Trends in nonqualified deferred compensation plans
Take their word for it – this benefit is a big deal
Employers and key employees value deferred comp plans from Principal® — each for different reasons! See how the 2015 research findings compare to your current deferred comp plan experiences. Or use the information to learn how this plan can benefit your organization. A presentation of the findings is also available.
Ready for someone to help you design the nonqualified plan that’s right for your organization and key employees? We’re the No. 1 provider of deferred comp plans1 and a leading provider of defined contribution plans.2
What you really need to know
Top findings from employers
- Employers sponsor a plan to help key employees save more for retirement than a qualified plan allows, such as a 401(k) or 403(b).
- Employer contributions are optional, but important for retaining key employees and restoring a company’s qualified plan match.
- Information about plan options is what employers find most valuable to help key employees make decisions about their nonqualified plan benefits.
Top findings from key employees
- The plan’s ability to help reach retirement goals is important in their decision to stay with an employer who offers this benefit.
- Participating in the plan gives confidence in their ability to be ready for retirement.
- Factors that determine how much to defer into the plan each year are: progress toward savings goals, investment options available and one’s estimated salary and/or bonus.
1 Based on total number of NQDC plans, PLANSPONSOR 2015 NQDC Buyer’s Guide.
2 Based on number of recordkeeping plans, PLANSPONSOR Recordkeeping Survey, June 2015.