PLANSPONSOR - December 2017/January 2018 - 9

Plan Analysis
W
Highlights of BrightScope's proprietary research
Steady Growth
hen Americans lament the
death of pension plans, it is
often in the context of what the
employer once did for the employee. Often
not discussed are the actual employer dollars
that went into these pensions, and how
that money might compare with what is put
into various retirement plans now. It is particularly
interesting to note that employer
dollars as a percentage of employee contributions
increased from 2010 through 2016,
according to BrightScope data. Employers
are making a larger percentage of dollar
contributions to the defined contribution
(DC) marketplace than ever before.
While many employees may be upset
that they have no access to a defined
benefit (DB) plan, there is reason to
emphasize the value and dollar amount
employers contribute to DC plans. When
considering that the single most critical
driver of one's retirement income accumulation
success is how much is put in,
it is clear that employer contributions will
be a meaningful multiplier to participant
retirement outcomes and industry flows.
What has been driving the increase
in employer contributions? The overall
numbers make it difficult to determine
exactly, but one can guess that it is related
to the increased usage of automatic
enrollment and " auto " -escalation. The
employer-match auto-deferral rates are
often the most powerful guide to a participant's
saving level. Also, with plan sponsors
setting higher initial default deferral
rates, continued growth is anticipated.
The 2017 PLANSPONSOR Defined
Employer to Participant Contributions ($ billions)
n Employer contributions n Participant contributions
$159
$108
$113
$169
$119
$179
$126
$190
$134
$202
$141
$217
$139
$218
Contribution Survey indicates that nearly
47% of plans that use auto-enrollment have
a default rate of 4% or higher, and that has
been a growing trend. Interestingly, plans
with higher default deferral rates tend to
have higher overall employee deferral rates.
These higher rates across a larger participation
segment can increase employer contributions
overall.
Companies will continue to examine
their plan contributions, whether made as
matches or profit-sharing contributions, or
in other forms. Proponents of the recently
signed tax bill have cited the low business
rate, pointing out that employers can reinvest
that in the company and in employees.
Whether this will lead to increased retirement
plan savings remains to be seen, but
it is a possibility. -PS
Source: BrightScope Defined Contribution Plan Database. Like PLANSPONSOR, BrightScope is a Strategic Insight company.
2010
2011
2012
2013
2014
2015
2016
PLANSPONSOR.com December 2017-January 2018 9

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PLANSPONSOR - December 2017/January 2018

Table of Contents for the Digital Edition of PLANSPONSOR - December 2017/January 2018

A QDIA in Transition
An Unseen Challenge
Alternative Assets in TDFs
Active or Passive Strategies
Boosting Employee Savings
Selective Mining
Future Shock
PLANSPONSOR - December 2017/January 2018 - Cover1
PLANSPONSOR - December 2017/January 2018 - Cover2
PLANSPONSOR - December 2017/January 2018 - 1
PLANSPONSOR - December 2017/January 2018 - 2
PLANSPONSOR - December 2017/January 2018 - 3
PLANSPONSOR - December 2017/January 2018 - 4
PLANSPONSOR - December 2017/January 2018 - 5
PLANSPONSOR - December 2017/January 2018 - 6
PLANSPONSOR - December 2017/January 2018 - 7
PLANSPONSOR - December 2017/January 2018 - 8
PLANSPONSOR - December 2017/January 2018 - 9
PLANSPONSOR - December 2017/January 2018 - 10
PLANSPONSOR - December 2017/January 2018 - 11
PLANSPONSOR - December 2017/January 2018 - 12
PLANSPONSOR - December 2017/January 2018 - 13
PLANSPONSOR - December 2017/January 2018 - 14
PLANSPONSOR - December 2017/January 2018 - 15
PLANSPONSOR - December 2017/January 2018 - 16
PLANSPONSOR - December 2017/January 2018 - 17
PLANSPONSOR - December 2017/January 2018 - 18
PLANSPONSOR - December 2017/January 2018 - 19
PLANSPONSOR - December 2017/January 2018 - A QDIA in Transition
PLANSPONSOR - December 2017/January 2018 - 21
PLANSPONSOR - December 2017/January 2018 - 22
PLANSPONSOR - December 2017/January 2018 - 23
PLANSPONSOR - December 2017/January 2018 - 24
PLANSPONSOR - December 2017/January 2018 - 25
PLANSPONSOR - December 2017/January 2018 - An Unseen Challenge
PLANSPONSOR - December 2017/January 2018 - 27
PLANSPONSOR - December 2017/January 2018 - 28
PLANSPONSOR - December 2017/January 2018 - 29
PLANSPONSOR - December 2017/January 2018 - 30
PLANSPONSOR - December 2017/January 2018 - 31
PLANSPONSOR - December 2017/January 2018 - Alternative Assets in TDFs
PLANSPONSOR - December 2017/January 2018 - 33
PLANSPONSOR - December 2017/January 2018 - Active or Passive Strategies
PLANSPONSOR - December 2017/January 2018 - 35
PLANSPONSOR - December 2017/January 2018 - Boosting Employee Savings
PLANSPONSOR - December 2017/January 2018 - 37
PLANSPONSOR - December 2017/January 2018 - 38
PLANSPONSOR - December 2017/January 2018 - 39
PLANSPONSOR - December 2017/January 2018 - 40
PLANSPONSOR - December 2017/January 2018 - 41
PLANSPONSOR - December 2017/January 2018 - Selective Mining
PLANSPONSOR - December 2017/January 2018 - 43
PLANSPONSOR - December 2017/January 2018 - Future Shock
PLANSPONSOR - December 2017/January 2018 - 45
PLANSPONSOR - December 2017/January 2018 - 46
PLANSPONSOR - December 2017/January 2018 - 47
PLANSPONSOR - December 2017/January 2018 - 48
PLANSPONSOR - December 2017/January 2018 - Cover3
PLANSPONSOR - December 2017/January 2018 - Cover4
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https://www.plansponsordigital.com/plansponsor/december_2021_january_2022
https://www.plansponsordigital.com/plansponsor/october_november_2021
https://www.plansponsordigital.com/plansponsor/august_september_2021
https://www.plansponsordigital.com/plansponsor/june_july_2021
https://www.plansponsordigital.com/plansponsor/april-may_2021
https://www.plansponsordigital.com/plansponsor/february-march_2021
https://www.plansponsordigital.com/plansponsor/december-january_2021
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https://www.plansponsordigital.com/plansponsor/august-september_2019
https://www.plansponsordigital.com/plansponsor/june-july_2019
https://www.plansponsordigital.com/plansponsor/april-may_2019
https://www.plansponsordigital.com/plansponsor/february-march_2019
https://www.plansponsordigital.com/plansponsor/december_2018-january_2019
https://www.plansponsordigital.com/plansponsor/october-november_2018
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