Research

2013 PLANSPONSOR DC Survey

Published in PLANSPONSOR November 2013

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Average Service Ratings

1 = poor; 7 = excellent
Average Participant Service Ratings
MeanMinMax
Participant call centers6.295.746.81
Participant website functionality6.255.886.73
Online tools/ investing services6.255.626.68
Participant statements6.405.836.81
Overall education program6.015.256.61
Communication materials6.095.376.69
Enrollment assistance6.215.636.75
Retiree services/payments6.355.856.75
On-site meetings6.024.796.76
Range of investment options6.405.886.74
Loan/Withdrawal processing6.435.736.88
Beneficiary administration6.285.546.87
Participant fee disclosure6.345.916.74
Average Sponsor Service Ratings
MeanMinMax
Sponsor website and tools6.174.846.62
Plan reporting/benchmarking6.105.276.57
Form 5500 processing6.435.946.91
Compliance support/testing6.425.956.94
Legislative/Regulatory updates6.215.616.71
Account team knowledge6.485.896.94
Service team responsiveness6.485.856.91
Staff consistency6.395.616.92
Plan design flexibility6.355.876.76
"Cost-to-Value" of plan fees6.155.516.69
Net Recommendation Score
MeanMinMax
201362.5%NANA
201258.5%NANA
<$5MM61.3%NANA
$5MM-$25MM63.9%NANA
>$25MM-$50MM60.2%NANA
>$50MM-$200MM57.0%NANA
>$200MM-$1B52.2%NANA
>$1B28.7%NANA
Overall Participant Service Scores
MeanMinMax
20136.23NANA
20126.19NANA
<$5MM6.29NANA
$5MM-$25MM6.29NANA
>$25MM-$50MM6.20NANA
>$50MM-$200MM6.22NANA
>$200MM-$1B6.13NANA
>$1B5.88NANA
Overall Sponsor Service Scores
MeanMinMax
20136.30NANA
20126.23NANA
<$5MM6.37NANA
$5MM-$25MM6.36NANA
>$25MM-$50MM6.32NANA
>$50MM-$200MM6.25NANA
>$200MM-$1B6.15NANA
>$1B5.85NANA

Methodology

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2013 PLANSPONSOR DC Survey Methodology

Between late June and mid-September, approximately 65,000 survey questionnaires were sent to defined contribution plan sponsors from the PLANSPONSOR magazine database, as well as to client lists supplied by DC providers; 5,306 total usable responses were received by the close of the survey on September 20. In order to qualify for ratings in the survey, providers needed a minimum of 35 total client responses; to be rated in a particular asset category, a provider needed to meet specified minimum response levels (see Best in Class tables).

The Net Recommendation/Promoter Score represents the percentage of “Extremely likely to recommend” responses (score of 7 on a 1 to 7 scale) minus the percentage of scores of 4 or below. The Overall Service Index is a proprietary multifactor assessment of provider services that seeks to normalize ratings across several variables to create a uniform measure of service.

“Highest-ranked” areas of service reflect Best in Class award categories where the provider was ranked highest compared to all other providers. “Areas clients say can be improved” match lower scoring areas of service with paraphrased text taken from client comments received from the survey.

The score for participant services in each provider’s listing consists of the cumulative average of 13 categories; the corresponding score for sponsor services consists of the average of 10 categories. The percentage score represents the cumulative score out of 100%. Letter grades were assigned based on a standardized scale:
A+ = 96.0% – 100%; A = 93.0% – 95.9%; A = 90.0% – 92.9%; B+ = 87.0% – 89.9%; B = 83.0% – 86.9%; B = 80.0% – 82.9%; C+ = 77.0% – 79.9%; C = 73.0% – 76.9%.

For more information, contact Brian O’Keefe (bokeefe@assetinternational.com).

Archive

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DEFINED CONTRIBUTION SURVEY - Provider Ratings

For nearly two decades, PLANSPONSOR's annual Defined Contribution Survey has been the most important industry benchmark, measuring and evaluating 401(k) and other DC providers according to feedback from their own clients. Major defined contribution providers are rated in the various client categories they serve, and benchmark information is collected for plan sponsors to gauge their plans against their peers.

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