Not-for-Profit Retirement Plan Industry Continues Growth

March 8, 2011 ( – Total not-for-profit assets in a survey of providers representing 90% of the 403(b) and 457 retirement plan markets were over $1 trillion as of December 31, 2010.

According to the LIMRA survey, assets increased 11.6% over 2009. These companies received contributions from sponsors totaling $65,975 billion in 2010 – a 3.7% increase over 2009.    

Since the first quarter 2009, the number of new participants has floated around two hundred thousand each quarter. The total number of participants as of December 31, 2010, increased 2.6% over 2009.  

The LIMRA report showed 403(b) plans continue to be the dominant plan type in the not-for-profit market, accounting for 61% of contributions, 59% of assets, and 57% of participants. Almost $29 billion entered 403(b) plans in 2010, representing a 2% increase compared with 2009.  

Over $11 billion entered 457 plans by December 31, 2010. This represented a 4% decrease over the year-end 2009.Mutual funds comprised 49% of 2010 457 contributions. 

By plan type, 38% of not-for-profit assets were held in the college and university market, 19% in hospital and health care, and 12% in K-12. Twenty percent of assets were in “other” markets and 11% were in government plans.  

Assets by recordkeeping arrangement type were $942,260 for full-service, $105,366 for administrative recordkeeping only, and $38,750 for investment only.  

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