Plan sponsors and the economic downturn

PSCA Board members shared what was going on at their companies at the PSCA’s May 13-15, 2009 Board of Directors meeting. All members are dealing with the impact of the economic downturn on their business and their plans.  Some members have suspended their matching contributions.  All members are examining strategies to lower plan costs while simultaneously dealing with the increased participant activity and communications issues driven by declining account balances.  Some plan investments are being scrutinized based on their performance in the downturn. Some members are delaying planned automatic enrollment implementation and other plan changes until the economy and markets stabilize.  Because of the downturn, some members are reconsidering annuity products.  Companies with defined benefit plans are confronting significantly higher funding requirements. What’s happening at your company? Let me know.

David