PLANSPONSOR - April/May 2020 - 6

Sponsors Respond to Pandemic
INDUSTRY ANALYSIS
T
he novel coronavirus pandemic and
its effects on the stock market have
caused speculation in the retirement
plan industry. Will plan sponsors
react with changes to their plan as in
past market crises? PLANSPONSOR
fielded a pulse survey of the sponsors
that responded to our 2019 Defined DC
Survey: Plan Benchmarking.
Overall, one-third of respondents that
offer an employer match in their DC plan
have discussed reducing or suspending it.
Brian O'Keefe, PLANSPONSOR's
director of research and surveys, notes
that, in our 2009 DC Survey, respondents
were asked whether they had reduced
or suspended their match, and 10%
reported they had done so. The survey was
conducted in the summer of 2009, about
eight to 10 months into the financial crisis.
The coronavirus-related survey showed
that 34% of the 33% cited above already have
acted or are likely to; this is roughly 10%
(11.2%) of total respondents and would track
to the 2008 outcomes.
Similar to in 2009, respondents
were asked whether they have discussed
and were considering suspending their
plan's safe harbor match. One-quarter of
those that indicated they sponsor a safe
harbor plan have discussed a suspension;
15% said they have acted, while 7%
said they are likely to act. Safe harbor
plans require that the sponsor use a
certain match formula or make a qualified
nonelective contribution in order to
avoid nondiscrimination testing. If these
contributions are reduced or suspended,
the sponsor will be subject to the testing.
Further, sponsors must give 30 days'
notice to plan participants that the match
will be suspended. -Rebecca Moore
Note: The pulse survey was fielded April 7
through 10. Three hundred eighty-seven DC
plan sponsors responded, representing a wide
range of employer sizes.
6 PLANSPONSOR.COM April - May 2020
Discussed Possible Employer Match
Reduction/Suspension
43%
33%
25%
Overall
Less than 500
employees
500 or more
employees
Among Those That Discussed Possible Employer Match
Reduction/Suspension
n Have taken action n Likely to
21%
13%
Overall
12%
Less than 500
employees
Discussed Possible Safe Harbor Match
Reduction/Suspension
25%
18%
Overall
Less than 500
employees
500 or more
employees
Among Those That Discussed Possible Safe Harbor Match
Reduction/Suspension
n Have taken action n Likely to
15%
7%
Overall
15%
3%
0%
Less than 500
employees
500 or more
employee
Source: 2019 PLANSPONSOR Defined Contribution Survey: Plan Benchmarking
30%
17%
9%
500 or more
employees
28%
38%

http://www.PLANSPONSOR.COM

PLANSPONSOR - April/May 2020

Table of Contents for the Digital Edition of PLANSPONSOR - April/May 2020

The Road Ahead
2020 DB Administration Survey
2020 Plan Sponsor of the Year Finalists
2020 PLANSPONSOR Service Stars
Same but Different
It Takes Two
Staying the Course
PLANSPONSOR - April/May 2020 - Cover1
PLANSPONSOR - April/May 2020 - Cover2
PLANSPONSOR - April/May 2020 - 1
PLANSPONSOR - April/May 2020 - 2
PLANSPONSOR - April/May 2020 - 3
PLANSPONSOR - April/May 2020 - 4
PLANSPONSOR - April/May 2020 - 5
PLANSPONSOR - April/May 2020 - 6
PLANSPONSOR - April/May 2020 - 7
PLANSPONSOR - April/May 2020 - 8
PLANSPONSOR - April/May 2020 - 9
PLANSPONSOR - April/May 2020 - 10
PLANSPONSOR - April/May 2020 - 11
PLANSPONSOR - April/May 2020 - 12
PLANSPONSOR - April/May 2020 - 13
PLANSPONSOR - April/May 2020 - 14
PLANSPONSOR - April/May 2020 - 15
PLANSPONSOR - April/May 2020 - 16
PLANSPONSOR - April/May 2020 - 17
PLANSPONSOR - April/May 2020 - The Road Ahead
PLANSPONSOR - April/May 2020 - 19
PLANSPONSOR - April/May 2020 - 20
PLANSPONSOR - April/May 2020 - 21
PLANSPONSOR - April/May 2020 - 2020 DB Administration Survey
PLANSPONSOR - April/May 2020 - 23
PLANSPONSOR - April/May 2020 - 24
PLANSPONSOR - April/May 2020 - 25
PLANSPONSOR - April/May 2020 - 2020 Plan Sponsor of the Year Finalists
PLANSPONSOR - April/May 2020 - 27
PLANSPONSOR - April/May 2020 - 28
PLANSPONSOR - April/May 2020 - 29
PLANSPONSOR - April/May 2020 - 30
PLANSPONSOR - April/May 2020 - 31
PLANSPONSOR - April/May 2020 - 32
PLANSPONSOR - April/May 2020 - 33
PLANSPONSOR - April/May 2020 - 34
PLANSPONSOR - April/May 2020 - 35
PLANSPONSOR - April/May 2020 - 36
PLANSPONSOR - April/May 2020 - 37
PLANSPONSOR - April/May 2020 - 2020 PLANSPONSOR Service Stars
PLANSPONSOR - April/May 2020 - 39
PLANSPONSOR - April/May 2020 - 40
PLANSPONSOR - April/May 2020 - 41
PLANSPONSOR - April/May 2020 - 42
PLANSPONSOR - April/May 2020 - 43
PLANSPONSOR - April/May 2020 - Same but Different
PLANSPONSOR - April/May 2020 - 45
PLANSPONSOR - April/May 2020 - It Takes Two
PLANSPONSOR - April/May 2020 - 47
PLANSPONSOR - April/May 2020 - Staying the Course
PLANSPONSOR - April/May 2020 - 49
PLANSPONSOR - April/May 2020 - 50
PLANSPONSOR - April/May 2020 - 51
PLANSPONSOR - April/May 2020 - 52
PLANSPONSOR - April/May 2020 - Cover3
PLANSPONSOR - April/May 2020 - Cover4
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https://www.plansponsordigital.com/plansponsor/october_november_2021
https://www.plansponsordigital.com/plansponsor/august_september_2021
https://www.plansponsordigital.com/plansponsor/june_july_2021
https://www.plansponsordigital.com/plansponsor/april-may_2021
https://www.plansponsordigital.com/plansponsor/february-march_2021
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