PLANADVISER - November/December 2017 - 48

" We see growth coming from the same three areas, "
says Dan Peluse, director, retirement plan services, at
Wintrust Wealth Management in Chicago, pointing to 401(k)
plans, fiduciary services and referrals. In fact, Peluse says,
more plan sponsors that have not previously worked with
an adviser are now in the market to hire one. " With the
continued move toward specialist advisers and the impact
from the DOL fiduciary rule still playing out, we see more
opportunities coming from internal and external referral
sources that are looking to partner with completely objective
qualified plan advisory firms. "
Kieckhefer observes it is imperative for a retirement
plan advisory practice to consistently expand its client
base and says it is this option " or get out of the business.
The only increase in efficiency is in increasing the number
of plans and assets. "
Another notable development in this year's survey is
the increase in the percentage of advisers acting as a 3(21)
or 3(38) fiduciary. Ninety-five percent are now a 3(21) fiduciary,
up from 92% in 2016, and 68% are a 3(38), up from
60%. Considering that the fiduciary rule definition has
changed, one may wonder about the 6% who say they are
not a fiduciary and about the plan services they do-and
do not-offer.
Peluse says this trend is likely only to continue, noting
that " most plan sponsors want to distance themselves from
any and all fiduciary liability. When the new fiduciary rule
was being written, most plan sponsors were worried about
the unknown and whether the rule would increase their
fiduciary risk. This unknown has prompted plan sponsors'
interest in 3(21) and 3(38) fiduciary services, and many
advisers have responded to the anticipated need. "
As
to how retirement plan advisers measure the
success of the plans they serve, they continue to consider
the basics: participation rates (84%), deferral rates (78%),
external benchmarking of plan design (72%) and the
percentage of participants invested in appropriate asset
allocations, such as TDFs (69%).
However, this year has seen an increase in advisers
analyzing the number of participants on track to meet
their retirement income replacement goals. Fifty-eight
percent of advisers say they now consider this to be a plan
success measurement, up from 50% in 2016.
Peluse says he views this as " encouraging, as retirement
readiness measurements tell the story of participant
and plan-level success. " -Lee Barney
2017 PLANADVISER Practice Benchmarking Survey
Methodology: In September, approximately 15,000 subscribers to PLANADVISER were asked
to respond to a 37-question survey, developed by the PLANADVISER editorial and research
teams. Survey questions pertained to size and scope of advisers' qualified plan business,
practice management, compensation and client services, as well as their assessments of
investment managers, mutual funds and defined contribution (DC) providers. The provider
assessment results appeared in the 2017 PLANADVISER Retirement Plan Adviser Survey in
our September/October issue. At the close of the survey, 337 complete responses had
been received from retirement plan advisers. For more information and for additional
research available, please contact surveys@strategic-i.com.
Respondent Profile
Total retirement plan assets under advisement
Avg No.
<$10mm
$10mm - $100mm
>$100mm - $200mm
>$200mm - $400mm
>$400mm - $800mm
>$800mm - $1b
>$1b - $2b
>$2b
Total
1%
9%
Top Concern
Adding new clients
Adding new clients
10% Compliance/Fiduciary
18%
21%
5%
Fee compression
Government regulation
Marketing
17% Practice management
20% Competition/Differentiation
Growth Area Other
Than 401(k) Plans
Plan/Fee benchmarking
Referrals
Referrals
Fiduciary services
Fiduciary services
Fiduciary services
Participant advice/education
Participant advice/education
Of Office
Locations
2.0
2.0
2.4
1.4
1.7
1.2
1.7
4.6
Avg No.
Of Advisers
In Practice
5.0
5.2
6.3
3.1
4.3
3.5
5.7
10.0
Avg No. of
Support Staff
In Practice
5.0
13.9
8.0
2.6
3.6
5.2
5.3
21.7
48 | planadviser.com november-december 2017
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PLANADVISER - November/December 2017

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