Survey of nonprofits' retirement plans shows less is more
Wednesday, June 04, 2014 2:54 PM
Nonprofit organizations that sponsor 403(b) retirement plans are simplifying investment platforms by streamlining the options available for participants, according to the sixth annual Plan Sponsor Council of America's 2014 403(b) Plan Survey. According to the survey, sponsored by Principal Financial Group Inc., plan sponsors offered an average of 26 investment options in their 403(b) plans in 2013, down from 31 in 2012. The plans with the highest average participation rate (72.2 percent) are those with between 15 and 20 investment options. The survey also found that three-quarters of 403(b) now offer target date investment options, a steady increase from just over half in 2009. More than 51 percent of plan sponsors retained independent investment advisers to assist with fiduciary responsibility, compared with 46 in 2012.