The Profit Sharing/401k Council on Thursday issued the results of a survey on benchmarks for 403(b) plans, so that the not-for-profit sponsors of such plans can gauge how well they are running them, in terms of such details as the employer match, funds offered and participation rate. In the past, 403(b) sponsors could only obtain 401(k) data.
As the council said, 403(b) plans play a key role in attracting and retaining employees in the not-for-profit world. Until now, there has been very little data available to help these groups benchmark their plans against other not-for-profits, the council said.
Principal Financial Group sponsored the survey, conducted among 38 403(b) plans across the country. It showed that 41% of respondents will be making changes to their plans to comply with the new 403(b) regulations. In addition, 53% of 403(b) plan sponsors offer a match, compared with only 36% of the sponsors of 401(k)s.