Awareness of fiduciary status and the Department of Labor’s (DOL) fiduciary rule is more widespread among 403(b) plan sponsors than preparations for its effective date, according to a recent study by the Plan Sponsor Council of America (PSCA).
Just over three-quarters of plan sponsors consider themselves to be plan fiduciaries; 71.7% of non-ERISA plans do so, and 80.9% of ERISA plans do. And plans with 1,000 or more plan participants were the most likely to consider themselves to be fiduciaries — to the tune of 90% overall.
The PSCA also found that plan advisors also serve as plan fiduciaries for almost half of the plans surveyed; this was most pronounced among plans with 1,000 or more participants. Plan providers do so for 39%.
A strong majority of the plans studied — 70% — were aware of the DOL’s fiduciary rule. Awareness was higher among ERISA plans than non-ERISA plans, and much higher among plans with 1,000 or more participants than plans with fewer than 50 participants.
But awareness of the rule does not equate to making changes to preparations for its implementation. More than half of plans of all sizes had made no changes, and more than two-thirds of plans with fewer than 50 employees had not done so.
Among plans that have made changes in anticipation of the rule’s full implementation, the most widespread were changing investment lineups and hiring an advisor to act as a fiduciary. Nearly one-quarter of plans with 50-199 participants and 21.6% of plans with 1,000 or more took the former course of action; 24.7% of those with 50-199 participants and 21.4% of plans with 200-999 took the latter.
So who is helping those plans make decisions about investment lineups? For a majority of plans overall, investment committees in conjunction with the plan advisor or provider do so, and plans with 50-199 and 200-999 participants were the most likely to turn that source of assistance.
But what about helping participants with their investment decisions? Strong majorities of plans of all sizes accept those with fewer than 50 employees offered that assistance in 2016, but 34% of all plans overall and 62% of the smallest plans do not offer such help and have no plans to do so.
Last October and November the PSCA conducted its 2016 403(b) Snapshot Survey, an online survey of 281 nonprofit organizations that sponsor a 403(b) plan. The best-represented industry segment in the survey was educational institutions, which comprised 39% of respondents; the vast majority of respondents — almost 82% — have one plan provider. Almost half have assets of $5 million or less, and almost 43% have assets of $10 million or more.
Just over three-quarters of plan sponsors consider themselves to be plan fiduciaries; 71.7% of non-ERISA plans do so, and 80.9% of ERISA plans do. And plans with 1,000 or more plan participants were the most likely to consider themselves to be fiduciaries — to the tune of 90% overall.
The PSCA also found that plan advisors also serve as plan fiduciaries for almost half of the plans surveyed; this was most pronounced among plans with 1,000 or more participants. Plan providers do so for 39%.
A strong majority of the plans studied — 70% — were aware of the DOL’s fiduciary rule. Awareness was higher among ERISA plans than non-ERISA plans, and much higher among plans with 1,000 or more participants than plans with fewer than 50 participants.
But awareness of the rule does not equate to making changes to preparations for its implementation. More than half of plans of all sizes had made no changes, and more than two-thirds of plans with fewer than 50 employees had not done so.
Among plans that have made changes in anticipation of the rule’s full implementation, the most widespread were changing investment lineups and hiring an advisor to act as a fiduciary. Nearly one-quarter of plans with 50-199 participants and 21.6% of plans with 1,000 or more took the former course of action; 24.7% of those with 50-199 participants and 21.4% of plans with 200-999 took the latter.
So who is helping those plans make decisions about investment lineups? For a majority of plans overall, investment committees in conjunction with the plan advisor or provider do so, and plans with 50-199 and 200-999 participants were the most likely to turn that source of assistance.
But what about helping participants with their investment decisions? Strong majorities of plans of all sizes accept those with fewer than 50 employees offered that assistance in 2016, but 34% of all plans overall and 62% of the smallest plans do not offer such help and have no plans to do so.
Last October and November the PSCA conducted its 2016 403(b) Snapshot Survey, an online survey of 281 nonprofit organizations that sponsor a 403(b) plan. The best-represented industry segment in the survey was educational institutions, which comprised 39% of respondents; the vast majority of respondents — almost 82% — have one plan provider. Almost half have assets of $5 million or less, and almost 43% have assets of $10 million or more.
- Log in to post comments