Market Background |
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Plan Sponsor Needs and Competition Click To Enlarge
Corporate DC Plans with less than 25 employees Plan Sponsor Needs: Optimize Cash Flow of the owner of the business and maximize personal wealth Reduce out of pocket cost to plan sponsor Provide a range of investment offerings with good performance Minimize admin burden to staff Competition: Market is well covered, but highly fragmented in terms of share Several kinds of providers: TPAs, Insurance companies, Payroll Providers Many product offerings with multiple variations; pricing not transparent, especially in insurance company plans; difficult to compare prices Plan design ranges from highly localized/personalized TPA coverage to broader, more technically advanced investment company plans Increasing focus on the smaller end of the market  Click To Enlarge
Corporate DC plans with 25 to 100 Employees Plan Sponsor Needs: Experienced and knowledgeable Plan Sponsor Plan Sponsor understands Fiduciary concerns Total Plan Cost and Fees are important Range of options and fund flexibility is important Consultants are involved and formal bids are the norm Competition: Market is well covered, and getting consolidated Several kinds of providers: TPAs, Insurance companies, Investment companies, Banks Many product offerings with multiple variations; pricing is increasingly transparent Plan design ranges from highly localized/personalized TPA coverage to broader, more technically advanced investment company plans Bundled multi fund, dedicated service teams, local support |