Fees have become the primary reason retirement defined contribution plans switch providers, according to a survey released today by Spectrem Group.
The report on the survey results, DC Market Needs, noted 30% of defined contribution plan executives cited costs and fees as the primary factor leading to change in providers, while 26% of plan executives switched because of poor service and 12% said investment issues were the chief reason for change.
In comparison, in 2005, 45% said poor service was the top reason for change with 26% citing investment issues. Only 18% said costs were the main concern.
The survey of executives at 1,052 companies with defined contribution plans was conducted in May and June. The data have a margin of error of plus or minus three percentage points.