Indeed, the collective responses of nearly 1500 plan sponsors suggests that plan sponsors of all sizes are confronted with many of the same challenges in offering competitive defined contribution programs in a tight labor market.
While about a third (35.6%) of respondents offered funds from a single provider, those with less than $5 million in assets were somewhat more likely to do so (41.2%). Somewhat surprisingly, nearly a quarter of plans with more than $200 million in assets elected to go with a single provider.
Daily valuation was the norm, offered by 81.3% of survey respondents. However, while 93% of plans with more than $50 million in plan assets used daily, just 2/3 (65.7%) of those with less than $5 million in assets did so. For smaller plans, monthly was the second most common valuation, cited by 18.4%. Nearly 80% of respondents haven’t changed their valuation frequency in the past two years, regardless of plan size.
While over half of survey respondents noted that administrative fees have not changed during that period, 28% of small sponsors reported an increase in fees.
More or Less
Larger plans were much more likely to offer company stock as an investment option, with nearly half (49.1%) of those with more than $200 million in assets, and a quarter of those with $50 -$200 million making the option available. Less than 6% of those with less than $50 million in assets offered the choice.
Small plans were twice as likely to offer investment advice as larger programs (36.2% versus 16.5%).
– Nevin Adams firstname.lastname@example.org
COMING NEXT: Behind the Advice Numbers