As a general rule, larger plans are far more likely to have formal policies and procedures, to assist with plan governance. For instance, nearly all large plans (96%) and mega plans (95%) have an investment committee, but less than half (45%) of micro plans have one. The same is true as to investment policy statements (IPSs): 88% of large plans have an IPS vs. only 48% of micro plans. Use of a 3(16) fiduciary to oversee certain plan administration decisions is more uniform, with 60% to 70% of plans of all sizes reporting some form of outsourcing arrangement.
Plan Has an Investment Committee
Plan Has an IPS
Plans Employs Third-Party Administrator as 3(16) Fiduciary
- Yes – TPA has broad scope
- Yes – TPA has limited scope
- No – TPA is not a 3(16) fiduciary