Findings from the 13th annual Prudential-PLANSPONSOR Executive Benefits Survey show employer sponsorship of nonqualified deferred compensation plans (NQDCPs) to be as strong as ever at 91%—and informal funding, a popular strategy for financing plan liabilities, increasing three percentage points in prevalence to 59% of responding companies. This year’s survey results also saw a modest jump in the overall NQDCP participation rate from 44% in 2018 to 47% in 2019.
And what specific factors help drive participation? Over the years, this survey has collected volumes of data to track myriad factors that influence an eligible individual’s decision whether to enroll in a company-sponsored NQDCP. And while employers’ top reasons for offering a plan have been consistent over time, what is most important to potential NQDCP plan participants can vary with the economic climate, tax rates, and inclusion or exclusion of certain plan design features.