While 38% in this segment still recommend proprietary fund offerings from the plan provider
, and 46% recommend TDFs provided by external third-party managers, Cogent suggests this is a clear sign of market evolution toward greater use of customization.
The study found that two chief brand consideration drivers were critical among established DC producers -- financial advisors that partner with sponsors and help recommend plan providers
to companies for their 401(k)s -- managing at least $10 million in DC assets:
The Institute recommends that plan providers
keep initiating these discussions with employers and encourage advisors to do the same.
LIMRA's report "Moving Ahead With Mobile: Mobile Technology Initiatives Among Defined Contribution Plan Providers
" also indicates that roughly one in two plan providers
view investments in mobile technology as a way to keep pace with competitors in an increasingly mobile business environment.
Both factors are further fueling the shift to passive solutions and as a result, plan providers
are increasing the number of index fund options available to plan sponsors as a means of managing total plan expenses.
One plan provider
has not allowed withdrawals or transfers since last September because of a low performing fund.
As stated earlier, approaching the search for a nonqualified plan provider
in the same manner as one would in the search for 401(k) services can be problem for a number of reasons.
Based on the author's research, the median universe size now offered by plan providers
is over 1,000 mutual funds.
As of January 2002 pension plan providers
were required to vest matching contributions more quickly, choosing from one of two schedules.
Medicash is one of the largest health cash plan providers
in the UK, with a turnover of pounds 22m, and has been in existence since 1871.
The survey ranks retirement plan providers
in 23 categories consisting of plan sponsor and participant services.
Most experts agree that nearly all retirement plan providers
will offer apps for mobile devices with functionality beyond that available on a web site.