Strong asset and revenue growth lie ahead in the not-for-profit and governmental defined contribution markets, according to new Cerulli research.

In its report "U.S. Not-for-Profit and Governmental Defined Contribution Plans 2016: Addressing the 403(b), 457, and 401(a) Markets," Cerulli found that the NFP and governmental DC market is second only to the IRA segment in projected asset growth rate, and that projected negative net flows in the 401(k) market may increase interest in the NFP/governmental DC market as a source of future asset and revenue growth.

The NFP and governmental DC segment, the report said, accounts for approximately 8 percent of the total U.S. retirement market and includes the Federal Thrift Savings Plan (TSP), 403(b), 457, and 401(a) markets. Altogether, that segment's assets are expected to grow at a compound annual growth rate (CAGR) of 7 percent and to reach $2.4 trillion by 2020.

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