PLANSPONSOR - December 2022-February 2023 - 20

2022 PLANSPONSOR DC SURVEY
their provider annually, and 11% every one to two years.
" After a merger, some things might be outsourced that
weren't before, the indexes might have changed and the technology
might be different, " says Holly Verdeyen, U.S. defined
contribution leader at Mercer in Chicago. " As the big plans keep
getting bigger, more frequent reviews are warranted. "
Mergers and acquisitions have become so frequent that one
factor OneDigital Retirement Services considers when evaluating
recordkeepers for clients is whether that recordkeeper is a
likely acquisition target.
" We look at the staying power or longevity of recordkeepers, "
says Travis Power, a senior consultant with OneDigital in
Leawood, Kansas. " We want the recordkeeper to get through the
next three to five years before we do the process again. "
Besides
these
consolidations,
significant
turnover
at
employers' executive level and on plan sponsors' plan committees
has also boosted the frequency of benchmarking.
But the look of plan design benchmarking will often vary,
depending on the company's industry, size and the goals set out
in the investment policy statement, if the company has one.
" When it comes to participant behavior, employers will be
at different places along the spectrum, " says Rob Austin, vice
president, head of research at Alight Solutions in Cornelius,
North Carolina. " For example, one employer might want to
2022 Defined Contribution Survey Industry Snapshot
Average Service Ratings
Plan sponsors' average service
ratings of providers reflect high
levels of satisfaction. The scale
on the right shows the range of
responses from all plan sponsors:
the minimum and maximum scores
received, plus the mean average.
85% of respondents said they
are at least somewhat apt to
recommend their provider.
Likelihood of Recommending Recordkeeper
To a Friend or Colleague
Extremely likely
Moderately likely
Just a bit likely
53%
18%
14%
Satisfaction with a provider is
highest post-conversion and at the
longest tenure.
Average Net Satisfaction, by Tenure With
DC Plan Recordkeeper
<1 year
1 year - 3 years
>3 years - 5 years
>5 years - 7 years
>7 years
12%
15%
14%
57%
57%
Recordkeeping Platform
Plan administration
Plan design flexibility
Systems integration
Participant Services
Online/Mobile retirement planning tools
Online/Mobile financial wellness offerings
In-person/Virtual participant support
Enrollment materials and support
Print/Digital communications and education
Sponsor Services and Support
Sponsor website, reporting and tools
Account/Client service teams
Investments and Fees
Investment options
Fee value and transparency
Min Mean Max 1 = Poor; 10 = Excellent
6.46
7.00
6.38
8.92
8.84
8.38
9.59
9.52
9.30
6
7
8
9
10
7.08
6.45
6.00
7.15
6.92
8.62
8.36
8.19
8.76
8.47
9.11
8.95
9.00
9.24
9.06
6
7
8
9
10
6.00
7.54
8.58
9.03
9.21
9.79
6
7
8
9
10
8.50
7.17
8.99
8.73
9.67
9.63
6
7
8
9
10
Net Recommendation/Promoter Score represents the percentage of respondents " very likely to
recommend " the provider (rating it 9 or 10 on a 10-point scale) minus the percentage of those
" likely to recommend against " (rating it 6 or below). See Methodology on page 27.
20 PLANSPONSOR.COM December 2022 - February 2023
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PLANSPONSOR - December 2022-February 2023

Table of Contents for the Digital Edition of PLANSPONSOR - December 2022-February 2023
