The 2010 403(b) Plan Survey results indicate plan sponsors are adjusting well to the new regulations imposed by the IRS --and that participation and retirement account balances remain high.
The study shows that nearly 57% of plan sponsors made changes to their 403(b) plans because of new regulations. That is a higher percentage than had planned to make changes (41%) in a similar survey conducted in 2008.
The survey also found overall participation rates for employees eligible to participate in a 403(b) plan remained unchanged from the 2008 survey at 75.8%.
"This year's 403(b) Plan Survey proves the resilience of the 403(b) system," says David Wray, president of PSCA, in a prepared statement. "Pre-crash to post-crash, pre-regs to post-regs, 403(b) plan sponsors and participants clearly remain committed to this important employee benefit."
The ongoing series of PSCA surveys on 403(b) plans reports on the 2009 plan-year experience of 552 plan sponsors from across the country. This represents a 43% increase in the number of respondents from the 2008 403(b) Plan Survey.
The survey also revealed:
? An increase in the number of plans permitting Roth after-tax contributions (13.9% in 2009, up from 10.9% in 2007)
? Few participants (1.3%) took hardship withdrawals in 2009 even though 76% of plans permit them
? Fewer small companies made changes as a result of the new rules than large companies (just over 48% of plans with 1-49 employees made changes vs. nearly 70% of plans with 200 or more employees)
? One-third of respondents are unsure if their plan has an investment policy statement
John Sullivan is editor-in-chief of Boomer Market Advisor and AdvisorBiz.com, part of Summit Business Media's Advisor Media Group.