PLANSPONSOR - December/January 2021 - 28

2020 PLANSPONSOR BEST IN CLASS DC PROVIDERS
MEGA MARKET: PLAN ASSETS >$1b
RECORDKEEPING Mega Market plans, each of which typically
accounts for more than 20,000 participants and generates
millions of transactions yearly, is understandably hard. Given the
size and complexity of such plans, even the best providers will find
it hard to avoid administrative or service issues, which may help
explain why net satisfaction ratings here remain lower than those
in other asset ranges. Still, such gaps in expectations often fail
to outweigh the significant switching costs associated with mega
plans. As a result, over 75% have worked with their current recordkeeper
for more than seven years.
Overall, mega plans view participant technologies as a key
area needing improvement. For example, COVID-19 accelerated
interest in employee financial advice, guidance and wellness
options, yet mega plans had the greatest dissatisfaction recorded in
the survey. Looking beyond these categories, plan sponsors were
also critical of the level of flexibility of recordkeeping systems and
their perceived inability to meet the unique needs of mega plans.
The good news is that the central role technology plays in
supporting these plans means service innovations and improvements
can occur quickly. Last year, satisfaction with plan analytics
and benchmarking was at a record low, but in 2020 that satisfaction
grew and now exceeds that of several other services.
Top 5 Mega Market Providers
By Net Recommendation/Promoter Score
1 Charles Schwab
1 Principal Financial Group
3 T. Rowe Price
4 Voya Financial
5 Empower Retirement
Service Satisfaction for Top 5 Providers,
By Net Recommendation/Promoter Score*
= Best in Class
Participant Services
1 Principal Financial Group
2 Charles Schwab
3 Empower Retirement
4 T. Rowe Price
5 Voya Financial
Plan Sponsor Services
1 Principal Financial Group
2 Charles Schwab
3 T. Rowe Price
4 Voya Financial
5 Fidelity Investments
Service Teams and Support
1 Principal Financial Group
2 Charles Schwab
100.0%
100.0%
82.4%
76.5%
66.7%
Mega Market Net Recommendation Rate, 2016 - 2020
62.4%
52.8%
45.6%
2016
2017
40.4%
2018
44.6%
2019
2020
Other providers and their recommendation percentage listed
in this market: Fidelity Investments (45.5%)
*For an explanation, please see " Net Promoter Score, " page 18.
28 PLANSPONSOR.COM December 2020 - January 2021
3 Voya Financial
4 T. Rowe Price
5 Empower Retirement
Plan Administration
1 Charles Schwab
2 Principal Financial Group
3 Voya Financial
4 T. Rowe Price
5 Empower Retirement
Investments and Fees
1 Charles Schwab
2 Principal Financial Group
3 Voya Financial
4 T. Rowe Price
5 Empower Retirement
% ≥9 out of 10 # of s
81.7%
73.8%
64.9%
62.1%
59.9%
5
6
4
3
1
% ≥9 out of 10 # of s
91.7%
89.5%
64.6%
53.3%
50.0%
3
3
3
% ≥9 out of 10 # of s
94.9%
93.9%
83.8%
79.0%
69.9%
4
4
4
4
3
% ≥9 out of 10 # of s
98.7%
90.1%
72.3%
68.8%
67.0%
6
6
4
5
5
% ≥9 out of 10 # of s
4
4
3
3
95.7%
84.4%
67.6%
63.0%
62.7%
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PLANSPONSOR - December/January 2021

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