BrightScope/ICI Study Also Finds Total Costs of 403(b) Plans Decreased from 2009 to 2012
Employees of educational institutions and other nonprofit employers who participate in 403(b) plans enjoy many investment options in their plans, according to a research study by BrightScope and the Investment Company Institute released today.
The new study, “The BrightScope/ICI Defined Contribution Plan Profile: A Close Look at ERISA 403(b) Plans,” examines 403(b) plans—which are defined contribution (DC) plans similar to 401(k) plans—offered to such employees. Another key finding of the report is that the average total plan cost of 403(b) plans, as measured by BrightScope, decreased from 2009 to 2012.
“403(b) plans play a critical role in the retirement marketplace. This study reveals that plan design features of 403(b) plans governed by ERISA are as dynamic as those found in 401(k) plans and that 403(b) plan sponsors design their plans to generate accumulations that will provide participants with substantial retirement savings.”
-Brooks Herman, head of data and research at BrightScope
BrightScope is a financial information company that brings transparency to the financial services marketplace through independent research and analysis. Delivered through intuitive online tools, BrightScope data drives better decision-making for individual investors, corporate plan sponsors, asset managers, broker-dealers, and financial advisors. Information on more than 700,000 financial advisors and nearly 33,000 active advisory firms, as well as ratings for nearly 50,000 retirement plans and analysis on nearly 30,000 fund share classes, are available for free at www.brightscope.com.
About the Investment Company Institute
The Investment Company Institute (ICI) is a leading, global association of regulated funds, including mutual funds, exchange-traded funds (ETFs), closed-end funds, and unit investment trusts (UITs) in the United States, and similar funds offered to investors in jurisdictions worldwide. ICI seeks to encourage adherence to high ethical standards, promote public understanding, and otherwise advance the interests of funds, their shareholders, directors, and advisers. ICI’s U.S. fund members manage total assets of $18.1 trillion and serve more than 90 million U.S. shareholders.