Despite a potentially crushing recession and a spate of complex new regulations, the 403(b) retirement plan system appears to be healthier than ever. That’s the finding from a survey released last week from the Profit Sharing/401k Council of America (PSCA), a non-profit association of companies that sponsor defined contribution plans for employees.
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.