PLANSPONSOR - February/March 2020 - 23

NEW IN OUR
RESEARCH LIBRARY!
2019 DC SURVEY: PLAN BENCHMARKING
Oversight
As a general rule, larger plans are far more likely to have formal
policies and procedures, to assist with plan governance. For
instance, nearly all large plans (96%) and mega plans (95%) have
an investment committee, but less than half (45%) of micro plans
have one. The same is true as to investment policy statements
(IPSs): 88% of large plans have an IPS vs. only 48% of micro
plans. Use of a 3(16) fiduciary to oversee certain plan administration
decisions is more uniform, with 60% to 70% of plans of all
sizes reporting some form of outsourcing arrangement.
Plan Has an Investment Committee
96% 95%
76%
45%
All plan
sizes
<$5MM
$5MM -
$50MM
Plan Has an IPS
88%
69%
48%
All plan
sizes
<$5MM
$5MM -
$50MM
>$50MM -
$200MM
Plan Employs Third-Party Administrator as
3(16) Fiduciary
● Yes - TPA has broad scope
● Yes - TPA has limited scope
● No - TPA is not a 3(16)
fi duciary
39%
25%
>$200MM
71%
88%
>$50MM -
$200MM
>$200MM
Yes, and
benchmarked fees
Yes, but did not
benchmark fees
Who Pays Recordkeeping Fees
● Plan only - Via participant
accounts
● Employer only - Paid outside
of plan
● Both plan and employer
34%
51%
Average Asset-Weighted Investment Expense Ratio
● <0.25%
● 0.25% - 0.50%
● >0.50% - 0.75%
● >0.75% - 1.00%
● >1.00%
5%
10%
20%
36%
39%
26%
P2019
REPRINTED WITH PERMISSION FROM PLANSPONSOR October/November 2019
7
15%
57%
60%
84%
30%
22%
No
Longer provider relationships,
and smaller plans (see
bottom chart), have
greater satisfaction
Average Net Satisfaction by Tenure
With DC Plan Recordkeeper
67%
Fees
PROVIDER INDUSTRY SNAPSHOT
Understanding plan fees has long been a concern for sponsors,
which may be why 78% calculated their administrative fees in the
past year. However, improvements in fee disclosure and transparency
have reduced the perceived need to benchmark fees, as
less than half (48%) did so this year, vs. 55% in 2017. Participants
continue to bear most responsibility for recordkeeping fees but
also benefit
from falling investment management
plans now have an average asset-weighted expense ratio of less
than 0.50%, a material increase from the 54% of plans in 2017.
Plan Calculated Administrative Fees Since 2017 Survey
48%
Nearly all (80%) of sponsors
are at least somewhat likely
to recommend their provider
fees-65% of
Likelihood of Recommending
Recordkeeper to a Friend or Colleague
Less
likely
7%
Somewhat
likely
22%
Extremely
likely
71%
Average Service Ratings
PLAN ADMINISTRATION
Plan transaction processing
Distribution processing
Benefi ciary administration
Plan design fl exibility
Payroll integration
TECHNOLOGY
Participant call centers
Participant website
Mobile apps/offerings
Sponsor website
Plan reporting
Plan analytics/benchmarking
PARTICIPANT EDUCATION
Participant statements
Enrollment materials/support
Print/Digital campaigns
On-site meetings/support
Advice/Guidance tools
31%
Financial education offerings
SPONSOR SERVICES
Plan/Industry knowledge
LANSPONSOR
BEST IN CLASS
DC PROVIDERS
Reprinted from PLANSPONSOR December 2019 - January 2020. ©1989 - 2020. PLANSPONSOR is owned by ISS. All Rights Reserved.
For Internal Use Only-Not For External Distribution. This document is not to be copied, distributed or reproduced in whole or in part, nor
passed to any third party. For information, call (203) 595-3276 or email reprints@issmediasolutions.com.
1
Net Recommendation Rate
By Total DC Plan Assets
69% 64%
74%
58% 56% 45%
INVESTMENTS/FEES
Range of investment options
Fee clarity/transparency
" Cost to value " of plan fees
8.18 8.95 9.72
7.71 8.63 9.42
7.85 8.72 9.53
6
7
8
9
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 " ).
Reprinted from PLANSPONSOR December 2019 - January 2020. ©1989 - 2020. PLANSPONSOR is owned by ISS. All Rights Reserved.
For Internal Use Only-Not For External Distribution. This document is not to be copied, distributed or reproduced in whole or in part, nor
passed to any third party. For information, call (203) 595-3276 or email reprints@issmediasolutions.com.
4
10
Responsiveness and consistency
Regulatory/Compliance services
Min Mean Max 1 = Poor; 10 = Excellent
7.92 8.93 9.62
8.09 9.05 9.57
7.88 8.80 9.57
7.81 8.89 9.70
7.63 8.75 9.56
6
7.30 8.83 9.64
7.89 8.68 9.36
7.38 8.31 9.21
7.56 8.54 9.43
7.17 8.20 9.15
7.14 8.27 9.25
6
8.14 8.82 9.43
7.93 8.75 9.71
7.86 8.55 9.33
7.74 8.59 9.45
7.70 8.58 9.22
7.59 8.43 9.28
6
8.10 9.14 9.70
8.08 9.12 9.70
8.16 9.15 9.69
6
7
8
9
10
7
8
9
10
7
8
9
10
7
8
9
10
2019 PLANSPONSOR BEST IN CLASS DC PROVIDERS
View all the research reports currently available at
plansponsor.com/store
<$5MM
<1 year
$5MM - $25MM
1 year - 3 years
>$25MM - $50MM
>$50MM - $200MM
>$200MM - $1B
>$1B
>3 years - 5 years
>5 years
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PLANSPONSOR - February/March 2020

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