Fidelity Investments reported strong defined-contribution sales in the small- to midsize plan market in 2011. Sales commitments grew by $6.6 billion, increasing 40%, the company reported Thursday. Additionally, the number of plans with $50 million in assets increased 57% to over 1,400.
“We see tremendous opportunity in this segment as smaller and midsize employers and advisors seek a provider with a leading recordkeeping platform with the flexibility and experience from providing retirement plans to more participants than anyone in the industry,” Jeffrey Lagarce, executive vice president for Fidelity Investments, said in a statement.
Fidelity services 20,000 plans as of Dec. 31, 2011, with over 11 million 401(k) participants.
Fidelity client Burke & Herbert Bank built a retirement plan with Fidelity and non-Fidelity funds. “A rewarding retirement plan is one of the most important benefits an employer can provide its people,” Emily Debeniotis, principal vice president at Burke & Herbert Bank, said in a statement. “Working with Fidelity, we built a retirement plan that incorporates a wide array of funds that we believe are best suited for our 401(k) participants.”
Earlier this month, Fidelity reported that the average employee contribution to a 401(k) plan rose slightly to $5,750 from $5,680 in 2011. The average contribution increased due to participants electing an average 8% deferral rate. Employers, too, are contributing more and more often. The percentage of workers who received a contribution from their employer increased to 82% from 79% and the average contribution increased to $3,270 from $3,170.