401kExchange rates recordkeepers in categories of overall satisfaction, investment and record keeping and administrative services. The ratings, which are calculated from almost 40,000 surveys with plan sponsors, are based on the percentage of plans that give their recordkeeper a 4 (very satisfied) or 5 (excellent) rating. The ratings are segmented into three markets based on the amount of assets in the plan. The three market segments are broken down into the small market, mid market and large market, with assets of less than $1 million, $1-10 million, $10-100 million, respectively. Advisers can use these ratings not only to find out which providers are doing a good job, but also which providers serve each market segment based on the number of surveys completed. Only providers with at least 20 surveys were listed in the top 10 for the $10-$100 million market, and providers needed 40 surveys to be eligible for the top 10 in the smaller markets. The full report, which includes hundreds of recordkeepers, can be found by registering at 401kExchange.com.

Overall satisfaction is down significantly: 30%-40% across all markets. In 2009, only 25%-35% of plans rated their provider a 4 or 5, compared with more than 70% in 2006. Driven in part by the collapse of the stock market, plan sponsors are getting savvier about service and have begun holding their recordkeeper to a higher standard.

Participant Web sites and daily valuation record keeping might have been impressive five years ago, but today these features are expected and most surviving recordkeepers live up to this expectation. Customer service (or the people answering the phones) will always make a difference, but after the market collapse sponsors want providers who can protect and help participants while limiting costs, liability and work for the sponsor. So far, very few providers - if any - have stepped up.

With a low of 2.5%, which is down 75% from 2005, sponsors are indicating likelihood to change recordkeepers less than ever in 2009. However, more than 12% of plans are searching for a new adviser, signaling that sponsors believe the adviser - not the recordkeeper - can make the difference.

Using a health care analogy, the recordkeeper is the hospital, the asset managers are the pharmaceuticals, and the advisers are the doctors.

Sponsors believe that hiring a good adviser is the key to making the recordkeeper and asset managers more effective. With 80% of the under $10 million adviser-sold market serviced by blind squirrels (or advisers with very little DC experience), the opportunities are ripe for experienced advisers.