Defined Contribution in Review

Industry developments over the last 90 days

2Q19

Quarterly Highlights
A summary of plans and sponsors making the news

Quarterly Highlights

A summary of plans and sponsors making the news

PLANSPONSOR Magazine Selects Best in Class Plans

Recipients chosen as Best in Class were selected from 3,495 401(k) plans that responded to the 2018 PLANSPONSOR Defined Contribution (DC) Survey. Plans were rated using a proprietary system that weighted usage and implementation of more than 35 criteria related to plan design, oversight, governance and participant outcomes. Examples of evaluation criteria included employee participation and deferral rates, level of employer contributions, eligibility/vesting requirements and existence of an investment committee. Additional themes from the survey included:

Retirement Confidence

Retirement confidence was reported at 39.1% for Best in Class plans versus 19.9% for all others.

Managed Accounts

Close to 56% offer a managed account option versus 31.6% of all other
401(k) plans.

Eligibility Within Three Months

All (100%) of the Best in Class plans offer eligibility in to the plan within three months of hiring. Only about 60% of all other plans offer this.

Learn more about these awards in the 2Q19 edition of the 

PLANSPONSOR Best in Class Plans: Investment Oversight

Also included in the survey were questions about the plans’ practices for investment oversight:
100% of Best in Class plans have an investment committee, compared with 72.9% of all others
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100% of Best in Class plans have an investment committee, compared with 72.9% of all others
In addition, all have an investment policy statement (versus 67.3% of other 401(k) plans)
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100% of Best in Class plans have an investment committee, compared with 72.9% of all others
In addition, all have an investment policy statement (versus 67.3% of other 401(k) plans)
82.4% utilize the practice of fee equalization, which was about 19% more than all other plans
Three Additional Plan Sponsors Making the News

Gartner

Allows different deferral election for annual bonuses

Hebrew Home at Riverdale

Shifted from a defined benefit plan to a 403(b) defined contribution plan

Eileen Fisher

Hired an advisor with ESG expertise
Download the full DC in Review Guide