RESEARCH |
2019
PLANADVISER Micro Plan Survey
Our annual gathering of data on plans with less than $5 million in assets points to a promising market for advisers
Reported by PLANADVISER
| Art by JooHee Yoon
Industry Data
Company Match
Company Match
Matching Contribution Offered
| All Plans | <$1MM | $1MM–$5MM | |
|---|---|---|---|
| Yes | 76% | 66% | 73% |
| No | 23% | 33% | 27% |
| Unsure/Don’t know | 0% | 1% | 1% |
‘True-Up’11 Provision for Matching Contributions
| All Plans | <$1MM | $1MM–$5MM | |
|---|---|---|---|
| Yes | 38% | 24% | 24% |
| No | 42% | 36% | 42% |
| Unsure/Don’t know | 20% | 40% | 34% |
|
11A true-up match may be used to restore matching contributions “lost” when an employee reaches the annual contribution limit prior to year-end. |
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| Participants Maximizing Match | |||
|---|---|---|---|
| All Plans | <$1MM | $1MM–$5MM | |
| All or nearly all participants (>90%) | 26% | 40% | 34% |
| Vast majority (>75% – 90%) | 27% | 18% | 21% |
| More than average (>50% – 75%) | 23% | 14% | 19% |
| Less than average (>25% – 50%) | 12% | 6% | 12% |
| A minority (10% – 25%) | 4% | 8% | 5% |
| Very few (<10%) | 3% | 4% | 5% |
| Unsure/Don’t know | 5% | 9% | 4% |
Frequency of Matching Contributions
| All Plans | <$1MM | $1MM–$5MM | |
|---|---|---|---|
| Annually | 14% | 13% | 15% |
| Quarterly | 3% | 0% | 2% |
| Monthly (non-pay-period) | 2% | 6% | 3% |
| Twice monthly (non-pay-period) | 1% | 1% | 2% |
| Biweekly (non-pay-period) | 3% | 2% | 3% |
| Per pay period | 77% | 75% | 75% |
| Other | 1% | 1% | 1% |
When Participants Are 100% Vested
| All Plans | <$1MM | $1MM–$5MM | |
|---|---|---|---|
| Immediately on enrollment | 36% | 39% | 35% |
| After ≤1 year from hire date | 4% | 7% | 4% |
| After 2 years from hire date | 5% | 2% | 2% |
| After 3 years from hire date | 13% | 4% | 8% |
| After 4 years from hire date | 5% | 3% | 4% |
| After 5 years from hire date | 19% | 20% | 22% |
| After 6 years from hire date | 16% | 15% | 20% |
| After >6 years from hire date | 1% | 3% | 2% |
Approximate Maximum Match
| All Plans | <$1MM | $1MM–$5MM | |
|---|---|---|---|
| >100% of first 6% of salary | 8% | 9% | 8% |
| 100% of first 6% of salary | 15% | 16% | 15% |
| 51% – 99% of first 6% of salary | 31% | 36% | 33% |
| 50% of first 6% of salary | 22% | 15% | 21% |
| >50% of first 6% of salary | 15% | 14% | 13% |
| Other | 9% | 11% | 10% |