| Issues and Answers | ||
| Can an employer pay a veteran less upon return from military leave? | |||
|
| Test Your Human Resources Knowledge | ||
|
| Labor Law Journal Submissions | ||
|
| Human Resources Links | ||
|
| Labor Arbitrators' Awards and Biographies | ||
U.S. Master Pension Guide, 2012 Edition
Part of CCH's Master Series of professional guidebooks. The book provides a comprehensive explanatory overview of qualified retirement plans and other retirement arrangements, reflecting up-to-date law changes and regulations. Benefit COLAs, calendars, and tables reflect the year 2012 figures.
Despite prolonged economic instability, 403(b) plan sponsors are forging ahead with a variety of plan improvements, such as increased use of automatic enrollment, greater participant education, and refined investment lineups. Consequently, many plans also reported higher participation rates. These are the findings of the latest 403(b) survey released by the Plan Sponsor Council of America (PSCA) and sponsored by the Principal Financial Group.
"The survey shows that the 403(b) system is actually improving during this volatile period," said David Wray, PSCA president. "Employers are following through on their commitments to their employees, and employees are responding," he said.
Survey highlights
Among the survey highlights:
More automatic enrollment. Just over 10% of respondents added automatic enrollment in the last year compared to eight percent of 401(k) plans that added automatic enrollment.
Increased participant education. More than half of organizations increased their employee education efforts, with nearly one-quarter providing education specifically on market volatility.
Increased matching contributions. Just over 16% of organizations either increased or restored their matching contributions in the past year. Nearly 40% of organizations that suspended or reduced their match during the last four years have now restored it to previous levels.
Refinements to investment lineups. More than 30% of organizations changed the investment lineup in the last year, including nearly 65% of organizations with 1,000 or more participants.
Increased participation rates. Nearly 45% percent of respondents indicated an increase in participation, up from 38% reporting an increase the previous year.
Compared to the previous survey, fewer plan sponsors identify their plans as non-ERISA plans, and more are uncertain of their plan's ERISA status. Larger 403(b) plans are converting to ERISA status at twice the overall rate, the survey found.
Progress mirrors that of 401(k) plans
Overall, the progress of 403(b) plans mirrors that of 401(k) plans, the survey found. "The survey shows that 403(b) plan sponsors are marching to the same drummer as their 401(k) counterparts --particularly among the largest 403(b) plans," said Aaron Friedman, national non-profit practice leader, The Principal. "Sponsors of smaller 403(b) plans are also progressing in the same way as 401(k) plan sponsors, but at a slower rate than larger 403(b) plans," he added.
Source: PSCA news release, December 14, 2011.
For more information, visit http://www.wolterskluwerlb.com/rbcs.
For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer's Benefits Reports.
Visit our News Library to read more news stories.
©2005-2012 CCH Incorporated or its affiliates
