RESEARCH | April 1, 2015

2015
PLANADVISER Adviser Value Survey

2015 PLANADVISER Adviser Value Survey – The Influence of Advisers on Retirement Plans

Reported by PLANADVISER

Survey Data

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Survey Data

RESPONDENT PROFILE
DC Plan Assets
	WITH ADVISER	WITHOUT ADVISER	% DIFF W/ADVISER
<$1mm	45.4%	54.6%	-16.7%
$1mm–$5mm	56.1%	43.9%	28.0%
>$5mm–$10mm	56.8%	43.2%	31.3%
>$10mm–$25mm	62.1%	37.9%	64.1%
>$25mm–$50mm	67.1%	32.9%	104.0%
>$50mm–$200mm	74.9%	25.1%	198.6%
>$200mm–$500mm	70.6%	29.4%	140.5%
>$500mm–$1b	72.3%	27.7%	161.0%
>$1b	68.2%	31.8%	114.6%

DC Plan Participants
	WITH ADVISER	WITHOUT ADVISER	% DIFF W/ADVISER
<100	53.6%	46.4%	15.7%
100–500	61.9%	38.1%	62.6%
501–1,000	68.8%	31.2%	120.3%
1,001–5,000	73.6%	26.4%	178.4%
5,001–10,000	72.7%	27.3%	166.7%
>10,000	67.8%	32.2%	111.0%

DC Plan Type
	WITH ADVISER	WITHOUT ADVISER	% DIFF W/ADVISER
401(k)	63.1%	36.9%	70.8%
403(b)	59.3%	40.7%	45.9%
457	62.5%	37.5%	66.5%
Money Purchase	64.5%	35.5%	81.4%
Profit sharing	60.9%	39.1%	55.5%
Employee Stock Ownership Plan	64.6%	35.4%	82.1%
KSOP*	53.6%	46.4%	15.4%
Nonqualified Deferred Compensation	73.5%	26.5%	177.5%
Simplified Employee Pension	53.6%	46.4%	15.4%
SIMPLEˆ IRA	64.0%	36.0%	77.8%
Footnote: * Qualified retirement plan that combines an ESOP with a 401(k). ˆ Savings Incentive Match Plan for Employees.

EMPLOYER MATCH
Type(s) of Employer Contributions
	WITH ADVISER	WITHOUT ADVISER	% DIFF W/ADVISER
Employer matching contribution*	75.7%	66.7%	13.4%
Profit sharing/nonelective contribution	47.2%	44.0%	7.1%
No employer contribution	10.9%	16.7%	-34.9%
Footnote: *I.e., 50% of first 6% of pay

Match Formula
	WITH ADVISER	WITHOUT ADVISER	% DIFF W/ADVISER
>100% match up to 6% of salary	6.6%	9.4%	-29.7%
100% match to 6% of salary	9.9%	8.8%	12.5%
51%–99% match to 6% of salary	20.5%	18.2%	13.1%
50% match to 6% of salary	27.4%	26.5%	3.5%
<50% match to 6% of salary	29.0%	29.4%	-1.3%
Other match formula	6.6%	7.8%	-15.9%

Frequency of Match or Contribution
	WITH ADVISER	WITHOUT ADVISER	% DIFF W/ADVISER
Each pay period	76.1%	70.2%	8.4%
Monthly	3.8%	8.0%	-52.7%
Quarterly	2.9%	3.2%	-8.5%
Annually	15.4%	16.3%	-5.4%
Other	1.7%	2.2%	-22.4%

Match/Contribution Vesting
	WITH ADVISER	WITHOUT ADVISER	% DIFF W/ADVISER
Immediately on enrollment	35.2%	33.7%	4.6%
At 6 months	1.0%	1.0%	4.3%
At 1 year	4.4%	6.1%	-28.1%
At 2 years	4.6%	4.0%	15.0%
At 3 years	12.7%	13.3%	-5.2%
At 4 years	4.0%	2.9%	35.9%
At 5 years	22.1%	21.5%	2.5%
After 5 years	16.1%	17.5%	-7.8%

PLAN DESIGN
Implementation of DC Plan Features
	WITH ADVISER	WITHOUT ADVISER	% DIFF W/ADVISER
Employer match or contribution	75.7%	66.7%	13.4%
Auto-enrollment	43.5%	35.5%	22.7%
Auto-deferral increases	29.3%	19.5%	50.1%
Roth 401(k)/403(b) provision	53.9%	46.9%	14.9%
Safe harbor	40.4%	39.4%	2.6%
Written investment policy statement	74.1%	51.0%	45.3%
Loan provision	81.6%	75.7%	7.9%
Hardship withdrawal provision	89.4%	86.7%	3.1%
Custom target-date funds*	26.0%	16.8%	55.2%
Footnote: *Using or considering

Plan Eligibility
	WITH ADVISER	WITHOUT ADVISER	% DIFF W/ADVISER
Immediately upon hire	37.9%	35.0%	8.2%
<3 months	28.3%	23.3%	21.7%
3 to 6 months	9.2%	8.2%	13.1%
>6 months	24.6%	33.6%	-26.8%

INVESTMENTS
Investment Types Offered in DC Plans
	WITH ADVISER	WITHOUT ADVISER	% DIFF W/ADVISER
Target-date funds	71.8%	67.1%	7.1%
Target-risk funds	38.9%	40.9%	-4.9%
Balanced funds	74.2%	72.6%	2.2%
Money market fund	62.6%	65.7%	-4.7%
Employer stock	8.3%	7.0%	18.4%
Stable value fund	64.3%	53.5%	20.3%
Real estate/REITs	30.0%	24.8%	21.2%
Alternative investments	5.3%	4.1%	31.5%
Socially responsible funds	10.8%	12.3%	-11.8%
Self-directed brokerage	19.5%	16.5%	17.8%
Mutual fund window	4.9%	3.9%	25.8%

Investment Vehicles Used
	WITH ADVISER	WITHOUT ADVISER	% DIFF W/ADVISER
Mutual funds	93.4%	90.9%	2.7%
Separate accounts	22.4%	21.8%	3.0%
Collective investment trusts	16.8%	11.9%	41.4%
ETFs (outside of brokerage windows)	7.1%	7.1%	-1.1%
Other	4.4%	6.2%	-29.4%

Frequency of Review of Investment Options
	WITH ADVISER	WITHOUT ADVISER	% DIFF W/ADVISER
Monthly	1.2%	0.8%	47.4%
Quarterly	38.1%	21.7%	75.4%
Twice a year	14.7%	13.0%	12.7%
Annually	36.2%	46.8%	-22.7%
Every 1 to 2 years	4.3%	4.6%	-5.5%
Every >2 to 3 years	1.9%	2.7%	-30.1%
Every >3 years	1.2%	3.0%	-61.8%
Never	2.5%	7.4%	-66.2%

FEES
Average Expense Ratio of DC Investment Options
	WITH ADVISER	WITHOUT ADVISER	% DIFF W/ADVISER
<0.25% (<25 BPS)	9.9%	8.4%	17.2%
0.25%–0.50% (25–50 BPS)	18.6%	14.2%	31.1%
0.51%–0.75% (51–75 BPS)	17.3%	13.7%	26.4%
0.76%–1.00% (76–100 BPS)	16.1%	14.2%	13.5%
1.01%–1.50% (101–150 BPS)	7.6%	6.3%	20.7%
1.51%–2.00% (151–200 BPS)	0.8%	1.0%	-22.6%
2.01%–2.50% (201–250 BPS)	0.2%	0.1%	23.8%
>2.50% (>250 BPS)	0.1%	0.1%	23.8%
Do not know	29.4%	41.9%	-29.9%

Frequency of Review of Actual Administrative Costs/Fees
	WITH ADVISER	WITHOUT ADVISER	% DIFF W/ADVISER
Annually	71.7%	69.4%	3.3%
Every 1 to 2 years	9.3%	8.3%	12.0%
Every >2 to 3 years	7.5%	6.5%	16.5%
Every >3 to 5 years	3.9%	3.2%	21.9%
Every >5 years	1.3%	1.9%	-34.5%
Do not know	6.3%	10.7%	-41.0%

OVERSIGHT
Frequency of Formal Evaluation of DC Provider
	WITH ADVISER	WITHOUT ADVISER	% DIFF W/ADVISER
Annually	57.5%	58.3%	-1.3%
Every 1 to 2 years	8.6%	10.5%	-18.6%
Every >2 to 3 years	11.1%	8.0%	38.3%
Every >3 to 5 years	11.1%	6.9%	60.4%
Every >5 years	4.1%	4.5%	-8.0%
Do not know	7.6%	11.8%	-35.4%

Length of Relationship With DC Provider
	WITH ADVISER	WITHOUT ADVISER	% DIFF W/ADVISER
<1 year	3.9%	2.1%	85.3%
1 to 3 years	15.9%	12.4%	28.5%
>3 to 5 years	15.3%	12.1%	26.4%
>5 to 7 years	14.5%	10.6%	36.4%
>7 years	48.5%	59.8%	-18.9%
Do not know	1.9%	3.0%	-36.3%

Investment Committee for the DC Plan
	WITH ADVISER	WITHOUT ADVISER	% DIFF W/ADVISER
Yes—employees only	42.0%	44.5%	-5.8%
Yes—only external to our company	2.0%	1.8%	15.2%
Yes—a mix of internal and external	36.1%	15.2%	137.2%
Yes—unsure of composition	1.3%	1.5%	-16.3%
No investment committee	15.0%	30.5%	-51.0%
Do not know	3.7%	6.5%	-42.7%

DC Plan Metrics
	WITH ADVISER	WITHOUT ADVISER	% DIFF W/ADVISER
Participation rate	78.0%	75.9%	2.7%
Participant deferral rate	6.4%	6.4%	-0.6%
% of participants w/ loans	14.6%	12.7%	15.0%
Avg number of inv options offered	20.5	20.4	0.2%
Avg number of inv options held	5.1	5.3	-3.6%
Avg account balance	$83,226	$85,304	-2.4%
Median account balance	$65,000	$67,508	-3.7%

ADVISER ROLES, RECOMMENDATION
Adviser Fiduciary Roles in Retirement Plans
	2013	2014	% difference
3(21) fiduciary only	16.7%	26.2%	56.8%
3(38) fiduciary only	5.3%	5.4%	2.6%
Both a 3(21) and a 3(38) fiduciary	15.9%	15.7%	-1.6%
Not a fiduciary	28.1%	27.5%	-1.8%
Do not know	34.0%	25.1%	-26.1%

Likelihood of Recommending Adviser
	2013	2014	% difference
Extremely likely to recommend	62.1%	64.4%	3.7%
Moderately likely to recommend	23.2%	20.6%	-11.3%
Somewhat likely to recommend	6.5%	6.2%	-5.0%
Neither likely to recommend nor recommend against	5.9%	6.5%	9.9%
Somewhat likely to recommend against	1.0%	0.7%	-33.6%
Moderately likely to recommend against	0.5%	0.5%	9.4%
Extremely likely to recommend against	0.7%	0.6%	-10.7%
Average score (7=extremely likely to recommend)	6.35	6.38	0.5%