PLANADVISER - September/October 2017 - 8

data points
Larger Plans Offer Many Benefits
Companies midsized and up are likelier to offer NQDCs, HSAs and more
WHILE 401(k) plans have become prevalent
across companies of all sizes,
employees at larger firms enjoy greater
access to a wider range of additional
benefits than do those at smaller firms.
Obviously, larger companies have
greater access to the resources and scale
needed to offer various supplemental
plans. The latest data from the U.S.
Census Bureau-i.e., from 2012-indicates
that 51.6% of American workers
are employed at companies with 500
employees or more. This would suggest
that these workers are being equipped
with more resources to achieve financial
security. This also means nearly
half of American workers are not.
Additional benefits such as nonqualified
deferred compensation (NQDC)
plans, defined benefit (DB) plans and
health savings accounts (HSAs) are far
more prevalent among midsize, large
and mega plans than they are among
micro and small plans. For example,
28.5% of large and 41.8% of mega plans
have NQDC plans, yet only 1.5% of micro
and 4.9% of small plans have them,
according to the 2016 PLANSPONSOR
Defined Contribution (DC) Survey.
DB plans can be found among 71.3%
of large and 81.9% of mega plans but
only 24.8% of micro and 28.7% of small
plans-although at the larger companies
they are more likely to be closed
to new entrants or frozen than at micro
companies where they may be active.
HSAs are available at 68.2% of large and
78.6% of mega plans but only 31.0% of
micro and 48.2% of small plans.
Larger plans may even offer retiree
health benefits: 46.1% of large and 62.0%
of mega plans provide these, while a
mere 3.3% of micro and 10.7% of small
plans do. Access to 529 college savings
plans are offered at 22.4% of large
and 18.0% of mega plans but at only
3.5% of micro and 9.7% of small plans;
tuition reimbursement is available to
employees at 79.6% of mega plans but
only 22.9% of micro plans. -Lee Barney
Types of DC Plans Offered
Overall
401(k)
403(b)
457
Money purchase
Profit sharing
ESOP
KSOP
NQDC
SEP
SIMPLE IRA
Other
Micro
Small Mid size
Large
Mega
85.8% 90.8% 86.1% 78.2% 78.5% 83.3%
11.4% 6.2% 11.1%
1.1%
2.7% 3.5%
16.9% 21.0% 16.3%
11.9% 4.2% 11.3% 18.9% 24.4% 24.8%
2.4%
3.9% 3.9%
19.2% 17.0% 22.7% 20.2% 19.3% 10.6%
3.9% 3.7% 4.1%
3.3%
1.1%
0.5% 0.3% 0.4% 0.6%
9.2%
1.0% 0.7%
9.9% 1.5% 4.9% 16.1% 28.5% 41.8%
0.5% 0.4% 0.5%
0.6%
0.9% 0.2% 0.4%
0.6%
3.8% 2.9% 2.7% 4.0% 6.6%
Types of Workplace Retirement/Savings Plans Offered
Overall
Micro
DB plan - traditional
DB plan - cash balance
DB plan - hybrid
Any DB plan
Equity compensation plan
Health savings accounts
Retiree health benefits
529 college savings plan
28.9% 21.3% 24.1%
7.7% 3.4% 4.6%
2.9% 0.8%
0.7% 0.9% 0.2% 0.0%
9.9%
Small Mid size
Large
Mega
1.9% 4.1%
32.8% 50.3% 56.3%
8.5% 16.8% 34.1%
4.0% 18.1%
36.0% 24.8% 28.7% 41.5% 71.3% 81.9%
10.9% 2.0% 6.2% 16.4% 32.0% 47.1%
47.5% 31.0% 48.2% 60.0% 68.2% 78.6%
16.8% 3.3% 10.7% 25.0% 46.1% 62.0%
10.3% 3.5%
9.7% 19.8% 22.4% 18.0%
Types of Programs Offered to Assist With Higher/Continuing Education
Overall
Micro
Tuition reimbursement
Student loan repayment
None
Small Mid size
47.1% 22.9% 50.8% 66.1%
Large
Mega
74.4% 79.6%
2.2% 1.2% 2.0% 3.5% 4.2% 2.2%
50.7% 74.6% 48.1%
Source: 2016 PLANSPONSOR Defined Contribution Survey
31.1% 22.6% 16.8%
8 | planadviser.com september-october 2017
http://www.planadviser.com
PLANADVISER - September/October 2017

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