"Mega" defined contribution plans are experiencing a surge in managed accounts in 2015, according to data released by Cogent Reports.
Nearly one-fifth of those plans, which the Massachusetts-based consultancy defines as holding $500 million in retirement assets or more, now default participants into managed accounts. In 2014, only 5 percent of the plans relied on managed accounts. Already in 2015, that number is now 18 percent.
"The increased usage of managed accounts among Mega plans signals a growing desire in the industry to offer a more personalized solution of plan participants," said Linda York, vice president at Cogent Reports, a division of Market Strategies International.
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