13,525. The average for 401(a) plans was $38,301/$35,579, and the average participant account balance for responding 403(b) plans was $40,889/$11,482.
The average annual deferral for the responding state and local government plans was $3,884.
As of December 31, 2010, 33% of all responding governmental plans had assets valued between $101 and $499 million and twenty-five percent were valued between $1 and $5 billion. Eighteen percent of plans assets were valued between $500 and $999 million and eighteen percent had $100 million or less in plan assets. Six percent of responding plans had assets valued over $5 billion. The 2011 NAGDCA Defined Contribution Plan survey covered 111 government defined contribution plans, including: 457 – 76 plans (43 state, 32 local, 1 education); 401(k) – 16 plans (11 state, 5 local); 401(a) – 17 plans (9 state, 5 local, 2 education, independent agency);403(b) – 2 plans (2 state). These plans had approximately 1.8 million active participants in 2010 compared to 1.5 million in 2009.
In addition to the defined contribution plan, the following retirement benefits are offered: ninety-two percent offer a defined benefit plan, ninety percent offer retiree health insurance benefits, and eighty-four percent of plans reported their employer does participate in Social Security.
A data summary is at http://www.nagdca.org/documents/2011_DC_Survey_Report1392.pdf.