2023 Plan Sponsor Report: Committee Turnover & Healthcare Costs Driving "Back to Basics" Education, Provider Searches

Results of our annual Plan Sponsor Report show retirement and healthcare managers are facing a dual challenge in 2023: managing an evolving benefits landscape while experiencing high turnover among fiduciary committee members. This year's survey collected responses from over 1,400 plan sponsors representing 1.9 million employees and $70 billion in plan assets nationwide.

The responses fall in line with trends noted in a recent article from Pensions & Investments , which found many plan sponsors are scrambling to find new committee members and get them up to speed on their fiduciary responsibilities in the wake of the pandemic and “Great Resignation.” Without a consistent, well-trained committee, employers are at risk of overpaying fees and potential litigation- forcing many companies to put other priorities and initiatives on hold in favor of “back to basics” education.

Keep reading for more data and insights from the 2023 Plan Sponsor Report, and download your copy here: https://www.xgrowthsolutions.com/2023-plan-sponsor-report

We saw an 11% increase of Plan Sponsors who report having fiduciary training. While 39% are still needing training, more Plan Sponsors are seeing the value of ongoing education, and passing that knowledge on to participants.

Healthcare will be top-of-mind for plan sponsors, with 23% calling it a “main focus.” Increasing costs are expected to continue to drive this interest- along with economic and legislative updates, and a widening scope of fiduciary responsibility.

Twice as many Plan Sponsors are searching for quality service providers in 2023. As the impacts of Covid-19 continue to stabilize, respondents say they are planning to engage in some form of provider search this year, with Health & Welfare Benefits services at the top of the list.

20% of Plan Sponsors say it has been more than 4 years since their last RFP, and may be looking to re-evaluate their services in 2023. 42% have submitted an RFP more recently, within the last few months or 1-2 years. RFPs are vital to ensuring that services are reasonably valued, and costs are appropriate. We expect this to remain top-of-mind for Plan Sponsors of all types.

As part of our core mission to educate and empower Plan Sponsors, Xponential Growth Solutions has expanded its services to include live, virtual, streaming and on-demand fiduciary training. Responses show 403(b) Plan Sponsors and C-Level executives prefer to attend in person, and those with previous fiduciary training typically opt for online events. This hybrid approach will continue to become the standard moving forward.

More of What to Expect in 2023

• More plan sponsors are willing to participate in in-person workshops and events, but virtual engagement and remote work are here to stay. Improved technology and flexible learning opportunities are making it possible to reach more plan sponsors than ever.
• Plans are looking to hire service providers, especially 403(b), DB plans, and retirement plans with over $50 million in plan assets.
• Healthcare will be top of mind for CFOs looking to contain costs and stay competitive.
• The “new wave” of committee members will mean going back to basics with fiduciary training for many, but also adoption of new benefits strategies and ideas

Click here to learn more about the 2023 Retirement Plan Road Show , complimentary fiduciary training ?or?benchmarking and RFI/RFP assistance ?– and don’t forget to download the complete report!

Download Now: 2023 Plan Sponsor Report

Be sure to keep up with us on LinkedIn for more information about upcoming events, education and networking opportunities.

We look forward to connecting with you in 2023!