Enrollment Statistics on SH Match vs SH Nonelective

I am looking to gather data to compare plan enrollment statistics between Safe Harbor Match and Safe Harbor Nonelective contributions. The assumption is that offering a SHNE may not provide employees with an incentive to enroll for elective deferrals, as they would receive the contribution regardless of their participation.

Ms Emily,

I don’t have the stats only opinions. 
1. SHNE likely doesn’t offer the same incentive as SHM.

2. People shouldn’t need an incentive to help themselves.

3. We have to design plans to accomplish what the owners need as well.

4. Congress (and IRS) made the rules. We just have to live with them.

5. I wish Congress (and IRS) would stop changing the blanking rules so often.

I agree, Emily S.  My experience is that SHNE is used when the sponsor wants all eligible employees to receive a contribution, regardless of whether or not they can or wish to save their own money.

I'll just add that especially in the small plan market, the SHNE is VERY commonly used instead of the match as it does count toward satisfying the  "gateway" contribution, (if gateway is required) whereas the match does not. 

And to Bill's points 4 and 5 above: whenever I start feeling like wallowing in self-pity, I look at the first line of IRC 401(a)(4), and then curse the IRS for the incredible volume of regulations issued for this requirement:

(4) if the contributions or benefits provided under the plan do not discriminate in favor of highly compensated employees (within the meaning of section 414(q)).

Of course, the flip side of the coin is that without all the onerous regulations, I'd be standing in line for the soup kitchen...

Agree with all of the above - usually see SHNE when plan also has cross-tested PS and if in combination with a CB plan. When owner is just looking to defer maximum with as little employee cost as possible, then it's always the SHM. The situations in between then usually depend on the owner's or owners' attitude (and pockets) toward employee benefits.

@EmilyS Sorry for the late reply, it sometimes takes me a while to get through the message boards.  I agree with everyone above, but to answer your original question, you might want to check out the Plan Sponsor Magazine's annual benchmarking data - you will more than likely have to pay for that (if you company doesn't participate).  But they provide a general all plan sponsor benchmark report, and then some specific industry benchmark reports - that will probably provide you the best source of data for what you are looking for - at least in terms of how many plans offer SHM vs SHNE.  Good Luck in your data gathering.