Middle Market Sponsors Looking for More Plan Features

Almost half (46%) of middle market plan sponsors who switched providers in 2011 say they did so to upgrade their plan, according to a recent Spectrem Group study.

The report, “Middle Market Plan Sponsors 2011,” says that in an effort to appeal to employees, these sponsors moved to plans with additional features such as more frequent on-site visits by provider representatives (49%), automatic deferral increases (48%), the services of a fiduciary investment adviser (48%), an open architecture platform with multiple fund families (47%), and personalized rates of return on statements (44%).  

With nearly one in three (29%) upgrading after less than three years, this suggests an opportunity for providers offering a broader array of plan features to step into this market with over $1 billion in assets, Spectrem said.  

Middle Market Plan Sponsors are defined as having assets of $10 million to $200 million.  

More about the Spectrem Group is at http://www.spectrem.com.