Benefits March 25, 2009

Third of Sponsors in Spectrem Poll Dropped, Reduced DC Match

March 25, 2009 (PLANSPONSOR.com) - Just over a third of U.S. employers responding to a recent survey said they have cut back or cut out their defined contribution plan match since January 2008.
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A Spectrem Group news release about its “Plan Sponsor Attitudes at the End of a Tumultuous Year” report said 34% of the February 2009 online poll of 150 plan sponsors had taken steps to change their match policies.

Some 29% of plan sponsors in the poll say they intend to reduce or eliminate the match in the next year. Spectrem said the 29% i ncludes some employers who have already reduced matches who may be planning to make further reductions, or to eliminate the match.

Meanwhile, Spectrem found in a separate survey that 20% of employees participating in defined contribution plans have decreased their deferral rates, and another 5% intend to do so over the next 12 months.

The participant survey was based on an online poll of 400 participants nationwide in February 2009.

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