Callan's 2022 Defined Contribution Trends Survey: Plan Sponsors Rank Fees as Top Focus

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Mar 01, 2022, 07:35 ET

SAN FRANCISCO, March 1, 2022 /PRNewswire/ -- Callan, a leading institutional investment consulting firm, announced today the results of its 2022 Defined Contribution (DC) Trends Survey. Now in its 15^th year, the survey highlights key findings from 2021 and expectations for 2022, while offering actionable insights for DC plan sponsors.

Reviewing fees was the most important step respondents took to improve their plan's fiduciary position in 2021 (76%). Examining the plan's investment policy statement (63%) and investment structure (61%), and completing formal fiduciary training (52%) followed. These will all be a primary focus in 2022.

"With the continued focus on fees, plan sponsors have more access to detailed fee data, allowing them to take a deeper dive when reviewing fees," said Jamie McAllister, co-author and Callan DC consultant. "While there is a greater level of fee data and transparency, it is still surprising that 43% of sponsors don't know if indirect revenue is evaluated as a part of their fee review. This can be a meaningful amount."

More Survey Highlights

Assessing security protocol was a priority (41%) in 2021. About a third will do the same in 2022.
100% offer advisory services, including guidance, seminars, and financial wellness.
1 in 4 plans intend to conduct a recordkeeper search in 2022.
95% offer a target date fund series.
86% have taken steps to prevent plan leakage.
Most plans (9 in 10) do not offer an ESG fund. About a third will consider it in the future. This was a newly added question to the survey.

Respondent Characteristics

The survey was conducted in the fall 2021 and incorporates responses from 101 DC plan sponsors, including Callan clients and other organizations.

The majority (90%) offered a 401(k) plan as the primary DC plan.
More than 97% of plans had over $100 million in assets, and 74% were "mega plans" with over $1 billion in assets.
More than three quarters were corporate organizations, followed by governmental (11%) and tax-exempt (7%) entities.

"We are humbled by the fantastic level of support we received from plan sponsors in completing our annual survey," said Greg Ungerman, co-author and Callan DC practice leader. "We believe the results act as a wonderful sounding board for those looking to see how others address the many different issues and topics facing plan sponsors today."

Find the summary blog post and study here.

About Callan
Callan was founded as an employee-owned investment consulting firm in 1973. Ever since, we have empowered institutional clients with creative, customized investment solutions backed by proprietary research, exclusive data, and ongoing education. Today, Callan advises on more than $3 trillion in total fund sponsor assets, which makes it among the largest independently owned investment consulting firms in the U.S. Callan uses a client-focused consulting model to serve pension and defined contribution plan sponsors, endowments, foundations, independent investment advisers, investment managers, and other asset owners. Callan has six offices throughout the U.S. Learn more at callan.com.

Media Contact:
Elizabeth Anathan
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415-274-3020

SOURCE Callan LLC