DRESHER, Pa., Sept. 4, 2024 /PRNewswire/ -- Newport, an Ascensus company, and PLANSPONSOR released the results of the 2024 Newport/PLANSPONSOR NQDC (Nonqualified Deferred Compensation) Trends Survey. This year's survey revealed that employers are increasingly looking to use NQDC plans in their effort to attract and retain key employee talent and are expanding offering these plans to deeper levels of their organizations. The full report can be downloaded here.
The report, released biannually since 2020, is the retirement industry's broadest and most comprehensive employer perspective on NQDC plans, providing insights and trends from among hundreds of the nation's leading firms.
"We're pleased to continue our partnership on this survey with PLANSPONSOR and share this important information with the NQDC industry," said Mike Shannon, Senior Vice President, NQ Strategic Development. "This year's survey results confirmed the trend we've been seeing -- more small and mid-sized companies are implementing NQDC plans. The final report is a useful tool for employers and plan committees as the need to attract and retain key employees in today's job market continues to intensify."
Key Findings
An increasing need to attract and retain top-tier senior leadership is prompting small and mid-sized businesses to integrate NQDC plans into their benefits packages.Offering financial wellness (budgeting, debt management, investment and retirement planning) is becoming a growing trend as an added benefit to NQDC plan participants.A plan sponsor's primary goal is a continued focus on communicating to and educating plan participants.Businesses are increasingly employing a mix of corporate-owned life insurance (COLI) and mutual funds. This shift has emerged as plan sponsors recognize that leading recordkeepers with expertise in the NQDC market are capable of administering various types of trust funding.A number of plan sponsors are considering switching NQDC plan administrators to enhance service, cut costs, or access better features.
Developed jointly by PLANSPONSOR and Newport, an Ascensus company, the survey was sent to a cross-section of organizations, ranging in size, and including PLANSPONSOR subscribers, Fortune 1000 companies, and various other for-profit and tax-exempt companies. The data collected includes responses from more than 265 unique companies across 46 different industries. The survey aims to capture the current state of NQDC plans and today's issues facing advisors, plan sponsors, and their participants. The full survey report can be downloaded here.
"Nonqualified deferred compensation plans are an important recruitment and retention tool for top executives at employers of all types and sizes," says Alison Cooke Mintzer, Publisher, PLANSPONSOR, Managing Director, ISS STOXX. "The Newport/PLANSPONSOR survey shows employers continue to adjust strategies to improve the financial benefits of NQDC plans for employees while streamlining administration and securing funding."
The data provided by the report can be leveraged by both employers and executive leadership within organizations when considering the benefits and priority level of certain plan design features based on employee needs. Financial advisors also use the report in benchmarking plan success with clients, referencing the data in conversations around current market trends. The in-depth analysis provided in the report allows audiences to quickly pull key insights from the data, allowing them to take advantage of the expertise of Newport's nonqualified plan consultants.
About Ascensus
Ascensus is a market-leading enabler of tax-advantaged savings -- providing technology, services, and expertise that help millions of people save for a better future.
The company is a premier savings program service provider, third-party administrator, and government savings facilitator. Its platforms, industry knowledge, and data-based insights enhance the growth and success of its partners, their clients, and savers through co-branded, private-labeled, and governmental partnerships.
Ascensus offers comprehensive qualified and nonqualified retirement plan solutions, third-party retirement plan administration, 529 education and ABLE savings program administration, corporate- and bank-owned life insurance solutions, and fiduciary and total rewards services.
The company's brands include Ascensus; Newport, an Ascensus company; and FuturePlan by Ascensus. Ascensus has more than $818 billion in assets under administration and employs more than 5,700 associates as of June 30, 2024.
For more information, visit ascensus.com and newportgroup.com.
About PLANSPONSOR
PLANSPONSOR is the premier educational and informational resource for U.S. retirement benefits programs. Our mission is to help retirement plan fiduciaries meet their responsibilities and address challenges associated with plan management.
PLANSPONSOR is one of the media brands within ISS Market Intelligence (MI), a leading provider of data, insights, and market engagement solutions to the global financial services industry. ISS MI empowers asset and wealth management firms, insurance companies, distributors, service providers, and technology firms to assess their target markets, identify and analyze the best opportunities within those markets, and execute on comprehensive go-to-market initiatives to grow their business.
For more information, visit plansponsor.com and issmarketintelligence.com.
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SOURCE Ascensus