PLANSPONSOR - October/November 2020 - 24

2020 DC Survey: Plan Benchmarking
Automatic Features
Adoption of automatic enrollment and automatic escalation
continues to rise-now at 51% and 46% respectively, vs. 48% and
23% last year. Yet, their future growth may depend on acceptance
among smaller plans-i.e., those having under $50 million in plan
assets. Less than 50% of those plans have implemented either
feature vs. the more than 75% of plans with over $200 million that
have implemented one or both. When offered, target-date funds
(TDFs) remain the dominant default investment option, as usage
increased for the fifth year in a row and now stands at 76%.
Plans Using Automatic Features
n Auto-Enrollment n Auto-Escalation
76%
69%
60%
51%
46%
27%
All plan
sizes
22%
<$5mm
$5mm -
$50mm
>$50mm -
$200mm
>$200mm
Average Plan Participation Rates, by Features Offered
88.5%
81.5%
67.4%
73.1%
47%
42%
Auto-enrollment
and -escalation
Auto-enrollment
only
Auto-escalation
only
No " auto " plan
features
Trend in Plans Using a TDF for the Default Investment
76%
7.3%
74%
73%
69%
66%
62%
2015
2016
2017
2018
2019
2020
<3%
3% - 5%
>5%
6.2%
2014
41%
2015
42%
2016
2017
2018
2019
2020
Average Participant Deferral Rate, by Default Rate
8.4%
Plans With a >3% Default Deferral Rate
48% 48%
50%
39%
80%
Default Deferral Rate
Many factors influence participant outcomes, but savings rates are
often viewed as one of the best measures of long-term success-
participants who save more stand to accumulate more over time.
Because of this, it is encouraging to see that automatic enrollment
continues to push savings rates higher: The percentage of defined
contribution plans with a default deferral rate over 3%, a common
benchmark, reached 52% this year-an all-time high. Not surprisingly,
higher default deferral rates are also correlated with higher
average overall participant deferral rates.
Default Deferral Rate
l ≤2%
l 3%
l 4%
l 5%
l ≥6%
l Other
4%
9%
27%
35%
13%
12%
52%
24 PLANSPONSOR.COM October - November 2020

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PLANSPONSOR - October/November 2020

Table of Contents for the Digital Edition of PLANSPONSOR - October/November 2020

Time to Take Stock
2020 DC Survey: Plan Benchmarking
Dangers of Debt
Everyone Has a Stake
ESG Across Asset Classes
'Onboard' Education
PLANSPONSOR - October/November 2020 - Cover1
PLANSPONSOR - October/November 2020 - Cover2
PLANSPONSOR - October/November 2020 - 1
PLANSPONSOR - October/November 2020 - 2
PLANSPONSOR - October/November 2020 - 3
PLANSPONSOR - October/November 2020 - 4
PLANSPONSOR - October/November 2020 - 5
PLANSPONSOR - October/November 2020 - 6
PLANSPONSOR - October/November 2020 - 7
PLANSPONSOR - October/November 2020 - 8
PLANSPONSOR - October/November 2020 - 9
PLANSPONSOR - October/November 2020 - 10
PLANSPONSOR - October/November 2020 - 11
PLANSPONSOR - October/November 2020 - 12
PLANSPONSOR - October/November 2020 - 13
PLANSPONSOR - October/November 2020 - 14
PLANSPONSOR - October/November 2020 - 15
PLANSPONSOR - October/November 2020 - Time to Take Stock
PLANSPONSOR - October/November 2020 - 17
PLANSPONSOR - October/November 2020 - 18
PLANSPONSOR - October/November 2020 - 19
PLANSPONSOR - October/November 2020 - 2020 DC Survey: Plan Benchmarking
PLANSPONSOR - October/November 2020 - 21
PLANSPONSOR - October/November 2020 - 22
PLANSPONSOR - October/November 2020 - 23
PLANSPONSOR - October/November 2020 - 24
PLANSPONSOR - October/November 2020 - 25
PLANSPONSOR - October/November 2020 - 26
PLANSPONSOR - October/November 2020 - 27
PLANSPONSOR - October/November 2020 - Dangers of Debt
PLANSPONSOR - October/November 2020 - 29
PLANSPONSOR - October/November 2020 - Everyone Has a Stake
PLANSPONSOR - October/November 2020 - 31
PLANSPONSOR - October/November 2020 - ESG Across Asset Classes
PLANSPONSOR - October/November 2020 - 33
PLANSPONSOR - October/November 2020 - 'Onboard' Education
PLANSPONSOR - October/November 2020 - 35
PLANSPONSOR - October/November 2020 - 36
PLANSPONSOR - October/November 2020 - 37
PLANSPONSOR - October/November 2020 - 38
PLANSPONSOR - October/November 2020 - 39
PLANSPONSOR - October/November 2020 - 40
PLANSPONSOR - October/November 2020 - Cover3
PLANSPONSOR - October/November 2020 - Cover4
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