Nearly every sponsor (98 percent) with a plan offering a match made one in 2013. 

"Despite the histrionics and uncertainty in the world around us, plan sponsors and their organizations are helping participants accumulate significant balances in their defined contribution plans," said Bob Benish, PSCA's executive director. 

Beyond the numbers, the survey also found that sponsors are spending more time and energy to better prepare their workforces for retirement. 

"They're making great strides in adopting new plan design features, investments and financial wellness programs that are making a positive impact on participant outcomes," said Benish. 

"The report's bottom line is great news — more people are saving more money and that's good. I like to think that's because more sponsors are realizing they need to take care of their employees, and that it's in sponsors' best interest to do so." 

Photo: Bob Benish.

Despite the overall positive results, Benish cautioned there is much more work still to be done. 

"We all became kind of hung up on the 3 percent deferral figure that came about from the safe harbor illustrations laid out by the DOL. But we all know that rate isn't going to get anyone adequately prepared for retirement," he said.

The most common default deferral rate remains 3 percent, found in about 47.1 percent of plans in 2013 vs. 51.8 percent in 2012, an improvement. But plans are defaulting at higher levels, with 40.2 percent of plans defaulting more than 3 percent of pay, up from 35.2 percent in 2012. 

The survey offers an exhaustive look (179 tables) at every conceivable plan detail, from participation rates to asset allocation to the minutiae of plan administration practices.

The numbers reflect a greater effort by sponsors to extend eligibility and open their plans to more workers. Nearly all of the plans permit fulltime salaried and hourly employees to participate in DC plans, and 70 percent of the plans surveyed are now allowing part-time employees to participate as well.

Most employers don't have a vesting period for participation, as 64.4 percent allow immediate participation upon hiring employees, and 45.6 percent that have a matching program allow the benefit to immediately kick in. About 30 percent require one year of service before making an employer contribution.

Among the survey's other findings:

• Automatic enrollment is used in half of all plans, rising to 50.2 percent of plans last year, up from 47.2 percent in 2012. Nearly 67 percent of large sponsors use auto enrollment, compared to 18.9 percent of the smallest.
• Most auto-enroll only new hires, and only 18.7 percent of plans are using it to enroll existing non-participants. Plans that use auto enrollment have a participation rate that is about 10 percentage points higher than those plans without it. Most plans that automatically enroll participants also take advantage of automatic increases in deferrals.
• A significant portion of assets and participants in plans are held by terminated employees; about a quarter of all assets and 23 percent of participants are no longer employed by their plan's sponsors.
• Retirees for plan-year 2013 averaged 17.4 years of plan participation. Those in pure profit-sharing plans were invested for a bit longer, 18.9 years.
• The percent of participating eligible employees that made contributions was highest in the smallest plans — those with fewer than 50 enrollees.
• An average of 19 funds was offered in 2013. Actively managed domestic equity funds were the most common in plans. On average, plans offer one balanced fund, two bond funds, six domestic equity funds, and two international equity funds.
• The allure of target-date funds continued to grow, as two-thirds of plans offered them. They absorbed 16.7 percent of all assets in 2013, up from 4.5 percent in 2007.
• About half of plans changed their investment lineup, and 35.4 percent offered a managed account alternative. The largest plans (those with more than 5,000 participants) are most likely to provide the actively managed option. When they do, the cost of those accounts is borne by the participants in 76.6 percent of plans.
• Some plans will spread the cost of actively managed accounts among all plan participants, even those who choose not to access the option. However, with 87 percent of sponsors offering actively managed accounts, the cost goes to only those participants who use the accounts.
• The era of ERISA litigation would seem to be affecting how sponsors are addressing their fiduciary duties. All told, 87.3 percent of plans report having an investment policy statement, up from 69.7 percent in 2003.
• RIAs continue to play an important role in retirement plan, with 67.4 of all plans retaining their services to assist with fiduciary obligations. The biggest plans do at a clip of 81.6 percent. The percentage drops incrementally relative to plan size, with just over half of the smallest plans working with an RIA.