PLANADVISER - July/August 2018 - 36

2018 Recordkeeper Services Guide: 457 Plans
W
ith over $350 billion in recordkept assets, 457 plans account for the third
largest pool of defined contribution (DC) assets, providing public, governmental
and certain nongovernmental employees with access to benefits typically
associated with 401(k) and nonqualified deferred compensation (NQDC)
plans. Governmental 457(b) plans-similar to 401(k) plans in terms of eligibility
guidelines and contribution limits-are the largest subset of plans and cover 6.5
million participants, while nongovernmental 457 plans must limit participation
to highly compensated employees (HCEs).
Many recordkeepers service both plan types, but the governmental plan market
is dominated by four providers-Empower Retirement, ICMA-RC, Nationwide and
Voya Financial-which accounts for about 85% of governmental 457(b) assets. The
nongovernmental 457 plan market is only slightly less concentrated, with the four
largest providers-Lincoln, TIAA, T. Rowe Price and VALIC-overseeing almost
70% of total assets.
Unsurprisingly, 457s, as supplemental savings plans, are less successful at
capturing participant savings than are other plans-the $47,800 average 457 plan
assets per participant is lower than both 401(k) ($78,300) and 403(b) ($61,300)
plans. But, 457 plans' asset growth is in line with other plan types, so recordkeepers
appear committed to helping those participants succeed. -BOK
Total 457 Plan Assets ($mm)
Top 10, by Total Assets ($mm)
1 Empower Retirement
2 Nationwide
3 Voya Financial
4 ICMA-RC
5 Prudential Retirement
6 Fidelity Investments
7 MassMutual
8 T. Rowe Price
9 TIAA
10 VALIC
$83,000
$78,082
$64,840
$36,415
$23,613
$18,273
$14,499
$9,652
$8,579
$8,485
Top 10, by Governmental 457(b) Plans
1 Nationwide
2 Voya Financial
3 ICMA-RC
4 AXA*
5 VALIC
6 MassMutual
2009
2010
2011
2012
2013
2014
2015
Total 457 Assets, Plans and Participants

Total 457 plan assets
$370,544
Plan Size
<$5mm
$5mm - $25mm
>$25mm - $100mm
>$100mm - $500mm
>$500mm

Total 457 plans
43,799
Assets ($mm)†
$21,583
$30,137
$40,550
$50,477
$190,522
*AXA Equitable Life Insurance Company.
†Not all providers report complete data, therefore data segmented by plan size will not equal the corresponding overall total.
36 | planadviser.com july-august 2018
Plans†
32,710
2,816
872
252
82

Total 457
plan participants
7,649,448
Participants†
923,583
619,606
809,292
1,189,184
3,046,854
2016
2017
2018
7 Empower Retirement
8 Lincoln Financial Group
9 OneAmerica
10 Security Benefit
7,353
5,047
4,781
2,185
1,998
1,572
1,057
993
945
872
Top 10, by Nongovernmental 457 Plans
1 VALIC
2 TIAA
3 Lincoln Financial Group
4 CUNA Mutual Retirement Solutions
5 Voya Financial
6 Fidelity Investments
7 Empower Retirement
8 MassMutual
9 Transamerica
10 PlanMember Financial
2,409
1,336
897
788
412
402
311
289
268
189
$151,661
$172,515
$199,485
$203,568
$227,896
$272,209
$285,682
$292,755
$321,467
$370,544
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