While that percentage has dropped five points since 2002, it still represents a sizable increase from 1999, when 39% of plan sponsors reported enlisting the help of industry consultants. An additional 24% of sponsors say they use a broker or other intermediary in the same role.

Among the drivers of this increased reliance on outside advice: more complex 401(k) product offerings, expanded provider alliances, new technology for servicing plan sponsors and participants, legislative reform and corporate mergers.

The use of fee-based consultants increases with plan size, to 58% among plans that have at least $200 million in assets. While that particular segment of the retirement plan market traditionally has been the most reliant on consultants, smaller plans also are relying on consultants to help them navigate change.

Two of the more significant changes in the past few years involve the types of consultants plan sponsors use and the services provided by consultants.

Benefits consultants and independent investment consultants are the two leading types of consultant groups named by plan sponsors of all sizes. The use of benefits consultants, however, has dropped by more than half among plans that have fewer than 500 participants, with independent investment consultants picking up ground.

The services provided by consultants also has changed. Since 2002, plan sponsors overall have become more reliant on consultants for assistance with plan design and compliance issues, investment manager searches and investment performance monitoring and evaluation.

---