Contributions by plan participants in non-profit-sponsored 403(b) retirement plans rose during the year past, the increases resulting in higher average account balances, according to a new survey.
So reports the Plan Sponsor Council of America in its 2015 403(b) Plan Survey. PSCA’s 7th annual benchmarking survey of 403(b) plans, sponsored by the Principal Financial Group, polled 478 not-for-profit organizations.
A key finding of the report is the 13.9 percent rise in plans offering an employer contribution: up to 96.6 percent in 2014 compared to 82.7 percent in 2013.
“The large jump in plans offering employer contributions is one of the most noteworthy findings in this year’s survey,” says Hattie Greenan, PSCA’s director of research and communications. “Non-profits recognize their role in helping employees save, and the nearly universal adoption of employer contributions is proof of that commitment.”
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Average account values among 403(b) plan participants grew to $62,513 in 2014, compared to $54,600 in 2013. Participants contributed an average of 6 percent of their annual pay to their account, up from 5.8 percent in 2013. In addition to participant contributions, the survey shows nearly a quarter of 403(b) plan sponsors match employee contributions dollar for dollar on the first 5 percent or 6 percent deferred.