About 77% of retirement plan sponsors say they have continued to make match contributions despite the recession – and 4.7% say they have increased their matching contributions.
The Profit Sharing/401k Council of America, Chicago, has published those statistics in a summary of results from a survey of 508 plan sponsors.
Some of the plan sponsors have been making “non-matching contributions” rather than matching contributions. About 73% of those sponsors have continued to make non-match contributions, the PSCA says.
Companies with more than 5,000 participants were more likely to suspend contributions than smaller employers, and employers that normally make non-matching contributions were more likely to suspend those contributions than companies with matching contributions were to suspend matching contributions, the PSCA says.
About 47% of the companies that suspended matching contributions in 2009 said they already have restored the matching contributions or expect to restore the match before March 31, 2010.
Decreasing plan participation rates have plagued 73% of the employers that said they dropped the match this year but only 14% of the employers that said they kept the match.