The defined contribution (DC) recordkeeping industry is at a tipping point. Driven by fee compression, rising costs, and automated RFP processes, many providers face existential threats. Larger firms with scale, proprietary investments, and cross-selling power dominate, while smaller players struggle to compete. As automation accelerates consolidation, recordkeepers must embrace participant-centric models and new technologies, or risk irrelevance.

On May 28, 2025, the DOL reversed its 2022 warning against crypto in 401(k) plans, restoring fiduciary discretion. While not an endorsement of digital assets, the move signals a shift toward regulatory neutrality and reinforces fiduciaries’ responsibility to prudently assess all investment options.

A well-executed RFP is more than a compliance step, it’s a strategic tool for defined contribution plan sponsors to benchmark fees, improve services, and protect participant outcomes. As plans grow more complex, periodic due diligence through the RFP process ensures providers remain aligned with fiduciary goals and regulatory standards.

Many foundation and non-profit organizations face significant resource constraints, making it difficult to effectively manage their...