Administration November 18, 2010

Are You Due for a Provider Check-up?

November 18, 2010 (PLANSPONSOR.com) - Asked how often they formally evaluated their DC provider, larger programs were again this year noticeably less likely to say they did so on an annual basis.
Reported by

In fact, for mid-size and large programs, they were about twice as likely to undertake that review every three to five years, a frequency that also was most commonly cited by the largest programs, according to the 2010 PLANSPONSOR Defined Contribution Survey.  Those review timelines help explain why more than half of this year’s respondents in the mid-size, large, and “mega” categories had been with their current DC provider more than seven years—and why, even in the micro segment, a full third had a relationship that was more than seven years old as well. 

But if a full service review was something of an infrequent event, not so fees.  More than half of this year’s survey respondents said they review fees annually; and the larger the program, the more likely to conduct that annual review.  That finding was, however, down slightly from a year ago. 

Get more!  Sign up for PLANSPONSOR newsletters.

As for the elements of that provider review, overall participant servicing remained top of mind for plan sponsor respondents, a sentiment that intensified as the programs grew in size.  Overall sponsor servicing was second most important, with the quality of the client service team not far behind, and cost/fees just behind that.

And – notably – more than a quarter (26.6%) of plan sponsor respondents admitted they didn’t know the approximate average expense ratio of the investment options in their plan, though that number ranged from 36% at the smaller programs to nearly one-in-ten at the largest plans.

As for future action plans, in view of the changes just past, and those that loom ahead, one might contemplate any number of responses.  However, that most commonly cited by plan sponsors in this year’s survey, and by a significant margin, was the intent to increase participant education and/or content.  

Reader Responses November 18, 2010

SURVEY SAYS: How Far Will You Go on Thanksgiving?

November 18, 2010 (PLANSPONSOR.com) - A week from today is, of course, Thanksgiving Day.   
Reported by

It’s a big family holiday, and one that, as we come together as families, puts many of us on the road (or in the air).  This week, I asked readers a series of questions about their Thanksgiving travel plans, and their plans for the day “after.”

First, the travel plans; a plurality, though not a very large one (22.2%), said they weren’t going anywhere – because their family was coming to them.  Take that, the 10.3% who simply said they weren’t going anywhere, and the 13.7% who said they were traveling less than five miles – and you can quickly see that about half isn’t planning to be far afield for the holiday.

For more stories like this, sign up for the PLANSPONSOR NEWSDash daily newsletter.

As for the rest of our travelers:  :

14.5% – 5 to 50 miles

 8.5% – 51 to 100 miles

17.1% – 101 to 500 miles

11.1% – more than 500 miles

The rest – well, let’s just say they fell into the WAY more than 500 miles (one noted “5,583 miles”)! 

Now, as for that day after Thanksgiving, the vast majority of this week’s respondents (76.3%) said they weren’t going to be working, and another 7% said “not if I can help it.”

As for the remainder, 6.1% said they would be working (one reader noted, We never get the day after Thanksgiving off), and 2.6% said that working the day after was a holiday tradition!

Another 2.6% said they would be working, but hoped to be leaving early, 4.4% said they might be working, and another 1% weren’t sure. 

Of course, some of those who won’t be working will surely be thinking about doing some shopping – but not that many.

 

Roughly 23% said they would be shopping the day after (half of them went so far as to suggest that doing so was a holiday tradition), and another 2.7% said they might be shopping, but only on their computer/phone.   

Of course, a third (32.4%) said they wouldn’t be, and another 28.8% said “not it I can help it”.  As for the rest, 9% said they might, and 4.5% weren’t sure. 

Other observations: 

It is expected to be quiet - and if the employees who irritate me the most are also out, it will be another day to be thankful for!  

After working 20 years for 2 companies that were open Black Friday, I'm so happy it's a paid holiday...no way will I work, that's what Sundays are for!

Ever since my first couple of jobs when I was too junior to be able to take the day off but anyone who had any seniority was lounging at home with family, I decided to never work on that day again if I had the choice.

Yes, but coming in late (even though I work at home) because I will be shopping at 4 a.m.

Probably from home - yummy, football, leftovers and year end document and census work.

The office is closing at 2 so I decided there was no point to going in.

Yes, but only to do some limited remote work and check for any emergencies.

But this week’s Editor’s Choice goes to the reader who noted, “To paraphrase Elmer Fudd "It's open enrollment season." Besides, with the news we're spreading I already know I'm getting coal - all 16 ton.” 

Thanks to everyone who participated in our survey! 

«