PLAN DESIGN | PLANSPONSOR BEST IN CLASS 401(k) PLANS Best in Class vs. Other Plans First Steps BIC retirement plans need not be expensive. Some effective plan features come at little or no added cost. l Best in Class 401(k) plans l All other 401(k) plans Has Investment Policy Statement 100% 76% 51% 67% 5 years ago 3 years ago 1 year ago Offers Eligibility Within 3 Months 100% 100% 94% 58% 5 years ago 61% 3 years ago 64% 1 year ago Leverages Auto-Escalation 100% 100% 92% 53% 62% 34% 2022 5 years ago 35% 3 years ago 1 year ago Offers Financial Education 100% 100% 94% 88% 69% 46% 38% 5 years ago 38% 3 years ago Offers Roth Provisions 97% 97% 98% 83% 73% 67% 5 years ago 3 years ago 1 year ago 2022 32% 5 years ago 97% 79% 80% 45% 38% 3 years ago 1 year ago 43% 2022 81% 1 year ago 42% 46% 2022 5 years ago 3 years ago 1 year ago Reviews Investments Quarterly 87% 83% 54% 42% 2022 100% 92% 39% 33% 2022 2022 42% 5 years ago 44% 3 years ago 1 year ago Has Immediate Match Vesting 74% 57% 2022 50% 100% 100% 83% 100% 82% Next Steps To better participant outcomes, sponsors may need to invest additional time and capital toward plan oversight. l Best in Class 401(k) plans l All other 401(k) plans Enrolls at a Default Rate >3% 80%* 72% 85% 84% 84% 26 PLANSPONSOR.COM April - May 2022 * Estimatedhttp://www.PLANSPONSOR.COM