Micro Industry Data
| Types of DC plans offered |
|---|
| ALL PLANS | <$1MM | $1MM-$5MM |
|---|
| 401(k) | 86.4% | 90.9% | 90.1% |
| 401(a) | 5.0% | 0.9% | 1.5% |
| 403(b) | 12.0% | 6.9% | 8.7% |
| 457 | 9.2% | 2.0% | 4.0% |
| Money purchase | 2.2% | 1.0% | 0.8% |
| Profit sharing | 17.2% | 11.4% | 16.7% |
| ESOP | 3.8% | 0.0% | 1.9% |
| Nonqualified deferred comp | 12.1% | 0.9% | 1.8% |
| SEP/SIMPLE IRA | 0.4% | 0.7% | 0.3% |
| Other | 2.5% | 1.4% | 1.7% |
| Plan design elements |
|---|
| ALL PLANS | <$1MM | $1MM-$5MM |
|---|
| Auto-enrollment | 41.7% | 26.2% | 29.0% |
| Auto-deferral increases | 28.6% | 20.4% | 15.5% |
| Written IPS | 28.6% | 20.4% | 15.5% |
| Loan provision | 82.5% | 78.7% | 77.2% |
| Hardship withdrawal provision | 90.7% | 92.6% | 89.1% |
| Safe harbor provision | 49.4% | 64.1% | 53.0% |
| Roth 401(k) contribution | 48.0% | 49.2% | 46.8% |
| Use a financial adviser | 66.4% | 63.5% | 68.1% |
| Offer financial advice | 74.9% | 70.6% | 79.1% |
| Catch-up contributions | 97.1% | 97.2% | 97.9% |
| ERISA accounts | 44.2% | 53.9% | 42.3% |
| Plan participation rate |
|---|
| ALL PLANS | <$1MM | $1MM-$5MM |
|---|
| Average | 72.6% | 60.6% | 71.2% |
| Median | 80.0% | 60.0% | 77.0% |
| Plan participation eligibility |
|---|
| ALL PLANS | <$1MM | $1MM-$5MM |
|---|
| Immediately upon hire | 35.9% | 17.0% | 19.3% |
| Within 3 months | 26.5% | 21.2% | 23.9% |
| After 3 to 6 months | 8.1% | 9.2% | 10.4% |
| After more than 6 months | 29.6% | 52.6% | 46.4% |
| Approximate maximum match |
|---|
| ALL PLANS | <$1MM | $1MM-$5MM |
|---|
| >100% of 6% of salary | 5.4% | 5.3% | 5.3% |
| 100% match of 6% | 15.4% | 15.7% | 14.0% |
| 51% to 99% of 6% | 19.2% | 12.6% | 16.0% |
| 50% match of 6% | 28.1% | 24.7% | 27.6% |
| <50% of 6% | 23.5% | 27.6% | 28.3% |
| Fixed-dollar contribution | 8.4% | 14.0% | 8.8% |
| Participants maximizing match |
|---|
| ALL PLANS | <$1MM | $1MM-$5MM |
|---|
| Average | 67.0% | 69.4% | 68.7% |
| Median | 75.0% | 80.0% | 77.0% |
| Types of employer contributions made to participant accounts |
|---|
| ALL PLANS | <$1MM | $1MM-$5MM |
|---|
| Match on participant contribution | 75.0% | 61.5% | 69.3% |
| Nonelective contribution | 8.2% | 3.8% | 3.6% |
| Profit-sharing contribution | 26.4% | 16.9% | 24.1% |
| Other contribution | 11.7% | 8.1% | 9.9% |
| No employer contribution | 9.1% | 16.9% | 10.9% |
| When participants are 100% vested |
|---|
| ALL PLANS | <$1MM | $1MM-$5MM |
|---|
| Immediately on enrollment | 31.8% | 33.4% | 25.9% |
| 6 months | 1.0% | 1.5% | 1.1% |
| 1 year | 5.2% | 10.2% | 4.9% |
| 2 years | 3.9% | 1.7% | 2.2% |
| 3 years | 13.6% | 10.4% | 9.5% |
| 4 years | 3.4% | 2.4% | 3.9% |
| 5 years | 23.4% | 21.5% | 28.1% |
| After >5 years | 17.6% | 18.9% | 24.4% |
| Participants with outstanding loans |
|---|
| ALL PLANS | <$1MM | $1MM-$5MM |
|---|
| Average | 14.2% | 9.6% | 11.8% |
| Median | 11.0% | 2.0% | 9.0% |
| Participants making hardship withdrawals |
|---|
| ALL PLANS | <$1MM | $1MM-$5MM |
|---|
| Average | 2.0% | 2.8% | 1.5% |
| Median | 1.0% | 0.0% | 0.0% |
| Number of investment options offered and held |
|---|
| ALL PLANS | <$1MM | $1MM-$5MM |
|---|
| Options offered–average | 17.6 | 16.3 | 18.3 |
| Options offered–median | 16.0 | 15.0 | 17.0 |
| Options held–average | 4.7 | 4.8 | 5.0 |
| Options held–median | 4.0 | 4.0 | 5.0 |
| Types of investment options offered |
|---|
| ALL PLANS | <$1MM | $1MM-$5MM |
|---|
| Target-date/Lifecycle fund | 76.3% | 59.3% | 66.5% |
| Risk-based lifestyle fund | 29.8% | 29.2% | 34.3% |
| Index fund | 77.4% | 58.0% | 65.7% |
| Money market fund | 74.7% | 80.3% | 77.5% |
| Employer stock | 8.8% | 0.3% | 0.7% |
| Stable value fund | 69.1% | 37.6% | 52.5% |
| “In-plan” guaranteed income option | 9.5% | 7.5% | 8.7% |
| Out-of-plan guaranteed income option | 1.0% | 0.3% | 0.7% |
| Self-directed brokerage | 19.8% | 6.4% | 9.4% |
| Mutual fund window | 8.8% | 10.2% | 9.9% |
| Real estate/REITs | 22.6% | 15.3% | 21.6% |
| Alternative investments | 2.8% | 4.4% | 2.3% |
| ETFs | 0.9% | 1.7% | 1.3% |
| Approximate average expense ratio of plan investments |
|---|
| ALL PLANS | <$1MM | $1MM-$5MM |
|---|
| <0.25% (<25 bps) | 7.7% | 10.2% | 5.1% |
| 0.25 to 0.50% (25 to 50 bps) | 18.1% | 8.6% | 13.9% |
| 0.51 to 0.75% (51 to 75 bps) | 19.4% | 6.7% | 11.2% |
| 0.76% to 1.0% (76 to 100 bps) | 17.8% | 10.7% | 17.2% |
| 1.0% to 1.5% (101 to 150 bps) | 9.4% | 9.7% | 14.5% |
| >1.5% (>150 bps) | 1.3% | 3.8% | 2.3% |
| Do not know | 26.3% | 50.4% | 35.7% |
| Investment vehicles used in DC plan |
|---|
| ALL PLANS | <$1MM | $1MM-$5MM |
|---|
| Mutual funds | 96.7% | 83.7% | 89.7% |
| Separate accounts | 24.0% | 19.4% | 20.3% |
| Managed accounts | 32.9% | 33.1% | 34.8% |
| Commingled pools | 7.7% | 3.9% | 4.4% |
| Collective trusts | 13.2% | 4.5% | 3.8% |
| Frequency of formal review of investment options |
|---|
| ALL PLANS | <$1MM | $1MM-$5MM |
|---|
| Quarterly | 39.0% | 9.2% | 18.4% |
| Twice a year | 19.1% | 9.7% | 17.8% |
| Annually | 29.1% | 44.6% | 44.0% |
| Every 1 to 2 years | 3.2% | 6.4% | 5.3% |
| Every 2-plus to 3 years | 1.9% | 6.2% | 3.2% |
| Every 3-plus years | 1.8% | 4.5% | 3.1% |
| Never | 4.0% | 16.3% | 5.7% |
| Other | 1.8% | 2.7% | 2.2% |
| Investment committee for the DC plan |
|---|
| ALL PLANS | <$1MM | $1MM-$5MM |
|---|
| Employees only | 52.6% | 20.0% | 36.1% |
| Nonemployees only | 1.4% | 2.5% | 1.5% |
| Employees and nonemployees | 21.3% | 6.7% | 19.3% |
| Have committee—unsure of makeup | 0.8% | 0.2% | 0.7% |
| No investment committee | 22.3% | 67.8% | 39.9% |
| Do not know | 1.5% | 2.7% | 2.5% |
| Sponsor services ratings |
|---|
| (1 to 7 scale, 7=extremely satisfied) | ALL PLANS | <$1MM | $1MM-$5MM |
|---|
| Sponsor website/tools | 6.09 | 6.31 | 6.21 |
| Plan reports/benchmarking | 5.96 | 6.20 | 6.1 |
| Form 5500 processing | 6.29 | 6.43 | 6.38 |
| Compliance support/testing | 6.29 | 6.46 | 6.39 |
| Legislative/Regulatory updates | 6.15 | 6.27 | 6.21 |
| Account team knowledge | 6.44 | 6.54 | 6.51 |
| Service responsiveness | 6.42 | 6.54 | 6.49 |
| Staff consistency/Lack of turnover | 6.34 | 6.46 | 6.40 |
| Plan design flexibility | 6.30 | 6.41 | 6.38 |
| Fee "cost-to-value" | 6.06 | 6.05 | 6.04 |
| Participant services ratings |
|---|
| (1 to 7 scale, 7=extremely satisfied) | ALL PLANS | <$1MM | $1MM-$5MM |
|---|
| Participant call center | 6.23 | 6.50 | 6.35 |
| Website functionality | 6.20 | 6.33 | 6.28 |
| Online tools/services | 6.18 | 6.29 | 6.24 |
| Participant statements | 6.36 | 6.52 | 6.44 |
| Education program | 5.89 | 6.10 | 5.85 |
| Communication materials | 6.01 | 6.21 | 6.03 |
| Enrollment assistance | 6.16 | 6.34 | 6.20 |
| Retiree services/payments | 6.28 | 6.26 | 6.80 |
| Onsite meetings | 5.93 | 5.95 | 5.81 |
| Range of investments | 6.40 | 6.31 | 6.43 |
| Loan/Withdrawal processing | 6.41 | 6.50 | 6.47 |
| Beneficiary administration | 6.24 | 6.39 | 6.34 |
| Participant fee disclosure | 6.21 | 6.20 | 6.23 |
| Length of relationship with provider |
|---|
| ALL PLANS | <$1MM | $1MM-$5MM |
|---|
| <1 year | 4.0% | 4.5% | 3.9% |
| 1 to <3 years | 12.5% | 17.2% | 14.9% |
| 3 to <5 years | 16.1% | 26.7% | 17.4% |
| 5 to <7 years | 14.8% | 17.4% | 15.1% |
| >7 years | 50.9% | 31.8% | 46.3% |
| Do not know | 1.7% | 2.4% | 2.4% |
| Frequency of formal review of providers |
|---|
| ALL PLANS | <$1MM | $1MM-$5MM |
|---|
| Annually | 29.6% | 39.5% | 37.2% |
| Every 1 to <2 years | 12.1% | 15.5% | 15.2% |
| Every 2 to <3 years | 16.0% | 13.3% | 16.0% |
| Every 3 to <5 years | 21.1% | 6.8% | 13.0% |
| Every 5-plus years | 12.2% | 5.6% | 6.9% |
| Never | 9.1% | 19.2% | 11.7% |
| Frequency of formal review of administrative costs/fees |
|---|
| ALL PLANS | <$1MM | $1MM-$5MM |
|---|
| Annually | 71.8% | 62.6% | 66.8% |
| Every 1 to <2 years | 9.5% | 11.4% | 10.9% |
| Every 2 to <3 years | 7.1% | 7.0% | 8.0% |
| Every 3 to <5 years | 4.3% | 2.6% | 3.6% |
| Every 5-plus years | 2.0% | 2.6% | 2.4% |
| Never | 5.3% | 13.8% | 8.3% |
*Revenue sharing, wrap fees, fixed fees, etc.
| Who pays the plan’s admin/recordkeeping costs |
|---|
| ALL PLANS | <$1MM | $1MM-$5MM |
|---|
| Participants* | 24.2% | 10.8% | 19.2% |
| Shared—participants/sponsor | 21.6% | 16.1% | 20.5% |
| Plan sponsor pays all fees | 41.7% | 62.0% | 46.2% |
| Other | 3.1% | 1.1% | 2.3% |
| Do not know | 9.4% | 10.0% | 11.8% |
