2022
Recordkeeping Survey
Industry Snapshot
403(b) Plans
W
hen it comes to 403(b) plans, there has been a trend toward modernization in recent years, says Christopher Dall, vice president, senior product leader at PNC Institutional Asset Management.
“Plan sponsors are working with recordkeepers, advisers, TPAs [third-party administrators] and legal counsel to help update plan provisions, investment lineups and other key features to be more in line with traditional 401(k) plans to the extent practicable,” Dall says. “This—having competitive benefits—is especially relevant for nonprofit organizations, including higher education institutions having to compete with for-profit entities for top talent.”
Another consideration for plan sponsors conducting a recordkeeper search for a 403(b) plan is how the recordkeeper will handle legacy annuity contracts.
“Old annuities can be difficult to transition,” says Stuart Robertson, CEO and president of ShareBuilder 401k. “So it is important to understand how the new provider will manage these and what the experience will be like for participants if the plan sponsor changes providers.”
Plan sponsors also need to think about whether it makes sense for them to use a single recordkeeper or work with multiple vendors to deliver services to plan participants. Due to previous structures where 403(b) plans had multiple vendors without plan sponsor oversight, the relationship between plan participants, plan sponsor and plan provider may be a bit more nuanced, and one that a recordkeeper must understand. —B.B.
Total assets
Total plans
Total participants
147,863
17,451,274
$1,405B
Total assets
Total plans
Total participants
147,863
17,451,274
$1,405B
Total assets
Total plans
Total participants
147,863
17,451,274
$1,405B
Total assets
Total plans
Total participants
147,863
17,451,274
$1,405B
