2018 PLANADVISER Micro Plan Survey continued Re-Enrollment Actions Taken in Past 12 - 18 Months Frequency of Formal Review of Investment Options All Micro <$1mm $1mm-$5mm All Micro <$1mm $1mm-$5mm All Micro <$1mm $1mm-$5mm l Re-enrolled employees not participating in the plan (requiring them to opt out again or else be enrolled) l Re-enrolled participants saving below the default deferral rate (thus boosting their deferral rate) l Re-enrolled participants not invested in the default investment (meaning current/ future contributions are invested in the plan default) l We have not re-enrolled any employees/ participants Investments Investment Committee for the DC Plan All Micro <$1mm $1mm-$5mm Internal employees only External non-employees only Employees and non-employees Unsure of composition No investment committee Unsure/Don't know 22% 19% 23% 3% 1% 1% Professionally managed account service Real estate/REITs7 3% 18% 8% 22% 1% 1% Employer stock 49% 59% 46% 7% 12% 5% Income-Oriented Products/Services Offered All Micro <$1mm $1mm-$5mm Systematic withdrawal option at retirement In-plan - guaranteed monthly income In-plan - professional managed account service In-plan - no guarantees Out-of-plan - annuity purchase Unsure of income product type No income-oriented products 19% 15% 20% 5% 6% 5% 10% 10% 10% 4% 4% 2% 3% 30% 28% 30% 45% 49% 44% 4% 2% 6E.g., growth, conservative. 7 8E.g., hedge funds, private equity. Real estate investment trusts. Investment Vehicles Used in DC Plan Mutual funds Separate accounts Collective investment trusts ETFs9 (outside of brokerage windows) Self-directed brokerage window Mutual fund window Other 9 Exchange-traded funds. All Micro <$1mm $1mm-$5mm 89% 86% 90% 20% 17% 21% 7% 6% 8% 16% 12% 17% 10% 10% 10% 5% 5% 6% 6% Socially responsible fund(s) Alternative investments8 14% 13% 14% l Quarterly l Twice a year l Annually 5% 6% 5% 4% 4% 4% l Every 1 to 2 years l Every 2 to 3 years l Every >3 years l Never Types of Investment Options Offered 83% 83% 83% Balanced fund(s) Target-date funds Money market fund Target-risk funds6 Stable value fund All Micro <$1mm $1mm-$5mm 70% 61% 73% 70% 58% 73% 61% 55% 63% 52% 53% 52% 35% 24% 39% 32% 29% 32% 23% 18% 25% 10% 10% 10% 6% 6% 1% 2% All Micro <$1mm $1mm-$5mm 15% 12% 16% 11% 7% 12% 51% 49% 52% 6% 5% 3% 4% 3% 4% 10% 19% 6% 3% 3% 7% 6% 1% 5% 6% 34 | planadviser.com january-february 2018http://www.planadviser.com