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Products October 11, 2001
Plan Sponsors Getting More For Less, DC Survey Shows
November 22, 2000 (PLANSPONSOR.com) - Plan sponsors
of all sizes are increasingly satisfied with their service
providers - and the fact that improved service is accompanied
by flat fees, according to
PLAN SPONSOR's 2000 Defined Contribution Services Survey.
Reported by editors@plansponsor.com
The annual survey evaluates key service components from the perspective of plan sponsors – as well as the ability of their service providers to meet those expectations.
Seventy percent of plan sponsors cited an increased or improved range of services over the past two years. Half noted no associated increase in fees.
In fact, nearly a quarter (23.4%) actually experienced a fee decrease, much higher than the 6% experience of the prior two surveys. However, 28% of small sponsors reported increases, while just 13% saw decreases.
An overwhelming 89% said they would recommend their current provider to a colleague, a finding consistent across all market segments. In a business well-noted for its high turnover, an astounding 37.2% of survey respondents have been with their current provider for more than five years.
Lack of product features was the most common reason cited for leaving a provider (38%). Of plans with less than $50 million in assets, 60% left for that reason.
– Nevin Adams editors@plansponsor.com
– 2000 Defined Contribution Services Survey
– We will run a series of highlights from the survey in the coming days in this news section.