New research finds U.S. employers, on a quest to attract and retain talent, are making enhancements to their nonqualified retirement plans.
Most large employers currently offer nonqualified retirement plans to executives and high-income workers. These plans allow for pre-tax deferral of compensation, employer contributions and/or compensation amounts that are not captured in the qualified plan due to IRS limits.
The WTW Nonqualified Retirement Benefit Survey found over half of respondents (55%) either made changes to their nonqualified defined benefit (DB) retirement plans in the past two years or plan to make changes in the next two years.
Even more employers (75%) changed their nonqualified defined contribution (DC) retirement plans in the past two years or plan to do so in the next two years. See more key findings.