Impact of COVID-19
The economic impact of the pandemic reverberated through sponsor and participant behaviors on a limited scale. Average plan participation rates are slightly higher than last year, while average participant deferral rates have moved lower, perhaps due to changes in participant composition from layoffs or furloughs. While some employers (7%) have reduced or suspended matching contributions, most of them are in the midsize plan category—i.e., with $25 million to $100 million in plan assets. Overall, 59% of employers that did reduce/suspend their match hope to reinstate it in Q1 2021.
Overall Participation Rate
Overall Deferral Rate
Match Suspensions, by Plan Asset Size
When Match Suspensions Will Be Reinstated