Employers often use match strategies—e.g., match structures, match rates, vesting schedules, etc.—to incentivize certain participant behaviors. About half (47%) of plans use a stretch or tiered match formula, which requires participants to defer more to receive the maximum match, but only 7% of plans will match participant contributions that exceed 6% of salary. Employers also use vesting schedules to reward longer-tenured employees, but immediate vesting is increasingly viewed as a valuable tool in attracting new talent and is now used by a record 41% of plans.
Traditional – e.g., 100% of first 3%Stretch – e.g., 50% of first 6%Tiered – e.g., 100% of 3%, plus 50% of next 2%Fixed dollar – e.g., 50 cents per dollar contributedMultiple formulasOther type of formula
ImmediatelyIn ≤2 yearsIn 3 – 5 years (cliff)In 3 – 5 years (graded)In ≥6 years
PLANSPONSOR Industry Reports 2021
Unique defined contribution (DC) benchmarking tools based on feedback from roughly 3,000 employers
PLANSPONSOR Industry Reports in a nutshell:
- 65+ pages in PDF format
- Cover DC plans in 50 different industries
- Compare client plans to others in the same industry and asset class, and overall
- Available with your firm's branding or logo on every page
- Distributable to sales staff or adviser network; post on your client site behind registration
Availability: December 2020
Download more information here.
Contact Rob Reif / 212-217-6906 / firstname.lastname@example.org