Not-for-Profit Assets Rebound to Over $1T

June 8, 2010 ( - Total not-for-profit retirement plan assets exceeded $1 trillion as of March 31, 2010 - the first time since 2007, according to a quarterly survey of plan service providers by LIMRA.

Total not-for-profit market assets increased 29% since March 31, 2009. 403(b) plans continue to be the dominant plan type in the market, comprising 49% of total assets, while 457 plans accounted for 28% and other not-for-profit plan types accounted for 23%, according to the report.  

First quarter 2010 contributions increased 8% compared with the first quarter last year; however, LIMRA noted that some variation in contributions represents transfers associated with takeover business.  

Over $7 billion entered 403(b) plans in the first quarter 2010 – a decrease of 4% compared with first quarter 2009. Nearly $3 billion went into mutual funds while $785 million went into variable annuities, $425 million into fixed annuities, and the rest into group annuity contracts.  

In the first quarter 2010, $4 billion entered 457 plans. Mutual funds took in 66% of the quarter’s 457 contributions.  

Contributions of $4.5 billion entered other not-for-profit plans in the first quarter 2010, with mutual funds receiving 79% of those contributions.  

Two hundred thousand new participants were reported for not-for-profit market plans during the first quarter 2010.  

Among market segments for all plan types, the college and university segment has the largest percent of assets at 37%; however, among companies that report 403(b) market segments, the largest percent of contributions, assets (35%), and participants are in the hospital and health care segment.  

The report noted that transfer business has resulted in a boost of 401(a) other not-for-profit contributions in the first quarter. Nearly 70% of other not-for-profit assets belong to 401(k) hospital and health care (21%), 401(k) other not-for-profit (25%), and 401(a) other not-for-profit (22%).   

The quarterly report examines 30 service providers’ contributions, assets, and participants in 403(b), 457, and other not-for-profit market plans. Contributions and participants correspond to full service assets only.