Page 42 - DCAC February 2024 Files

2023 457 Plan Non-Participant Survey

We are pleased to provide the results of the 2023 Deferred Compensation Program Non-Participant Survey.
With your support, we distributed a survey to eligible, non-participating employees requesting feedback on the
Deferred Compensation program. 118 employees completed the survey. Results from the survey are provided.

Key Survey Results

Demographics
• Although a broad range of participants responded representing all age groups, 34.21% of respondents
are younger than 40, representing the largest segment.
• 53.95% of respondents have worked for the County less than 5 years.
• 71.05% of respondents were female.

Employee Engagement
• 48.31% of respondents stated they do not understand how the plan works as the primary reason for not
participating in the plan.
• 14.41% indicated they are saving for retirement some other way.
• 27.12% indicated they cannot afford to save now.
• 55.37% indicated that employer matching contributions could change their mind regarding participation.

Conclusions / Assumptions
• Employees do not understand or appreciate the immediate tax benefits of participation.
• Employees do not understand or appreciate the ease of saving or long-term growth potential through
the Deferred Compensation Plan.
• A growing segment of the workforce is young and novice to saving and investing.

Conclusion
By crafting a survey for plan participants and non-participants, the County is able to assess gaps in all aspects of
the Deferred Compensation Plan, including plan design, resources, and services, that allow them to offer more
relevant content and communications regarding plan offerings. Overall, the County of San Mateo maintains a
95% participation rate with an average balance of $68,665 in the 457(b) Deferred Compensation Plan. This is
considerably higher than the average for Public Sector DC Plans.