RESEARCH |
2018
PLANADVISER Micro Plan Survey
Reported by PLANADVISER
| Art by Claire Merchlinsky
Industry Data
Costs/Fees
Costs/Fees
Who Pays for Plan’s Administrative/Recordkeeping Costs
| All Micro | <$1MM | $1MM–$5MM | |
|---|---|---|---|
| Plan (via participants) | 27% | 20% | 30% |
| Employer | 48% | 55% | 46% |
| Both | 12% | 9% | 14% |
| Unsure/Don’t know | 12% | 17% | 10% |
| Approximate Average Expense Ratio of Plan Investments | |||
|---|---|---|---|
| All Micro | <$1MM | $1MM–$5MM | |
| >0.25% (>25 bps) | 10% | 15% | 8% |
| 0.25% – 0.50% (25 – 50 bps) | 16% | 15% | 16% |
| >0.50% – 0.75% (51– 75 bps) | 9% | 9% | 9% |
| >0.75% –1.0% (76 –100 bps) | 10% | 4% | 13% |
| >1.0% – 2.0% (101– 200 bps) | 9% | 6% | 11% |
| >2.0% – 2.5% (20 – 250 bps) | 0% | 1% | 0% |
| >2.5% (>250 bps) | 1% | 0% | 1% |
| Unsure/Don’t know | 44% | 51% | 42% |
Frequency of Formal Review of Administrative Costs/Fees
| All Micro | <$1MM | $1MM–$5MM | |
|---|---|---|---|
| Annually | 76% | 72% | 77% |
| Every 1 to 2 years | 10% | 8% | 10% |
| Every 2 to 3 years | 4% | 3% | 4% |
| Every 4 to 5 years | 1% | 1% | 1% |
| Every >5 years | 1% | 1% | 0% |
| Unsure/Don’t know | 9% | 15% | 7% |
Were Total Plan Fees Calculated for the Prior Plan Year?
| All Micro | <$1MM | $1MM–$5MM | ||
|---|---|---|---|---|
| Yes, and we externally benchmarked our plan’s cost/fees as part of the process |
32% | 23% | 35% | |
| Yes, and we plan to externally benchmark our plan’s cost/fees in the near future |
5% | 5% | 5% | |
| Yes, but we did not externally benchmark our plan’s cost/fees |
16% | 12% | 18% | |
| No, but we intend to calculate total fees in the next 6 months |
5% | 6% | 4% | |
| No, but we may do it at some point in the future |
22% | 28% | 20% | |
| Unsure/Don’t know | 20% | 26% | 18% | |