PLANSPONSOR - April/May 2018 - 64

PLANSPONSOR/Prudential Co-Sponsored NQDCP Research
High Time for High Touch
Annual survey of nonqualified plans shows an increased focus on improving
education and one-on-one meetings to communicate with eligible executives
T
his year is shaping up to be the year of improvement for
nonqualified deferred compensation plans (NQDCPs),
according to a recent PLANSPONSOR/Prudential survey.
An impressive one in seven NQDCPs are considering plan
improvements or enhancements, and of those, nearly 31% plan
to offer or enhance their company match, up from 21% last year.
Plan education and communication are at the top of the list
for specific improvements for large and small companies, and
half of all NQDCPs that are making improvements are looking
to add or enhance investment options to the NQDCP. Less than
5% of NQDCPs say they are reducing or eliminating plan benefits,
and 81% of all NQDCPs indicated that they have no intentions of
changing their plans.
Now in its 12th year, the annual PLANSPONSOR/Prudential
survey of nonqualified plans collected data on executive benefit
plan design, investments, funding, and intentions from 262 plan
sponsors in February through March. Of the total, 93.1% offer
NQDCPs, up from last year's 84.7%.
Speaking of plan communications, a notable change in this
year's survey results is that more than half of NQDCPs (54%) believe
that in-person, one-on-one meetings are the most effective
method of communication with executives regarding their benefit
plans. Even at larger employers, where scheduling individual
meetings can be a challenge, 53% of plan sponsors indicate that
this is the best way to communicate with executives. By contrast,
less than one in 10 plans believes that PowerPoint presentations
or even in-person group meetings are the most effective way to
communicate with executives regarding their benefits.
" It stands to reason that in-person, one-on-one meetings
between executives and nonqualified plan experts are the best
Deferred Compensation Snapshot (262 total respondents)
Do you offer an NQDCP? What type of NQDCP do you offer?
Yes, offer
a NQDCP
All Respondents
Annual Sales/
Revenues >$1b
Annual Sales/
Revenues <$1b
93.1%
98.1%
83.9%
Voluntary
DCP
401(k) Mirror
(also known
as 401(k)
Restoration)
65.9% 22.4%
Section 457(b)
or 457(f)
DC Supplemental
Executive
Retirement Plan
(DC SERP)
71.7% 28.3% 5.8%
11.7% 33.7%
35.5%
53.7% 10.4% 23.9% 29.9%
What other types of nonqualified arrangements does your company sponsor?
Phantom
stock
All Respondents
Annual Sales/
Revenues >$1b
Annual Sales/
Revenues <$1b
Restricted
stock/RSU
10.2% 65.3%
11.6%
0.0%
67.4%
Stock options
Incentive
program
After-tax
benefit plans
(162 Bonus, etc.)
49.0% 38.8% 6.1%
51.2%
50.0% 33.3%
Other
34.9% 7.0%
66.7% 0.0%
14.3%
14.0%
16.7%
DB Supplemental
Executive
Retirement Plan
(DB SERP)
Other
21.5% 3.9%
25.4%
2.9%
13.4% 6.0%
PLANSPONSOR - April/May 2018

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