PLANADVISER - January/February 2018 - 31
2018 PLANADVISER Micro Plan Survey
A
MACROLOOK AT
MICRO PLANS
Our analysis of defined contribution
plans with <$5 million in assets
T
he micro-plan market-what the 2018 PLANADVISER Micro Plan Survey defines as
plans with less than $5 million in assets-is the most plentiful part of the defined
contribution (DC) industry. And it is growing every day. Anecdotal evidence from
advisers who serve this market says these clients highly value the adviser's services; the
advisers, in turn, develop strong ties with their sponsor clients, who wear many hats and
are less knowledgeable about retirement plans than those at larger firms.
Although the majority-69%-of micro plans work with an adviser of some sort, there
is obviously room for more adviser support. Micro-plan sponsors generally expect their
adviser to work on investments and education. Ninety-one percent of micro-plan sponsors
report that their adviser helps them review fund performance, and 87% say their
adviser helps them select investments. The next most common services are evaluating
and explaining provider fees, cited by 71% of sponsors; group participant education,
by 70%; and one-on-one participant education, by 69%. This may mean there is ample
room for advisers offering full plan reviews and support to serve the market, instead of
narrowly focusing on certain plan elements.
Another area where a skilled adviser may have the opportunity to gain new clients
is in helping clarify the role of a fiduciary. Nearly half (48%) of micro-plan sponsors are
unsure whether their adviser is a fiduciary and, if so, what kind. Just one-fifth (20%) say
their adviser is a 3(21) fiduciary, and 17% say he is a 3(38) fiduciary. By comparison, the
2017 PLANSPONSOR DC Survey reveals that a far greater percentage of larger plans have
an adviser who works in a fiduciary capacity, more likely as a 3(21) fiduciary than a 3(38).
Among plans in the $500 million to $1 billion range, for instance, 61% have a 3(21) adviser
and 11% a 3(38) adviser.
Art by Claire Merchlinsky
planadviser.com january-february 2018 | 31
http://www.planadviser.com
PLANADVISER - January/February 2018
Table of Contents for the Digital Edition of PLANADVISER - January/February 2018
Big Ideas
2018 PLANADVISER Top 100 Retirement Plan Advisers
2018 PLANADVISER Micro Plan Survey
Value Added
The Magic of Local Events
Warming to ESG
HSAs in Retirement Planning
PLANADVISER - January/February 2018 - Cover1
PLANADVISER - January/February 2018 - Cover2
PLANADVISER - January/February 2018 - 1
PLANADVISER - January/February 2018 - 2
PLANADVISER - January/February 2018 - 3
PLANADVISER - January/February 2018 - 4
PLANADVISER - January/February 2018 - 5
PLANADVISER - January/February 2018 - 6
PLANADVISER - January/February 2018 - 7
PLANADVISER - January/February 2018 - 8
PLANADVISER - January/February 2018 - 9
PLANADVISER - January/February 2018 - 10
PLANADVISER - January/February 2018 - 11
PLANADVISER - January/February 2018 - 12
PLANADVISER - January/February 2018 - 13
PLANADVISER - January/February 2018 - 14
PLANADVISER - January/February 2018 - 15
PLANADVISER - January/February 2018 - 16
PLANADVISER - January/February 2018 - 17
PLANADVISER - January/February 2018 - Big Ideas
PLANADVISER - January/February 2018 - 19
PLANADVISER - January/February 2018 - 20
PLANADVISER - January/February 2018 - 21
PLANADVISER - January/February 2018 - 2018 PLANADVISER Top 100 Retirement Plan Advisers
PLANADVISER - January/February 2018 - 23
PLANADVISER - January/February 2018 - 24
PLANADVISER - January/February 2018 - 25
PLANADVISER - January/February 2018 - 26
PLANADVISER - January/February 2018 - 27
PLANADVISER - January/February 2018 - 28
PLANADVISER - January/February 2018 - 29
PLANADVISER - January/February 2018 - 2018 PLANADVISER Micro Plan Survey
PLANADVISER - January/February 2018 - 31
PLANADVISER - January/February 2018 - 32
PLANADVISER - January/February 2018 - 33
PLANADVISER - January/February 2018 - 34
PLANADVISER - January/February 2018 - 35
PLANADVISER - January/February 2018 - 36
PLANADVISER - January/February 2018 - 37
PLANADVISER - January/February 2018 - Value Added
PLANADVISER - January/February 2018 - 39
PLANADVISER - January/February 2018 - The Magic of Local Events
PLANADVISER - January/February 2018 - 41
PLANADVISER - January/February 2018 - Warming to ESG
PLANADVISER - January/February 2018 - 43
PLANADVISER - January/February 2018 - HSAs in Retirement Planning
PLANADVISER - January/February 2018 - 45
PLANADVISER - January/February 2018 - 46
PLANADVISER - January/February 2018 - 47
PLANADVISER - January/February 2018 - 48
PLANADVISER - January/February 2018 - Cover3
PLANADVISER - January/February 2018 - Cover4
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