401(k) Providers

Dear Prudence

Plan Design	Both DB and DC Plans	DC Plans Only
Eligibility: no age requirement	51%	30%
Eligibility: upon hire or within three months	50%	28%
Immediate vesting on the employer match	45%	27%
Immediate vesting on the profit-sharing contribution	43%	11%
Matching contribution automatically invested in company stock	26%	11%
Communication
Use interactive computer programs	48%	38%
Use benefit fairs	52%	31%
Provide individual counseling for terminating employees	58%	39%
Target communications to participants who don't diversify	34%	18%
Target communications to employees approaching retirement	32%	22%
Measure the effectiveness of communication materials	57%	43%
Plan Management and Administration
Have a record-keeping service contract	69%	50%
Current challenge: underperforming assets	25%	37%
Current challenge: compliance issues	8%	17%
Performance-monitoring report provided by vendor	35%	54%
ADP: not highly compensated	5%	5%
ADP: highly compensated	6%	6%
Investments
Have a formal investment policy	66%	45%
Offer a stable value fund	70%	57%
Offer an indexed domestic equity fund	73%	62%
Offer an actively managed large-cap core domestic equity fund	27%	16%
Offer an actively managed mid-cap domestic equity fund	38%	51%
Offer company stock for employee-directed assets	43%	24%
Employee direction allowed for company matching contribution	71%	89%