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Match Moves Minimal in 2016, But What About 2017?

A new survey finds that while most plan sponsors did not change their company match in 2016, there was some notable activity among those that did.

According to Callan’s 10th annual “Defined Contribution Trends Survey,” (free registration required) the top activity reported by those making a change in 2016 was to restructure the company match, in order to:


  • reduce the vesting requirement;

  • change the match level in response to closing the DB plan;

  • make the match consistent across locations;

  • add a profit-based match, or

  • replace the match with a non-matching contribution.


While 20.8% of plan sponsors said they increased the company match in 2016, 12.5% reduced it and 4.2% eliminated it. In contrast, no plan sponsors reported eliminating the match in 2015, and more reported increasing it.

The top reported prospective activity is changing to a stretch match (i.e., restructuring the match to encourage higher savings levels). However, nearly a third of plan sponsors are unsure about the fate of the company match in 2017.

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