PSCA Eligibility Survey

As a member of the Profit Sharing/401(k) Council of America (PSCA) Markley Actuarial participated in and is pleased to share with you the 2009 401(k) and Profit Sharing Plan Eligibility Survey. If you are interested in the full report, please click on one of the hyperlinks below.  Please share this summary with anyone who might be interested. 

Markley Actuarial is a leader in 401(k) and Profit Sharing Plans, and would be happy to review your plan. 

 

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The Profit Sharing/401k Council of America (PSCA) has released its 2009 401(k) and Profit Sharing Plan Eligibility Survey. This snapshot survey investigates eligibility practices of 494 companies. Click here  for the full report.

Overview of Results:

  • 97.0 percent of the plans permit employee contributions to an employer-sponsored defined contribution plan, and 72.3 percent of the plans offer employer matches. 56.1 percent of the responding companies make non-matching company contributions. 
     
  • The trend toward shorter eligibility periods continues. 57.4 percent of all plans and 71.1 percent of plans with 1,000 or more employees now permit immediate participation in their 401(k) programs. Employees are eligible to participate within the first three months of employment at 75.8 percent of companies and at 85.5 percent of large companies (1,000 or more employees). Only 11.5 percent of all plans have a one-year or longer service requirement prior to eligibility. 
     
  • For both matching and non-matching contributions, there is a trend away from one-year eligibility requirements; although, significantly more companies require one year or more of service to be eligible for non-matching contributions. In 2009, only 28.5 percent of companies required one year of service or longer for matching contribution eligibility, while 47.1 percent of employers require one year or more of service to be eligible for non-matching company contributions. 
     
  • A large percent of plans have no minimum age requirement for participant deferrals (43.9 percent) or for non-matching company contributions (44.0 percent). 21 years old is the most prevalent minimum age requirement (30.8 percent of plans), though 24.3 percent require a person to be 18 years old before they can contribute to the plan.