PLANSPONSOR - 2010 Year In Review

2010 Defined Benefit Administration Survey

paced transaction industry (just 58.5% of DB transactions are done online), but it is a market that, like its millions of participants and beneficiaries, will not fade away any time soon.

Top Five Providers

total DB plans

1 Aon Hewitt

2 Principal Financial Group 3 Prudential Retirement

4 Mercer Outsourcing 5 CUNA Mutual Group

sponsors/Clients by plan size
- Less than 100 participants
- 100-999 participants
- 1,000-4,999 participants
- 5,000-9,999 participants
- 10,000-24,999 participants
- 25,000-50,000 participants
- More than 50,000 participants
Survey Stats

6/09 6/10

2,888 3,007

1,348 1,438 692 762 254 275 264 288 116 124 127 138

1,638

1,318

1,136 976 822

total DB participants
1 Aon Hewitt
2 Affiliated Computer Services, Inc.
3 Fidelity Investments
4 Towers Watson
5 Morneau Sobeco

9,027,189

4,765,624

4,490,603

2,902,681

2,037,943

total plans by status
- Active/Open Plans
- Closed Plans
- Frozen Plans
- Terminated Plans

6/09 6/10

5,122 5,273

1,270 1,262

1,420 1,662 95 79

Most DB participants Added (6/09–6/10) 1 Aon Hewitt 2 Towers Watson 3 Diversified Investment Advisors 4 Mercer Outsourcing 5 Milliman

661,123

475,927

358,000

223,186

122,034

total plans by type
- Corporate Pension Plans
- Public (non-governmental) Pension Plans
- Government Pension Plans
- Multi-Employer/ Taft-Hartley Plans
- Church Plans
- Hospital Plans
- DB(k) Plans
- Other

6/09 6/10

7,890 8,074

85 93

246 247

129 127

146 129

324 384 35 61 57

Average Client Relationship Length
1 Principal Financial Group
2 Prudential Retirement
3 CUNA Mutual Group
4 McCready and Keene, Inc.
4 Mercer Outsourcing

28 years 27 years 26 years 25 years 25 years

total participants by type
- Active participants
- Separated participants
- Retired participants

6/09 6/10

13,059,144 14,053,212

7,174,220 6,982,929

8,319,043 9,452,751

Number of traditional DB plans
1 Principal Financial Group
2 Prudential Retirement
3 Aon Hewitt
4 CUNA Mutual Group
5 Mercer Outsourcing

1,264 1,124 1,090

784

476

MethODOLOgy: PLANSPONSOR’s first annual Defined Benefit Administration Survey questionnaire was distributed to providers of defined benefit plan recordkeeping services. The questionnaire, which asked for approximately 100 different data points related to a provider’s experience and capabilities, was available for providers to complete in October 2010. A total of 28 responses were received. All data are as of 06/30/2010; historical data are compared to matching data from 06/30/2009. A summary of the survey’s results can be found on the pages that follow. The complete data set is available for purchase from PLANSPONSOR’s Research & Surveys group. For more information, including samples, description, and costs, please contact Brian O’Keefe ( bokeefe@assetinternational.com).

Number of Cash Balance/hybrid plans
1 John Hancock Retirement Plan Services
2 Mercer Outsourcing
3 Aon Hewitt
4 Fidelity Investments
5 Affiliated Computer Services, Inc.