| | PLANSPONSOR Research | | 2017 PLANSPONSOR Participant Survey | | The 2017 PLANSPONSOR Participant Survey tracks the behaviors, actions taken and preferences of employees of all types—including those without access to a defined contribution (DC) plan, as well as those enrolled in one or who opted out of one. For example, respondents were presented with hypothetical trade-off scenarios. Historically, respondents have been somewhat neutral when asked to choose between a one-time $5,000 bonus and a one-time $5,000 contribution to their 401(k), but this year 57% preferred the bonus—up from 47% in 2016. The preference was strongest, near 70%, among younger participants—those 23 through 39 years old. Among 40- through 59-year-olds, the response was more mixed—approximately 50%—dropping to 32% for those 60 or older. Immediate gratification. Respondents showed an equally strong preference for immediate payouts vs. deferred annuities.Read more > | | | Ask the Experts | | Is an Irrevocable Election Not to Participate Truly Irrevocable? | | “I actually have two questions if the Experts can indulge me! I know that a mandatory contribution to a 403(b) plan must be made a) as a condition of employment, or b) pursuant to a one-time irrevocable election whether or not to participate by the employee at the time of initial eligibility to participate in the salary reduction agreement. Can a plan restrict the condition to only a condition of employment, or must an irrevocable election be permitted as well? Also, does irrevocable truly mean irrevocable? We wish to allow an employee who elected not to participate in the plan in the past the opportunity to participate going forward. Can we accomplish this via plan amendment?”Read more > |
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