PSCA Releases Non-Qualified Plan Survey

The survey found non-qualified plans continue to be more common among large companies, with fewer than 10% of small companies (fewer than 500 employees) offering a non-qualified plan versus 70% of companies with 25,000 or more employees. On average, 8% of all employees are eligible to participate in their company’s non-qualified plan and nearly two-thirds of eligible employees participate.  

According to the survey findings, the majority of plans are “account balance” plans similar to qualified defined contribution plans (83%), as opposed to “non-account balance” plans which are similar to a defined benefit plan. About 40% of plans match on employees’ contribution in account balance plans and 45% provide a non-matching employer contribution.   

Only 28% of plan sponsors feel their plan has completed or met their overall objectives.