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Benefits March 1, 2024
Moving the Needle
What do the data say about the role MEPs and PEPs can play in getting more people access to employer-provided retirement accounts?
Reported by PLANSPONSOR Staff
Art by Nadja Zinnecker
About half of U.S. private sector workers are covered by an employer-sponsored retirement plan. How many employers might consider joining a pooled plan in order to provide this benefit? Data below from the Center for Retirement Research at Boston College explores the numbers.
Likelihood of Joining a MEP, PEP, or Group of Plans as an Alternative, 2022
- Very likely
- Somewhat likely
- Not too likely
- Not at all likely
Source: Transamerica Institute (2023)
Total 401(k) Costs as a Percentage of Plan Assets, by Asset Size
| Plan assets | 10th percentile | Median | 90th percentile |
| <$1mm | 0.20 | 1.02 | 2.40 |
| $1mm – $10mm | 0.47 | 0.96 | 1.56 |
| $10mm – $50mm | 0.40 | 0.72 | 1.09 |
| $50mm – $100mm | 0.32 | 0.57 | 0.83 |
| $100mm – $250mm | 0.17 | 0.46 | 0.66 |
| $250mm – $500mm | 0.17 | 0.41 | 0.59 |
| $500mm – $1b | 0.18 | 0.37 | 0.54 |
| >$1b | 0.13 | 0.26 | 0.43 |
Notes: Total plan cost includes asset-based investment management fees, asset-based administrative and advice fees, and other fees from the Form 5500 and audited financial statements of ERISA-covered 401(k) plans. Total plan cost is computed only for plans with sufficiently complete information.
Source: BrightScope and Investment Company Institute (2023)