PLANSPONSOR - August - September 2022 - 28

PROVIDER RELATIONSHIPS | 2022 RECORDKEEPING SURVEY
457 Plans
Total 457 Plan Assets, Plans and Participants
$554b
$451b
Total assets
$554b
$316b
$229b
2013
2015
2017
2019
2021
45,796

Total plans
39,112
37,482
2013
38,775
2015
39,367
2017
2019
2021
8.6mm
8.2mm
7.8mm

6.7mm
Total participants
8,225,673
2013
2015
2017
2019
2021
2022
Largest Providers, by
Total 457 Plan Assets ($mm)
1
Voya Financial
2 Empower
3 Nationwide Financial
4 MissionSquare Retirement*
5 Fidelity Investments
6 T. Rowe Price
7 TIAA
8 AIG Retirement Services
9 Lincoln Financial Group
10 Transamerica
*Formerly ICMA-RC.
28 PLANSPONSOR.COM August - September 2022
$151,410
$138,915
$116,071
$52,442
$34,491
$12,937
$12,083
$11,435
$5,731
$4,148
Largest Providers, by
Governmental 457(b) Plans
1
Nationwide Financial
2 Voya Financial
3 MissionSquare Retirement*
4 Empower
5 Equitable
6 OneAmerica
7 Lincoln Financial Group
8 Fidelity Investments
9 Newport
10 Principal Financial Group
6.1mm
6.9mm
7,069
5,317
4,857
2,638
2,578
862
672
360
254
192
Future-Proofing
As the retirement industry continues
to evolve, benchmarking may also help
plan sponsors future-proof their offerings.
Product innovation and legislative
support are lining up to bring decumulation
solutions to retirement plans in the
not so distant future. These would be a
significant new addition to ERISA plans
and could help participants handle lifetime
retirement income. But adding in
those products will require significant
updates to recordkeeping platforms and
plan design to accommodate.
" When we look at what's available for
lifetime income right now, much of that
is handled in the annuity space, " explains
Al Otto, national director of plan governance
solutions at adviser Verity Asset
Management in Atlanta. " Annuities are
insurance products, so aligning that
with ERISA requirements will mean rule
changes. Plan sponsors are also going to
have to look closely at how those products
are created and what the total cost is. That's
going to be difficult because insurance
companies typically do not provide historical
performance or historical total cost,
both of which you need for evaluation.
41,169
39,112
2022
2022
$357b
$498b
introduces a new set of questions about
prudence, " he adds. " If you're considering
new issues such as technology improvements
or financial wellness programs, it
can be hard to place them in a historical
context because financial wellness didn't
exist 10 years ago. So it becomes much
more important to have a formal process
for comparing offerings so you come away
with something that meets the reasonableness
standard. "
These innovations can also highlight
platforms that are failing to keep up,
and that may mean those plans should
consider a change. Even if a financial
wellness program, for example, does not
make sense for a given plan, most participants
expect a modernized online platform
that includes robust cybersecurity
protections-and so does the DOL, based
on recent guidance. Benchmarking can
help highlight where platforms sit on
the continuum of those services as well.
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