PLANADVISER - July/August 2019 - 34

2019 PLANADVISER Recordkeeper Services Survey: 457 Plans
W
ith over $380 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 are the largest subset and cover 7 million
participants, while nongovernmental plans must limit participation to groups of
highly compensated employees (HCEs) and cover less than 250,000 participants.
As supplemental savings plans, 457s are less successful at capturing participant
savings than are other plans-the $47,000 in average 457 plan assets per
participant is lower than the comparable figures for either 401(k)s or 403(b)s.
The secondary nature of these plans and the limitations many public-sector
457s face in offering automatic enrollment and automatic escalation creates opportunities
for providers to differentiate on the quality and effectiveness of services
that successfully increase participation and contributions levels. Examples would
include on-site meetings, online tools, financial wellness programs and communications/education
campaigns. Retiree services also take on increased importance,
as 457 participants may have multiple distribution options across multiple plans
to consider at retirement. -BOK
Growth in Total 457 Plan Assets ($mm)
2 Nationwide
3 Voya Financial
4 ICMA-RC
5 Prudential Retirement
6 Fidelity Investments
7 MassMutual
8 T. Rowe Price
9 TIAA
10 AIG Retirement Services
Top 10, by Total 457 Plan Assets ($mm)
1 Empower Retirement
$79,376
$75,527
$64,809
$34,687
$22,523
$17,961
$13,057
$9,188
$8,205
$7,862
Top 10, by Governmental 457(b) Plans
1 Nationwide
2 Voya Financial
3 ICMA-RC
4 AXA Equitable
5 Security Benefit*
6 AIG Retirement Services
7 Lincoln Financial Group
2010
2011
2012
2013
2014
2015
2016
Total 457 Assets, Plans and Participants

Total 457 plan assets
$357,330
Plan Size
<$5mm
$5mm - $25mm
>$25mm - $100mm
>$100mm - $500mm
>$500mm

Total 457 plans
41,630
Assets ($mm)†
$19,346
$27,470
$39,445
$42,173
$204,046
Plans†
33,422
2,709
814
244
77

Total 457
plan participants
7,866,773
Participants†
925,234
659,202
792,924
1,290,764
3,283,757
2017
2018
2019
8 MassMutual
9 Empower Retirement
10 OneAmerica
7,313
5,061
4,729
3,290
2,141
1,981
1,917
1,557
1,070
963
Top 10, by Nongovernmental 457 Plans
1 AIG Retirement Services
2 TIAA
3 Lincoln Financial Group
4 CUNA Mutual Retirement Solutions
5 Principal Financial Group
6 MetLife Resources
7 Fidelity Investments
8 Voya Financial
9 Empower Retirement
10 MassMutual
*Profiled as part of the 2019 PLANSPONSOR 457 Plan Market Survey (for information, email surveys@strategic-i.com).
†Not all providers report complete data; therefore, data segmented by plan size will not equal the corresponding overall total.
34 | planadviser.com July-August 2019
2,413
1,332
982
857
701
494
411
403
320
279
$172,515
$199,485
$203,568
$227,896
$272,209
$285,682
$292,755
$321,467
$370,544
$357,330

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