6. LEGISLATION

• One third of plan sponsors with a qualified automatic contribution arrangement will increase their automatic escalation rate as a result of the SECURE Act.
• Three-fourths of DC plans signaled they are very unlikely to join a multi-employer plan or pooled employer plan.
• Three-fourths adopted coronavirus-related distributions under the CARES Act, while only approximately 40 percent increased loan maximums. (Photo: Shutterstock)

1. GOVERNANCE

• There was a 20 percent increase in total committee meetings in 2020. The effects of the pandemic were seen in a sharp increase in virtual meetings (up 86 percent), while in-person meetings decreased by 62 percent.
• Internal legal counsel attending meetings increased (from 11 percent to 56 percent), while external legal counsel attending meetings increased slightly (21 percent to 25 percent) over three years.
• The top areas of fiduciary focus were governance and process; investment structure evaluation; and fund/manager due diligence. (Photo: Shutterstock)

2. PLAN DESIGN

• Roth deferrals (79 percent) and automatic enrollment (70 percent) were the most common enhanced savings features available.
• Among other savings features available in plans, traditional after-tax contributions (68 percent) saw a renaissance due in large part to the availability of Roth in-plan conversions, which were first available in 2010 on a limited basis and expanded in 2013.
• 1 in 10 plans reduced or suspended the match in 2020. More than 8 in 10 of that group will reinstate the match. (Photo: Shutterstock)

3. INVESTMENT TRENDS

• Mutual funds (85 percent) and collective trusts (78 percent) continued to be the most prevalent investment vehicles. 
• Only 23 percent of respondents used their recordkeeper’s target date option in 2020, a sharp decrease from 67 percent a decade ago. 
• The prevalence of mutual funds for the target date fund is on the decline. (Photo: Shutterstock)

4. FINANCIAL WELLNESS

• 7 in 10 employers offered financial wellness support.
• The top reason for offering a financial wellness program was that it was part of the organizational philosophy to support employees (89 percent).
• 14 percent offered a standalone financial wellness program, and 36 percent have plans to develop one. (Photo: Shutterstock)

5. HSAs

• 65 percent of respondents reported offering an HSA.
• An HSA was offered by 58 percent of respondents with a DC plan only; 44 percent of those with a closed DB plan; and only 19 percent with an open DB plan. 
• This likely represents an overall benefits philosophy to share costs and responsibilities with participants. (Photo: Shutterstock)

6. LEGISLATION

• One third of plan sponsors with a qualified automatic contribution arrangement will increase their automatic escalation rate as a result of the SECURE Act.
• Three-fourths of DC plans signaled they are very unlikely to join a multi-employer plan or pooled employer plan.
• Three-fourths adopted coronavirus-related distributions under the CARES Act, while only approximately 40 percent increased loan maximums. (Photo: Shutterstock)