2022
Recordkeeping Survey
Industry Snapshot
NQDC Plans
A
trend in the nonqualified deferred contribution space is a renewed interest from those looking to expand existing benefits or create new ones, says Christopher Dall, vice president, senior product leader at PNC Institutional Asset Management.
“Plan sponsors know the competition for leadership talent is high, so they are seeking to retain their employees and recruit new ones with competitive NQDC benefits,” Dall adds. “Recordkeepers can play a pivotal role in working with the plan sponsor’s advisers and legal counsel to determine the most cost-effective structure to build, fund and maintain these benefits within the overall employee benefits program.”
Dall says plan sponsors should not assume that because a recordkeeper performs well for one type of plan, they will do the same for other types of plans as well.
“It’s important for the plan sponsor to ask if they have the capabilities and experience to work with the plan sponsor’s specific type of plan and with its specific features,” Dall says. “For example, how many plans, what size and what percentage of revenue is generated from each plan type?”
Plan sponsors should also ask whether the recordkeeper’s compliance department has experience working with NQDC plans and whether they have references who can discuss their experience.—B.B.
Total assets
Total plans
Total participants
8,504
741,786
$172B
Total assets
Total plans
Total participants
8,504
741,786
$172B
Total assets
Total plans
Total participants
8,504
741,786
$172B
Total assets
Total plans
Total participants
8,504
741,786
$172B
