Public Retirement Research Lab A collaborative effort of EBRI and NAGDCA The State of Public Defined Contribution Plans Findings from the Public Retirement Research Lab at year-end 2019: 2.3 million participants, $113.9 billion in assets, 213 DC plans. BALANCES Average Account Balance For this study, tenure is defined By Age and Tenure 0 6 5 as the time an employee spends 2 in their current job. As expected, 31 2 22 12 1 those who had been in the same job for the longest periods of 91 time had the highest DC account 3 8 balances. Public-sector workers 7 8 6 tend to stay in their jobs longer 2 5 3 4 5 5 than their private-sector 34 04 6 counterparts. Defined benefit 2 2 5 2 1 2 2 6 1 plans remain the primary 2 1 0 3 6 retirement vehicle for most public-sector employees. 5 5 5 5 5 0 0 0 0 0 0 0 Tenure 0 0 0 0 0 0 0 0 0 0 0 0 5 5 5 5 5 10 10 10 01 20 02 02 Age 20s 30s 40s 50s 60s CONTRIBUTIONS Employee and Employer Plan Contributions Contributions increase as Average and Median employees approach retirement $4.2k age. Employer contributions 7% $3.6k represent both mandatory and 93% Average 9% voluntary contributions to DC $2.8k 91% plans; however voluntary $2.4k 15% Median 85% employer contributions are far 19% $1.6k Contributions 81% $1.5k less common than in the private $1.4k $1.2k 28% 10% $1.1k 10% Employer sector. The average contribution 16% 90% $0.7k 18% 90% 72% Contributions Employee 84% for participants in their 60s is 82% 33% Employer 67% nearly $4,200 annually; Employee the median contribution is Age 20s 30s 40s 50s 60s Age 20s 30s 40s 50s 60s $1,500 annually. LOANS Percent of Outstanding Loans and Average Loan as Percent of Account Balance The percentage of participants with an outstanding loan peaks 19.2% 16.6% 16.1% at more than 7 percent for the 14.8% age 40 cohort. Only 3 percent Loan as a percentage 10.9% of account balance of participants in their 60s had 7.3% 6.3% outstanding loans, but their 4.1% 3.0% Percent of participants loans represented nearly 20 1.1% with an outstanding loan percent of their account balance Age 20s 30s 40s 50s 60s — the highest of all the age groups. SOURCE: Matt Petersen and Jack VanDerhei on behalf of PRRL, The State of Public Sector DC Plans:A First Look at the PRRL Database, PRRL Research Study, no. 2 (February 25, 2021). © 2021 PRRL April 28, 2021 www.prrl.org $2.2k –2 $ .0k 2– –1 $9.k –2 $5.k 2– $ 1.5k –1 $ .9k –2 $8.8k –2 $9.k 2– $ .8k –1 $7.k –2 $ 3.k –3 $ .6k –2 $17.k 2– $ .4k –1 $ .4k –2 $ .k –3 $ .4k >3 $ 4.k –2 $ .4k 2– $ .9k –1 $ 7.k –2 $ .8k –3 $ .7k >3 $1 .k