Asset growth among 403(b) and 457 plans will continue, along with the growing need for more services from their vendors, according to a recent survey of plan sponsors.
The survey by Eager & Associates, a Louisville, Ky., investment management consultant, found 55% of 403(b) sponsors and 66% of 457 sponsors expect their participation rates to increase in the next two years, along with their use of non-annuity options.
Sponsors say plan and participant servicing will be the main requirement to continue attracting assets to both 403(b) and 457 plans.
Most plans are receiving several types of services from the investment providers, but 71% of 403(b) sponsors and 61% of 457 sponsors said they want their investment vendors to offer more participant services.
The survey - 1995 Study of 403(b)/457 Plans: Plan Sponsors' Use and Selection of Investment Providers and Services - is based on a poll of 217 sponsors of 403(b) plans and 47 sponsors of 457 plans, and follow-up interviews.