DB Plans Embrace Bundled Packages: Study

November 21, 2001 (PLANSPONSOR.com) - Defined-benefit pension plans are rapidly embracing "bundled" provider offerings, according to a new study by financial services consultant Chatham Partners.

The report notes that about a third of the country’s 45,000 defined-benefit plans are now either fully or semi-bundled, according to the Wall Street Journal. Assets under management in bundled plans are now over $1 trillion, or 25% of all defined-benefit assets.

Chatham predicts that by the end of 2003, nearly half (44%), or 20,000, of all defined-benefit plans will be either semi- or fully bundled ? at a pace expected to accelerate in 2003 and 2004.

The study, which was based on phone interviews with 560 plan sponsors and 17 service providers during August and September, found that investment managers currently control about 32% of defined-benefit assets, while banks and insurance companies each control 25%, actuarial/administration consultants control 15%, and brokerage firms control 3%.

The survey included information from:

  • 235 plans with less than $15 million in assets
  • 247 plans with between $15 million and $100 million in assets
  • 78 plans with more than $100 million in assets


– Nevin Adams                     editors@plansponsor.com