Not-for-Profit Retirement Plan Assets Increase 11%

September 9, 2011 ( - Total not-for-profit retirement assets – which includes all asset types: full service, administrative/ recordkeeping only, and investment only – rose to over $1.1 trillion in the first quarter 2011 – an increase of 11% over June 30, 2010.

The LIMRA report on the not-for-profit market for Q2 2011 reveals that among providers that break out contributions, assets, and participants by plan type, 403(b) plans continue to be the dominant plan type in this market. Fifty-nine percent of full service assets are in 403(b) plans, 19% in 457 plans, and 22% in other not-for-profit plans.  

Over $13 billion entered 403(b) plans in the first half of 2011, representing an 8% decrease compared with 2010. Nearly a third (32%) of contributions went into mutual funds.  

Nearly $5 billion entered 457 plans by June 30, 2011. This represented a 19% decrease over the same period in 2010. Mutual funds comprised 45% of year-to-date 2011 457 contributions.  

Contributions of over $4 billion entered other not-for-profit plans in the first half of 2011. Mutual funds comprised 57% of these contributions.   

As of June 30, 2011, companies reported over 21 million participants in not-for-profit market plans, 57% in 403(b) plans. Compared with the same quarter last year, total participants increased nearly 2%. Nearly 183,000 new participants were reported for not-for-profit market plans during the second quarter 2011.

As of June 30, 2011, 38% of not-for-profit retirement plan assets were in the college and university segment. Hospital and health care plans held 20% of assets, while government and K-12 plans each held 11%. Twenty percent of assets were in other not-for-profit plans.  

Among companies that report 403(b) market segments, the largest percent of year-to-date contributions, assets, and participants are in the hospital and health care segment, followed by K-12, other 403(b), and college and university.  

The vast majority of 457 contributions, assets, and participants are in the state and local government plans. State and local government comprised 92% of assets, 93% of year-to-date contributions, and 92% of participants of the 457 segment.  

Nearly 70 percent of other not-for-profit assets belong to 401(k) hospital and health care (22%), 401(k) other NFP (24%), and 401(a) other NFP (21%).  

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