NEPC: Corporate Defined Contribution Plans Report Flat Fees
By a
To register for a webinar
The survey found that DC plans have a median record keeper, trust and custody fee of
"After consistently decreasing for the past seven years, it's surprising to see fees flatten out even though we had been anticipating it," said Ross Bremen, Partner and
"However, we believe there's a good chance fees will lower again next year," said
In addition to fees, survey respondents were also asked about plan design. The results show that the median plan offers 23 investment options, compared to 22 options in 2016 and just 14 in 2006. Among those investment options, target date funds (TDF) continue to be the most popular turnkey solution for plans, with 94% offering them. Of those plans, 90% use TDFs as their qualified default investment alternatives and assets in TDFs are at an all-time high of 34%.
As "passively managed" investment options have garnered a lot of press, less than 1% of respondents were 100% passive. The findings indicate that 33% of plans include passive TDFs and 54% of plans have the makings of a passive tier to complement active options.
Keywords for this news article include:
Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2017, NewsRx LLC
Vice President Pence surveys Harvey’s wreckage in Texas
Petplan Warns that Storm Flooding Can Pose Greatest Health Risks to Pets
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News