The percentage of 401(k) and profit-sharing plans using auto enrollment rose to 50.2% last year, up from 47.2% in 2012, said the latest annual survey by the Plan Sponsor Council of America, released Tuesday.
In addition, a greater percentage of defined contribution plans offering auto enrollment moved away from the traditional 3% default deferral rate. Last year, the percentage of plans offering more than 3% rose to 40.2% vs. 35.2% in 2012, said a report detailing the survey results. The report said 47.1% of plans offered the 3% deferral rate last year vs. 51.8% in 2012.
Among other PSCA survey results, the report said:
- DC plan assets loaned to participants as a percentage of total plan assets dropped to 1.8% — the lowest percentage since 1.6% in 2007. However, the average loan per borrower rose to $10,385, the highest since at least 2003.
- The average aggregate percentage of participants who had loans rose to 26.2%, the largest percentage since the 27.6% in 2003.
- The highest aggregate asset allocations among DC plans are active domestic equity (25.6%), target-date funds (16.7%), index domestic equity (10.4%) and stable value (7.8%).
- Among companies offering target-date funds, 90.1% used off-the-shelf products.
- Company stock is allowed as an investment option for participant and company contributions in 19.3% of plans, while an average of 17.2% of total plan assets is invested in company stock within these plans.
The 57th annual PSCA survey featured responses by executives from 613 plans with combined assets of $832 billion, covering 8 million participants. Among respondents, 44.8% represented plans with $100 million or more in DC assets.
Robert Benish, PSCA’s executive director, could not be reached for comment.