The National Association of Government Defined Contribution Administrators has released its fourth annual benchmarking report for members.
The report, called "Perspectives in Practice: A Benchmarking Initiative for Public Sector Defined Contribution Plans," is intended to help the DC plan industry "better understand trends and identify issues to better serve plan sponsors and plan participants," according to a note on NAGDCA's website.
Among the results, all of which reflect year-end 2018, NAGDCA said:
- About 82% of responding plans were voluntary, while 12% were mandatory with no voluntary contributions allowed and 6% were mandatory with voluntary contributions allowed.
- Pre-packaged target-date funds were the most common default investment option, with 49% of plans choosing that option, while 28% of plans utilize customized target-date funds as their default. Other default options were balanced funds (6%), customized target-risk funds (5%), stable value funds (4%) and pre-packaged target-risk funds (3%), with the rest choosing "other."
- The median plan fee — investment plus administration — was 0.36% of total plan assets.
- Seventy-seven percent of plans offered automatic enrollment, and 10% offered auto escalation.
The report was based on email responses from executives of 98 individual plans representing 65 plan sponsors with $177 billion in plan assets and 4.2 million plan participants.
Among the respondents, 62% were from 457(b) plans, 22% were from 401(a) plans, 9% were from 401(k) plans and 7% from 403(b) plans.
An executive summary of the report is available on NAGDCA's website, and the full report is available for members only.