PLANSPONSOR - December 2021 - January 2022 - 22

2021 PLANSPONSOR BEST IN CLASS DC PROVIDERS
their provider should check the segment corresponding to the
size of their plan. Plan sponsors might also look especially closely,
experts say, at the areas of differentiation described below-these
require special due diligence.
Plan Sponsor Needs
This past November, the SPARK [Society of Professional Asset
Managers and Recordkeepers] Institute asked advisers to rank
more than a dozen products and services they want, and need,
from recordkeepers. Cybersecurity and fraud protection topped
the list. And, as Tim Rouse, executive director of the institute,
which is located in Wrentham, Massachusetts, says, " What is
important to advisers is typically a reflection of what's important
to their plan sponsor clients. "
No doubt the 2021 Department of Labor (DOL) guidance on
cybersecurity has ignited interest in this topic, Rouse says. The
DOL's first cybersecurity guidance, issued last March, includes
best practices and tips for protecting retirement benefits.
All providers now offer some cybersecurity policies and
protections, but these vary, experts say.
Ray Conley, CEO of Benetic, in Franklin, Tennessee, says, in
working for a risk governance and compliance software company
that has recordkeeper clients, he sees a wide range of sophistication,
in terms of control and privacy protection, when it comes
PROVIDER INDUSTRY SNAPSHOT
Nearly all sponsors (97%) say
they are at least somewhat apt
to recommend their provider.
Likelihood of Recommending
Recordkeeper to a Friend or Colleague
Moderately
likely
20%
Extremely
likely
77%
Just a bit
likely
3%
Average Service Ratings
Recordkeeping Platform
Plan administration
Plan design flexibility
Systems integration
Participant Services
Online/Mobile retirement planning tools
Min Mean Max 1 = Poor; 10 = Excellent
8.65 9.14
9.57
7.82 8.99 9.44
8.04 8.68
9.18
7
8
9
10
8.41 8.96 9.46
Online/Mobile financial wellness offerings 8.32 8.84
In-person/Virtual participant support
Enrollment materials and support
Satisfaction with providers
is highest post-conversion
and at longest tenure.
Average Net Satisfaction, by Tenure
With DC Plan Recordkeeper
81%
75%
73%
74%
78%
Investments and Fees
Investment options
Fee value and transparency
8.55 9.04
8.30 8.88
9.43
9.21
7
8
9
10
Net Recommendation/Promoter Score represents the percentage of respondents " very likely
to recommend " the provider (i.e., giving it a score of 9 or 10 on a 10-point scale) minus the
percentage of scores of 6 or below (i.e., those " likely to recommend against " ).
22 PLANSPONSOR.COM December 2021 - January 2022
7.70 8.54
7.82
8.47
Print/Digital communications and education 8.19 8.71
Sponsor Services and Support
Sponsor website, reporting and tools
Account/Client service teams
9.25
9.05
8.97
9.21
7
8
9
10
8.13 8.82
8.60 9.23
9.41
9.71
7
8
9
10
<1 year
>3 years - 5 years
1 year - 3 years
>5 years - 7 years
>7 years
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PLANSPONSOR - December 2021 - January 2022

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