COVID-19 Loan and Distribution Take-Up Survey

We are not quite 60 days past the signing of the CARES Act, legislation that, depending on plan adoption decisions, significantly expanded participant access to their retirement accounts. Are you seeing an uptick in that activity?

Early information from recordkeepers suggests that withdrawal and loan rates in the first quarter (pre-CARES, and mostly pre-pandemic) were, if anything, a bit lower than normal. Early surveys (including one by sister association the Plan Sponsor Council of America (PSCA)) suggested that many plan sponsors were taking a thoughtful approach to adoption of the expanded withdrawal and loan provisions.

Realizing that a wide range of factors – geography, industry, exposure to COVID, etc. – not to mention the availability of the new withdrawal and loan provisions - can impact the volume of pre-retirement distributions, we’re curious as to if you are seeing any change in loan and withdrawal volumes post-CARES (adopted on or after 3/27/20).

Question Title

* 1. Have your plan sponsor clients adopted the expanded COVID-19 withdrawal provisions (Coronavirus-related withdrawals, or CRW)? ?

Yes, all have.

Most have.

Some have.

A few have.

Most have not.

None have.

Question Title

* 2. Generally speaking, among the plans you work with that have adopted the new COVID-19 withdrawal option, how has the volume of CRW withdrawals compared with normal hardship withdrawal volumes?

About 10% higher.

About 25% higher.

About 50% higher.

More than 50% higher.

It's about the same as normal.

It's actually fewer than normal.

Any comments/observations?

Question Title

* 3. Generally speaking, among the plans that have adopted CRW, what level of use have you/they experienced (remember to exclude regular hardship withdrawals, in-service withdrawals and post-separation withdrawals)?

None

Fewer than 1% of participants

1% - 3% of participants

4% - 6% of participants

7% - 9% of participants

10+% of participants

N/A

Any comments/observations?

Question Title

* 4. Have your plan sponsor clients adopted the expanded COVID-19 loan provisions?

Yes, all have.

Most have.

Some have.

Most have not.

None have.

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* 5. Among the plans that have adopted the new COVID-19 loan option, have you/they noticed an increase in loan requests?

About 10% higher.

About 25% higher.

About 50% higher.

More than 50% higher.

It's about the same as normal.

It's actually fewer than normal.

N/A - haven't adopted the loan provisions.

Any comments/observations?

Question Title

* 6. Where are most of the clients who have adopted the COVID provisions located?

Northeast

Mid-Atlantic

Southeast

Northwest

Midwest

Mountain states

West coast

Spread all over.

Any comments/observations?

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* 7. Comments about the adoption of these provisions, take-up rate(s) under these provisions, or how you see those rates changing in the weeks ahead?

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

Advisor

Provider

TPA

Plan sponsor

Recordkeeper

Other (please specify)

Question Title

* 9. 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

* 1. Have your plan sponsor clients adopted the expanded COVID-19 withdrawal provisions (Coronavirus-related withdrawals, or CRW)? ?

Question Title

* 2. Generally speaking, among the plans you work with that have adopted the new COVID-19 withdrawal option, how has the volume of CRW withdrawals compared with normal hardship withdrawal volumes?

Question Title

* 3. Generally speaking, among the plans that have adopted CRW, what level of use have you/they experienced (remember to exclude regular hardship withdrawals, in-service withdrawals and post-separation withdrawals)?

Question Title

* 4. Have your plan sponsor clients adopted the expanded COVID-19 loan provisions?

Question Title

* 5. Among the plans that have adopted the new COVID-19 loan option, have you/they noticed an increase in loan requests?

Question Title

* 6. Where are most of the clients who have adopted the COVID provisions located?

Question Title

* 7. Comments about the adoption of these provisions, take-up rate(s) under these provisions, or how you see those rates changing in the weeks ahead?

Question Title

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

Question Title

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

Question Title

* 10. All responses are confidential, of course - but if you'd be open to the potential for a followup email/call, please provide contact information.