PLANADVISER - July/August 2019 - 33

2019 PLANADVISER Recordkeeper Services Survey: 403(b) Plans
A
lthough 403(b) plans and 401(k) plans have started looking increasingly
similar in recent years, clear differences still remain. Most notably, the
majority of 403(b) plans (74%) 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. Multi-vendor plans introduce additional
compliance requirements that carry significant penalties if not met, meaning
sponsors must understand how participant contributions are allocated and how
providers share information across participant accounts. Conversely, sponsors
can opt for a single-vendor plan, to consolidate and simplify plan administration.
Across the industry, service models have changed to align with specific subsegments
of the market. Affluent industries such as higher education and health
care-which represent 67% of 403(b) plan assets-often have different servicing
needs than do the K - 12 schools, churches and charities that make up the rest of
the market. Investment lineups are also changing as more contemporary investment
options displace the annuity contracts on which the industry was built. All of
this change has fueled recent improvements in processes, systems and technology
that have helped to modernize the plan sponsor and participant experience. -BOK
Growth in Total 403(b) Plan Assets ($mm)
Top 10, by Total 403(b) Assets ($mm)
1 TIAA
2 Fidelity Investments
3 Transamerica
4 AIG Retirement Services
5 Voya Financial
6 Lincoln Financial Group
7 The Vanguard Group, Inc.
8 AXA Equitable
9 MetLife Resources
10 Empower Retirement
Top 10, by 403(b) ERISA Plans
1 TIAA
2 Lincoln Financial Group
3 Newport Group
4 MetLife Resources
2010
2011
2012
2013
2014
2015
2016
Total 403(b) Assets, Plans and Participants

Total 403(b) plan assets
$994,741
Plan Size
<$5mm
$5mm - $25mm
>$25mm - $100mm
>$100mm - $500mm
>$500mm

Total 403(b) plans
170,132
Assets ($mm)†
$85,165
$111,704
$130,318
$223,611
$391,993

Total 403(b)
plan participants
17,642,225
Plans†
151,983
10,566
2,745
1,047
287
*Profiled online as part of the 2019 PLANSPONSOR 403(b) Plan Market Survey. †
plan size will not equal the corresponding overall total.
Participants†
2,713,806
2,766,544
2,488,875
3,478,302
4,755,834
2017
2018
2019
5 AIG Retirement Services
6 Principal Financial Group
7 AXA Equitable
8 Voya Financial
9 Fidelity Investments
10 Nationwide
Top 10, by 403(b) Non-ERISA Plans
1 MetLife Resources
2 Voya Financial
3 AIG Retirement Services
4 AXA Equitable
5 Newport Group
6 Fidelity Investments
7 Nationwide
8 Security Benefit*
9 Lincoln Financial Group
10 TIAA
$406,773
$196,555
$59,435
$49,706
$42,997
$35,772
$26,169
$22,593
$20,995
$17,903
15,108
5,989
2,271
2,225
2,199
1,789
1,532
1,474
1,463
1,299
19,408
19,049
15,738
13,903
10,380
7,510
6,889
6,628
5,979
5,314
Not all providers report complete data; therefore, data segmented by
planadviser.com July-August 2019 | 33
$505,768
$585,819
$597,908
$663,604
$776,804
$820,941
$804,933
$883,631
$1,041,836
$994,741
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