RESEARCH |
2012
Defined Contribution Survey: Looking to the Stars
For more than a decade, 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. Dozens of categories…
Reported by PLANSPONSOR
Indutry Stats
| Number of participants in DC plan | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| <100 | 42.7% | 37.6% | -12.1% |
| 100-499 | 25.8% | 27.6% | 6.8% |
| 500-999 | 7.9% | 8.9% | 13.0% |
| 1,000-4,999 | 14.0% | 14.3% | 2.6% |
| 5,000-10,000 | 3.9% | 4.7% | 20.8% |
| >10,000 | 5.7% | 6.9% | 20.9% |
| Total DC plan assets | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| <$5MM | 43.9% | 36.6% | -16.6% |
| $5MM–$50MM | 31.3% | 36.2% | 15.7% |
| >$50MM–$200MM | 12.5% | 12.8% | 2.4% |
| >$200MM | 12.2% | 14.4% | 18.0% |
| Plan design elements | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Auto-enrollment | 33.4% | 41.7% | 24.8% |
| Auto-deferral increases | 16.7% | 29.6% | 77.5% |
| Catch-up Contributions | NA | 97.1% | NA |
| Written IPS | 61.0% | 74.1% | 21.4% |
| Safe harbor provision | 41.7% | 49.4% | 18.4% |
| Employer match | 73.6% | 76.4% | 3.8% |
| Use a financial adviser | 61.2% | 66.4% | 8.5% |
| Loan provision | 76.5% | 82.5% | 7.9% |
| Hardship provision | 84.6% | 90.7% | 7.3% |
| Participation rate among eligible employees | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Average | 69.7% | 72.6% | 4.2% |
| Median | 75.0% | 80.0% | 6.7% |
| When employees are elligible to participate | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Immediately upon hire | 33.1% | 35.9% | 8.4% |
| Within 3 months | 25.1% | 26.5% | 5.6% |
| After 4 to 6 months | 9.6% | 8.1% | -16.0% |
| After more than 6 months | 32.2% | 29.6% | -8.2% |
| Implementation of auto-enrollment | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| New/future employees | 90.9% | 87.0% | -4.3% |
| Existing unenrolled employees | 29.6% | 29.1% | -1.7% |
| Contributors below auto rate | 9.1% | 9.9% | 9.2% |
| Enrollees not invested in QDIA | 1.6% | 2.1% | 29.9% |
| Default investment for auto-enrollment | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Retail target-date fund (active) | 30.4% | 31.1% | 2.4% |
| Retail target-date fund (indexed) | 15.0% | 15.8% | 5.0% |
| Custom target-date fund | 8.5% | 10.0% | 17.9% |
| Risk-based lifestyle fund | 7.1% | 8.0% | 12.7% |
| Balanced fund | 13.6% | 12.8% | -6.1% |
| Managed account | 5.0% | 4.3% | -13.1% |
| Stable value/GIC | 5.5% | 5.7% | 4.2% |
| Money market fund | 7.6% | 6.9% | -9.2% |
| Other | 7.3% | 5.4% | -25.8% |
| Number of investment options offered | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Average | 20.6 | 17.6 | -14.8% |
| Median | 16.0 | 16.0 | 0.0% |
| Number of investment options held by participants | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Average | 5.4 | 4.7 | -12.2% |
| Median | 4.0 | 4.0 | 0.0% |
| Types of investment options offered | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Target-date funds | 67.8% | 72.3% | 6.6% |
| Risk-based lifestyle funds | 28.7% | 28.2% | -1.9% |
| Employer stock | 7.7% | 8.4% | 8.5% |
| Self-directed brokerage | 17.9% | 18.8% | 4.9% |
| Real estate | 18.7% | 21.4% | 14.4% |
| Alternative investments | 2.7% | 2.7% | -1.8% |
| ETFs | 1.0% | 0.9% | 14.3% |
| Approximate maximum match | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| >100% of 6% of salary | 4.2% | 5.9% | 40.5% |
| 100% match of 6% | 6.2% | 16.8% | 170.6% |
| 51%–99% of 6% | 27.3% | 21.0% | -23.2% |
| 50% of 6% | 30.7% | 30.6% | -0.2% |
| <50% of 6% | 31.7% | 25.7% | -18.9% |
| When participants are 100% vested | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Immediately on enrollment | 30.8% | 31.8% | 3.3% |
| 6 months | 0.9% | 1.0% | 14.7% |
| 1 year | 5.8% | 5.3% | -8.6% |
| 2 years | 4.0% | 3.9% | -1.7% |
| 3 years | 12.3% | 13.6% | 10.4% |
| 4 years | 3.1% | 3.4% | 9.8% |
| 5 years | 24.0% | 23.4% | -2.4% |
| More than 5 years | 19.1% | 17.6% | -8.0% |
| Participants with outstanding loans | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Average | 16.2% | 14.4% | -11.1% |
| Median | 13.0% | 11.0% | -15.4% |
| Participants making hardship withdrawals | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Average | 3.6% | 2.0% | -44.8% |
| Median | 2.0% | 1.0% | -50.0% |
| Measures used to gauge plan success | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Participation rate | 64.8% | 65.2% | 0.6% |
| Deferral rates of various employee segments | 33.4% | 28.3% | -15.4% |
| Do not have any formal success measures. | 29.1% | 28.4% | -2.4% |
| Employee satisfaction (surveys) | 25.3% | 17.7% | -29.8% |
| Percent of participants saving to match | 25.0% | 19.9% | -20.5% |
| External/competitive benchmarking of plan design | 22.7% | 19.8% | -12.7% |
| Percent of participants with "appropriate" asset allocations | 14.1% | 11.3% | -19.8% |
| Percent of participants with using advice tools/seminars offered | 13.6% | 8.9% | -34.7% |
| Percent of participants who increased deferrals in past year | 12.1% | 8.7% | -27.8% |
| Participant Service Ratings (1–7 scale; 7=extremely satisfied) | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Participant call center | 6.43 | 6.23 | -3.2% |
| Web site functionality | 6.41 | 6.20 | -3.3% |
| Online tools/services | 6.40 | 6.18 | -3.4% |
| Participant statements | 6.51 | 6.36 | -2.3% |
| Education program | 6.14 | 5.89 | -4.1% |
| Communication materials | 6.24 | 6.01 | -3.7% |
| Enrollment assistance | 6.40 | 6.16 | -3.8% |
| Retiree services/payments | 6.42 | 6.28 | -2.2% |
| Onsite meetings | 6.17 | 5.93 | -3.9% |
| Range of investments | 6.53 | 6.40 | -1.9% |
| Loan/withdrawal processing | 6.56 | 6.41 | -2.3% |
| Beneficiary administration | 6.41 | 6.24 | -2.7% |
| Participant fee disclosure | 6.20 | 6.21 | 0.1% |
| Sponsor Service Ratings (1–7 scale; 7=extremely satisfied) | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Sponsor website/tools | 6.33 | 6.09 | -3.8% |
| Plan reports/benchmarking | 6.27 | 5.96 | -5.0% |
| Form 5500 processing | 6.45 | 6.29 | -2.5% |
| Compliance support/testing | 6.46 | 6.29 | -2.7% |
| Legislative/regulatory updates | 6.37 | 6.15 | -3.4% |
| Account team knowledge | 6.56 | 6.44 | -1.8% |
| Service responsiveness | 6.57 | 6.42 | -2.3% |
| Staff consistency | 6.48 | 6.34 | -2.2% |
| Plan design flexibility | 6.41 | 6.30 | -1.7% |
| Fee "cost-to-value" | 6.28 | 6.06 | -3.5% |
| Investment options formally reviewed | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Quarterly | 32.9% | 39.0% | 18.5% |
| Twice a year | 17.7% | 19.1% | 7.9% |
| Annually | 33.6% | 29.1% | -13.3% |
| Every 1-2 years | 3.9% | 3.2% | -18.6% |
| Every 2-3 years | 2.7% | 1.9% | -28.7% |
| Every 3+ years | 2.3% | 1.9% | -19.6% |
| Never | 5.0% | 4.0% | -19.5% |
| Other | 1.9% | 1.8% | -5.3% |
| Investment vehicles used in DC plan | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Mutual funds | 91.0% | 91.7% | 0.7% |
| Separate account | 21.1% | 22.7% | 7.7% |
| Managed account | 35.8% | 31.2% | -12.9% |
| Commingled pool | 7.9% | 7.3% | -7.4% |
| Collective trust | 10.9% | 12.6% | 15.3% |
| Participants taking advantage of the maximum match | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| All or nearly all participants | 29.2% | 22.7% | -22.2% |
| Vast majority (75% or more) | 20.6% | 29.0% | 40.8% |
| About half | 25.6% | 25.6% | 0.0% |
| Less than half | 24.7% | 22.7% | -8.1% |
| Average | 65.9% | 67.0% | 1.7% |
| Median | 74.0% | 75.0% | 1.4% |
| Types of employer matches offered | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Match on paticipant contribution | 66.4% | 72.0% | 8.4% |
| Non-elective contribution | 14.9% | 7.9% | -46.9% |
| Profit-sharing contribution | 28.6% | 25.3% | -11.5% |
| Other contribution | 12.4% | 11.2% | -9.4% |
| No employer contributions | 11.0% | 8.7% | -20.9% |
| Average client relationship with DC provider | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| <1 year | 4.4% | 4.1% | -8.2% |
| 1 year to <3 years | 14.4% | 12.7% | -11.7% |
| 3 years to <5 years | 17.3% | 16.4% | -5.3% |
| 5 years to <7 years | 14.9% | 15.1% | 1.6% |
| 7+ years | 46.8% | 51.7% | 10.6% |
| Frequency of provider evaluation | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Annually | 33.6% | 29.6% | -11.9% |
| Every 1 to <2 years | 12.2% | 12.1% | -0.9% |
| Every 2 to <3 years | 16.4% | 16.0% | -2.9% |
| Every 3 to <5 years | 19.6% | 21.1% | 7.4% |
| Every 5+ years | 11.9% | 12.1% | 1.7% |
| Never | 6.3% | 9.1% | 45.3% |
| Industries with highes plan participation rates | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Architecture | 81.2% | 85.3% | 5.1% |
| Mining | 78.6% | 85.2% | 8.4% |
| Banking (Investment Services) | 77.6% | 85.0% | 9.5% |
| Utilities | 83.3% | 84.5% | 1.5% |
| Banking (Commerical/Retail) | 78.7% | 82.9% | 5.4% |
| Financial Services | 81.0% | 82.5% | 1.9% |
| Insurance/Reinsurance | 82.4% | 82.3% | -0.1% |
| Membership Orgs./Industry Associations | 82.0% | 82.2% | 0.3% |
| Accounting/CPA Firms | 81.1% | 81.6% | 0.6% |
| Law Firms | 77.4% | 81.4% | 5.2% |
| Credit Unions | 79.0% | 81.4% | 3.0% |
| Whether a DB plan is offered in addition to DC plan | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Yes (open to all employees) | 14.0% | 12.3% | -12.1% |
| Yes (soft freeze) | 4.7% | 3.9% | -17.0% |
| Yes (hard freeze) | 6.6% | 3.8% | -42.4% |
| No defined benefit plan | 74.8% | 80.1% | 7.1% |
| Approximate avg expense ratio of plan investments | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Less than 0.25% (25 bps) | 11.8% | 7.7% | -34.6% |
| 0.25%–0.50% (25-50 bps) | 18.9% | 18.1% | -4.7% |
| 0.51%–0.75% (51-75 bps) | 16.9% | 19.4% | 15.1% |
| 0.76%–1.00% (76-100 bps) | 19.1% | 17.8% | -7.0% |
| 1.00%–1.50% (101-150 bps) | 9.7% | 9.4% | -3.3% |
| 1.60%–2.00% (160-200 bps) | 1.1% | 1.1% | 1.6% |
| 2.10%–2.50% (210-250 bps) | 0.2% | 0.2% | 19.4% |
| >2.50% (more than 250 bps) | 0.1% | 0.0% | -70.1% |
| Don’t know | 22.2% | 26.3% | 18.5% |
| How often administrative costs/fees are reviewed | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Annually | 70.4% | 71.8% | 2.0% |
| Every 1-2 years | 9.7% | 9.5% | -2.3% |
| Every 2-3 years | 7.5% | 7.1% | -5.0% |
| Every 3-5 years | 4.3% | 4.3% | -1.1% |
| Every 5+ years | 2.2% | 2.0% | -8.0% |
| Never | 6.0% | 5.3% | -11.6% |
| Who pay for the plan's admin/recordkeeping costs | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Participants only | 30.7% | 24.2% | -21.1% |
| Shared: revenue sharing and plan sponsor covers other expenses directly | 26.2% | 21.6% | -17.8% |
| Fees paid exclusively by the plan sponsor | 34.6% | 41.7% | 20.5% |
| Other | 3.3% | 3.1% | -5.0% |
| Don't know | 5.1% | 9.4% | 82.8% |
| Whether plan sponsor would recommend provider | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Extremely likely to recommend | 66.0% | 65.2% | -1.2% |
| Moderately likely to recommend | 20.6% | 24.2% | 18.2% |
| Slightly likely to recommend | 3.1% | 4.0% | 28.7% |
| Neutral | 4.2% | 3.9% | -7.2% |
| Slightly likely to recommend against | 0.8% | 1.5% | 80.6% |
| Moderately likely to recommend against | 0.7% | 0.7% | -7.2% |
| Extremely likely to recommend against | 0.9% | 0.6% | -35.3% |
| Investment committee for the DC plan | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Employees only | 43.7% | 53.4% | 22.3% |
| Non-employees only | 1.7% | 1.5% | -13.8% |
| Employees & non-employees | 26.6% | 21.7% | -18.6% |
| Unsure of Composition | 2.8% | 0.8% | -72.0% |
| No investment committee | 25.2% | 22.6% | -10.3% |
| Type(s) of DC plan(s) offered | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| 401(k) | 87.6% | 86.4% | -1.4% |
| 401(a) | 4.8% | 5.0% | 4.8% |
| 403(b) | 10.5% | 12.0% | 14.3% |
| 457 | 8.3% | 9.2% | 11.4% |
| Roth 401(k)/Roth 403(b) | 38.2% | 48.0% | 25.8% |
| Money Purchase | 3.2% | 2.2% | -30.1% |
| Profit Sharing | 19.5% | 17.2% | -12.0% |
| Nonqual Deferred Comp | 11.8% | 12.1% | 2.5% |
| ESOP | 4.2% | 3.8% | -10.5% |
| SIMPLE IRA | 0.6% | 0.4% | -26.6% |
| Other | 1.4% | 2.5% | 80.2% |
| Number of participants in DC plan | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| <100 | 42.7% | 37.6% | -12.1% |
| 100-499 | 25.8% | 27.6% | 6.8% |
| 500-999 | 7.9% | 8.9% | 13.0% |
| 1,000-4,999 | 14.0% | 14.3% | 2.6% |
| 5,000-10,000 | 3.9% | 4.7% | 20.8% |
| >10,000 | 5.7% | 6.9% | 20.9% |
| Total DC plan assets | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| <$5MM | 43.9% | 36.6% | -16.6% |
| $5MM–$50MM | 31.3% | 36.2% | 15.7% |
| >$50MM–$200MM | 12.5% | 12.8% | 2.4% |
| >$200MM | 12.2% | 14.4% | 18.0% |
| Plan design elements | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Auto-enrollment | 33.4% | 41.7% | 24.8% |
| Auto-deferral increases | 16.7% | 29.6% | 77.5% |
| Catch-up Contributions | NA | 97.1% | NA |
| Written IPS | 61.0% | 74.1% | 21.4% |
| Safe harbor provision | 41.7% | 49.4% | 18.4% |
| Employer match | 73.6% | 76.4% | 3.8% |
| Use a financial adviser | 61.2% | 66.4% | 8.5% |
| Loan provision | 76.5% | 82.5% | 7.9% |
| Hardship provision | 84.6% | 90.7% | 7.3% |
| Participation rate among eligible employees | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Average | 69.7% | 72.6% | 4.2% |
| Median | 75.0% | 80.0% | 6.7% |
| When employees are elligible to participate | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Immediately upon hire | 33.1% | 35.9% | 8.4% |
| Within 3 months | 25.1% | 26.5% | 5.6% |
| After 4 to 6 months | 9.6% | 8.1% | -16.0% |
| After more than 6 months | 32.2% | 29.6% | -8.2% |
| Implementation of auto-enrollment | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| New/future employees | 90.9% | 87.0% | -4.3% |
| Existing unenrolled employees | 29.6% | 29.1% | -1.7% |
| Contributors below auto rate | 9.1% | 9.9% | 9.2% |
| Enrollees not invested in QDIA | 1.6% | 2.1% | 29.9% |
| Default investment for auto-enrollment | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Retail target-date fund (active) | 30.4% | 31.1% | 2.4% |
| Retail target-date fund (indexed) | 15.0% | 15.8% | 5.0% |
| Custom target-date fund | 8.5% | 10.0% | 17.9% |
| Risk-based lifestyle fund | 7.1% | 8.0% | 12.7% |
| Balanced fund | 13.6% | 12.8% | -6.1% |
| Managed account | 5.0% | 4.3% | -13.1% |
| Stable value/GIC | 5.5% | 5.7% | 4.2% |
| Money market fund | 7.6% | 6.9% | -9.2% |
| Other | 7.3% | 5.4% | -25.8% |
| Number of investment options offered | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Average | 20.6 | 17.6 | -14.8% |
| Median | 16.0 | 16.0 | 0.0% |
| Number of investment options held by participants | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Average | 5.4 | 4.7 | -12.2% |
| Median | 4.0 | 4.0 | 0.0% |
| Types of investment options offered | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Target-date funds | 67.8% | 72.3% | 6.6% |
| Risk-based lifestyle funds | 28.7% | 28.2% | -1.9% |
| Employer stock | 7.7% | 8.4% | 8.5% |
| Self-directed brokerage | 17.9% | 18.8% | 4.9% |
| Real estate | 18.7% | 21.4% | 14.4% |
| Alternative investments | 2.7% | 2.7% | -1.8% |
| ETFs | 1.0% | 0.9% | 14.3% |
| Approximate maximum match | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| >100% of 6% of salary | 4.2% | 5.9% | 40.5% |
| 100% match of 6% | 6.2% | 16.8% | 170.6% |
| 51%–99% of 6% | 27.3% | 21.0% | -23.2% |
| 50% of 6% | 30.7% | 30.6% | -0.2% |
| <50% of 6% | 31.7% | 25.7% | -18.9% |
| When participants are 100% vested | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Immediately on enrollment | 30.8% | 31.8% | 3.3% |
| 6 months | 0.9% | 1.0% | 14.7% |
| 1 year | 5.8% | 5.3% | -8.6% |
| 2 years | 4.0% | 3.9% | -1.7% |
| 3 years | 12.3% | 13.6% | 10.4% |
| 4 years | 3.1% | 3.4% | 9.8% |
| 5 years | 24.0% | 23.4% | -2.4% |
| More than 5 years | 19.1% | 17.6% | -8.0% |
| Participants with outstanding loans | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Average | 16.2% | 14.4% | -11.1% |
| Median | 13.0% | 11.0% | -15.4% |
| Participants making hardship withdrawals | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Average | 3.6% | 2.0% | -44.8% |
| Median | 2.0% | 1.0% | -50.0% |
| Measures used to gauge plan success | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Participation rate | 64.8% | 65.2% | 0.6% |
| Deferral rates of various employee segments | 33.4% | 28.3% | -15.4% |
| Do not have any formal success measures. | 29.1% | 28.4% | -2.4% |
| Employee satisfaction (surveys) | 25.3% | 17.7% | -29.8% |
| Percent of participants saving to match | 25.0% | 19.9% | -20.5% |
| External/competitive benchmarking of plan design | 22.7% | 19.8% | -12.7% |
| Percent of participants with "appropriate" asset allocations | 14.1% | 11.3% | -19.8% |
| Percent of participants with using advice tools/seminars offered | 13.6% | 8.9% | -34.7% |
| Percent of participants who increased deferrals in past year | 12.1% | 8.7% | -27.8% |
| Participant Service Ratings (1–7 scale; 7=extremely satisfied) | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Participant call center | 6.43 | 6.23 | -3.2% |
| Web site functionality | 6.41 | 6.20 | -3.3% |
| Online tools/services | 6.40 | 6.18 | -3.4% |
| Participant statements | 6.51 | 6.36 | -2.3% |
| Education program | 6.14 | 5.89 | -4.1% |
| Communication materials | 6.24 | 6.01 | -3.7% |
| Enrollment assistance | 6.40 | 6.16 | -3.8% |
| Retiree services/payments | 6.42 | 6.28 | -2.2% |
| Onsite meetings | 6.17 | 5.93 | -3.9% |
| Range of investments | 6.53 | 6.40 | -1.9% |
| Loan/withdrawal processing | 6.56 | 6.41 | -2.3% |
| Beneficiary administration | 6.41 | 6.24 | -2.7% |
| Participant fee disclosure | 6.20 | 6.21 | 0.1% |
| Sponsor Service Ratings (1–7 scale; 7=extremely satisfied) | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Sponsor website/tools | 6.33 | 6.09 | -3.8% |
| Plan reports/benchmarking | 6.27 | 5.96 | -5.0% |
| Form 5500 processing | 6.45 | 6.29 | -2.5% |
| Compliance support/testing | 6.46 | 6.29 | -2.7% |
| Legislative/regulatory updates | 6.37 | 6.15 | -3.4% |
| Account team knowledge | 6.56 | 6.44 | -1.8% |
| Service responsiveness | 6.57 | 6.42 | -2.3% |
| Staff consistency | 6.48 | 6.34 | -2.2% |
| Plan design flexibility | 6.41 | 6.30 | -1.7% |
| Fee "cost-to-value" | 6.28 | 6.06 | -3.5% |
| Investment options formally reviewed | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Quarterly | 32.9% | 39.0% | 18.5% |
| Twice a year | 17.7% | 19.1% | 7.9% |
| Annually | 33.6% | 29.1% | -13.3% |
| Every 1-2 years | 3.9% | 3.2% | -18.6% |
| Every 2-3 years | 2.7% | 1.9% | -28.7% |
| Every 3+ years | 2.3% | 1.9% | -19.6% |
| Never | 5.0% | 4.0% | -19.5% |
| Other | 1.9% | 1.8% | -5.3% |
| Investment vehicles used in DC plan | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Mutual funds | 91.0% | 91.7% | 0.7% |
| Separate account | 21.1% | 22.7% | 7.7% |
| Managed account | 35.8% | 31.2% | -12.9% |
| Commingled pool | 7.9% | 7.3% | -7.4% |
| Collective trust | 10.9% | 12.6% | 15.3% |
| Participants taking advantage of the maximum match | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| All or nearly all participants | 29.2% | 22.7% | -22.2% |
| Vast majority (75% or more) | 20.6% | 29.0% | 40.8% |
| About half | 25.6% | 25.6% | 0.0% |
| Less than half | 24.7% | 22.7% | -8.1% |
| Average | 65.9% | 67.0% | 1.7% |
| Median | 74.0% | 75.0% | 1.4% |
| Types of employer matches offered | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Match on paticipant contribution | 66.4% | 72.0% | 8.4% |
| Non-elective contribution | 14.9% | 7.9% | -46.9% |
| Profit-sharing contribution | 28.6% | 25.3% | -11.5% |
| Other contribution | 12.4% | 11.2% | -9.4% |
| No employer contributions | 11.0% | 8.7% | -20.9% |
| Average client relationship with DC provider | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| <1 year | 4.4% | 4.1% | -8.2% |
| 1 year to <3 years | 14.4% | 12.7% | -11.7% |
| 3 years to <5 years | 17.3% | 16.4% | -5.3% |
| 5 years to <7 years | 14.9% | 15.1% | 1.6% |
| 7+ years | 46.8% | 51.7% | 10.6% |
| Frequency of provider evaluation | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Annually | 33.6% | 29.6% | -11.9% |
| Every 1 to <2 years | 12.2% | 12.1% | -0.9% |
| Every 2 to <3 years | 16.4% | 16.0% | -2.9% |
| Every 3 to <5 years | 19.6% | 21.1% | 7.4% |
| Every 5+ years | 11.9% | 12.1% | 1.7% |
| Never | 6.3% | 9.1% | 45.3% |
| Industries with highes plan participation rates | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Architecture | 81.2% | 85.3% | 5.1% |
| Mining | 78.6% | 85.2% | 8.4% |
| Banking (Investment Services) | 77.6% | 85.0% | 9.5% |
| Utilities | 83.3% | 84.5% | 1.5% |
| Banking (Commerical/Retail) | 78.7% | 82.9% | 5.4% |
| Financial Services | 81.0% | 82.5% | 1.9% |
| Insurance/Reinsurance | 82.4% | 82.3% | -0.1% |
| Membership Orgs./Industry Associations | 82.0% | 82.2% | 0.3% |
| Accounting/CPA Firms | 81.1% | 81.6% | 0.6% |
| Law Firms | 77.4% | 81.4% | 5.2% |
| Credit Unions | 79.0% | 81.4% | 3.0% |
| Whether a DB plan is offered in addition to DC plan | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Yes (open to all employees) | 14.0% | 12.3% | -12.1% |
| Yes (soft freeze) | 4.7% | 3.9% | -17.0% |
| Yes (hard freeze) | 6.6% | 3.8% | -42.4% |
| No defined benefit plan | 74.8% | 80.1% | 7.1% |
| Approximate avg expense ratio of plan investments | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Less than 0.25% (25 bps) | 11.8% | 7.7% | -34.6% |
| 0.25%–0.50% (25-50 bps) | 18.9% | 18.1% | -4.7% |
| 0.51%–0.75% (51-75 bps) | 16.9% | 19.4% | 15.1% |
| 0.76%–1.00% (76-100 bps) | 19.1% | 17.8% | -7.0% |
| 1.00%–1.50% (101-150 bps) | 9.7% | 9.4% | -3.3% |
| 1.60%–2.00% (160-200 bps) | 1.1% | 1.1% | 1.6% |
| 2.10%–2.50% (210-250 bps) | 0.2% | 0.2% | 19.4% |
| >2.50% (more than 250 bps) | 0.1% | 0.0% | -70.1% |
| Don’t know | 22.2% | 26.3% | 18.5% |
| How often administrative costs/fees are reviewed | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Annually | 70.4% | 71.8% | 2.0% |
| Every 1-2 years | 9.7% | 9.5% | -2.3% |
| Every 2-3 years | 7.5% | 7.1% | -5.0% |
| Every 3-5 years | 4.3% | 4.3% | -1.1% |
| Every 5+ years | 2.2% | 2.0% | -8.0% |
| Never | 6.0% | 5.3% | -11.6% |
| Who pay for the plan's admin/recordkeeping costs | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Participants only | 30.7% | 24.2% | -21.1% |
| Shared: revenue sharing and plan sponsor covers other expenses directly | 26.2% | 21.6% | -17.8% |
| Fees paid exclusively by the plan sponsor | 34.6% | 41.7% | 20.5% |
| Other | 3.3% | 3.1% | -5.0% |
| Don't know | 5.1% | 9.4% | 82.8% |
| Whether plan sponsor would recommend provider | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Extremely likely to recommend | 66.0% | 65.2% | -1.2% |
| Moderately likely to recommend | 20.6% | 24.2% | 18.2% |
| Slightly likely to recommend | 3.1% | 4.0% | 28.7% |
| Neutral | 4.2% | 3.9% | -7.2% |
| Slightly likely to recommend against | 0.8% | 1.5% | 80.6% |
| Moderately likely to recommend against | 0.7% | 0.7% | -7.2% |
| Extremely likely to recommend against | 0.9% | 0.6% | -35.3% |
| Investment committee for the DC plan | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| Employees only | 43.7% | 53.4% | 22.3% |
| Non-employees only | 1.7% | 1.5% | -13.8% |
| Employees & non-employees | 26.6% | 21.7% | -18.6% |
| Unsure of Composition | 2.8% | 0.8% | -72.0% |
| No investment committee | 25.2% | 22.6% | -10.3% |
| Type(s) of DC plan(s) offered | |||
|---|---|---|---|
| 2011 | 2012 | Change | |
| 401(k) | 87.6% | 86.4% | -1.4% |
| 401(a) | 4.8% | 5.0% | 4.8% |
| 403(b) | 10.5% | 12.0% | 14.3% |
| 457 | 8.3% | 9.2% | 11.4% |
| Roth 401(k)/Roth 403(b) | 38.2% | 48.0% | 25.8% |
| Money Purchase | 3.2% | 2.2% | -30.1% |
| Profit Sharing | 19.5% | 17.2% | -12.0% |
| Nonqual Deferred Comp | 11.8% | 12.1% | 2.5% |
| ESOP | 4.2% | 3.8% | -10.5% |
| SIMPLE IRA | 0.6% | 0.4% | -26.6% |
| Other | 1.4% | 2.5% | 80.2% |
