While participation rates for 401(k) plans saw a decline in 2022, participation subsequently increased in 403(b) plans during the same time period. This growth proved to be a record high for 403(b) plans and participants.
The findings come from PSCA's 2023 403(b) Survey, sponsored by HUB International and Principal Financial Group. The study looked at 250 nonprofit organizations that sponsor 403(b) plans for their employees, and compared them to their private sector counterparts.
Nonprofit employees, on average, were more consistent with their retirement investment than most private sector employees. Four in five (80%) eligible employees contributed to their plans in 2022. Nonprofit organizations also pulled their weight, contributing an average of 30% more to employee accounts – more than $6,000 per participant.
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