PLANSPONSOR - October/November 2020 - 22

2020 DC Survey: Plan Benchmarking
the employee base as they look to next
year. For instance, if a sponsor offers
an employer match contribution or has
reinstated a match, communicate to
workers what that match could mean in
compounded savings, Farrington says.
And if they have yet to adopt automatic
plan features such as auto-enrollment,
sponsors should consider doing so.
Fifty-one percent of respondents to
our survey currently use auto-enrollment.
" It's these small plan features that
should be on everyone's mind-that
will recreate [a] sense of wellness, " says
Farrington. " These are all things you
can do without tremendous overhaul of
the plan. "
As there is still room to expand utilization
of auto-enrollment throughout the
industry, there is also room to increase
participant education about basic financial
concepts. The survey indicates that
53% of respondents offer their employees
education about saving.
Milovancev urges employers to
upgrade or reselect their plan features,
retirement-planning and financial wellness
tools, and service providers now
instead of waiting until another coronavirus
wave. " I would tell my clients to not
forget how you and your employees felt a
couple of months ago. Just because things
have calmed down a bit, use this time to
prepare for a stronger 2021, " he says.
" Understand who is going to help
you in the longer term, " he adds. " Who
will help your [workforce], and how will
they help your organization be more
successful? Maybe it's your recordkeeper
or adviser. Tools like this survey, too, can
help plan sponsors make good, informed
decisions to help their employees. "
-Amanda Umpierrez
Methodology
The data that follow are based on the 2020 PLANSPONSOR
Defined Contribution (DC) Survey, an online survey of plan sponsors,
which received 2,097 responses as of October 7-the cutoff
date for magazine publication. The questionnaire explored each
plan's design, investment options, oversight practices and participant
outcomes, among other factors. Responding organizations represent
a wide range of plan types and sizes, and industries. Survey
results are meant to serve as input to one's existing plan governance
processes; the insights summarized here do not represent advice on
any aspect of plan design. Please discuss results with a trusted retirement
plan expert prior to taking any action. Additional data are
available and can be segmented by plan size, industry, geography,
etc. Email surveys@issmediasolutions.com for additional information
and pricing on related data or reports.
55%
401(k)
Plan Demographics
Retirement Plan Offerings
89%
10%
403(b)
19%
9%
457
Profit sharing
Percentage of Responses, by Asset Range
39%
29%
19%
14%
<$5mm
Safe Harbor Plans
70%
56%
45%
39%
All plan sizes
<$5mm
$5mm - $50mm
>$50mm - $200mm
>$200mm
$5mm - $50mm
>$50mm - $200mm
>$200mm
11% 9%
Nonqualified
Any other
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PLANSPONSOR - October/November 2020

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