News Release

ICI and ISS MI Report: Employer Contributions Grow as 403(b) Savers See Plan Costs Decline

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Washington, DC; September 30, 2026—The Investment Company Institute (ICI) and ISS Market Intelligence (ISS MI) today released their collaborative report on 403(b) plans subject to the Employee Retirement Income Security Act of 1974 (ERISA). The ICI/ISS MI Defined Contribution Plan Profile: A Close Look at ERISA 403(b) Plans, 2023 found that employer contributions totaled $13 billion, or 32% of all employer and employee contributions during the year. This is an increase from $11 billion in 2021 and 2.5 times the amount made in 2009. 

“American employers are committed to helping employees meet their retirement goals and save for a secure financial future,” said Shelly Antoniewicz, ICI’s Chief Economist. “Whether delivered through a match or an automatic contribution, employer support makes a meaningful difference in helping workers build savings.”

Exhibit 1.4: Employers Make Significant Contributions to Large ERISA 403(b) Plans
Employer and employee contributions to large ERISA 403(b) plans, billions of dollars
 
Chart showing Employer and employee contributions to large ERISA 403(b) plans, billions of dollars

Note: The results include plans that filed Form 5500 Schedule H (typically plans with 100 participants or more). In plan year 2023, the sample is 5,332 large ERISA 403(b) plans. Employer and employee contributions exclude contributions from others (which includes rollovers into 403(b) plans) and noncash contributions.
Source: Investment Company Institute tabulations of US Department of Labor Form 5500 Research File

Data from ISS MI’s MarketPro Retirement powered by BrightScope show that total plan costs for large ERISA 403(b) plans declined across every plan-size group between 2009 and 2023, whether measured on a plan-, participant-, or asset-weighted basis. The average participant was in a plan with a total cost of 0.45% of assets in 2023, down from 0.68% in 2009, while the average dollar was invested in a plan with a total cost of 0.37%, down from 0.59%. The measure includes administrative, advice, and other fees reported in Form 5500 filings, as well as asset-based investment management fees. 

“MarketPro Retirement gives us a comprehensive view of total plan costs across the ERISA 403(b) market,” said Brooks Herman, Managing Director at ISS MI. “The long-term declines documented across plans of all sizes are an encouraging development for retirement savers.”

Other key findings of the study include:

  • ERISA 403(b) plans represent an array of nonprofits, often hospitals or educational services. About half of ERISA 403(b) plan participants are in hospital plans, which held 39% of ERISA 403(b) plan assets in plan year 2023. Another 24% of ERISA 403(b) plan participants were in educational services, holding 43% of ERISA 403(b) plan assets.
  • Most large 403(b) plans offer employer contributions. In 2023, 87% of large ERISA 403(b) plans covering more than three-quarters of large ERISA 403(b) plan participants had employer contributions.
  • Equity funds accounted for the largest share of assets in large ERISA 403(b) plans. In 2023, 40% of large ERISA 403(b) plan assets were held in equity funds, 35% were held in balanced funds (with most of that being held in target date funds), and 5% were held in bond funds. Fixed annuities accounted for 14% of ERISA 403(b) plan assets.
  • Index funds are widely available in large ERISA 403(b) plans and represented 42% of large ERISA 403(b) plan assets in 2023. Index funds held the greatest share of assets in the largest ERISA 403(b) plans: 49% of the assets of ERISA 403(b) plans with more than $1 billion in plan assets were invested in index funds. Index funds, which tend to be equity index funds, generally have lower expense ratios than actively managed equity funds.

About the Study

This report in The ICI/ISS MI Defined Contribution Plan Profile series focuses on ERISA 403(b) plans in 2023. It first analyzes 403(b) plans in the Department of Labor 2023 Form 5500 Research File. Focus then shifts to more than 5,600 audited 403(b) plans in MarketPro Retirement powered by BrightScope, which typically have 100 participants or more. For analysis of private-sector 401(k) plans, see The ICI/ISS MI Defined Contribution Plan Profile: A Close Look at 401(k) Plans, 2023 (March 2026).

About ISS Market Intelligence

ISS Market Intelligence (ISS MI) is a leading provider of data, insights, and market engagement solutions to the global financial services industry. ISS MI empowers asset and wealth management firms, insurance companies, distributors, service providers, and technology firms to assess their target markets, identify and analyze the best opportunities within those markets, and execute on comprehensive go-to-market initiatives to grow their business. Clients benefit from our increasingly connected global platform that leverages a combination of proprietary data, powerful analytics, timely and relevant insights, in-depth research, as well as an extensive suite of industry-leading media brands that deliver unmatched market connectivity through news and editorial content, events, training, ratings, and awards.

Complete results of the annual ICI/ISS MI study are posted on www.ici.org/research/defined_contribution_plans/401ks/the-iciiss-defined-contribution-plan-profile. To learn more about ISS Market Intelligence, visit www.issmarketintelligence.com.

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    403(b) Plans
    Employee Retirement Income Security Act (ERISA)