PLANSPONSOR - November/December 2017 - 37

Oversight
Fees
Nearly every defined contribution plan with over $50 million in
assets has an investment committee. By contrast, less than half of
plans with under $5 million in assets have such a committee. Results
for plans that have an investment policy statement (IPS) resemble
those for committees, respectively: 89% of the largest plans have
an IPS, yet only 43% of the smallest plans do. However, even
though smaller plans are less likely to have a committee and policy
in place, they are more apt to avail themselves of the services of a
3(16) plan fiduciary for plan administration.
Plan Has an Investment Committee
93.9% 94.8%
72.5%
44.1%
All
<$5mm
$5mm -
$50mm
Plan Has an IPS
85.6% 88.4%
65.9%
42.6%
All
<$5mm
$5mm -
$50mm
>$50mm -
$200mm
>$200mm
70.3%
>$50mm -
$200mm
>$200mm
Yes, and
benchmarked fees
81.2%
27.0%
18.6%
Yes, but did not
benchmark fees
Who Pays Recordkeeping Fees?
l Plan only
(via participant accounts)
l Employer only
(paid outside of plan)
l Both plan and employer
35.8%
49.9%
14.2%
No
Just over half of defined contribution plan sponsors say they have
calculated and benchmarked their actual plan administration fees
in the past 12 months, and another 27% claim to have calculated
them without comparing them against a benchmark. Half
of employers charge the plan-i.e., participants-fully for recordkeeping
fees, and another 14% share those costs between the
plan and the employer. More than one-third (36%) of plans charge
all
recordkeeping fees to the employer. Predictably, investment
expense ratios vary greatly but generally are tied to plan size.
Calculated Administation Fees in Past 12 Months
54.4%
Plan Employs TPA as 3(16) Fiduciary (Administrator)
n Third party has broad scope
n Third party has only limited scope
n None
22.6%
35.6%
42.0%
All
25.1%
35.0%
39.9%
<$5mm
24.1%
36.8%
39.1%
$5mm -
$50mm
22.4%
37.2%
40.3%
>$50mm -
$200mm
53.0%
Average Asset-Weighted Investment Expense Ratio
l <0.25% (25 bps)
l 0.25% - 0.50%
l >0.50% - 0.75%
l >0.75% - 1.00%
l >1.00%
14.1%
32.9%
>$200mm
9.3%
19.3%
14.3%
22.9%
34.3%
PLANSPONSOR.com November-December 2017 37

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PLANSPONSOR - November/December 2017

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

Seeking Value
2017 DC Survey: Plan Benchmarking
2017 Research Year in Review
Owning a Piece of the Firm
Breaking Up With a Fund
Reporting Requirements
PLANSPONSOR - November/December 2017 - Cover1
PLANSPONSOR - November/December 2017 - Cover2
PLANSPONSOR - November/December 2017 - 1
PLANSPONSOR - November/December 2017 - 2
PLANSPONSOR - November/December 2017 - 3
PLANSPONSOR - November/December 2017 - 4
PLANSPONSOR - November/December 2017 - 5
PLANSPONSOR - November/December 2017 - 6
PLANSPONSOR - November/December 2017 - 7
PLANSPONSOR - November/December 2017 - 8
PLANSPONSOR - November/December 2017 - 9
PLANSPONSOR - November/December 2017 - 10
PLANSPONSOR - November/December 2017 - 11
PLANSPONSOR - November/December 2017 - 12
PLANSPONSOR - November/December 2017 - 13
PLANSPONSOR - November/December 2017 - 14
PLANSPONSOR - November/December 2017 - 15
PLANSPONSOR - November/December 2017 - 16
PLANSPONSOR - November/December 2017 - 17
PLANSPONSOR - November/December 2017 - 18
PLANSPONSOR - November/December 2017 - 19
PLANSPONSOR - November/December 2017 - 20
PLANSPONSOR - November/December 2017 - 21
PLANSPONSOR - November/December 2017 - Seeking Value
PLANSPONSOR - November/December 2017 - 23
PLANSPONSOR - November/December 2017 - 24
PLANSPONSOR - November/December 2017 - 25
PLANSPONSOR - November/December 2017 - 26
PLANSPONSOR - November/December 2017 - 27
PLANSPONSOR - November/December 2017 - 28
PLANSPONSOR - November/December 2017 - 29
PLANSPONSOR - November/December 2017 - 2017 DC Survey: Plan Benchmarking
PLANSPONSOR - November/December 2017 - 31
PLANSPONSOR - November/December 2017 - 32
PLANSPONSOR - November/December 2017 - 33
PLANSPONSOR - November/December 2017 - 34
PLANSPONSOR - November/December 2017 - 35
PLANSPONSOR - November/December 2017 - 36
PLANSPONSOR - November/December 2017 - 37
PLANSPONSOR - November/December 2017 - 38
PLANSPONSOR - November/December 2017 - 39
PLANSPONSOR - November/December 2017 - 40
PLANSPONSOR - November/December 2017 - 41
PLANSPONSOR - November/December 2017 - 42
PLANSPONSOR - November/December 2017 - 43
PLANSPONSOR - November/December 2017 - 44
PLANSPONSOR - November/December 2017 - 45
PLANSPONSOR - November/December 2017 - 2017 Research Year in Review
PLANSPONSOR - November/December 2017 - 47
PLANSPONSOR - November/December 2017 - 48
PLANSPONSOR - November/December 2017 - 49
PLANSPONSOR - November/December 2017 - 50
PLANSPONSOR - November/December 2017 - 51
PLANSPONSOR - November/December 2017 - 52
PLANSPONSOR - November/December 2017 - 53
PLANSPONSOR - November/December 2017 - Owning a Piece of the Firm
PLANSPONSOR - November/December 2017 - 55
PLANSPONSOR - November/December 2017 - 56
PLANSPONSOR - November/December 2017 - 57
PLANSPONSOR - November/December 2017 - Breaking Up With a Fund
PLANSPONSOR - November/December 2017 - 59
PLANSPONSOR - November/December 2017 - Reporting Requirements
PLANSPONSOR - November/December 2017 - 61
PLANSPONSOR - November/December 2017 - 62
PLANSPONSOR - November/December 2017 - 63
PLANSPONSOR - November/December 2017 - 64
PLANSPONSOR - November/December 2017 - Cover3
PLANSPONSOR - November/December 2017 - Cover4
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