OREANDA-NEWS. December 03, 2015. In three recent surveys, defined contribution (DC) retirement plan sponsors and participants put Vanguard at the top of the list in terms of satisfaction, many of the key drivers that contribute to it, and value for cost. The Cogent Reports™ 2015 Retirement Planscape® and the Boston Research Group 2014 Plan Sponsor Study of plan sponsors gauged plan sponsor satisfaction, while the Cogent Reports DC Participant Planscape™ did the same for plan participants. All three shared similar results: that satisfaction with Vanguard runs high on many levels.

"As a provider of DC services to thousands of plan sponsors and millions of their plan participants, our focus has always been on our clients," said Martha King, managing director, who heads Vanguard Institutional Investor Group. "It's gratifying that this focus has been recognized by the plan sponsors we serve, and the plan participants we strive to help make retirement ready."

Highest participant satisfaction

For their part, plan participants surveyed for the DC Participant Planscape™ study gave Vanguard the highest overall satisfaction rating among 23 current plan providers. In addition, participants were asked to rank providers in terms of 19 drivers of satisfaction listed in the survey. Vanguard was ranked first in 7 of them:

  • Investment performance
  • Website and online
  • Fund transaction fee
  • Problem resolution
  • Number of options
  • Fee transparency
  • Enrollment meetings

Highest satisfaction as recordkeeper by plan providers

Similarly, plan sponsors participating in the Retirement Planscape® were asked to assess their overall satisfaction with their current recordkeeper. Vanguard topped their list as well, with 83% of Vanguard clients highly satisfied with the services they receive. This is significantly greater than the survey's average plan provider satisfaction of 62%.

This high regard reflects how well Vanguard fared in terms of several drivers of client satisfaction. This included claiming or tying for first position in the following drivers:

  • Drivers of satisfaction, participant service, and problem resolution: First in 4 out of 10 drivers: Accuracy and timeliness of transaction processing, plan administration support, client service/relationship team, Form 5500 filing support. Ranked second: Plan sponsor website and online capabilities.
  • Drivers of satisfaction with investment range and options: First in 3 out of 7 drivers: Quality of investment options, fund expense ratios, fund transaction fees. Ranked second: In-plan retirement income offerings.
  • Drivers of satisfaction with fees: First in 3 out of 4 drivers: Quality and clarity of fee disclosure information, transparency of fees, plan administration fees. Ranked second: Recordkeeping fees.

Number 1 in client loyalty. Plan sponsors were also asked how likely they would be to recommend their current provider to a peer at another organization. From their responses, the Cogent Reports calculated a Net Promoter Score (NPS) for each provider. Vanguard took top spot here as well, by a 58% margin from the holder of the second spot.

First in value for cost, five years running. The Boston Research Group (BRG) 2014 Plan Sponsor Study marked the fifth consecutive year that Vanguard has held the top ranking in value for cost by full-service plan sponsors in the survey. Among plans in the \\$50 million plus market, it is also considered a top-tier provider with a host of 15 other attributes, including overall satisfaction, new product innovator, recordkeeping services, investment performance, and respected brand.