RESEARCH |
2020
PLANADVISER Micro Plan Survey
Micro plans have much to gain from adviser help with fiduciary matters
Reported by PLANADVISER
Industry Data
Company Match
A Matching Contribution Offered?
| All Plans | <$1MM | $1MM–$5MM | |
|---|---|---|---|
| Yes | 75% | 67% | 71% |
| No | 24% | 30% | 28% |
| Unsure/Don’t know | 1% | 3% | 2% |
A ‘True-Up’11 Provision for Matching Contributions
| All Plans | <$1MM | $1MM–$5MM | |
|---|---|---|---|
| Yes | 40% | 19% | 23% |
| No | 42% | 40% | 43% |
| Unsure/Don’t know | 18% | 41% | 34% |
| 11A true-up match may be used to restore matching contributions “lost” when an employee reaches the annual contribution limit prior to year-end. | |||
| Participants Maximizing Match | |||
|---|---|---|---|
| All Plans | <$1MM | $1MM–$5MM | |
| All or nearly all participants (>90%) | 26% | 36% | 30% |
| Vast majority (>75% – 90%) | 27% | 19% | 22% |
| More than average (>50% – 75%) | 21% | 10% | 16% |
| Less than average (>25% – 50%) | 12% | 11% | 13% |
| A small minority (10% – 25%) | 5% | 9% | 5% |
| Very few (<10%) | 4% | 7% | 6% |
| Unsure/Don’t know | 6% | 8% | 7% |
Frequency of Matching Contributions
| All Plans | <$1MM | $1MM–$5MM | |
|---|---|---|---|
| Annually | 14% | 14% | 15% |
| Quarterly | 2% | 1% | 1% |
| Monthly – Non-pay-period | 2% | 6% | 2% |
| Twice monthly – Non-pay-period | 1% | 2% | 1% |
| Biweekly – Non-pay-period | 2% | 5% | 2% |
| Per pay period | 79% | 73% | 79% |
| Other | 1% | 0% | 1% |
Approximate Maximum Match
| All Plans | <$1MM | $1MM–$5MM | |
|---|---|---|---|
| >100% of first 6% of salary | 5% | 6% | 4% |
| 100% of first 6% of salary | 15% | 14% | 13% |
| 51% – 99% of first 6% of salary | 35% | 34% | 37% |
| 50% of first 6% of salary | 22% | 19% | 22% |
| >50% of first 6% of salary | 18% | 20% | 18% |
| Other | 6% | 9% | 6% |
How Long Before Participants Are 100% Vested?
| All Plans | <$1MM | $1MM–$5MM | |
|---|---|---|---|
| Immediately on enrollment | 37% | 42% | 35% |
| 1 year or less | 6% | 10% | 6% |
| 2 years | 6% | 3% | 4% |
| 3 years | 13% | 6% | 10% |
| 4 years | 4% | 4% | 3% |
| 5 years | 17% | 12% | 20% |
| 6 or more years | 17% | 15% | 22% |
| Unsure/Don't know | 1% | 8% | 2% |