6 FAQs for Plan Sponsors
previously published 6.17.2019 Download as a PDF
Question: Why do employers, as plan sponsors, offer deferred compensation plans?
of employers offer deferred compensation plans in order to create a competitive benefits package
of employers want to help plan participants save for retirement beyond the limits of qualified plans
of employers believe a deferred comp plan helps them retain key employees
of employers want to help key employees better manage current taxation
67 percent of plan sponsors report that they are concerned about losing key employees to competitors.
Q. What changes to plans are plan sponsors most likely to make?
Q. How frequently do most employers review a plan to identify needed changes?
Q. What percentage of employers contribute to their company’s plan and why?
Q. What role do employers expect financial consultants to play?
Q. What factors build satisfaction with the plan recordkeeper?
Statistics that appear in this document are drawn from The 2018 Principal Trends in Nonqualified Deferred Compensation report, an online survey of 271 NQDC plan sponsors conducted between June 25 and July 23, 2018.
This report is based on information provided by: Principal Life Insurance Company and is shared with their permission. Principal Life is a member of the Principal Financial Group®, Des Moines, IA. Principal.com
Fulcrum Partners advises you to always consult your own tax, legal, and accounting advisers.
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