Many DC plan recordkeepers service thousands of plans, allowing them to construct proprietary benchmarks based on actions their clients take. But this may also exhibit “hidden” bias, as clients share the common trait of having self-selected into the same grouping—e.g., the charts below show adoption of certain plan features based on responses from six recordkeepers similar in survey counts and response profiles. The range of values highlights the potential limitations of single-provider benchmarks and reinforces the key role independent, cross-provider sources play in the process.
Clients That Offer Defined Contribution Plan and Health Savings Accounts
Clients That Use a Safe Harbor Plan Design
Clients That Use a Default Deferral Rate of Less Than or Equal to 3 Percent of Salary
Clients That Offer Automatic Escalation
Clients That Place a Limit on Automatic Escalation