Despite the economic crisis caused by Covid-19, more than 90% of employers will make their retirement plan contributions this year, a stark contrast to how companies responded during the 2008-09 financial crisis when many of them suspended matching programs, according to a survey of retirement plan sponsors.

The snapshot survey by Plan Sponsor Council of America (PSCA) found that four times as many employers during the wake of the 2008-09 crisis suspended matching contributions than have done so thus far in 2020, and more than a quarter of plans suspended or reduced non-matching contributions versus only 2.3% of plans so far this year.

“Where their retirement plans are concerned, employers’ responses to current conditions seems more measured than in 2008-2009—we may be seeing the impact of lessons learned,” PSCA research director Hattie Greenan said in a statement.

The research pointed out the measured response is perhaps because the financial crisis seemed more dramatic and targeted in its impact than the pandemic, which many viewed early on as short-term. It also noted that government assistance in recent months has been considerably broader based than the bailouts created to reassure financial markets in 2008.

And while most companies are not making changes to plan contributions this year, the survey found that smaller organizations have a tougher time dealing with the pandemic's economic fallout and are more likely to suspend or reduce plan contributions. More than one in 10 (11.5%) plans with fewer than 50 participants have made changes to their matching contribution, or three times greater compared to organizations with 5,000 or more participants, the survey found.

That's a reverse from the aftermath of the 2008-09 financial crisis, when larger employers were two to three times more likely to suspend contributions than smaller companies with one to 49 employees.

The survey found that most organizations implemented at least one of the optional provisions of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, more than half of the responding plans are allowing coronavirus-related distributions, and 31% are allowing increased plan loan amounts. It also noted that half of plans in the survey are allowing participants to pause the paydown of existing loans that were due through December 1 and defer payments for up to a year. But that is much more common at large companies (73.3% versus 23%).

In addition, the survey revealed that as the pandemic's economic impact continues and the Payroll Protection Program and unemployment benefits lapse, plan sponsors are beginning to see an increase in loans. A quarter of plan sponsors indicate an increase in plan loans, up from 13% five months ago, while nearly 40% of plans noted an increase in withdrawals.

While most companies have remained committed to providing retirement plans and plan contributions for employees, the PSCA survey warns that if only 10% of the roughly 600,000 employers that currently offer workplace retirement plans suspended or reduced their contributions, the long-term impact on retirement security would be significant. “Fortunately, employers are appreciative of this impact,” it said.

The survey, which was conducted in November, included responses from 139 companies that sponsor a 401(k) plan for employees.