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403(b) Plans: The Match is (Partly) Back

By staff Writer

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About 40% of the nonprofit employers that suspended 403(b) matching contributions in response to the Great Recession have restored the match, and 16% hope to do so within the next 6 months.

The Profit Sharing/401k Council of America (PSCA), Chicago, has reported that finding in a 403(b) matchsummary of results from a survey of 599 403(b) plan sponsors.

Only about 14% of the employers that offered matching contributions Dec. 31, 2007, suspended the match.

About 23% of the sponsors said they had added investment advice within the past year, and 51% said they had increased employee education and communications efforts.

More than a third – 38% — said participation rates have increased.

The research was sponsored by Principal Financial Group Inc., Des Moines, Iowa (NYSE:PFG).

- Allison Bell

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