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March 22, 2013 at 09:45 AM
Like everything else in New York, BrightScope’s latest list of the area’s top 25 401(k) plans is seriously competitive—so competitive, in fact, that a surprising number of big banks, brokerages and asset management firms dropped off this year’s list.
With an average account balance of $303,634 and a 98.06% average participation rate this year, the best 401(k) plans in New York did well enough that a majority of the plans that BrightScope ranked below ninth place in 2012 did not appear on the 2013 list.
So say goodbye to AllianceBernstein, BlackRock, Goldman Sachs, Morgan Stanley, Nomura Securities and OppenheimerFunds.
Yet the news isn’t all bad for the big banks, said Brooks Herman, BrightScope’s head of research. They’re simply a victim of other New York-based companies’ success in putting together outstanding 401(k) plans that include great account balances, participation rates, total plan cost, company generosity and salary deferrals.
“The New York City-based finance companies actually did quite well on this year’s list. Eight of the companies on the list are in the financial services industry,” Herman said in an email. “Even though big companies like Goldman Sachs and BlackRock did not make it on this year’s list, their individual ratings did improve.”
Goldman Sachs’ rating increased this year to 85.7 out of a possible 100 from 85.2 last year, BlackRock’s rating increased to 84.5 from 84.4 and Morgan Stanley’s increased to 85.1 from 84. (Read Top 25 Finance Company 401(k) Plans: BrightScope at AdvisorOne for a listing of the best plans nationwide.)
“The newcomers to this year’s list were represented by high scores from the law industry, which pushed companies like Goldman Sachs and BlackRock off the list,” Herman explained.
The lowest rating on the 2013 Top 25 list was 86.39 versus 84 in 2012, according to BrightScope, which has released the results of New York’s top retirement plans for three years in a row. The San Diego-based investment research firm offers assessments of retirement plans and financial advisors in its online directories.
“It is indicative to see so many new companies on this year’s New York City top plans list,” said Dan Weeks, co-founder of BrightScope, in a statement. “These employers are paying attention to the retirement benefits they offer and have made huge strides recently to offer more robust plans to employees.”
Keep reading to find out which NYC-based companies made it onto BrightScope’s 2013 list of top 25 401(k) plans.
Top 25 New York City-based 401(k) Plans From BrightScope
Including rating score out of a possible 100 points, number of active participants, total value of plan assets and top funds in the company’s 401(k).
25. Ford Foundation—Ford Foundation Retirement Plan—This philanthropic organization has a rating of 86.39 points, more than 300 active participants, $235 million in plan assets and 32 investment options with top three funds as follows: TIAA-CREF Traditional Annuity (40%), TIAA-CREF Stock (29%), TIAA-CREF Global Equities (4%).
24. Ernst & Young U.S.—Ernst & Young Partnership Retirement Plan—This big accounting firm has a rating of 86.55 points, more than 4,400 active participants, $1.3 billion in plan assets and 20 investment options with top three funds as follows: BlackRock US Equity Market Index (30%), BlackRock ACWI Ex-US SuperFund (8%), Vanguard Total Stock Market Index (8%).
23. Hoffmann-La Roche—The Roche Savings and Pay Deferral Plan—This health care manufacturer has a rating of 86.58 points, more than 9,500 active participants, $1.5 billion in plan assets and 32 investment options with top three funds as follows: Fidelity Growth Company (14%), BlackRock Equity Index (9%), SSgA Sub-Advised Guaranteed Investment Contracts (9%).
22. BASF Corp.—BASF Corporation Retirement Savings Plan—This chemical manufacturer has a rating of 86.58 points, more than 18,400 active participants, $2.8 billion in plan assets and 25 investment options with top three funds as follows: BASF Stable Value Fund (30%), Vanguard PRIMECAP (10%), Vanguard Institutional Index (6%).
21. Bessemer Trust Co.—Bessemer Trust Company 401(k) and Profit Sharing Plan—This commercial banking firm has a rating of 86.63 points, more than 800 active participants, $172 million in plan assets and 10 investment options with top three funds as follows: Bessemer Trust Fixed Income No. 4 (20%), Bessemer Trust Large Cap Equity No. 3 (16%), Cash and Cash Equivalents (12%).
20. Swiss Re America Holding Corp.—Swiss Re Group US Employees’ Savings Plan—This global reinsurer has a rating of 86.65 points, more than 4,200 active participants, $502 million in plan assets and 22 investment options with top three funds as follows: JPMorgan Stable Value Fund (15%), Vanguard Institutional Index (14%), PIMCO Total Return (14%).
15. Emergency Medical Associates—401(k) Profit Sharing Plan for Employees of EMX, LP – This physicians’ office has a rating of 87.14 points, more than 800 active participants, $110 million in plan assets and 26 investment options with top three funds as follows: Vanguard Balanced Index (14%), Charles Schwab Stable Value Fund (11%), Vanguard Total International Stock Index (11%).
10. Credit Suisse Securities USA—Employees Savings and Retirement Plan of Credit Suisse —This broker-dealer has a rating of 88.31 points, more than 22,000 active participants, $2.6 billion in plan assets and 64 investment options with top three funds as follows: Fidelity Managed Income Portfolio (14%), Vanguard LifeStrategy Growth (9%), Vanguard Russell 3000 Index (7%).
5. Simpson Thacher & Bartlett LLP—Simpson Thacher & Bartlett LLP Supplemental Profit Sharing Plan for Partners—This law firm has a rating of 89.89, more than 200 active participants, $104 million in plan assets and 24 investment options with top three funds as follows: Fidelity Fixed Income Fund (23%), Fidelity Spartan 500 Index (16%), Fidelity Contrafund (12%).