The research and consulting firm said that defined contribution plans now represent half of all corporate retirement plan assets. Of the total, $1.4 trillion is made up of 401(k) plan assets.
The report also found:
- plan sponsors are overall content with their plan providers; only 2% of the 635 sponsors interviewed for the study indicated they would definitely switch vendors for a 15% fee reduction
- mutual fund providers are still growing their market share and now control 39% of full-service plans
- plan savings continue to shift into equity investments; assets in equity funds and company stock represented 63.5% of the total, up from 55.3% in 1997
- with increasing concentration of assets in equities, performance will remain a key determinant of satisfaction among plan sponsors
- recordkeeping is still a hot button for plan sponsors, with sub-standard service in this area a major reason for switching vendors.
« 401(k) Plans Still a Mystery to Most