More Employers Say NQDC Helps with Retention

More employers say recruitment and retention are among the top reasons for offering nonqualified deferred compensation plans to their key employees.

The vast majority of plan sponsors (91%) say nonqualified deferred compensation plans are important to provide a competitive package for recruiting employees, a seven percentage point increase from 2011, according to findings from a study of employers and their key employees conducted by Boston Research Group on behalf of the Principal Financial Group. Eighty-six percent of plan sponsors say these plans are important as a retention tool, up eight percentage points from 2011.   

Key employees confirm nonqualified plans factor into employment decisions; 69% say these plans are important when making a decision to take a new job, and 61% report the plans are important in their decision to stay with a current employer.  

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The number of participating employees contributing $25,000 or more to nonqualified deferred compensation plans has steadily increased over the last three years, at 44% in 2012. Participants also plan to save more in these plans, with one in three (35%) planning to increase their contributions in the plan over the next year.   

The research also found more than three-fourths (78%) of key employees report reviewing their investment allocation quarterly or more frequently. More than half (53%) sought advice from a financial professional, yet 59% do not have a written plan that includes goals and sources of retirement income. Nearly nine in 10 key employees say nonqualified deferred compensation plans are important in reaching retirement goals.  

More insights from the 2012 study are available at www.principal.com/nqresearch.

3D Asset Mgmt Adds to Sales Team

Timothy Baker, Tom Chimirri and Edwin Nunez joined 3D Asset Management Inc. as regional vice presidents on the business development team.

The three will report to Vincent Leon, national sales manager at 3D Asset Management, and each will be responsible for building new relationships offering both retirement and non-retirement adviser solutions to businesses of all sizes and industries. 

Baker joins 3D from Symmetry Partners, where he managed key relationships with advisers, broker/dealers and registered investment advisers across the U.S. At 3D Asset Management, he will serve as the regional vice president for the Southeast region. Before his position at Symmetry, Baker was an adviser for Prudential. He holds bachelor’s and master’s degrees in business administration from Southern Connecticut State University and has a Series 66 securities license.

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Chimirri will be responsible for the North Central region. He has 15 years of industry experience. He came to 3D from Legg Mason Global Asset Management, where he served in several sales roles of increasing responsibility. He has worked at the Hartford, Phoenix Companies, Manulife and Cigna. Chimirri holds a bachelor’s degree in business administration from the University of Hartford, and has Series 7 and Series 63 securities licenses.

Nunez will be responsible for the Northwest Territory. Previously, he was a regional sales director in sales and distribution at Credit Suisse Structured Notes for Financial Products LLC. Nunez was regional vice president for Pioneer Investments and Fred Alger Management. He holds a bachelor’s degree in management information systems from Syracuse University, and has Series 7, 63 and 66 securities licenses.

3D Asset Management is an investment manager that provides a range of global portfolios to retirement plans and individuals.

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