- Simplified investment platforms: 403(b) plan sponsors offered an average of 26 investment options in 2013, down from 31 in 2012; edging closer to the average of 19 investment options in 401(k) plans 1. 403(b)s with the highest average participation rate (72.2 percent) are those with between 15 and 20 investment options.
- More target date options: Three quarters of 403(b) plans now offer target date investment options, a steady increase since 2009 when they were included in just over half of plans (51.2 percent).
- Help with fiduciary duties: More than half (51.3 percent) of sponsors retained independent investment advisors to assist with fiduciary responsibility, compared to 46 percent in 2012.
- More personalized and interactive education: Sponsors increased use of e-mail significantly over the past five years from 51.5 percent in 2009 to 71.8 percent in 2013; webinars more than doubled in from 9.7 percent in 2009 to 26 percent in 2013; 60 percent used one-on-one meetings with service providers, up from 54.2 percent in 2012 and more than a third (34.5 percent) used individually targeted communications. Seven percent used mobile apps.
- Automatic savings on the rise: Sixteen percent now automatically enroll employees, up from 14.6 percent in 2012; more of those plans included automatic annual increases (20.7 percent in 2013 compared to 16.9 percent in 2012).
403(b) Plans Simplify Investment Choices
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