PLANSPONSOR - October/November 2020 - 26
2020 DC Survey: Plan Benchmarking
Oversight
When it comes to plan governance practices, larger plans-i.e.,
with over $50 million in plan assets-tend to have the most. Almost
all have either an investment committee or investment policy statement
(ISP), with 90% having both, whereas fewer (<67%) micro
plans-i.e., those with under $5 million-have either. Overall, both
investment committees and ISPs were more common this year across
nearly every plan size. Plans contracting 3(16) fiduciary services,
where a third party assumes responsibility for certain plan administration
decisions, was largely unchanged from last year's findings.
Plan Has an Investment Committee
97% 97%
77%
46%
All plan
sizes
<$5mm
$5mm -
$50mm
Plan Has an IPS
95%
84%
67%
84%
94%
>$50mm -
$200mm
>$200mm
Yes, and
benchmarked fees
82%
27%
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%
All plan
sizes
<$5mm
$5mm -
$50mm
>$50mm -
$200mm
Plan Employs a 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
23%
41%
36%
>$200mm
50%
16%
22%
No
Fees
Plan fees remain a top concern of sponsors, as evidenced by the
fact that 78% have calculated plan administrative fees during the
prior plan year. Benchmarking of these fees also remains popular,
with 51% of plans having done so. The allocation of administrative
fees has changed little in the past four years; participants continue
to bear the most responsibility for recordkeeping fees. But participants
also continue to benefit from falling investment management
fees: 70% of plans now have an average asset-weighted expense
ratio of less than 0.50%, a notable increase from the 54% in 2017.
Calculated Administrative Fees in the Past 12 Months
51%
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%
4%
8%
31%
18%
39%
26 PLANSPONSOR.COM October - November 2020
http://www.PLANSPONSOR.COM
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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https://www.plansponsordigital.com/plansponsor/april-may_2021
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