NAPA Net - Polling Places 102122

Is There Talk of Trimming Matches?

You may have missed the headlines, but in recent weeks a couple of employers have announced the suspension of their 401(k) matches. Are any of your plan sponsor clients/prospects discussing reducing or suspending their match?

While there appears to be some debate as to whether we’re in a traditional recession or not – regardless, and certainly in some industries, it’s clear that we’re not quite back to “normal.” In previous recessions – certainly post the tech “bubble” in 2003[i] and during the wake of the so-called “great recession” of 2007-08, some employers did[ii] – briefly – reduce and/or suspend their matches (among other cost-cutting measures). And as noted above, a quick internet search does turn up a couple (see loanDepot suspends 401(k) match for employees while boosting exec pay, Gannett asks employees for unpaid leave, suspends 401(k) match, and more) – though only a couple.

This week, we’re curious if you’re hearing any of those “rumblings” in your meetings with plan sponsors – or if, as it seems right now – these are just isolated reports.

Question Title

* 1. Have you heard of any plans suspending or cutting their 401(k)/403(b) match for next year?

No.

There's been discussion, but nothing serious.

Yes.

any comments on the above?

Question Title

* 2. Have any of the plans you work with cut or suspended their 401(k) match for next year?

There's been discussion, but nothing serious.

Yes.

No.

any comments on the above?

Question Title

* 3. Are any of the plans you work with planning to increase their 401(k) match for next year?

There's been discussion, but nothing serious.

No.

Yes.

any comments on the above?

Question Title

* 4. Other comments about company matches, changes in company matches, talk about changes in company matches, or life in general?

Question Title

* 5. What is your role working with retirement plans?

Advisor

Provider

TPA

Plan sponsor

Recordkeeper

Wholesaler

Consultant

Other (please specify)

Question Title

* 6. What size plans do you PRIMARILY work with?

Under $10 million in assets

$10-$20 million

$20-$50 million

$50-100 million

$100 million - $250 million

$250 million - $500 million

Above $500 million

Other (please specify)

Question Title

* 7. Suggestions for future survey questions? Seriously - what would you like to know about/from your fellow NAPA-Net readers? Or what would you like to be asked?

Question Title

* 8. All responses are confidential, of course - but just in case you would like a response - or want me to know you responded - or just want to say hi - here's your chance to do so (don't forget your email)!