PLANADVISER - January/February 2020 - 26

2020 PLANADVISER Micro Plan Survey
Top and Bottom 5 Industries for Micro Plans , in Terms of ...
1
1
2
3
4
5
44
45
46
47
48
Average Participation Rate
Govt: City/Municipal
Insurance/Reinsurance
Utilities
Fortune 1000
Research/Development
100.0%
Average Account Balance
Utilities
93.2% Law firms
92.5%
Financial services
85.8% Insurance/Reinsurance
85.7% Consulting
Education - K-12, preschool 59.8%
Transportation/Airlines
Auto - Manufacturing
Restaurants/Food service
Nonprofit orgs
59.3% Telecommunications
58.5%
58.4%
$170,322
Average Deferral Rate
Chemicals/Mining
$138,364 Membership
$122,575
$115,256
$115,103
Utilities
Law firms
Education - Higher ed
$45,015
$39,988
Religious/Social services $38,830
Auto - Manufacturing
$29,795
Auto - Dealerships/Service 50.9% Restaurants/Food service $28,543
Methodology
The data presented here summarize select results from sponsors
of micro plans-i.e., plans with $5 million or less in plan assets-
who responded to the 2019 PLANSPONSOR Defined Contributions
(DC) Survey. The survey, fielded late last August to November, gathered
over 3,000 responses from plans of all sizes- " All Plans " in the
tables; 1,045 responses (30%) were from micros. Insights from the
survey are meant to support existing plan governance processes
and do not represent advice or guidance related to any aspect
of plan design. Additional data may be segmented by plan size,
industry, geography and custom specifications.
Note: Totals in individual tables may not equal 100%, due to rounding.
Survey Profile
Type(s) of DC Plan(s) Offered
All Plans
401(k)
Profit sharing
403(b)
457
Nonqualified deferred compensation
ESOP2
/KSOP3
Money purchase
SIMPLE4
SEP5
Other
IRA
88%
<$1mm $1mm-$5mm
91%
6%
5%
1%
0%
1%
2%
1%
2%
93%
18% 12% 16%
11%
10%
10%
3%
2%
1%
0%
3%
1 Rankings are limited to those industries that met established quotas. 2
employees individual retirement plan. 5 Simplified employee pension. 6
7%
5%
2%
1%
2%
1%
0%
2%
Telecommunications
Equipment sales
Holding co's/Inv banking
Auto - Dealerships/Service
Agriculture
10.3%
9.2%
9.1%
Immediate Eligibility
Health care - Not-for-profit
70.5%
Education - K-12, preschool 60.8%
Religious/Social services
8.6% Education - Higher ed
8.5%
5.3%
5.0% Membership
5.0% Manufacturing - Consumer
4.8% Restaurants/Food service
4.1% Agriculture
Use of Advisers
Adviser Use Among Plans
l Use a plan adviser l Do not use a plan adviser l Unsure/Don't know
8%
22%
All Plans
70%
31%
19%
25%
<$1mm
50%
Use of Services Provided by Plan Advisers
All Plans
Review of fund performance
Plan investment selection guidance
Evaluating/Explaining provider fees
Presenting to plan committees
Creation/Monitoring of IPS6
Benchmarking plan design
One-on-one participant education
Provider selection/due diligence
Group participant education
Ensuring plan alignment with objectives
Plan compliance with laws and IPS
Developing/Delivering fiduciary training
Technical help with corporate transactions
Employee stock ownership plan. 3
Investment policy statement.
A combination ESOP and 401(k)plan. 4
93%
82%
<$1mm $1mm-$5mm
83%
63%
90%
76%
77% 56% 67%
72% 34%
65%
61%
61%
60%
58%
52%
44%
44%
63%
47% 40% 43%
35%
31%
18% 28%
24% 33%
Savings incentive match plan for
57%
51%
51%
80%
42% 53%
52% 76%
46% 58%
$1mm-$5mm
63%
13%
56.2%
50.0%
Govt - County/State/Federal 50.0%
Hotels/Gaming
4.1%
4.0%
2.6%
0.0%
0.0%
26 | planadviser.com January-February 2020
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PLANADVISER - January/February 2020

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