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PCI releases 2025 edition of the 401(k) Investment Lineup vs. Passive Scorecard Annual Report
Last Updated: June 09, 2025
SPRINGFIELD, MO — Pension Consultants, Inc. (PCI) is pleased to announce the release of the 2025 edition of the 401(k) Investment Lineup vs. Passive Scorecard (ILPS) Annual Report, now in its 10th year of publication.
The report is based on academic research conducted by Dr. Rui Yao, Ph.D., CFP®, Professor and Director of Graduate Studies in Personal Financial Planning at the University of Missouri. The ILPS study continues to explore a fundamental question in retirement plan management: Do 401(k) investment lineups outperform an all-index lineup?
This year’s report analyzes data from approximately 5,000 defined contribution plans covering the 2022 calendar year. The results show that 57.49% of plans outperformed their all-index benchmark based on expected return. Notably, smaller plans were more likely to outperform.
However, when risk is taken into account, the picture becomes more complex:
• Sharpe Ratio (return vs. total risk): Only 30.59% of plans outperformed.
• Sortino Ratio (return vs. downside risk): Outperformance increased to 62.18%, again favoring smaller plans.
“These results reinforce a critical reality: how we measure investment performance matters,” said Zach Allen, CFA, Chief Investment Officer at PCI and President of RetireAdvisers℠. “Looking at expected returns alone doesn’t tell the full story—especially in the context of retirement planning. Risk-adjusted performance, particularly downside risk, has a real impact on whether participants stay on track for retirement.”
A National Benchmark for Defined Contribution Plan Performance
Defined contribution plans like 401(k)s are the primary retirement savings vehicle for American workers. Yet the industry still lacks a standardized method to evaluate whether a plan’s investment lineup is actually helping participants build retirement security.
That’s why PCI partnered with Dr. Yao in 2015 to implement a transparent, repeatable methodology, first introduced in the peer-reviewed 2020 paper Use of Advisors and Retirement Plan Performance, published in the Journal of Financial Counseling and Planning. This methodology is the foundation of the ILPS Annual Report and remains central to PCI’s commitment to greater transparency and accountability in retirement plan performance.
Long-Term Findings Underscore Volatility in Plan Performance
While 2022 marked a relatively strong year compared to index benchmarks, the historical results tell a different story. Only 3 of the last 10 years saw the majority of plans outperform their index benchmarks—2017, 2020, and 2022. In the other 7 years, most plans fell short, often by a wide margin. In 2016, for example, just 10.59% of plans managed to beat the index. While 2022 was a bright spot, the broader trend makes one thing clear: consistent outperformance is not the norm.
“Our industry often lacks accountability when it comes to performance,” Allen noted. “Without a consistent standard, underperformance can be hidden behind lineup changes or selective snapshots. That’s a disservice to plan participants who depend on these investments for a secure retirement.”
Access the Full 2025 ILPS Report
This year’s ILPS report includes detailed plan-level and fund-level analysis across five core performance panels:
• Higher Expected Return
• Lower Risk (Standard Deviation)
• Higher Sharpe Ratio
• Lower Downside Risk
• Higher Sortino Ratio
The report evaluates performance by plan size and provides valuable insight for fiduciaries aiming to assess whether their plan’s investment lineup is adding value or simply keeping pace with the market.
To access the full 2025 report, visit the official location here. View the original academic research published in the Journal of Financial Counseling and Planning here.
About PCI:
Pension Consultants, Inc. is a nationally-ranked retirement plan adviser dedicated to helping American workers get on track for retirement. With over 30 years of experience, PCI is one of the nation’s largest and oldest independent retirement plan advisers.
At PCI, we don’t just manage your 401(k) plan—we take ownership of its performance. Our accountability gives you confidence that your plan is truly working to get your employees on track for retirement.
Want to learn how your plan can help your employees get on track for retirement? Get acquainted with PCI today.
Rui Yao, PhD, CFP®. Professional, Personal Financial Planning, University of Missouri. “Retirement Plan Performance: 2022 Update.” April 23, 2025.
