PLANSPONSOR - October/November 2019 - 38

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
l Yes - TPA has broad scope
l Yes - TPA has limited scope
l No - TPA is not a 3(16)
fiduciary
39%
25%
>$200mm
71%
88%
>$50mm -
$200mm
>$200mm
Yes, and
benchmarked fees
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%
51%
15%
84%
30%
22%
No
Fees
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%
fees-65% of
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%
5%
10%
20%
36%
39%
26%
38 PLANSPONSOR.com October - November 2019

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PLANSPONSOR - October/November 2019

Table of Contents for the Digital Edition of PLANSPONSOR - October/November 2019

Investment-Driven
2019 DC Survey: Plan Benchmarking
Projecting Participant Outcomes
Just Around the Corner?
The Search for Basis Points
It Could Be Time to De-Clutter
PLANSPONSOR - October/November 2019 - C1
PLANSPONSOR - October/November 2019 - FC1
PLANSPONSOR - October/November 2019 - FC2
PLANSPONSOR - October/November 2019 - C2
PLANSPONSOR - October/November 2019 - 1
PLANSPONSOR - October/November 2019 - 2
PLANSPONSOR - October/November 2019 - 3
PLANSPONSOR - October/November 2019 - 4
PLANSPONSOR - October/November 2019 - 5
PLANSPONSOR - October/November 2019 - 6
PLANSPONSOR - October/November 2019 - 7
PLANSPONSOR - October/November 2019 - 8
PLANSPONSOR - October/November 2019 - 9
PLANSPONSOR - October/November 2019 - 10
PLANSPONSOR - October/November 2019 - 11
PLANSPONSOR - October/November 2019 - 12
PLANSPONSOR - October/November 2019 - 13
PLANSPONSOR - October/November 2019 - 14
PLANSPONSOR - October/November 2019 - 15
PLANSPONSOR - October/November 2019 - 16
PLANSPONSOR - October/November 2019 - 17
PLANSPONSOR - October/November 2019 - 18
PLANSPONSOR - October/November 2019 - 19
PLANSPONSOR - October/November 2019 - 20
PLANSPONSOR - October/November 2019 - 21
PLANSPONSOR - October/November 2019 - 22
PLANSPONSOR - October/November 2019 - 23
PLANSPONSOR - October/November 2019 - 24
PLANSPONSOR - October/November 2019 - 25
PLANSPONSOR - October/November 2019 - Investment-Driven
PLANSPONSOR - October/November 2019 - 27
PLANSPONSOR - October/November 2019 - 28
PLANSPONSOR - October/November 2019 - 29
PLANSPONSOR - October/November 2019 - 30
PLANSPONSOR - October/November 2019 - 31
PLANSPONSOR - October/November 2019 - 2019 DC Survey: Plan Benchmarking
PLANSPONSOR - October/November 2019 - 33
PLANSPONSOR - October/November 2019 - 34
PLANSPONSOR - October/November 2019 - 35
PLANSPONSOR - October/November 2019 - 36
PLANSPONSOR - October/November 2019 - 37
PLANSPONSOR - October/November 2019 - 38
PLANSPONSOR - October/November 2019 - 39
PLANSPONSOR - October/November 2019 - Projecting Participant Outcomes
PLANSPONSOR - October/November 2019 - 41
PLANSPONSOR - October/November 2019 - 42
PLANSPONSOR - October/November 2019 - 43
PLANSPONSOR - October/November 2019 - Just Around the Corner?
PLANSPONSOR - October/November 2019 - 45
PLANSPONSOR - October/November 2019 - 46
PLANSPONSOR - October/November 2019 - 47
PLANSPONSOR - October/November 2019 - The Search for Basis Points
PLANSPONSOR - October/November 2019 - 49
PLANSPONSOR - October/November 2019 - It Could Be Time to De-Clutter
PLANSPONSOR - October/November 2019 - 51
PLANSPONSOR - October/November 2019 - 52
PLANSPONSOR - October/November 2019 - 53
PLANSPONSOR - October/November 2019 - 54
PLANSPONSOR - October/November 2019 - 55
PLANSPONSOR - October/November 2019 - 56
PLANSPONSOR - October/November 2019 - C3
PLANSPONSOR - October/November 2019 - C4
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https://www.plansponsordigital.com/plansponsor/may_june_2023
https://www.plansponsordigital.com/plansponsor/march_april_2023
https://www.plansponsordigital.com/plansponsor/december_2022_february_2023
https://www.plansponsordigital.com/plansponsor/october_november_2022
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https://www.plansponsordigital.com/plansponsor/june_july_2022
https://www.plansponsordigital.com/plansponsor/excellenceawards_2022
https://www.plansponsordigital.com/plansponsor/april_may_2022
https://www.plansponsordigital.com/plansponsor/february_march_2022
https://www.plansponsordigital.com/plansponsor/december_2021_january_2022
https://www.plansponsordigital.com/plansponsor/october_november_2021
https://www.plansponsordigital.com/plansponsor/august_september_2021
https://www.plansponsordigital.com/plansponsor/june_july_2021
https://www.plansponsordigital.com/plansponsor/april-may_2021
https://www.plansponsordigital.com/plansponsor/february-march_2021
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https://www.plansponsordigital.com/plansponsor/april-may_2020
https://www.plansponsordigital.com/plansponsor/february-march_2020
https://www.plansponsordigital.com/plansponsor/december-january_2020
https://www.plansponsordigital.com/plansponsor/october-november_2019
https://www.plansponsordigital.com/plansponsor/august-september_2019
https://www.plansponsordigital.com/plansponsor/june-july_2019
https://www.plansponsordigital.com/plansponsor/april-may_2019
https://www.plansponsordigital.com/plansponsor/february-march_2019
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