PLANSPONSOR - February/March 2019 - 9

Industry Analysis
DC Metrics by Industry
B
enchmarking anything can be
tricky. Comparing fine restaurant
cuisine with fast food or a highperformance
sports car with a minivan
ignores important context-context that
could change your opinion of which is " better. "
Retirement plans are no different.
Like with cars and food, deciding
which retirement plan is " better " for
participant savings is subject to the
context-in this case, the industry-in
which the person saves. To emphasize the
point, below we examine six key metrics
that reflect one's ability to amass savings:
eligibility on hire; immediate vesting to
get people into the plan; participants'
average account balance; average participation
rate; and the presence or absence
of automatic enrollment.
The data here, from the 2018
PLANSPONSOR Defined Contribution
(DC) Survey: Benchmarking, examine
these variables in a range of industries.
Certain industries tend to have a more
hourly or more transient workforce-
e.g., restaurants and retail-so we would
Top Five Industry Rankings
Participation Rate
1 Accounting/CPA firm/Financial planning
2 Financial services
3 Insurance/Reinsurance
4 Labor unions
5 Chemicals/Mining
Average Deferral Rate
1 Utilities
2 Fortune 1000
3 Technology/Computers/Software
4 Consulting
5 Aerospace/Defense
% Immediate Vesting
1 Labor unions
2 Pharmaceutical
3 Education - K-12, preschool and day care
4 Utilities
5 Oil and gas, energy
Source: 2018 PLANSPONSOR DC Survey: Benchmarking
89.2%
88.5%
88.2%
87.2%
87.0%
Average Account Balance
1 Law firms
2 Utilities
3 Research and development
4 Chemicals/Mining
5 Financial services
8.43%
8.16%
8.11%
7.87%
7.84%
% Immediate Eligibility
1 Government - City, municipal
2 Government - County, state, federal
3 Education - K-12, preschool and day care
4 Fortune 1000
5 Labor unions
66.7%
55.3%
52.9%
50.9%
50.7%
% Auto-Enrollment
1 Automotive manufacturing and parts
2 Fortune 1000
3 Pharmaceutical
$238,033
$166,943
$138,318
$137,949
$135,904
perhaps expect different benchmarks
from plans in those fields than where
workers are more apt to be full time-and
more able to save long term.
The top-ranked industries are labor
unions and utilities, with labor unions
No. 1 in immediate vesting, and utilities
No. 1 in their average deferral rate.
Our DC Survey gathered the data from
roughly 4,000 DC plans of all types
and sizes. Respondents chose one of 48
industry designations, and the outcomes
provided industry benchmarks. -PS
84.1%
82.3%
79.2%
71.7%
68.8%
84.6%
71.5%
68.2%
4 Environmental - Recycling, remediation, etc. 63.6%
5 Equipment sales/Leasing/Service
63.2%
PLANSPONSOR.com February - March 2019 9

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PLANSPONSOR - February/March 2019

Table of Contents for the Digital Edition of PLANSPONSOR - February/March 2019

Asset Consolidation
2019 Plan Sponsor of the Year Finalists
2019 Best in Class 401(k) Plans
Systematic Income
The Best of Both Worlds
Plan Defense
Picture Yourself
PLANSPONSOR - February/March 2019 - C1
PLANSPONSOR - February/March 2019 - FC1
PLANSPONSOR - February/March 2019 - FC2
PLANSPONSOR - February/March 2019 - C2
PLANSPONSOR - February/March 2019 - 1
PLANSPONSOR - February/March 2019 - 2
PLANSPONSOR - February/March 2019 - 3
PLANSPONSOR - February/March 2019 - 4
PLANSPONSOR - February/March 2019 - 5
PLANSPONSOR - February/March 2019 - 6
PLANSPONSOR - February/March 2019 - 7
PLANSPONSOR - February/March 2019 - 8
PLANSPONSOR - February/March 2019 - 9
PLANSPONSOR - February/March 2019 - 10
PLANSPONSOR - February/March 2019 - 11
PLANSPONSOR - February/March 2019 - 12
PLANSPONSOR - February/March 2019 - 13
PLANSPONSOR - February/March 2019 - 14
PLANSPONSOR - February/March 2019 - 15
PLANSPONSOR - February/March 2019 - 16
PLANSPONSOR - February/March 2019 - 17
PLANSPONSOR - February/March 2019 - 18
PLANSPONSOR - February/March 2019 - 19
PLANSPONSOR - February/March 2019 - 20
PLANSPONSOR - February/March 2019 - 21
PLANSPONSOR - February/March 2019 - Asset Consolidation
PLANSPONSOR - February/March 2019 - 23
PLANSPONSOR - February/March 2019 - 24
PLANSPONSOR - February/March 2019 - 25
PLANSPONSOR - February/March 2019 - 2019 Plan Sponsor of the Year Finalists
PLANSPONSOR - February/March 2019 - 27
PLANSPONSOR - February/March 2019 - 28
PLANSPONSOR - February/March 2019 - 29
PLANSPONSOR - February/March 2019 - 30
PLANSPONSOR - February/March 2019 - 31
PLANSPONSOR - February/March 2019 - 32
PLANSPONSOR - February/March 2019 - 33
PLANSPONSOR - February/March 2019 - 34
PLANSPONSOR - February/March 2019 - 35
PLANSPONSOR - February/March 2019 - 36
PLANSPONSOR - February/March 2019 - 37
PLANSPONSOR - February/March 2019 - 38
PLANSPONSOR - February/March 2019 - 39
PLANSPONSOR - February/March 2019 - 40
PLANSPONSOR - February/March 2019 - 41
PLANSPONSOR - February/March 2019 - 2019 Best in Class 401(k) Plans
PLANSPONSOR - February/March 2019 - 43
PLANSPONSOR - February/March 2019 - 44
PLANSPONSOR - February/March 2019 - 45
PLANSPONSOR - February/March 2019 - 46
PLANSPONSOR - February/March 2019 - 47
PLANSPONSOR - February/March 2019 - 48
PLANSPONSOR - February/March 2019 - 49
PLANSPONSOR - February/March 2019 - 50
PLANSPONSOR - February/March 2019 - 51
PLANSPONSOR - February/March 2019 - 52
PLANSPONSOR - February/March 2019 - 53
PLANSPONSOR - February/March 2019 - Systematic Income
PLANSPONSOR - February/March 2019 - 55
PLANSPONSOR - February/March 2019 - The Best of Both Worlds
PLANSPONSOR - February/March 2019 - 57
PLANSPONSOR - February/March 2019 - Plan Defense
PLANSPONSOR - February/March 2019 - 59
PLANSPONSOR - February/March 2019 - Picture Yourself
PLANSPONSOR - February/March 2019 - 61
PLANSPONSOR - February/March 2019 - 62
PLANSPONSOR - February/March 2019 - 63
PLANSPONSOR - February/March 2019 - 64
PLANSPONSOR - February/March 2019 - C3
PLANSPONSOR - February/March 2019 - C4
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