RESEARCH |

2020
DC Survey: Plan Benchmarking

Reported by PLANSPONSOR | Art by Dion MBD
2020 Survey
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2020 Survey

Match Structures

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.

Match Strategy

  • 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 contributed
  • Multiple formulas
  • Other type of formula

Maximum Employer Match Rate

<3%
11%
3%
22%
4% – 6%
55%
7% – 10%
4%
>10%
3%
Other
4%

100% Vesting in the Match Available

  • Immediately
  • In ≤2 years
  • In 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 / robert.reif@issmediasolutions.com