PLANSPONSOR - December/January 2020 - 29

RESEARCH | 2019 PLANSPONSOR BEST IN CLASS DC PROVIDERS
LARGE MARKET: PLAN ASSETS >$200mm - $1b
HISTORY tells us that sponsor satisfaction with provider services
falls as plan size grows, so it is not surprising to see lower levels
of satisfaction in several corners of the Large Market-i.e., plans
with $200 million through $1 billion in total plan assets. But
what is surprising is that satisfaction also increased in certain
areas when compared with the Midsize Market, namely services
related to plan administration, investment offerings and fees.
Fueled by systemic changes in the industry that resulted in
open architectures and more competitive fees, large-market plan
sponsors expressed strong satisfaction with their access to traditional
investment options-e.g., nonproprietary mutual funds
and institutional share classes-and with the value to cost of the
services they receive. Ratings for fee clarity/transparency were
also high compared with other markets but were balanced off by
low ratings for custom fund structures-e.g., model portfolios,
collectives and separate accounts.
The size of Large Market plans requires that technology play
a central role in participant and sponsor servicing, yet overall
satisfaction with these offerings continues to erode. The largest
drops were associated with mobile apps and the functionality
of the sponsor website. By comparison, technologies associated
with plan administration-e.g., for payroll integration-were
often viewed as a strength.
Top 5 Large Market Providers
By Net Recommendation/Promoter Score
1 Charles Schwab
2 John Hancock
3 Bank of America
4 TIAA
5 Empower Retirement
Net Recommendation Rate, 2015 - 2019
62.4%
57.3%
55.9%
57.0%
2015
2016
2017
55.4%
2018
2019
Other providers and their recommendation percentage
listed in this market: Fidelity Investments (53.3%); MassMutual
(46.7%); Milliman (47.4%); Transamerica Retirement Solutions
(26.7%); T. Rowe Price (41.2%)
Investment/Fees
1 Milliman
2 Charles Schwab
3 John Hancock
4 Bank of America
5 Empower Retirement
% >8 out of 10 # of s
84.3%
83.7%
83.3%
77.0%
74.7%
3
3
3
3
3
Service Satisfaction for Top 5 Providers
Ordered by Net Recommendation/Promoter Score
= Best in Class
Plan Administration
1 Charles Schwab
2 John Hancock
3 Milliman
4 Bank of America
5 MassMutual
Technology
1 Bank of America
2 John Hancock
3 Milliman
4 Charles Schwab
5 Empower Retirement
Participant Education
1 John Hancock
88.6%
85.7%
84.6%
61.5%
54.5%
2 Bank of America
3 Milliman
4 Charles Schwab
5 TIAA
Sponsor Services
1 Bank of America
2 Charles Schwab
3 John Hancock
4 Milliman
5 MassMutual
% >8 out of 10 # of s
83.7%
82.4%
80.6%
74.8%
71.6%
5
5
4
5
% >8 out of 10 # of s
66.4%
66.3%
64.4%
59.9%
54.1%
5
5
2
3
1
% >8 out of 10 # of s
79.3%
75.2%
72.3%
70.6%
67.0%
5
6
3
4
4
% >8 out of 10 # of s
92.2%
91.9%
88.3%
81.3%
70.0%
3
3
3
3
2
PLANSPONSOR.COM December 2019 - January 2020 29
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PLANSPONSOR - December/January 2020

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