RESEARCH |
2020
PLANADVISER Micro Plan Survey
Micro plans have much to gain from adviser help with fiduciary matters
Reported by PLANADVISER
Industry Data
Costs/Fees
Who Pays for Plan’s Administrative/Recordkeeping Costs?
| All Plans | <$1MM | $1MM–$5MM | |
|---|---|---|---|
| Plan, via participants | 48% | 17% | 29% |
| Employer | 31% | 51% | 45% |
| Both | 13% | 15% | 13% |
| Unsure/Don’t know | 8% | 17% | 13% |
| Approximate Average Expense Ratio of Plan Investments | |||
|---|---|---|---|
| All Plans | <$1MM | $1MM–$5MM | |
| <0.25% (<25 bps12) | 18% | 15% | 13% |
| 0.25% – 0.50% (25 – 50 bps) | 27% | 12% | 19% |
| >0.50% – 0.75% (51– 75 bps) | 14% | 12% | 11% |
| >0.75% –1.0% (76 –100 bps) | 7% | 8% | 9% |
| >1.0% – 1.5% (101– 150 bps) | 3% | 3% | 7% |
| >1.5% (>150 bps) | 1% | 2% | 1% |
| Unsure/Don’t know | 31% | 48% | 41% |
| 12Basis points | |||
Frequency of Formal Review of Administrative Costs/Fees
| All Plans | <$1MM | $1MM–$5MM | |
|---|---|---|---|
| Annually | 74% | 67% | 74% |
| Every 1 to 2 years | 10% | 7% | 10% |
| Every >2 to 3 years | 6% | 3% | 4% |
| Every >3 to 5 years | 2% | 0% | 1% |
| Every >5 years | 1% | 1% | 1% |
| Unsure/Don’t know | 7% | 23% | 10% |
Were Total Plan Fees Calculated for the Prior Plan Year?
| All Plans | <$1MM | $1MM–$5MM | ||
|---|---|---|---|---|
| Yes, and we externally benchmarked our plan’s cost/fees as part of the process | 42% | 15% | 26% | |
| Yes, and we plan to externally benchmark our plan’s cost/fees in the near future | 7% | 5% | 6% | |
| Yes, but we did not externally benchmark our plan’s cost/fees | 19% | 17% | 21% | |
| No, but we intend to calculate total fees in the next 6 months | 3% | 6% | 5% | |
| No, but we may do it at some point in the future | 14% | 33% | 24% | |
| Unsure/Don’t know | 14% | 24% | 18% | |