2025
DC Survey: Plan Benchmarking

Sponsors can use the report to compare their plan features and governance with peers’, for self-assessment and self-improvement.

Survey

Survey

Respondent Profile

Respondents, by Plan Size

<$5MM
24%
$5MM – $25MM
32%
>$25MM – $50MM
13%
>$50MM – $200MM
15%
>$200MM – $1B
10%
>$1B
7%

Respondents, by Plan Type Offered

401(k)
55%
403(b)
6%
457
15%
ESOP1/KSOP2
2%
Profit-sharing
9%
MEP3/PEP4
1%
Money purchase
1%
NQDC5
6%
SIMPLE6/SEP7
1%
Other
5%
1 Employee stock ownership plan.
2 ESOP combined with a 401(k).
3 Multiple employer plan.
4 Pooled employer plan.
5 Nonqualified deferred compensation plan.
6 Savings incentive match plan for employees.
7 Simplified employee pension plan.

Respondents, by Industry

Manufacturing
10%
Health care
7%
Banking/Financial services
7%
Building/Construction/Contracting
5%
Law firms
3%
Retail
4%
Technology/Telecommunications
4%
Wholesale/Distribution
4%
Government
9%
All other industries*
47%
*31 additional unique industries.




Plan Sizes

Unsurprisingly, the 2025 DC Survey: Plan Benchmarking report shows that plans on the small end of the spectrum generally pay the largest investment fees. The 401k Averages Book along with studies from the Investment Company Institute and Deloitte concur, while also reporting that overall, fees for defined contribution plans are trending down. Plan size not only affects cost but influences plan design and governance. Kristi K. Baker, managing partner, CSi Advisory Services, a division of Hub International, notes that plans on the spectrum’s large end typically have the largest committees and meet most often. As for plan design, she says, smaller plans tend to use more safe harbor features than do larger plans. The latter are the greatest embracers of automatic enrollment features and re-enrollment, as the survey shows. —RM

Uses Automatic Enrollment

<$5MM
20%
$5MM – $25MM
41%
>$25MM – $50MM
54%
>$50MM – $200MM
68%
>$200MM – $1B
69%
>$1B
76%

Uses an Investment Committee for DC Plan

<$5MM
63%
$5MM – $25MM
84%
>$25MM – $50MM
96%
>$50MM – $200MM
99%
>$200MM – $1B
99%
>$1B
98%

Average Asset-Weighted Expense Ratio of All Investment Options

<25 bps
25–50 bps
>50 bps
<$5MM
20%
32%
48%
$5MM – $25MM
41%
37%
22%
>$25MM – $50MM
40%
36%
24%
>$50MM – $200MM
39%
45%
17%
>$200MM – $1B
41%
45%
17%
>$1B
61%
32%
7%

Defined Contribution Plans, by Asset Range

<$5MM
24%
$5MM – $25MM
32%
>$25MM – $50MM
13%
>$50MM – $200MM
15%
>$200MM – $1B
10%
>$1B
7%




Plan Types

Sponsors of 403(b) and 457 plans are ahead of the game when it comes to offering retirement income help to participants. This is partly due to the history of 403(b)s as annuity-based plans. Phil Sherman, senior retirement plan consultant, Deschutes Investment Consulting LLC, points out that nonprofits are apt to use every tool in the toolbox to offer robust benefit programs that compete with for-profit counterparts, including the use of 457 plans as nonqualified plans. Nonqualified plan participants are good candidates to receive financial planning, and unfamiliarity with 457 plan nuances warrants more education, he says. —RM

Offers Systematic Withdrawals at Retirement

401(k)
45%
403(b)
61%
457
79%

Offers In-Plan Retirement Income Product/s

401(k)
7%
403(b)
29%
457
55%

Offers Immediate Eligibility Upon Hiring

401(k)
38%
403(b)
74%
457
58%

Offers Participants One-on-One Meetings With Financial Planner / Adviser Outside of the Plan

401(k)
23%
403(b)
33%
457
60%




Contributions

According to the 2025 PLANSPONSOR DC Survey: Plan Benchmarking report, more than six in 10 plan sponsors (63%) responded that they match employee deferrals, while nearly half (49%) said they make a nonelective or profit-sharing contribution. Some said they make nonelective or profit-sharing contributions to improve employees’ financial and retirement security, and some said they adopted a safe harbor plan design to avoid nondiscrimination testing, which requires a nonelective contribution. Sean Kelly, vice president, financial adviser, with Heffernan Financial Services, says, in his experience, the type of plan sponsor influences the choice of contribution more than does the size. “Nonelective contributions are more prevalent among our nonprofit clients, and, whereas matching is more common in general, it is much more in common in the for-profit space,” he says. —RM

Offers Nonelective or Profit-Sharing Contributions

Yes
49%
No
30%
Unsure
21%

Profit-Sharing / Nonmatching Structure

“Pro-rata” profit-sharing plan
7%
“New comparability” profit-sharing plan
4%
“Age-weighted” profit-sharing plan
0%
“Fixed-dollar” profit-sharing plan
1%
Nonelective safe harbor contribution
4%
Other
31%
Unsure
54%

Profit-Sharing / Nonmatching Contribution Rates

<3%
17%
3%
15%
>3% – 5%
19%
>5% – 7%
6%
>7% – 10%
8%
>10%
5%
Other
29%

Offers Matching Contributions

Yes
63%
No
17%
Unsure
20%




Employer Match

Offering an employer matching contribution in defined contribution plans can incentivize employee participation. Match eligibility periods and vesting schedules that favor plan participants can be further incentives and used for employee attraction, depending on plan sponsor goals. The 2025 DC Survey: Plan Benchmarking report shows that 58% of DC plan sponsors tie match eligibility to plan eligibility. Kristi K. Baker, of CSi Advisory Services, says sponsors continue to reduce waiting periods for eligibility to attract employees, but, last year, her firm had several clients modify their vesting schedules to a longer period with the goal of rewarding and encouraging employee tenure. —RM

When Participants Eligible for Match

Immediately once eligible for plan
58%
Eligible participants must wait up to 1 year
20%
Eligible participants must wait 1 year or more
4%
Unsure
18%

When Participants Are 100% Vested

Immediately upon enrollment
29%
1 year or less
3%
2 years
5%
3 years
9%
4 years
3%
5 years
12%
More than 5 years
16%
Unsure
23%

Matching Contributions Vesting Schedule

Cliff – 100% vested at a designated time of service
29%
Graded – Vested in increasing amounts over time
47%
Unsure
24%




Best and Worst, by Industry

Below, we showcase the top and bottom performers from the 47 industries represented in the survey. Higher participation rates and average account balances can be expected from industries that pay higher salaries. High employee turnover likely explains low participation rates in the restaurant and food services industry, while the availability of defined benefit plans contributes to the low DC plan participation rate for the government/public works sector. Kim Cochrane, director, client services, at Hub International Mid-Atlantic, notes that traditionally, government employers have offered richer benefits to make up for lower salaries. “We have found that, when employees are offered generous employer contributions, they are less likely to save their own money.” However, she says, government employees who do contribute are generally higher earners who can better afford to save—one explanation for why government/public works is among the top five industries in average deferral rate. Phil Sherman, senior retirement plan consultant at Deschutes Investment Consulting LLC, says what may be the biggest factor in lower participation rates for government plans is that each state is responsible for determining whether it will allow automatic enrollment, and many states will not. —RM

Participation Rate

1 Telecommunications 92.0%
2 Chemicals & Mining 88.0%
3 Architecture 87.7%
4 Pharmaceuticals 86.0%
5 Biotech 85.4%
43 Government/Public works – City/Municipal 63.0%
44 Government/Public works – County, state and federal 61.9%
45 Consumer services 61.3%
46 Religious organizations 55.5%
47 Restaurant & Food service 52.3%

Average Account Balance

1 Law firm $329,147
2 Telecommunications $278,183
3 Accounting/CPA Firm/Financial planning $215,781
4 Financial services $211,520
5 Research & Development $178,974
43 Religious organizations $60,640
44 Healthcare organization (not for profit) $60,223
45 Social services $57,020
46 Government/Public works – County, state and federal $50,758
47 Government/Public works – City/Municipal $50,264

Average Deferral Rate

1 Government/Public works – City/Municipal 17.8%
2 Government/Public works – County, state and federal 13.3%
3 Telecommunications 10.4%
4 Law firm 10.0%
5 Research & Development 9.9%
43 Restaurant & Food service 7.4%
44 Social services 7.4%
45 Banking – Commercial/Retail/Other 7.0%
46 Equipment – Sales/Leasing/Service 6.9%
47 Agriculture 6.9%

Immediate Eligibility

1 Religious organizations 73.3%
2 Aerospace & Defense 65.5%
3 Telecommunications 62.5%
4 Biotech 61.9%
5 Healthcare organization (not for profit) 61.9%
43 Real estate 23.9%
44 Investment Banking & Holding companies 23.6%
45 Equipment – Sales/Leasing/Service 23.3%
46 Restaurant & Food service 21.2%
47 Wholesale 20.3%

Immediate Vesting

1 Pharmaceuticals 66.7%
2 Religious organizations 58.3%
3 Education – Higher ed 54.5%
4 Chemicals & Mining 48.1%
5 Membership Organization/Industry Association/Labor Union 47.1%
43 Media/Communications/Publishing 17.4%
44 Architecture 15.4%
45 Equipment – Sales/Leasing/Service 14.8%
46 Government/Public Works – County, State and federal 13.8%
47 Government/Public Works – City/Municipal 8.2%


2025 PLANSPONSOR DC Survey Plan Benchmarking and Industry Reports

Our 2025 Plan Benchmarking and Industry Reports feature proprietary data collected by PLANSPONSOR in its annual Defined Contribution Survey. The reports highlight various plan design features and outcomes from 6 plan types and 48 industries.

You can leverage the 2025 PLANSPONSOR Reports* to:
  • Build trust with advisers and provide new tools to your staff and network
  • 100+ pages in PDF format
  • Compare plan design with peers and competitors, and improve fiduciary oversight
  • Add value to your clients by posting on your website behind registration

*Subject to usage terms/compliance in licensing agreement.

AVAILABLE FOR PURCHASE NOW!

Contact Rob Reif / 212-217-6906 / robert.reif@issmediasolutions.com