Growing Adoption of Nonqualified Deferred Compensation Plans
Newport, part of Ascensus, has partnered with PLANSPONSOR to release findings from the latest Newport/PLANSPONSOR NQDC (Nonqualified Deferred Compensation) Trends Survey. The results reveal a notable trend: more employers are acknowledging the benefits of NQDC plans for attracting and retaining key talent, which is leading to a broader implementation of these plans within their organizations.
Insights from the Survey
This report, which has been published biannually since 2020, represents the most thorough examination of employer attitudes towards NQDC plans, collecting insights from a wide range of prominent companies across the country. The findings are crucial for understanding the current trends and challenges facing the retirement landscape.
Notable Trends in NQDC Plans
One of the key findings from this survey is the increasing significance of NQDC plans among small to mid-sized businesses. Mike Shannon, Senior Vice President of NQ Strategic Development, notes that this trend highlights how these organizations are increasingly viewing NQDC plans as essential elements of their benefits offerings.
Attracting Senior Leadership Talent
As the competition for top talent intensifies, many organizations are looking to incorporate NQDC options into their overall benefits packages. This strategic approach is expected to enhance their ability to attract and retain senior leadership by providing substantial financial incentives.
Emphasis on Financial Wellness
Employers are also beginning to appreciate the value of financial wellness programs, such as budgeting help and retirement planning, as valuable additions to NQDC plans. These offerings not only boost employee engagement but also contribute to higher overall employee satisfaction.
The Importance of Effective Communication
For plan sponsors, the primary focus remains on ensuring effective communication and education for plan participants. By improving understanding and utilization of these plans, organizations can help participants fully reap the benefits they offer.
Changes in Plan Administration
There is also a growing trend among sponsors to consider changes in NQDC plan administrators. This shift is often motivated by the desire to enhance service quality, lower operational costs, or access better features, underscoring the evolving nature of service offerings in the NQDC sector.
Valuable Data for Employers
The survey is designed to gather a wide range of responses, collecting data from over 265 unique companies across 46 industries. The insights provided are invaluable for both employers and executives as they evaluate the benefits and significance of various plan design features to effectively meet workforce needs.
Utilizing Survey Insights
Financial advisors can use these insights to benchmark plan performance and discuss market trends with clients. The detailed analysis available allows stakeholders to quickly access essential information, enabling them to maximize the advantages of Newport's nonqualified plan consulting expertise.
About Ascensus
Ascensus is a leading provider of tax-advantaged savings solutions. Their offerings include a variety of services, such as third-party administration and retirement plan solutions, all aimed at helping millions of individuals secure a successful financial future.
Supporting Growth and Success
The company excels in driving the success of its clients through innovative partnerships. With a solid foundation of industry expertise and technology, Ascensus offers comprehensive administrative capabilities for retirement plans and savings programs.
About PLANSPONSOR
As a premier resource for U.S. retirement benefits programs, PLANSPONSOR is dedicated to assisting retirement plan fiduciaries in managing their responsibilities. Supported by ISS Market Intelligence, this brand provides critical data and insights that are essential for asset and wealth management firms.
Frequently Asked Questions
What is the purpose of the NQDC Trends Survey?
The NQDC Trends Survey aims to provide insights into how employers view and implement nonqualified deferred compensation plans to attract and retain talent.
Who conducts the NQDC Trends Survey?
The survey is a collaborative effort by Newport, an Ascensus company, and PLANSPONSOR, bringing together insights from various organizations.
What key trends were identified in the survey?
Key trends include increased adoption of NQDC plans, a focus on financial wellness, and a significant emphasis on communication and education for plan participants.
How does financial wellness tie into NQDC plans?
Financial wellness programs, such as budgeting and retirement planning, are becoming popular additions to NQDC plans, enhancing the overall employee benefits offering.
What is Ascensus known for?
Ascensus is recognized for providing technology and services that support tax-advantaged savings programs, helping people save for future needs.
