PLANADVISER - July/August 2018 - 35

2018 Recordkeeper Services Guide: 403(b) Plans
A
uthorized in 1958, 403(b) plans have been around far longer than their 401(k)
counterparts, but it has taken nearly 60 years for them to accumulate $1 trillion
in total assets-a benchmark 401(k) plans passed more than two decades
ago. Over the years, 403(b)s and 401(k)s have started to look more alike, but clear
differences remain. Most notably, many 403(b) plans are exempt from requirements
set forth by the Employee Retirement Income Security Act (ERISA), and
some continue to offer multi-vendor environments, where a participant can
choose from a number of recordkeepers to service his plan.
The annuity-based origin of the 403(b) market is evident among service
providers: Organizations with roots in the insurance industry still control a significant
portion of 403(b) assets. Like the overall market, these providers have evolved
to offer products and services on par with those of other competitors in this
market. Additionally, service models have changed to align with specific market
sub-segments, such as K - 12 schools, which can vary widely based on their geography
and community; higher education institutions, hospitals and health care
organizations-affluent compared with other organizations; and many churches
and charities, which tend to have smaller plans. As a result, sponsors have many
good choices for a 403(b) recordkeeping partner. -BOK
Total 403(b) Plan Assets ($mm)
Top 10, by Total Assets ($mm)
1 TIAA
2 Fidelity Investments
3 Transamerica
4 VALIC
5 Voya Financial
6 Lincoln Financial Group
7 The Vanguard Group, Inc.
8 MetLife Resources
9 AXA*
10 Empower Retirement
Top 10, by 403(b) ERISA Plans
1 TIAA
2 Lincoln Financial Group
3 Newport Group
4 VALIC
5 Principal Financial Group
6 Voya Financial
7 AXA*
2009
2010
2011
2012
2013
2014
2015
Total 403(b) Assets, Plans and Participants

Total 403(b) plan assets
$1,041,836
Plan Size
<$10mm
$10mm - $50mm
>$50mm - $200mm
>$200mm - $1b
>$1b

Total 403(b) plans
196,146
Assets ($mm)†
$115,689
$125,292
$153,546
$261,851
$272,529
*AXA Equitable Life Insurance Company. †
overall total.

Total 403(b)
plan participants
17,379,886
Plans†
149,105
5,990
1,590
630
120
Participants†
3,352,846
2,626,880
2,443,045
3,470,775
2,883,011
2016
2017
2018
8 Fidelity Investments
9 Nationwide
10 MassMutual
Top 10, by 403(b) Non-ERISA Plans
1 Voya Financial
2 VALIC
3 AXA*
4 Newport Group
5 Fidelity Investments
6 Nationwide
7 Lincoln Financial Group
8 Security Benefit
9 TIAA
10 Empower Retirement
$424,026
$197,636
$63,085
$53,485
$44,727
$36,139
$29,968
$24,532
$23,423
$18,000
15,181
6,121
2,556
2,216
1,747
1,706
1,653
1,477
1,341
1,320
19,075
15,945
13,869
10,092
7,649
7,154
6,077
6,027
5,314
3,241
Not all providers report complete data, therefore data segmented by plan size will not equal the corresponding
planadviser.com july-august 2018 | 35
$432,348
$505,768
$585,819
$597,908
$663,604
$776,804
$820,941
$804,933
$883,631
$1,041,836
PLANADVISER - July/August 2018

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