PLANSPONSOR - October 2017 - 34

2017 PLANSPONSOR 403(b)/457 BUYER'S GUIDE
W
ith more than $1 trillion in assets,
403(b) and 457 plans play a critical
role in the retirement savings of more
than 20 million employees of nonprofit
and governmental organizations. These
markets are frequently, and perhaps
unfairly, compared with the $4.5 trillion
401(k) plan industry, where accounts tend
to be larger and investment options more
diverse. The average 401(k) participant
account balance, for example, is $70,800
vs. $53,600 and $45,525 for participants
in 403(b)s and 457s, respectively. Also,
the majority (54%) of reported assets in
403(b) plans reside in fixed and variable
annuities-not the mutual funds dominating
401(k) lineups.
Primarily, 403(b) plans are used by
nonprofits: hospitals and health care providers;
charitable organizations, including
churches and religious organizations;
and educational institutions-i.e., K-12
schools, universities, colleges and day care
centers-which account for 53% of total
plans and 57% of their assets. Most of
403(b) plans are small-69% have fewer
than 25 participants-and 73% are exempt
from Employee Retirement Income Security
Act (ERISA) regulations.
Not to be forgotten, 457 plans are
used by nonprofit organizations, too, as
supplemental retirement savings plans,
especially in the government sector where
457(b)s are the only defined contribution
(DC) plan available to most employees.
With around $300 billion in total recordkeeping
assets, the 457 plan market is even
smaller than the 403(b) market. -PS
METHODOLOGY: The 2017 PLANSPONSOR
403(b)/457 Buyer's Guide
identifies providers of 403(b) and/or 457
plan administration services. The questionnaire
was available August through
September and received 23 responses. All
data are as of June 30, this year. Profiles
are meant to be representative of provider
experience and capabilities; more extensive
data is available for purchase or by
contacting providers directly. For information,
email brian.okeefe@strategic-i.com.
34 PLANSPONSOR.com October 2017
403(b) Industry Snapshot
TOTAL ASSETS ($mm)
$844,913
PLANS <$5mm
105,018
403(b) ERISA PLANS
27%
TOP 5, BY ASSETS ($mm)
1 TIAA
2 Fidelity Investments
3 Transamerica
4 VALIC
5 Voya Financial
TOP 5, BY K-12 PLANS
1 Voya Financial
2 VALIC
3 AXA
4 TIAA
5 Fidelity Investments
TOP 5, BY HIGHER EDUCATION PLANS
1 TIAA
2 VALIC
3 Voya Financial
4 Fidelity Investments
5 AXA
Governmental 457 Industry Snapshot
TOTAL ASSETS ($mm)
$297,882
TOP 5, BY 457 ASSETS ($mm)
1 Empower Retirement
2 Nationwide
3 Voya Financial
4 ICMA-RC
5 Prudential Financial, Inc.
TOTAL PLANS
26,153
TOTAL PLANS
123,003
PLANS $5mm-$100mm
11,528
403(b) NON-ERISA PLANS
73%
TOTAL PARTICIPANTS
14,561,757
PLANS >$100mm
1,250
$382,430
$181,845
$51,948
$51,120
$43,143
14,280
9,282
8,720
5,168
3,807
4,011
1,446
1,306
925
740
PLANS <$5mm
22,242
PLANS >$5mm
3,079
$82,929
$71,546
$46,697
$36,567
$21,316
http://www.PLANSPONSOR.com
PLANSPONSOR - October 2017

Table of Contents for the Digital Edition of PLANSPONSOR - October 2017
