The recent volatility in the stock markets has once again shifted employees’ focus to retirement savings plans. While saving for the future is important, employees are questioning which options are the most beneficial. The 2011 Compensation Data Not-For-Profit survey results indicate that 66.9 percent of employees were enrolled in a defined contribution plan, virtually no change from the 66.8 percent reported in 2010. Just 6.1 percent of not-for-profit employers surveyed reported offering a defined benefit plan only, 50.4 percent offer a defined contribution plan only and more than 42.5 percent offer both.
“Fifty-four percent of employers expected between 25 and 75 percent of their staff to contribute to a retirement plan in 2011 according to an informal poll conducted on our website,” said Amy Kaminski, director of marketing for Compdata Surveys, the nation’s leading pay and benefits survey data provider. “Another 18.6 percent anticipated more than 75 percent of their staff would utilize retirement plans last year.”
According to the 2011 survey, the most common plans for not-for-profit organizations were 403(b) with employer contribution and 457(b) employee savings only. More than 40 percent of organizations offer a 403(b) plan with employer contribution while 30 percent offer 457(b) plans with employee savings only. More than 29 percent of organizations offered 401(k) plans with employer contribution in 2011, up from 27.5 percent last year.
The way organizations contribute to employee retirement plans varies with 44.2 percent of organizations utilizing a standard match formula in 2011. Fewer not-for-profit employers are using a fixed percentage of employee’s pay. Nearly 46 percent of companies reported using a fixed percentage of employee’s pay in 2009, compared to 40.3 percent in 2010 and 39 percent last year.
All 401(k), 403(b) and 457(b) and (f) plans were reported as fully vested within seven years with 42.1 percent vested immediately. For other plans, 7.7 percent of plans were vested immediately while 57.1 percent were vested after five full years of employment.
About the Survey
Compensation Data 2011 Not-For-Profit contains data on more than 450 titles ranging from entry-level to top executives. The results feature data from more than 400 not-for-profit organizations reporting on nearly 1,300 locations across the country. The results provide a comprehensive summary of pay data, benefit information and pay practices with an effective date of March 1, 2011.
Compdata Surveys is the nation’s leading compensation and benefits survey data provider. Thousands of U.S. organizations provide data each year ensuring the reliability of our results. Compdata Surveys has been providing comprehensive data at affordable prices to organizations from coast to coast since 1988. For further information about the compensation and benefits surveys, contact Michelle Willis at (800) 300-9570.