RESEARCH |
2020
PLANADVISER Micro Plan Survey
Micro plans have much to gain from adviser help with fiduciary matters
Reported by PLANADVISER
Industry Data
Use of Advisers
Adviser Use Among Plans
| All Plans | <$1MM | $1MM–$5MM | |
|---|---|---|---|
| Use a plan adviser | 70% | 50% | 63% |
| Do not use a plan adviser | 22% | 31% | 25% |
| Unsure/Don’t know | 8% | 19% | 13% |
| Use of Services Provided by Plan Advisers | |||
|---|---|---|---|
| All Plans | <$1MM | $1MM–$5MM | |
| Review of fund performance | 93% | 83% | 90% |
| Plan investment selection guidance | 82% | 63% | 76% |
| Evaluating/Explaining provider fees | 77% | 56% | 67% |
| Presenting to plan committees | 72% | 34% | 57% |
| Creation/Monitoring of IPS6 | 65% | 44% | 51% |
| Benchmarking plan design | 61% | 44% | 51% |
| One-on-one participant education | 61% | 63% | 80% |
| Provider selection/due diligence | 60% | 42% | 53% |
| Group participant education | 58% | 52% | 76% |
| Ensuring plan alignment with objectives | 52% | 46% | 58% |
| Plan compliance with laws and IPS | 47% | 40% | 43% |
| Developing/Delivering fiduciary training | 35% | 18% | 28% |
| Technical help with corporate transactions | 31% | 24% | 33% |
| 6Investment policy statement | |||
| Financial Education Offered by Employers | |||
|---|---|---|---|
| All Plans | <$1MM | $1MM–$5MM | |
| Saving strategies/prioritization | 48% | 22% | 32% |
| Financial markets/Investing basics | 42% | 22% | 29% |
| Budgeting | 40% | 19% | 25% |
| Rolling over past balances into the plan | 36% | 20% | 29% |
| Rollover options for separating employees | 32% | 15% | 26% |
| Retirement health care costs/savings options | 29% | 13% | 19% |
| Social Security withdrawal options/strategies | 26% | 10% | 15% |
| Credit/Debt management | 25% | 11% | 14% |
| College saving | 23% | 12% | 13% |
| Tax/Estate planning | 23% | 11% | 13% |
| Student Loans | 15% | 3% | 7% |
| Home buying | 14% | 6% | 8% |
Adviser Fiduciary Status
| All Plans | <$1MM | $1MM–$5MM | |
|---|---|---|---|
| 3(21) fiduciary | 40% | 21% | 25% |
| 3(38) fiduciary | 19% | 19% | 18% |
| Adviser is not a plan fiduciary | 10% | 13% | 13% |
| Have both a 3(21) and a 3(38) adviser | 2% | 1% | 2% |
| Unsure/Don’t know | 29% | 45% | 41% |
Does Your Plan Employ a Third Party as a 3(16) Fiduciary?
| All Plans | <$1MM | $1MM–$5MM | |
|---|---|---|---|
| Yes, limited scope7 | 34% | 29% | 31% |
| Yes, broad scope8 | 23% | 19% | 24% |
| No | 34% | 28% | 32% |
| Unsure/Don’t know | 9% | 24% | 12% |
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7The third party has only limited-scope acceptance of some (vs. all) of the functions of the plan administrator; responsibility for actions outside of this scope is retained by plan officials. 8The third party has broad-scope acceptance of the administrator role, including to be named as the plan administrator in the plan document. |
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