RESEARCH | February 12, 2020

2020
PLANADVISER Micro Plan Survey

Micro plans have much to gain from adviser help with fiduciary matters

Reported by PLANADVISER

Industry Data

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Industry Data

Use of Advisers

Adviser Use Among Plans

Adviser Use Among Plans


	All Plans	<$1MM	$1MM–$5MM
Use a plan adviser	70%	50%	63%
Do not use a plan adviser	22%	31%	25%
Unsure/Don’t know	8%	19%	13%

Use of Services Provided by Plan Advisers
	All Plans	<$1MM	$1MM–$5MM
Review of fund performance	93%	83%	90%
Plan investment selection guidance	82%	63%	76%
Evaluating/Explaining provider fees	77%	56%	67%
Presenting to plan committees	72%	34%	57%
Creation/Monitoring of IPS⁶	65%	44%	51%
Benchmarking plan design	61%	44%	51%
One-on-one participant education	61%	63%	80%
Provider selection/due diligence	60%	42%	53%
Group participant education	58%	52%	76%
Ensuring plan alignment with objectives	52%	46%	58%
Plan compliance with laws and IPS	47%	40%	43%
Developing/Delivering fiduciary training	35%	18%	28%
Technical help with corporate transactions	31%	24%	33%
⁶Investment policy statement

Financial Education Offered by Employers
	All Plans	<$1MM	$1MM–$5MM
Saving strategies/prioritization	48%	22%	32%
Financial markets/Investing basics	42%	22%	29%
Budgeting	40%	19%	25%
Rolling over past balances into the plan	36%	20%	29%
Rollover options for separating employees	32%	15%	26%
Retirement health care costs/savings options	29%	13%	19%
Social Security withdrawal options/strategies	26%	10%	15%
Credit/Debt management	25%	11%	14%
College saving	23%	12%	13%
Tax/Estate planning	23%	11%	13%
Student Loans	15%	3%	7%
Home buying	14%	6%	8%

Adviser Fiduciary Status

Financial Education Offered by Employers


	All Plans	<$1MM	$1MM–$5MM
3(21) fiduciary	40%	21%	25%
3(38) fiduciary	19%	19%	18%
Adviser is not a plan fiduciary	10%	13%	13%
Have both a 3(21) and a 3(38) adviser	2%	1%	2%
Unsure/Don’t know	29%	45%	41%

Does Your Plan Employ a Third Party as a 3(16) Fiduciary?

Does Your Plan Employ a Third Party as a 3(16) Fiduciary


	All Plans	<$1MM	$1MM–$5MM
Yes, limited scope⁷	34%	29%	31%
Yes, broad scope⁸	23%	19%	24%
No	34%	28%	32%
Unsure/Don’t know	9%	24%	12%
⁷The third party has only limited-scope acceptance of some (vs. all) of the functions of the plan administrator; responsibility for actions outside of this scope is retained by plan officials. ⁸The third party has broad-scope acceptance of the administrator role, including to be named as the plan administrator in the plan document.