2015 PLAN BENCHMARKING REPORT

Transcription

1 2015 PLAN BENCHMARKING REPORT 403(b) Plans A summary of overall results from the 2014 PLANSPONSOR Defined Contribution (DC) Survey Report courtesy of Sentinel Benefits & Financial Group For TK use only. All data as of November 2013 Source: PLANSPONSOR Defined Contribution Survey, 2013 Updated data available November

2 Table of Contents Summary of Findings 2 Plan Types and Design Features 6 Auto Features 17 Participation and Eligibility 25 Employer Match 30 Plan Investments 39 Retirement Income 47 Fees/Expenses 51 Defined Contribution Providers 59 Advice and Advisers 63 Plan Oversight and Administration 70 Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

3 Summary of Findings Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

4 About this report The PLANSPONSOR 2014 Defined Contribution (DC) Survey results incorporate the responses of DC retirement plan sponsors from a broad variety of U.S. industries. Between late June and early September 2014, approximately 50,000 survey questionnaires were sent to DC plan sponsors from the PLANSPONSOR magazine database, as well as to client lists supplied by DC providers; 4,426 total usable responses qualified for inclusion in this report. Of these 4,426 respondents: 410 (9.3%) are plans with less than $1 million in DC assets 967 (21.8%) are plans with $1 million-$5 million 601 (13.6%) are plans with $5 million-$10 million 681 (15.4%) are plans with $10 million-$25 million 487 (11.0%) are plans with $25 million-$50 million 578 (13.0%) are plans with $50 million -$200 million 278 (6.3%) are plans with $200 million -$500 million 155 (3.5%) are plans with $500 million -$1 billion 269 (6.1%) are plans with more than $1 billion Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

5 Rankings: Top 50% industries in key plan areas Participation Rate Average Account Balance Average Deferral Rate Participants with Loans Hardship Withdrawals 1 Labor Unions [89.1%] Law Firm [$181,176] Labor Unions [9.4%] Fortune 1000 [21.3%] Labor Unions [2.49%] 2 Credit Unions [87.9%] Utilities [$129,703] Research & Development [8.3%] Utilities [20.4%] Fortune 1000 [2.25%] 3 Pharmaceuticals [86.3%] Accounting [$120,216] Pharmaceuticals [8.1%] Manufacturing: Consumer [19.8%] Healthcare (not for profit) [2.09%] 4 Utilities [86.3%] Fortune 1000 [$111,550] Aerospace/Defense [7.9%] Chemicals/Mining [19.7%] Aerospace/Defense [1.97%] 5 Accounting [86.2%] Research & Development [$110,071] Education: Higher Ed [7.8%] Automotive: Manufacturing [18.3%] Utilities [1.88%] 6 Insurance/Reinsurance [85.7%] Engineering [$109,294] Accounting [7.8%] Manufacturing: Industrial [18.0%] Manufacturing: Consumer [1.86%] 7 Financial Services [85.6%] Consulting [$108,555] Engineering [7.7%] Telecommunications [17.4%] Automotive: Dealerships/Svc [1.85%] 8 Membership Orgs [84.8%] Financial Services [$107,853] Consulting [7.7%] Insurance/Reinsurance [17.2%] Restaurants/Food Service [1.75%] 9 Consulting [84.6%] Pharmaceuticals [$107,524] Utilities [7.7%] Oil & Gas/Energy [17.1%] Manufacturing: Industrial [1.72%] 10 Engineering [84.2%] Aerospace/Defense [$107,392] Fortune 1000 [7.4%] Hotels/Gaming [16.7%] Oil & Gas/Energy [1.65%] 11 Banking: Commercial [83.3%] Membership Orgs [$102,457] Technology [7.3%] Media/Communications [16.1%] Insurance/Reinsurance [1.61%] 12 Law Firm [83.2%] Architecture [$101,254] Oil & Gas/Energy [7.2%] Distribution [16.0%] Automotive: Manufacturing [1.61%] 13 Telecommunications [82.0%] Chemicals/Mining [$100,939] Govt: City/Municipal [7.2%] Credit Unions [15.5%] Transportation/Airlines [1.59%] 14 Oil & Gas/Energy [81.5%] Oil & Gas/Energy [$98,098] Financial Services [7.2%] Transportation/Airlines [15.5%] Chemicals/Mining [1.58%] 15 Technology [81.4%] Insurance/Reinsurance [$97,866] Insurance/Reinsurance [7.0%] Labor Unions [15.4%] Wholesale [1.48%] 16 Holding Co's/Inv Banking [80.7%] Technology [$94,039] Membership Orgs [7.0%] Aerospace/Defense [15.3%] Education: K-12, Preschool [1.45%] 17 Research/Development [80.6%] Telecommunications [$92,117] Telecommunications [7.0%] Automotive: Dealerships/Svc [15.2%] Healthcare (for profit) [1.44%] 18 Aerospace/Defense [80.2%] Building/Construction [$91,163] Architecture [6.9%] Wholesale [15.2%] Banking: Commercial [1.42%] 19 Agriculture [80.0%] Healthcare (for profit) [$90,297] Govt: County/State/Federal [6.7%] Building/Construction [14.5%] Govt: County/State/Federal [1.40%] 20 Real Estate [79.9%] Education: Higher Ed [$87,867] Business Services [6.6%] Consumer Services [14.2%] Holding Co's/Inv Banking [1.40%] 21 Chemicals/Mining [79.7%] Agriculture [$87,433] Law Firm [6.5%] Retail [14.0%] Consumer Services [1.38%] 22 Fortune 1000 [79.6%] Environmental [$81,939] Chemicals/Mining [6.4%] Banking: Commercial [13.7%] Telecommunications [1.38%] 23 Equipment [79.2%] Labor Unions [$79,664] Real Estate [6.4%] Agriculture [13.6%] Hotels/Gaming [1.37%] 24 Govt: City/Municipal [78.7%] Equipment [$78,909] Media/Communications [6.3%] Govt: City/Municipal [13.4%] Distribution [1.33%] Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

6 Rankings: Bottom 50% industries in key plan areas Participation Rate Average Account Balance Average Deferral Rate Participants with Loans Hardship Withdrawals 25 Architecture [78.5%] Real Estate [$78,769] Building/Construction [6.3%] Business Services [12.7%] Govt: City/Municipal [1.29%] 26 Non-Profit Orgs [78.1%] Manufacturing: Industrial [$78,588] Environmental [6.3%] Holding Co's/Inv Banking [12.6%] Building/Construction [1.28%] 27 Environmental [77.2%] Transportation/Airlines [$74,939] Equipment [6.2%] Financial Services [12.5%] Technology [1.26%] 28 Manufacturing: Industrial [77.1%] Advertising/Marketing [$74,829] Manufacturing: Industrial [6.2%] Healthcare (not for profit) [12.4%] Retail [1.26%] 29 Distribution [76.6%] Distribution [$73,309] Transportation/Airlines [6.2%] Law Firms [12.2%] Financial Services [1.26%] 30 Manufacturing: Consumer [76.4%] Wholesale [$72,731] Non-Profit Orgs [6.1%] Environmental [12.1%] Non-Profit Orgs [1.24%] 31 Education: Higher Ed [76.3%] Manufacturing: Consumer [$71,268] Banking: Commercial [6.1%] Research & Development [12.0%] Media/Communications [1.23%] 32 Automotive: Manufacturing [75.9%] Media/Communications [$71,011] Healthcare (for profit) [6.1%] Technology [12.0%] Education: Higher Ed [1.23%] 33 Healthcare (for profit) [75.1%] Holding Co's/Inv Banking [$70,921] Consumer Services [6.1%] Healthcare (for profit) [11.4%] Equipment [1.23%] 34 Business Services [74.0%] Automotive: Manufacturing [$70,813] Holding Co's/Inv Banking [6.1%] Religious Orgs/Social Svcs [11.0%] Religious Orgs/Social Svcs [1.18%] 35 Media/Communications [73.4%] Govt: City/Municipal [$70,674] Education: K-12, Preschool [6.0%] Engineering [10.8%] Real Estate [1.17%] 36 Advertising/Marketing [73.3%] Banking: Commercial [$70,636] Manufacturing: Consumer [6.0%] Membership Orgs/Industry Assns [10.7%] Business Services [1.08%] 37 Healthcare (not for profit) [73.2%] Business Services [$67,836] Credit Unions [5.9%] Pharmaceuticals/Biotech [10.5%] Pharmaceuticals [1.07%] 38 Building/Construction [72.8%] Non-Profit Orgs [$64,576] Healthcare (not for profit) [5.9%] Advertising/Marketing [10.2%] Research & Development [1.06%] 39 Wholesale [72.6%] Consumer Services [$63,411] Automotive: Manufacturing [5.8%] Non-Profit Orgs [9.9%] Agriculture [0.82%] 40 Religious Orgs/Social Svcs [71.1%] Automotive: Dealerships/Svc [$60,941] Agriculture [5.8%] Architecture [9.6%] Membership Orgs [0.77%] 41 Education: K-12, Preschool [70.5%] Credit Unions [$60,840] Wholesale [5.7%] Consulting [9.5%] Accounting [0.73%] 42 Transportation/Airlines [69.9%] Retail [$52,411] Automotive: Dealerships/Svc [5.6%] Accounting [9.2%] Law Firm [0.73%] 43 Consumer Services [66.5%] Govt: County/State/Federal [$50,091] Religious Orgs/Social Svcs [5.5%] Education: Higher Ed [8.9%] Advertising/Marketing [0.69%] 44 Automotive: Dealerships/Svc [66.0%] Healthcare (not for profit) [$46,215] Hotels/Gaming [5.4%] Education: K-12, Pre-School [7.6%] Consulting [0.66%] 45 Govt: County/State/Federal [63.1%] Education: K-12, Preschool [$43,930] Distribution [5.4%] Business Services [12.7%] Credit Unions [0.64%] 46 Retail [62.6%] Hotels/Gaming [$43,586] Retail [5.4%] Holding Co's/Inv Banking [12.6%] Engineering [0.64%] 47 Hotels/Gaming [57.0%] Restaurants/Food Service [$38,467] Advertising/Marketing [5.4%] Financial Services [12.5%] Architecture [0.56%] 48 Restaurants/Food Service [51.3%] Religious Orgs/Social Svcs [$33,875] Restaurants/Food Service [5.1%] Healthcare (not for profit) [12.4%] Environmental [0.54%] Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

7 Plan Types and Design Features Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

8 What type of DC plan does your organization offer? > 401(k) 87.0% 90.8% 92.6% 89.2% 88.0% 48.7% 80.4% 78.3% 80.8% 84.3% 403(b) 10.6% 5.7% 6.0% 8.2% 9.3% 5.5% 15.0% 22.8% 25.2% 13.1% % 2.2% 4.5% 6.7% 7.7% 5.9% 14.7% 25.7% 23.8% 18.4% Money Purchase 2.9% 1.0% 1.2% 2.5% 2.1% 1.7% 4.1% 7.4% 6.0% 5.2% Profit Sharing 20.3% 15.3% 21.4% 20.7% 23.5% 13.9% 19.8% 19.9% 20.5% 12.4% ESOP 3.7% 0.0% 2.0% 3.9% 3.5% 1.7% 5.0% 7.0% 5.3% 9.4% KSOP 0.6% 0.0% 0.4% 0.8% 0.3% 0.6% 0.5% 1.5% 0.0% 2.6% Nonqualified Deferred Compensation (NQDC) 9.8% 0.7% 1.8% 1.5% 6.6% 4.6% 14.9% 30.5% 31.1% 39.0% SEP 0.7% 1.0% 0.2% 0.5% 0.4% 0.8% 0.9% 1.5% 2.0% 0.7% SIMPLE IRA 0.6% 1.2% 0.0% 0.3% 0.6% 1.1% 0.5% 1.8% 2.0% 0.4% Other 3.5% 1.2% 1.7% 2.0% 2.7% 2.5% 5.0% 8.5% 8.6% 7.1% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

9 Does your organization offer any of these additional workplace retirement/savings plans? > Defined Benefit Plan (Traditional) Defined Benefit Plan (Cash Balance) Defined Benefit Plan (Hybrid/Other formula) Health Savings Account (HSA) Retiree Health Benefits 529 College Savings Plan NONE - Do not offer any of these benefits 21.9% 13.9% 14.2% 13.5% 16.6% 16.6% 27.9% 39.8% 49.7% 54.0% 4.5% 0.5% 1.6% 1.5% 2.3% 2.6% 4.1% 11.5% 15.2% 24.5% 1.9% 0.8% 0.6% 1.0% 0.8% 1.1% 1.4% 4.1% 6.0% 11.3% 36.5% 18.4% 28.3% 32.6% 38.1% 38.4% 42.5% 49.8% 51.7% 59.2% 10.4% 1.8% 1.2% 3.1% 3.9% 10.4% 16.8% 26.8% 35.8% 44.9% 7.6% 0.3% 2.4% 6.3% 7.1% 12.3% 13.5% 12.6% 14.6% 10.6% 43.9% 69.0% 58.6% 53.7% 45.2% 41.5% 27.9% 16.4% 13.9% 11.7% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

10 Do you provide a Roth contribution option? > Yes 54.6% 45.2% 51.0% 53.9% 57.8% 58.1% 54.3% 53.6% 56.8% 65.8% No 45.4% 54.8% 49.0% 46.1% 42.2% 41.9% 45.7% 46.4% 43.2% 34.2% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

11 Is your DC plan a Safe Harbor plan? > Yes 46.9% 57.6% 55.0% 46.4% 48.7% 41.9% 38.7% 43.8% 40.7% 39.5% No 53.1% 42.4% 45.0% 53.6% 51.3% 58.1% 61.3% 56.2% 59.3% 60.5% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

12 If so, which of the following Safe Harbor matching formulas have you adopted? > Basic matching contribution (100% on first 3%; 50% on next 2%) Enhanced matching contribution (not to exceed 4% total contribution) Auto-Enrollment matching contribution (100% of first 1%; 50% of next 5%) Non-elective contribution (guaranteed or flexible option 3%) 27.3% 31.2% 34.0% 29.6% 21.0% 25.6% 25.9% 25.2% 16.1% 21.6% 10.5% 18.1% 9.6% 9.9% 8.5% 11.3% 9.6% 14.0% 12.5% 5.2% 3.9% 1.4% 2.0% 2.3% 4.8% 4.4% 4.1% 9.3% 10.7% 5.2% 23.8% 29.7% 29.9% 24.9% 30.1% 20.0% 17.3% 12.1% 12.5% 9.3% Other 23.4% 9.4% 12.2% 23.5% 25.4% 26.3% 31.5% 30.8% 33.9% 47.4% Don't know 11.1% 10.1% 12.2% 9.9% 10.3% 12.5% 11.7% 8.4% 14.3% 11.3% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

13 Does the plan include a loan and/or hardship withdrawal provision? > A loan provision is included 79.2% 62.7% 74.5% 78.2% 79.4% 84.1% 84.7% 87.9% 83.9% 90.2% A hardship withdrawal provision is included 88.3% 79.9% 86.9% 88.4% 89.8% 87.7% 92.5% 89.7% 89.9% 91.7% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

14 If loans are offered, what percentage of plan participants have outstanding loans? > Average 14.0% 7.8% 11.8% 12.5% 14.2% 14.7% 15.6% 15.9% 18.3% 20.5% Median 12.0% 3.0% 10.0% 10.0% 12.6% 12.1% 15.0% 15.0% 18.2% 21.0% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

15 If offered, what percentage of plan participants have made hardship withdrawals in the past year? > Average 1.4% 0.7% 1.0% 1.2% 1.4% 1.4% 1.7% 1.9% 1.9% 2.6% Median 0.5% 0.0% 0.0% 0.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.7% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

16 Has your plan taken any of the following steps to limit a pre-retirement access to plan assets? > Imposed limits on loan amounts Imposed limits on number of loans Instituted/raised processing charges Enrolled plan in rollover management service Discourage early access in communications No additional steps taken to limit access 69.9% 32.5% 62.0% 70.0% 77.1% 77.6% 78.5% 81.3% 71.0% 80.7% 69.4% 27.2% 59.7% 69.7% 75.0% 75.6% 82.1% 82.1% 78.2% 83.8% 14.7% 4.6% 12.1% 10.9% 18.4% 15.5% 16.0% 15.3% 21.0% 26.3% 2.5% 4.2% 1.9% 1.5% 3.2% 3.1% 2.3% 2.1% 4.0% 0.9% 14.1% 9.9% 10.9% 13.5% 15.9% 17.6% 15.0% 12.3% 13.7% 20.6% 19.1% 55.1% 25.9% 18.2% 11.6% 14.2% 10.8% 9.4% 13.7% 9.6% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

17 Does your organization offer participants general education on any of the following financial topics? > Saving & budgeting 34.4% 14.0% 21.6% 28.0% 33.7% 44.7% 43.6% 53.0% 54.4% 59.6% Investing strategies 51.7% 24.0% 38.6% 48.5% 55.4% 62.6% 63.4% 64.9% 70.5% 71.9% Managing credit/debt 14.5% 4.0% 6.9% 11.0% 12.6% 17.4% 18.2% 26.1% 30.9% 37.3% Home buying 7.1% 2.3% 3.9% 5.9% 6.7% 8.6% 7.0% 10.8% 14.8% 20.0% College saving 11.7% 3.5% 5.0% 9.5% 9.6% 15.7% 13.9% 17.9% 27.5% 31.5% Social Security options 11.6% 3.5% 5.2% 6.6% 11.7% 14.4% 18.0% 23.1% 24.8% 20.8% Tax/estate planning 10.5% 4.3% 4.9% 7.1% 8.5% 13.3% 13.0% 20.9% 20.1% 26.9% Retiree healthcare costs/savings 19.0% 6.5% 11.2% 12.7% 16.8% 23.9% 27.3% 31.3% 35.6% 37.7% Long-term care 9.0% 3.0% 5.3% 6.1% 7.0% 11.0% 12.5% 13.4% 21.5% 19.6% No financial education offered 40.3% 71.8% 54.5% 43.6% 37.7% 27.5% 25.7% 23.9% 22.1% 20.8% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

18 Auto Features Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

19 Do you use automatic enrollment? > Yes 40.0% 17.2% 20.0% 34.3% 45.2% 48.0% 55.4% 60.3% 64.9% 65.2% No 55.9% 70.2% 71.6% 62.7% 52.9% 50.5% 44.1% 39.0% 34.4% 34.8% Don't know 4.0% 12.6% 8.4% 3.0% 1.9% 1.5% 0.5% 0.7% 0.7% 0.0% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

20 When you implemented auto enrollment, which employee groups were included in the rollout? > New / future employees 90.5% 65.7% 88.7% 91.7% 93.0% 93.2% 91.7% 91.7% 90.7% 92.0% Existing employees not enrolled in plan Employees enrolled in plan but contributing below the default rate (auto-boost) Employees enrolled in plan but not invested in the QDIA 30.1% 31.4% 31.5% 28.6% 29.5% 34.0% 30.8% 28.6% 27.9% 30.7% 14.9% 11.4% 6.5% 15.0% 16.0% 16.3% 17.2% 15.0% 7.0% 13.3% 1.4% 2.9% 0.8% 0.8% 1.5% 1.4% 1.8% 0.8% 0.0% 1.3% Other 2.9% 8.6% 3.2% 3.0% 1.0% 1.4% 4.1% 3.0% 4.7% 1.3% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

21 Which of the following types of re-enrollment did your plan take in the past months? > Re-enrolled employees not participating in the plan Re-enrolled participants saving below the default deferral rate Re-enrolled participants not invested in the default investment We have not attempted to reenroll any employees/ participants 11.9% 9.5% 8.4% 11.5% 10.4% 12.7% 17.8% 12.5% 10.2% 8.1% 6.7% 6.3% 1.1% 3.0% 6.7% 8.5% 12.2% 6.9% 7.1% 4.6% 1.5% 1.6% 0.6% 0.5% 2.4% 0.5% 3.0% 0.6% 3.1% 1.2% 85.4% 85.7% 91.0% 88.0% 85.5% 84.0% 77.2% 85.6% 87.8% 90.8% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

22 What is the default investment for automatic enrollment? > Retail Target-Date Fund (Active) Retail Target-Date Fund (Indexed) 35.0% 42.3% 34.0% 33.3% 36.8% 27.3% 43.9% 33.7% 26.7% 29.8% 16.6% 5.8% 5.7% 16.2% 14.4% 18.4% 17.6% 27.9% 24.8% 29.3% Custom Target-Date Fund 8.9% 0.6% 4.0% 8.1% 11.0% 9.4% 7.9% 11.0% 19.0% 14.4% Risk-based Lifestyle Fund 5.1% 1.3% 5.0% 4.3% 5.2% 6.1% 5.2% 6.4% 9.5% 4.4% Balanced Fund 10.5% 9.6% 16.0% 15.4% 11.0% 9.4% 10.3% 5.8% 6.7% 3.3% Professionally Managed Acct 3.8% 2.6% 2.3% 4.7% 2.5% 6.5% 2.7% 5.2% 3.8% 5.5% Stable Value Fund / GIC 5.8% 7.7% 9.3% 5.6% 8.6% 6.5% 3.0% 2.3% 2.9% 2.2% Money Market Fund 4.1% 9.0% 8.7% 4.3% 4.6% 4.5% 1.8% 0.6% 0.0% 1.1% Other 6.4% 4.5% 6.0% 5.6% 4.9% 9.4% 7.0% 6.4% 4.8% 8.8% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

23 What is the default deferral rate as a percentage of the employee s salary? > 1% 4.2% 2.6% 12.9% 6.4% 4.9% 2.2% 2.6% 0.6% 2.1% 1.7% 2% 10.0% 11.8% 9.3% 13.4% 13.4% 10.4% 10.6% 9.7% 2.1% 3.4% 3% 43.4% 42.1% 40.7% 42.6% 44.8% 52.6% 45.3% 33.9% 43.3% 38.5% 4% 11.6% 3.9% 10.3% 11.4% 12.1% 9.1% 13.8% 15.2% 11.3% 11.5% 5% 8.7% 7.9% 5.7% 6.4% 6.2% 6.5% 8.4% 15.2% 14.4% 13.8% 6% 12.8% 13.2% 9.3% 8.9% 12.1% 12.2% 10.9% 16.4% 16.5% 20.7% Other 9.3% 18.4% 11.9% 10.9% 6.5% 7.0% 8.4% 9.1% 10.3% 10.3% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

24 Does your plan offer auto escalation (i.e., automatic deferral increases)? > Yes 25.5% 6.5% 8.4% 20.9% 25.6% 31.5% 35.9% 41.1% 47.0% 52.1% No 67.1% 64.5% 77.7% 73.1% 69.8% 66.1% 62.4% 56.7% 53.0% 46.8% Don't know 7.4% 29.0% 13.9% 6.1% 4.6% 2.4% 1.6% 2.2% 0.0% 1.1% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

25 Which of the following ranges best matches your organization s default automatic escalation rate? > Less than 1% 5.8% 10.5% 17.2% 6.0% 5.9% 3.9% 5.6% 1.9% 6.1% 4.8% Exactly 1% 86.6% 68.4% 77.6% 85.0% 82.9% 89.0% 91.1% 91.7% 86.4% 86.3% More than 1% 7.6% 21.1% 5.2% 9.0% 11.2% 7.1% 3.4% 6.5% 7.6% 8.9% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

26 Participation and Eligibility Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

27 What is the participation rate in your DC plan among eligible employees? > Average 77.2% 72.6% 74.9% 77.9% 77.6% 79.1% 77.5% 80.0% 80.0% 80.8% Median 83.0% 80.0% 80.0% 83.0% 82.0% 85.0% 84.3% 86.0% 85.0% 87.1% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

28 Average participant account balances > Average $84,166 $47,794 $81,122 $84,862 $82,357 $90,853 $85,334 $91,819 $95,666 $115,093 Median $65,099 $32,815 $62,940 $70,000 $62,778 $71,024 $69,069 $79,535 $83,941 $106,587 Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

29 Average contribution/deferral rate among active participants > Average 6.4% 6.1% 6.2% 6.1% 6.1% 6.5% 6.6% 7.0% 7.5% 7.7% Median 6.0% 5.0% 5.7% 6.0% 6.0% 6.2% 6.2% 6.6% 7.0% 7.5% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

30 When are full-time employees eligible to participate in the plan? > Immediately upon hire 36.7% 19.8% 17.5% 21.8% 31.4% 38.3% 55.5% 71.6% 76.8% 77.1% Within 3 months 26.3% 19.6% 25.1% 30.5% 31.2% 34.5% 25.4% 21.8% 16.6% 16.9% After 4 to 6 months 9.0% 8.9% 12.3% 11.8% 11.0% 8.2% 7.4% 1.8% 0.7% 2.3% After more than 6 months 28.0% 51.7% 45.2% 35.9% 26.4% 18.9% 11.7% 4.8% 6.0% 3.8% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

31 Employer Match Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

32 Does your organization offer a matching contribution* to participant accounts? > Yes 71.8% 49.2% 64.4% 69.3% 78.7% 81.3% 75.1% 79.8% 78.4% 85.1% No 27.7% 48.5% 35.0% 30.4% 21.3% 18.0% 24.9% 20.2% 21.6% 14.4% Don't know 0.5% 2.3% 0.5% 0.3% 0.0% 0.6% 0.0% 0.0% 0.0% 0.6% * A matching contribution requires a participant contribution that is matched by the employer up to some defined limit (i.e., 50% match on first 6% of salary, dollar-for-dollar up to $1000, etc.). Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

33 Does your organization offer a non-elective or profit sharing contribution* to participant accounts? > Yes 44.4% 32.1% 43.1% 44.8% 49.3% 48.7% 48.5% 44.6% 46.4% 37.9% No 52.3% 55.8% 53.7% 51.6% 49.3% 49.1% 49.6% 53.0% 52.6% 60.9% Don't know 3.3% 12.1% 3.2% 3.7% 1.5% 2.2% 1.9% 2.4% 1.0% 1.1% * These contributions generally do NOT require participant contributions. Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

34 If you provide a match, please select the option that most closely relates to your match formula: > More than 100% of first 6% of salary 7.7% 6.5% 6.3% 7.4% 8.9% 7.2% 5.4% 11.1% 10.7% 11.1% 100% of first 6% of salary 9.6% 8.9% 6.8% 5.4% 9.2% 8.8% 9.7% 13.3% 14.7% 20.1% 51%-99% of first 6% of salary 50% of first 6% of salary Less than 50% of first 6% of salary 19.8% 22.0% 21.0% 17.1% 12.4% 16.8% 20.4% 25.2% 30.7% 29.9% 27.1% 22.8% 22.2% 26.8% 28.6% 33.2% 33.3% 26.7% 22.7% 19.4% 28.8% 30.1% 36.6% 35.0% 34.9% 26.8% 25.4% 19.3% 17.3% 9.0% Other 7.0% 9.8% 7.1% 8.2% 6.0% 7.2% 5.7% 4.4% 4.0% 10.4% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

35 If you provide a match, how frequently are matching contributions made to plan participants? > Each pay period 73.9% 70.4% 71.6% 74.5% 70.6% 130.6% 73.7% 81.7% 88.3% 81.9% Monthly 5.3% 6.6% 7.4% 3.6% 6.1% 7.8% 5.7% 3.0% 2.3% 3.8% Quarterly 3.1% 1.6% 2.8% 3.6% 3.0% 4.6% 4.3% 2.6% 0.8% 4.6% Annually 15.9% 19.1% 16.6% 19.1% 18.0% 33.3% 15.2% 10.2% 7.8% 8.0% Other 1.9% 2.3% 1.6% 2.5% 2.3% 3.2% 1.1% 2.6% 0.8% 1.7% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

36 Does your plan include a provision to true up matching contributions*? > Yes 27.8% 15.5% 17.6% 19.7% 25.0% 29.8% 38.7% 47.9% 41.4% 44.1% No 56.6% 48.8% 56.5% 62.9% 61.5% 60.1% 54.8% 49.6% 50.8% 49.6% Don't know 15.6% 35.7% 25.8% 17.4% 13.5% 10.2% 6.5% 2.6% 7.8% 6.3% * A true up match can be used to restore matching contributions lost when a participant reaches the annual contribution limit prior to year-end and thus foregoes the opportunity to make additional contributions that would otherwise have been matched. In such situation, a plan may elect to true up the employer matching contribution. Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

37 What percentage of active participants are deferring enough to take full advantage of the maximum employer match? > All or nearly all participants (90% or more) Vast majority (75% or more) More than average (>50% but less than 75%) Less than average (>25% but less than 50%) A minority (Between 10% and 25%) 24.7% 35.1% 35.6% 28.6% 20.8% 15.0% 17.0% 16.9% 23.4% 20.0% 25.1% 16.8% 20.0% 22.1% 25.7% 26.4% 29.8% 30.7% 25.8% 37.8% 25.1% 14.1% 16.2% 21.5% 28.7% 28.5% 33.0% 33.3% 32.8% 29.6% 14.1% 13.4% 13.3% 16.5% 15.3% 18.1% 12.8% 9.1% 12.5% 10.9% 5.7% 8.4% 6.5% 5.4% 4.5% 8.0% 4.8% 6.9% 3.1% 1.3% Very few (<10%) 5.4% 12.2% 8.3% 5.9% 5.0% 3.9% 2.6% 3.0% 2.3% 0.4% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

38 How long before participants are 100% vested in the match? > Immediately upon enrollment 34.6% 40.9% 28.8% 29.6% 32.0% 33.2% 42.3% 40.3% 38.0% 42.6% 6 months 1.0% 1.5% 1.2% 0.6% 1.1% 0.0% 0.9% 2.1% 1.6% 0.9% 1 year 5.1% 12.4% 4.0% 3.8% 3.5% 4.7% 4.1% 7.2% 8.5% 6.0% 2 years 4.3% 1.9% 2.3% 4.3% 3.9% 2.5% 4.8% 8.5% 7.8% 10.2% 3 years 12.9% 8.1% 10.5% 7.5% 12.1% 15.7% 14.0% 19.9% 20.9% 19.6% 4 years 3.6% 1.9% 3.3% 3.4% 3.5% 4.2% 4.5% 5.5% 3.1% 2.1% 5 years 21.7% 17.0% 27.3% 24.5% 25.5% 23.4% 16.6% 11.4% 15.5% 15.7% more than 5 years 16.7% 16.2% 22.6% 26.2% 18.3% 16.2% 12.7% 5.1% 4.7% 3.0% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

39 Which of the following actions relating to the match has your organization taken in the past 3 years? > Increased matching contribution Decreased matching contribution Stretched matching contribution (i.e., was 100% on first 3%; now 50% on first 6%) 11.9% 6.5% 10.3% 9.8% 13.7% 12.1% 14.0% 13.6% 12.4% 16.2% 3.1% 1.9% 2.5% 4.1% 2.8% 3.8% 2.6% 5.5% 3.1% 3.0% 1.4% 0.0% 0.8% 2.1% 1.4% 1.8% 1.1% 3.0% 1.6% 1.3% Changed match frequency 2.9% 1.9% 1.0% 2.3% 2.8% 2.5% 4.8% 5.5% 3.9% 4.7% Suspended match 3.2% 4.6% 3.7% 4.3% 5.0% 2.3% 1.3% 1.7% 0.8% 1.3% None: Have made no changes to match in past 3 years 80.6% 87.0% 83.3% 81.0% 78.1% 80.4% 79.7% 75.7% 79.8% 76.6% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

40 Plan Investments Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

41 Do you currently offer any of the following types of investment options in your plan? > Target-date funds 69.8% 48.2% 60.3% 71.5% 72.5% 69.2% 76.5% 83.3% 78.9% 86.3% Target-risk funds (i.e., "growth, "conservative," etc.) 39.5% 50.3% 50.2% 48.8% 40.7% 32.6% 30.9% 31.4% 26.5% 12.5% Balanced funds 73.1% 64.6% 75.6% 78.9% 77.4% 75.3% 72.1% 66.7% 71.4% 59.0% Money Market Fund 63.5% 62.2% 66.8% 68.6% 61.5% 62.3% 62.9% 64.7% 57.8% 53.9% Employer Stock 7.7% 1.5% 1.3% 2.9% 2.4% 4.8% 8.3% 17.1% 28.6% 43.4% Stable Value Fund 59.7% 25.3% 43.7% 60.8% 65.1% 66.4% 73.2% 76.0% 79.6% 73.4% Real Estate/REITS 27.8% 17.7% 24.9% 24.3% 32.5% 28.3% 32.7% 36.0% 29.9% 26.2% Alternative Investments (hedge funds, private equity, etc.) 4.8% 5.2% 4.6% 6.5% 4.1% 4.1% 5.3% 4.3% 4.1% 4.3% Socially Responsible Funds 11.3% 9.8% 8.9% 9.6% 11.2% 10.0% 13.6% 14.7% 21.1% 13.7% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

42 Have you considered building a customized target-date series for your plan? > Yes--considering 13.0% 7.5% 7.8% 9.8% 11.9% 10.6% 14.3% 19.7% 21.5% 29.1% No--have not considered 77.0% 87.1% 84.7% 79.1% 78.8% 80.3% 74.2% 71.1% 67.7% 54.3% Already in place 10.0% 5.4% 7.6% 11.0% 9.3% 9.1% 11.5% 9.2% 10.8% 16.6% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

43 Do you offer a professionally managed account to participants as an investment option? > Yes 35.6% 39.0% 36.0% 29.8% 31.9% 16.9% 32.5% 35.7% 45.6% 48.8% No 64.4% 61.0% 64.0% 70.2% 68.1% 83.1% 67.5% 64.3% 54.4% 51.2% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

44 How many investment options are offered in your defined contribution plan? > Average Median Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

45 What is the average number of investment options held by your DC plan participants? > Average Median Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

46 Which investment vehicles is your organization currently using in its DC plan? > Mutual Funds 92.3% 88.3% 90.5% 91.3% 94.8% 93.1% 96.8% 94.9% 97.2% 83.9% Separate Accounts 22.0% 19.5% 23.6% 22.1% 20.2% 18.4% 15.1% 19.9% 23.4% 46.3% Collective Investment Trust 14.9% 8.7% 8.7% 8.5% 8.2% 10.1% 14.5% 24.2% 40.0% 58.4% ETFs (outside of brokerage windows) Self-directed Brokerage Window 7.1% 12.0% 9.7% 7.5% 7.3% 4.6% 3.6% 5.1% 2.1% 7.1% 18.3% 3.3% 8.8% 11.9% 13.5% 19.4% 26.4% 32.8% 42.1% 47.5% Mutual Fund Window 4.5% 3.9% 5.0% 3.0% 4.2% 3.5% 4.7% 4.7% 3.4% 8.6% Other 5.1% 4.8% 4.8% 4.7% 3.4% 4.6% 3.6% 9.4% 13.1% 7.1% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

47 How often do you formally review the investment options? > Monthly 1.1% 1.3% 1.1% 0.3% 0.6% 1.5% 0.7% 2.2% 1.4% 2.7% Quarterly 31.7% 9.3% 16.0% 20.1% 35.1% 42.3% 50.4% 50.4% 49.0% 49.8% Twice a year 13.9% 8.0% 11.1% 18.0% 17.6% 18.9% 15.2% 11.6% 9.0% 7.8% Annually 40.3% 44.1% 53.5% 49.0% 39.8% 29.7% 27.5% 30.6% 32.4% 30.2% Every 1-2 years 4.4% 9.8% 5.6% 3.5% 3.5% 2.8% 2.9% 1.1% 6.2% 4.7% Every 2-3 years 2.2% 4.3% 2.5% 3.1% 0.9% 2.0% 1.3% 2.2% 0.0% 2.7% Every 3+ years 1.8% 3.2% 2.8% 2.2% 0.6% 1.7% 1.1% 0.7% 1.4% 1.6% Never 4.6% 19.9% 7.5% 3.8% 1.8% 1.1% 0.9% 1.1% 0.7% 0.4% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

48 Retirement Income Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

49 Which (if any) retirement income-oriented products/services do you offer in your plan? > In-plan income products that guarantee monthly income In-plan income products that guarantee a base benefit In-plan income NOT offering guarantees Out of plan annuity purchase/bidding service 9.1% 6.6% 6.6% 11.1% 8.6% 8.5% 10.2% 11.8% 15.6% 11.0% 4.0% 3.7% 3.3% 5.1% 3.2% 3.5% 3.8% 6.3% 7.1% 3.5% 8.2% 5.5% 7.2% 7.1% 6.5% 8.3% 7.5% 13.7% 14.2% 14.1% 4.7% 1.4% 3.0% 3.8% 3.0% 4.8% 4.4% 7.8% 9.2% 16.1% Don't know 33.1% 52.3% 46.2% 38.3% 31.9% 31.3% 22.1% 17.6% 7.8% 7.8% No income products offered 47.2% 34.2% 38.7% 42.4% 51.7% 47.5% 57.8% 54.9% 59.6% 57.3% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

50 If you do not currently offer retirement income products, are you planning to in the future? > Yes: We expect to offer in the next months 2.3% 0.9% 0.9% 3.0% 0.6% 3.8% 2.0% 4.2% 5.9% 4.0% Maybe: We are considering it 20.3% 10.3% 12.3% 14.7% 19.2% 18.0% 24.1% 29.6% 25.9% 40.0% No: We have researched income products and decided not to add No: We have NOT researched income products and have no plans to 8.8% 8.5% 7.9% 7.3% 6.7% 5.7% 10.9% 12.7% 8.2% 14.7% 42.5% 57.3% 46.6% 46.6% 46.3% 45.0% 41.3% 28.2% 44.7% 18.7% Don't know 26.2% 23.1% 32.3% 28.4% 27.1% 27.5% 21.8% 25.4% 15.3% 22.7% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

51 Does your defined contribution plan design allow for systematic withdrawals* at retirement? > Yes 55.7% 38.6% 48.4% 56.7% 58.5% 58.5% 57.8% 67.3% 60.6% 64.7% No 23.9% 13.6% 19.4% 20.0% 24.4% 27.5% 29.8% 28.1% 32.4% 29.5% Don't know 20.3% 47.8% 32.2% 23.3% 17.1% 14.1% 12.4% 4.6% 7.0% 5.8% * Systematic withdrawals (vs. lump sum or partial distributions) allow participants to schedule a series of recurring payments, thus creating a predictable stream of retirement income. Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

52 Fees/Expenses Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

53 What is the approximate average asset-weighted expense ratio of all investment options in your plan? > Less than 0.25% (<25 bps) 0.25%-.50% (25-50 bps) 0.51%-.75% (51-75 bps) 0.76%-1% ( bps) 1.01%-1.50% ( bps) 1.51%-2.00% ( bps) 2.01%-2.50% ( bps) More than 2.50% (more than 250 bps) 9.2% 7.7% 5.8% 5.6% 7.1% 9.3% 10.3% 13.1% 13.3% 28.3% 16.7% 9.3% 11.2% 10.8% 12.8% 15.0% 21.0% 29.6% 37.1% 39.5% 15.7% 2.6% 9.4% 11.5% 13.5% 20.2% 28.5% 33.1% 23.1% 15.5% 15.2% 5.6% 11.1% 22.2% 26.5% 22.7% 14.9% 6.5% 7.0% 1.6% 7.1% 6.1% 11.7% 12.2% 9.1% 4.1% 1.8% 1.2% 0.7% 1.9% 0.9% 2.6% 1.5% 1.2% 0.3% 0.7% 0.2% 0.0% 0.0% 0.0% 0.1% 0.5% 0.2% 0.0% 0.0% 0.2% 0.0% 0.0% 0.7% 0.0% 0.1% 0.3% 0.0% 0.0% 0.2% 0.0% 0.2% 0.0% 0.0% 0.0% Don't know 34.8% 65.1% 49.1% 36.2% 30.2% 27.5% 22.5% 16.5% 18.2% 13.2% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

54 Does your organization/plan have a policy to address fee equalization? > Yes, a policy is in place 12.9% 6.6% 10.1% 10.8% 11.6% 15.4% 17.7% 17.9% 17.1% 18.5% No, but we plan to implement in the next year No, but we may develop one in future 3.6% 2.1% 2.2% 2.3% 2.8% 5.6% 4.4% 6.1% 8.9% 5.9% 13.7% 7.7% 10.4% 12.3% 14.1% 14.5% 17.3% 20.9% 20.5% 15.7% No, and no plans to 27.0% 33.9% 28.2% 28.0% 27.6% 23.5% 27.7% 19.0% 20.5% 25.2% Don't know 42.8% 49.7% 49.1% 46.7% 43.9% 40.9% 33.0% 36.1% 32.9% 34.6% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

55 Does your plan employ an ERISA account or plan expense reimbursement account? > Yes 34.5% 16.8% 21.6% 24.6% 32.0% 39.1% 52.3% 58.1% 62.1% 50.6% No 35.0% 45.5% 39.5% 34.6% 35.7% 33.0% 28.2% 25.7% 26.4% 35.6% Don't know 30.4% 37.7% 38.9% 40.8% 32.3% 27.9% 19.5% 16.2% 11.4% 13.8% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

56 For the prior plan year, did you calculate the total fees paid to your DC provider/recordkeeper? > Yes 51.4% 30.0% 39.3% 42.5% 54.6% 53.4% 62.8% 70.0% 74.8% 78.9% No 28.9% 44.1% 39.3% 35.9% 24.8% 29.4% 20.0% 14.1% 12.9% 7.0% Don't know 19.6% 25.8% 21.5% 21.6% 20.7% 17.2% 17.1% 16.0% 12.2% 14.1% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

57 If you recently calculated your admin fees, have you benchmarked those fees against similar plans? > Yes 68.5% 50.8% 63.4% 63.9% 68.2% 71.4% 73.9% 76.5% 69.6% 73.3% No 27.7% 45.8% 33.6% 32.5% 28.5% 26.1% 22.1% 18.2% 25.9% 19.4% Don't know 3.9% 3.4% 3.0% 3.5% 3.3% 2.4% 4.0% 5.3% 4.5% 7.3% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

58 Who pays for the plan s administrative/ recordkeeping costs? > Participants - Fees paid via fixed costs billed to participant accounts Shared Responsibility - Participants are charged some fees directly while our organization covers other expenses directly Our organization - All fees paid exclusively by our company Not applicable - All plan fees are paid via revenue sharing 20.7% 9.2% 16.4% 20.8% 21.5% 24.6% 20.4% 24.4% 26.4% 38.1% 20.6% 15.7% 17.7% 21.3% 22.2% 24.2% 21.5% 18.0% 26.4% 23.0% 36.4% 54.1% 44.3% 36.5% 33.4% 31.2% 32.1% 31.6% 20.9% 21.4% 12.0% 5.2% 8.2% 9.5% 11.6% 12.3% 18.1% 19.9% 24.3% 13.6% Don't know 10.3% 15.7% 13.4% 11.9% 11.2% 7.7% 7.9% 6.0% 2.0% 3.9% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

59 How often do you formally review actual administrative costs/fees? > Annually 70.5% 61.9% 68.3% 71.8% 77.4% 71.1% 70.5% 71.6% 66.9% 70.5% Every 1-2 years 8.9% 8.3% 10.1% 8.8% 6.6% 9.4% 10.0% 6.3% 10.8% 9.3% Every 2-3 years 7.0% 6.2% 5.6% 6.7% 5.6% 6.6% 9.5% 10.4% 14.2% 6.2% Every 3-5 years 3.6% 2.1% 2.8% 3.3% 3.6% 4.6% 3.8% 4.1% 4.7% 7.0% Every 5+ years 1.5% 2.3% 1.3% 1.0% 1.2% 2.0% 1.8% 2.6% 0.7% 0.8% Don't know 8.4% 19.2% 12.0% 8.3% 5.6% 6.4% 4.5% 4.9% 2.7% 6.2% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

60 Defined Contribution Providers Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

61 For how long has your organization used your DC provider? > Less than 1 year 3.3% 4.0% 2.5% 3.2% 4.1% 2.7% 2.4% 5.0% 3.3% 3.7% More than 1 year but less than 3 years More than 3 years but less than 5 years More than 5 years but less than 7 years 14.6% 30.7% 18.0% 15.1% 15.2% 10.2% 9.6% 6.8% 7.2% 7.1% 14.0% 16.3% 15.6% 13.9% 15.1% 16.0% 13.1% 9.7% 5.9% 10.4% 13.0% 13.1% 15.4% 13.4% 12.9% 13.8% 12.2% 10.8% 13.2% 7.1% More than 7 years 52.6% 30.2% 44.9% 52.4% 50.8% 55.8% 61.3% 65.8% 69.7% 70.3% Don't Know 2.5% 5.7% 3.6% 2.0% 1.9% 1.5% 1.4% 1.8% 0.7% 1.5% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

62 What role does your recordkeeping provider play in producing your plan s 5500 form? > Delivers signature- ready Form 5500 documents Supplies data needed to complete Form 5500 documents, but document is prepared by others Not involved: Form 5500 is completed using other providers Not applicable: we are not required to complete a % 67.6% 74.9% 77.3% 71.4% 70.2% 63.8% 57.2% 52.7% 40.8% 20.0% 18.5% 14.5% 14.4% 18.8% 19.3% 22.8% 27.9% 26.7% 40.8% 5.8% 9.0% 7.4% 4.1% 5.5% 4.3% 4.9% 3.7% 6.2% 5.1% 6.2% 4.9% 3.1% 4.3% 4.4% 6.1% 8.5% 11.2% 14.4% 13.3% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

63 How often do you formally evaluate your DC provider? > Annually 57.8% 58.7% 62.5% 66.0% 60.2% 55.3% 50.3% 49.4% 41.7% 53.6% Every 1 to <2 years 9.4% 11.2% 12.0% 8.4% 8.6% 10.4% 8.6% 8.5% 4.6% 4.9% Every 2 to <3 years 9.8% 6.2% 8.4% 9.1% 10.5% 9.8% 14.1% 11.1% 13.2% 7.5% Every 3 to <5 years 9.4% 2.5% 3.9% 5.2% 9.7% 11.1% 14.6% 16.2% 23.8% 18.9% Every 5+ years 4.1% 1.2% 1.7% 1.9% 4.0% 6.2% 6.6% 7.0% 8.6% 7.5% Don't know 9.6% 20.1% 11.6% 9.3% 7.0% 7.2% 5.9% 7.7% 7.9% 7.5% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

64 Advice and Advisers Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

65 Does your plan use the services of a financial adviser or institutional retirement plan consultant? > Yes 61.7% 43.7% 55.4% 56.6% 62.1% 66.7% 74.9% 70.6% 72.3% 68.2% No 37.5% 52.5% 43.3% 43.1% 37.9% 32.7% 25.1% 29.4% 27.7% 31.8% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

66 What is the adviser s fee arrangement? > % of plan assets (bps) 42.8% 43.3% 52.4% 58.4% 55.8% 49.7% 31.9% 19.1% 16.3% 13.1% Per participant 3.3% 4.3% 4.2% 2.5% 3.8% 3.7% 1.9% 3.7% 1.0% 4.0% Project-based 4.0% 1.8% 1.8% 1.6% 3.0% 2.3% 5.3% 5.9% 11.5% 11.9% Monthly/ Annual retainer 26.5% 6.1% 7.6% 7.5% 16.0% 27.0% 46.3% 58.5% 64.4% 54.0% Performance (investments) 1.3% 3.0% 1.4% 0.9% 2.0% 1.3% 0.5% 0.5% 1.0% 1.1% Performance (participation) 0.2% 0.0% 0.2% 0.3% 0.5% 0.3% 0.0% 0.5% 0.0% 0.0% Don t know 20.9% 42.7% 31.0% 26.7% 17.5% 14.0% 12.7% 11.7% 9.6% 15.3% Other 5.5% 3.0% 5.0% 5.0% 5.8% 7.7% 6.0% 3.2% 4.8% 7.4% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

67 For the prior plan year, did you calculate the actual fees your plan paid to your adviser? > Yes 50.9% 26.2% 33.8% 41.0% 52.4% 57.7% 63.4% 65.6% 70.9% 70.6% No 34.1% 53.7% 51.2% 40.1% 33.4% 30.2% 23.2% 21.5% 17.5% 12.4% Don't know 15.0% 20.1% 15.0% 18.9% 14.2% 12.1% 13.3% 12.9% 11.7% 16.9% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

68 Is your plan adviser a fiduciary to the plan?* > Yes 3(21) and 3(38) fiduciary 15.4% 11.6% 10.0% 12.0% 20.1% 19.3% 19.8% 15.8% 15.7% 12.8% Yes 3(21) fiduciary only 25.8% 11.0% 13.1% 18.3% 25.6% 26.5% 34.3% 42.6% 41.7% 42.8% Yes 3(38) fiduciary only 5.4% 5.2% 6.9% 5.7% 6.5% 3.6% 5.5% 4.7% 2.8% 3.9% No 27.9% 26.7% 36.5% 37.7% 25.1% 25.5% 22.1% 18.4% 23.1% 23.9% Don't Know 25.4% 45.3% 33.4% 26.3% 22.7% 25.2% 18.3% 18.4% 16.7% 16.7% *Note: A 3(21) fiduciary status relates to fiduciary roles lacking discretion while 3(38) fiduciary roles afford the adviser discretion over investment decisions. Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

69 What type(s) of services does the financial adviser or consultant provide? > Review of fund performance 94.3% 86.8% 91.8% 92.6% 97.8% 96.4% 95.7% 97.4% 94.3% 93.2% Investment selection guidance 91.8% 85.0% 88.4% 90.8% 93.4% 95.1% 93.8% 94.2% 93.4% 93.2% Provider selection/due diligence 65.8% 55.1% 60.3% 60.7% 73.8% 72.5% 69.5% 74.1% 67.0% 53.1% IPS review and monitoring 63.1% 35.9% 48.7% 57.1% 67.4% 71.5% 74.3% 79.4% 73.6% 67.2% Provider fee analysis 79.0% 68.9% 74.1% 76.1% 85.3% 80.7% 83.1% 84.7% 82.1% 73.4% Plan benchmarking 65.8% 41.9% 55.5% 64.1% 73.0% 68.2% 74.5% 73.0% 78.3% 63.8% Plan education programs 50.2% 47.9% 56.1% 62.0% 61.3% 60.7% 46.9% 30.7% 28.3% 13.0% One-on-one participant education 51.6% 69.5% 70.3% 75.8% 64.5% 57.0% 32.1% 17.5% 10.4% 5.6% Group participant education 55.2% 61.1% 73.9% 77.3% 70.1% 63.9% 40.2% 19.0% 12.3% 6.8% Review of funds with committee or internal plan administrator Technical help with corporate transactions impacting the plan 76.5% 43.7% 60.5% 74.5% 85.5% 86.9% 87.1% 86.2% 83.0% 80.2% 31.2% 37.7% 32.7% 35.0% 34.1% 31.1% 26.7% 31.7% 25.5% 20.9% Plan compliance review 47.0% 47.3% 48.1% 52.5% 53.4% 50.5% 45.7% 41.3% 34.9% 27.7% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

70 Is financial/investment advice offered to participants in your DC plan? > Yes, through a financial adviser outside the plan Yes, using a 3rd party (i.e., Financial Engines, Morningstar, etc.) independent of our recordkeeper Yes, using proprietary services/ tools offered through our DC provider's website/call center/etc. 34.5% 36.9% 43.6% 43.7% 37.0% 38.5% 26.1% 19.2% 13.3% 9.1% 19.3% 10.6% 16.0% 15.6% 17.9% 21.5% 19.6% 23.0% 30.7% 41.7% 29.6% 12.3% 21.8% 29.4% 32.9% 35.9% 37.3% 44.5% 33.3% 32.2% Yes, through another source 4.2% 2.8% 4.8% 5.9% 4.4% 4.1% 3.6% 4.2% 2.0% 2.3% Total "Yes" 70.4% 57.5% 72.5% 75.6% 73.8% 74.2% 66.8% 71.3% 64.7% 64.4% No 29.6% 42.5% 27.5% 24.4% 26.2% 25.8% 33.2% 28.7% 35.3% 35.6% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

71 Plan Oversight and Administration Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

72 Does your organization have an investment committee for the DC plan? > Yes - committee includes only internal employees Yes - committee includes only people external to our company Yes - committee includes a mix of internal and external people Yes - but unsure of composition of investment committee 42.6% 13.4% 29.5% 39.8% 47.8% 52.9% 54.5% 56.1% 55.3% 63.6% 1.9% 1.5% 1.8% 1.4% 2.4% 1.9% 0.7% 3.0% 4.0% 3.0% 27.8% 7.3% 21.0% 28.7% 36.2% 33.6% 36.3% 30.5% 32.7% 25.8% 1.4% 1.0% 1.8% 1.4% 1.0% 1.3% 1.1% 2.6% 1.3% 1.5% No investment committee 21.1% 63.4% 37.9% 21.8% 9.5% 7.1% 5.9% 6.7% 6.0% 4.2% Don't know 5.2% 13.4% 8.0% 7.0% 3.0% 3.2% 1.6% 1.1% 0.7% 1.9% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

73 Do you have a written investment policy statement (IPS) for the DC plan? > Yes 64.7% 31.8% 48.5% 57.7% 69.4% 78.1% 81.5% 83.6% 83.2% 86.2% No 16.3% 27.2% 20.5% 21.6% 15.8% 11.7% 10.0% 8.2% 11.4% 5.4% Don't know 19.1% 41.0% 31.0% 20.7% 14.8% 10.2% 8.4% 8.2% 5.4% 8.4% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

74 If you have an IPS, does it specifically cover targetdate funds and their underlying funds? > Yes 55.7% 38.6% 48.4% 56.7% 58.5% 58.5% 57.8% 67.3% 60.6% 64.7% No 23.9% 13.6% 19.4% 20.0% 24.4% 27.5% 29.8% 28.1% 32.4% 29.5% Don't know 20.3% 47.8% 32.2% 23.3% 17.1% 14.1% 12.4% 4.6% 7.0% 5.8% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

75 How many Responsible Plan Fiduciaries (RPFs) does your plan have, as defined by regulation 408(b)(2)?* > One person 20.2% 34.2% 26.5% 19.1% 16.4% 11.5% 13.7% 14.4% 15.5% 25.3% 2-3 people 33.9% 28.8% 44.8% 45.2% 35.4% 32.1% 24.3% 20.5% 20.9% 17.6% 3-5 people 20.0% 4.1% 10.2% 14.6% 28.9% 29.9% 29.0% 31.1% 25.7% 17.6% More than 5 people 11.6% 1.3% 2.0% 6.5% 10.7% 16.3% 22.7% 23.1% 22.3% 26.4% Don't know 14.3% 31.6% 16.5% 14.6% 8.6% 10.2% 10.4% 11.0% 15.5% 13.0% * Note: 408(b)2 defined a RPF as a fiduciary with authority to cause the covered plan to enter into, or extend or renew, the contract or arrangement. In other words, it is the person or committee who has the power to hire and fire the particular service provider, e.g., the broker-dealer, recordkeeper or RIA. Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

76 Please indicate your level of agreement with the following statement: Most of our employees will achieve their retirement goals by age > Agree 8.8% 10.8% 8.9% 7.5% 7.6% 7.7% 9.6% 7.0% 13.0% 11.6% Slightly Agree 20.4% 19.6% 18.5% 19.2% 19.3% 19.5% 22.3% 16.5% 29.3% 25.2% Undecided 22.2% 24.1% 25.3% 25.5% 21.3% 18.1% 18.1% 26.6% 19.6% 22.6% Slightly Disagree 28.2% 23.4% 27.2% 25.8% 29.2% 31.7% 29.7% 35.4% 18.5% 27.7% Disagree 20.3% 22.2% 20.0% 21.9% 22.6% 23.0% 20.3% 14.6% 19.6% 12.9% Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

77 For more reports like this one If you would be interested in seeing a report similar to this one for another industry, or if you would like to see additional topics explored in this report, please contact Brian O Keefe at (203) or bokeefe@assetinternational.com. Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November

78 2015 PLANSPONSOR Industry Reports currently available include: 403(b) plans 457 plans Accounting/CPA Firm/Financial Planning Advertising/Marketing/Printing Aerospace/Defense Agriculture Architecture Automotive Dealerships/Service Automotive Manufacturing/Parts Banking: Commercial/Retail Building/Construction/Contracting Business Services/Staffing Chemicals Consulting Consumer Services Credit Unions Distribution/Manufacturer's Rep/Import/Export Education: Higher Ed Education: K12/Preschool/Daycare Engineering Environmental, Recycling, Remediation, Testing, Consulting Equipment Sales/Leasing/Service Financial Services Fortune 1000 Government/Public Works: City/Municipal Government/Public Works: County, State and Federal Healthcare Organizations (for profit) Healthcare Organizations (not for profit) Hotels/Gaming/Entertainment/Hospitality/Travel Insurance/Reinsurance Investment Banking/Holding Companies Labor Unions Law Firms Manufacturing: Consumer Products Manufacturing: Industrial Products Media/Communications/Publishing Membership Organizations/Industry Associations Nonprofit Organizations/Endowments/Foundations Oil & Gas/Energy/Mining Pharmaceuticals Real Estate Management, Investment and Development Religious Organizations/Social Services Research & Development Restaurants/Food Service Retail Technology/Computers/Software Telecommunications Transportation/Airlines Utilities Wholesale For information on any of these reports, or to see additional topics explored in future report, please contact Brian O Keefe at (203) or bokeefe@assetinternational.com. Source: PLANSPONSOR Prepared December Defined Contribution 2014 page Survey, Updated data available November