PLANSPONSOR - November/December 2017 - 36

Match Features
Match Structure
Not surprisingly, most defined contribution (DC) plans-particularly
larger plans-offer a matching contribution to participants' standard
deferrals, and most also provide matches to Roth contributions
where a Roth feature is in place. More than half of plans (56%) that
allow participants ages 50 and older to make catch-up contributions
also match those. Thirty-five percent of plans offer a " true-up "
provision for the match-whereby participant accounts are credited
at year end to ensure that the actual match received equals the
expected match based on the participant's contributions.
Plans Offering Employer Match
74.2% 68.9%
74.9%
77.5%
73.7%
Plan sponsors structure their matches in a variety of ways: Some
plans have a traditional structure, where the employer matches
dollar for dollar up to a certain percentage of participants' salaries.
Others employ a " stretched " structure to incentivize participants
to save more to get the same effective match. Nearly one
in four plans offer immediate 100% vesting of the match. Other
options include " cliff " vesting, where employees become fully
vested after a certain period, and " graded " vesting, where the
employee moves progressively toward complete vesting over time.
Match Strategy
l Traditional
(i.e., 100% of first 3%)
l Stretch
(i.e., 50% of first 6%)
l Tiered
(i.e., 100% for 3%,
50% of next 2%)
l Other formula
All
<$5mm
$5mm -
$50mm
>$50mm -
$200mm
Plans With " True-up " Match Provision
l Yes
l No
l Don't know
18.4%
34.7%
17.5%
46.9%
<3%
Exactly 3% 3% - 5% 6% or more
Plans Matching Nontraditional Contributions
65.0%
59.0%
22.1%
20.0%
6.6%
Other
When Employees Are 100% Vested in the Match
l Immediate
l 2 years or less
l 3 - 5 years (cliff)
l 3 - 5 years (graded)
l 6 years or more (cliff)
l 6 years or more (graded)
1.7%
15.6%
38.4%
24.1%
11.3%
Catch-up contributions
Roth contributions
8.9%
>$200mm
Effective Match Rate
33.8%
30.3%
15.9%
34.5%
19.3%
36 PLANSPONSOR.com November-December 2017

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PLANSPONSOR - November/December 2017

Table of Contents for the Digital Edition of PLANSPONSOR - November/December 2017

Seeking Value
2017 DC Survey: Plan Benchmarking
2017 Research Year in Review
Owning a Piece of the Firm
Breaking Up With a Fund
Reporting Requirements
PLANSPONSOR - November/December 2017 - Cover1
PLANSPONSOR - November/December 2017 - Cover2
PLANSPONSOR - November/December 2017 - 1
PLANSPONSOR - November/December 2017 - 2
PLANSPONSOR - November/December 2017 - 3
PLANSPONSOR - November/December 2017 - 4
PLANSPONSOR - November/December 2017 - 5
PLANSPONSOR - November/December 2017 - 6
PLANSPONSOR - November/December 2017 - 7
PLANSPONSOR - November/December 2017 - 8
PLANSPONSOR - November/December 2017 - 9
PLANSPONSOR - November/December 2017 - 10
PLANSPONSOR - November/December 2017 - 11
PLANSPONSOR - November/December 2017 - 12
PLANSPONSOR - November/December 2017 - 13
PLANSPONSOR - November/December 2017 - 14
PLANSPONSOR - November/December 2017 - 15
PLANSPONSOR - November/December 2017 - 16
PLANSPONSOR - November/December 2017 - 17
PLANSPONSOR - November/December 2017 - 18
PLANSPONSOR - November/December 2017 - 19
PLANSPONSOR - November/December 2017 - 20
PLANSPONSOR - November/December 2017 - 21
PLANSPONSOR - November/December 2017 - Seeking Value
PLANSPONSOR - November/December 2017 - 23
PLANSPONSOR - November/December 2017 - 24
PLANSPONSOR - November/December 2017 - 25
PLANSPONSOR - November/December 2017 - 26
PLANSPONSOR - November/December 2017 - 27
PLANSPONSOR - November/December 2017 - 28
PLANSPONSOR - November/December 2017 - 29
PLANSPONSOR - November/December 2017 - 2017 DC Survey: Plan Benchmarking
PLANSPONSOR - November/December 2017 - 31
PLANSPONSOR - November/December 2017 - 32
PLANSPONSOR - November/December 2017 - 33
PLANSPONSOR - November/December 2017 - 34
PLANSPONSOR - November/December 2017 - 35
PLANSPONSOR - November/December 2017 - 36
PLANSPONSOR - November/December 2017 - 37
PLANSPONSOR - November/December 2017 - 38
PLANSPONSOR - November/December 2017 - 39
PLANSPONSOR - November/December 2017 - 40
PLANSPONSOR - November/December 2017 - 41
PLANSPONSOR - November/December 2017 - 42
PLANSPONSOR - November/December 2017 - 43
PLANSPONSOR - November/December 2017 - 44
PLANSPONSOR - November/December 2017 - 45
PLANSPONSOR - November/December 2017 - 2017 Research Year in Review
PLANSPONSOR - November/December 2017 - 47
PLANSPONSOR - November/December 2017 - 48
PLANSPONSOR - November/December 2017 - 49
PLANSPONSOR - November/December 2017 - 50
PLANSPONSOR - November/December 2017 - 51
PLANSPONSOR - November/December 2017 - 52
PLANSPONSOR - November/December 2017 - 53
PLANSPONSOR - November/December 2017 - Owning a Piece of the Firm
PLANSPONSOR - November/December 2017 - 55
PLANSPONSOR - November/December 2017 - 56
PLANSPONSOR - November/December 2017 - 57
PLANSPONSOR - November/December 2017 - Breaking Up With a Fund
PLANSPONSOR - November/December 2017 - 59
PLANSPONSOR - November/December 2017 - Reporting Requirements
PLANSPONSOR - November/December 2017 - 61
PLANSPONSOR - November/December 2017 - 62
PLANSPONSOR - November/December 2017 - 63
PLANSPONSOR - November/December 2017 - 64
PLANSPONSOR - November/December 2017 - Cover3
PLANSPONSOR - November/December 2017 - Cover4
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