PLANSPONSOR - October/November 2018 - 47

Oversight
Fees
Not surprisingly, our survey has always shown that, in general,
the larger the plan, the more " oversight " features it usually has in
place. For instance, one would be hard-pressed to find a large
plan that does not have an investment committee, but less than
half of micro plans have one. The same goes for plans having an
investment policy statement (IPS): Nine in 10 large plans have an
IPS vs. less than half of micro plans. About 58% of plans use a
third-party administrator (TPA)-i.e., a 3(16) fiduciary-to help
with plan administration decisions, unchanged from last year.
Plan Has an Investment Committee
94.0% 94.5%
74.2%
45.6%
All
<$5mm
$5mm -
$50mm
Plan Has an IPS
85.3% 89.9%
68.9%
46.2%
All
<$5mm
$5mm -
$50mm
>$50mm -
$200mm
Plan Employs TPA as 3(16) Fiduciary
(Plan Administrator)
n Yes - TPA has broad scope
n Yes - TPA has limited scope
n No - TPA is not 3(16) fiduciary
41.9%
19.6%
34.5%
36.7%
23.6%
>$200mm
72.4%
>$50mm -
$200mm
>$200mm
Yes, and
benchmarked fees
81.9%
27.9%
19.1%
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
34.3%
50.2%
15.5%
No
Figuring out what a plan pays in fees, whether explicit or hidden,
is a perennial challenge, and whether the fees are " reasonable "
is a second challenge. Overall, more than eight in 10 plans calculated
their administrative fees between our 2017 and 2018 DC
surveys, and the majority of those plans also benchmarked their
fees against similar plans. Nearly one in five plans did not calculate
fees at all. In terms of who pays administrative fees, about
half of plans charge their participants. Expense ratios seem to be
drifting down-always good news for investors.
Plan Calculated Administrative Fees Since 2017 Survey
53.0%
Average Asset-Weighted Investment Expense Ratio
l <0.25%
l 0.25% - 0.50%
l >0.50% - 0.75%
l >0.75% - 1.00%
l >1.00%
8.4%
11.8%
23.5%
PLANSPONSOR.com October-November 2018 47

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PLANSPONSOR - October/November 2018

Table of Contents for the Digital Edition of PLANSPONSOR - October/November 2018

Looking Closer
2018 DC Survey: Plan Benchmarking
Operational Loan Failures
Looking Beyond Performance
Staying Ahead of Inflation
Private Market Investing
Income Disruptions
Easy Access
PLANSPONSOR - October/November 2018 - Easy Access
PLANSPONSOR - October/November 2018 - FC1
PLANSPONSOR - October/November 2018 - FC2
PLANSPONSOR - October/November 2018 - C2
PLANSPONSOR - October/November 2018 - 1
PLANSPONSOR - October/November 2018 - 2
PLANSPONSOR - October/November 2018 - 3
PLANSPONSOR - October/November 2018 - 4
PLANSPONSOR - October/November 2018 - 5
PLANSPONSOR - October/November 2018 - 6
PLANSPONSOR - October/November 2018 - 7
PLANSPONSOR - October/November 2018 - 8
PLANSPONSOR - October/November 2018 - 9
PLANSPONSOR - October/November 2018 - 10
PLANSPONSOR - October/November 2018 - 11
PLANSPONSOR - October/November 2018 - 12
PLANSPONSOR - October/November 2018 - 13
PLANSPONSOR - October/November 2018 - 14
PLANSPONSOR - October/November 2018 - 15
PLANSPONSOR - October/November 2018 - 16
PLANSPONSOR - October/November 2018 - 17
PLANSPONSOR - October/November 2018 - 18
PLANSPONSOR - October/November 2018 - 19
PLANSPONSOR - October/November 2018 - 20
PLANSPONSOR - October/November 2018 - 21
PLANSPONSOR - October/November 2018 - 22
PLANSPONSOR - October/November 2018 - 23
PLANSPONSOR - October/November 2018 - 24
PLANSPONSOR - October/November 2018 - 25
PLANSPONSOR - October/November 2018 - 26
PLANSPONSOR - October/November 2018 - 27
PLANSPONSOR - October/November 2018 - 28
PLANSPONSOR - October/November 2018 - 29
PLANSPONSOR - October/November 2018 - 30
PLANSPONSOR - October/November 2018 - 31
PLANSPONSOR - October/November 2018 - 32
PLANSPONSOR - October/November 2018 - 33
PLANSPONSOR - October/November 2018 - Looking Closer
PLANSPONSOR - October/November 2018 - 35
PLANSPONSOR - October/November 2018 - 36
PLANSPONSOR - October/November 2018 - 37
PLANSPONSOR - October/November 2018 - 38
PLANSPONSOR - October/November 2018 - 39
PLANSPONSOR - October/November 2018 - 2018 DC Survey: Plan Benchmarking
PLANSPONSOR - October/November 2018 - 41
PLANSPONSOR - October/November 2018 - 42
PLANSPONSOR - October/November 2018 - 43
PLANSPONSOR - October/November 2018 - 44
PLANSPONSOR - October/November 2018 - 45
PLANSPONSOR - October/November 2018 - 46
PLANSPONSOR - October/November 2018 - 47
PLANSPONSOR - October/November 2018 - 48
PLANSPONSOR - October/November 2018 - 49
PLANSPONSOR - October/November 2018 - 50
PLANSPONSOR - October/November 2018 - 51
PLANSPONSOR - October/November 2018 - 52
PLANSPONSOR - October/November 2018 - 53
PLANSPONSOR - October/November 2018 - Operational Loan Failures
PLANSPONSOR - October/November 2018 - 55
PLANSPONSOR - October/November 2018 - 56
PLANSPONSOR - October/November 2018 - 57
PLANSPONSOR - October/November 2018 - Looking Beyond Performance
PLANSPONSOR - October/November 2018 - 59
PLANSPONSOR - October/November 2018 - 60
PLANSPONSOR - October/November 2018 - 61
PLANSPONSOR - October/November 2018 - Staying Ahead of Inflation
PLANSPONSOR - October/November 2018 - 63
PLANSPONSOR - October/November 2018 - Private Market Investing
PLANSPONSOR - October/November 2018 - 65
PLANSPONSOR - October/November 2018 - Income Disruptions
PLANSPONSOR - October/November 2018 - 67
PLANSPONSOR - October/November 2018 - 68
PLANSPONSOR - October/November 2018 - 69
PLANSPONSOR - October/November 2018 - 70
PLANSPONSOR - October/November 2018 - 71
PLANSPONSOR - October/November 2018 - 72
PLANSPONSOR - October/November 2018 - C3
PLANSPONSOR - October/November 2018 - C4
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