In the early 1990s, the investment providers dominated by leveraging phenomenal returns to require plan sponsors to use their recordkeeping and administrative services. As providers were forced to offer more than proprietary investments and plan sponsors began demanding better and more sophisticated service and technology, capital expenditures were driven up.

But today plan sponsors view recordkeeping as a commodity and fewer than ever are likely to switch vendors. The retirement adviser now enjoys the most power as sponsors now believe they have the best chance of positively affecting retirement plans. In 2009, fewer than 3% of plans indicated that they were thinking of changing their recordkeeper or were actively searching for a new one. This number is down 40% from its 2008 level - and even more compared with the 2004-2005 period, when it peaked at almost 10%. In all market segments, the 401kExchange Opportunity Index, based on 4,000 monthly surveys with plan sponsors, is down 40% YTD except in the mid-market which is down 50%.

Perhaps these levels of activity are the new norm - with sponsors now viewing recordkeeping as a utility. The repercussions, though painful, are generally positive for recordkeepers with significant market share, in niche markets with high margins, or those with a broad retirement business including defined benefit, non-qualified, schools, hospitals, not-for-profits and union clients.

On the other hand, advisers should be wary of the "other" recordkeepers who will likely be forced out of the business. Investment managers that do not offer recordkeeping services (IOs) are faring well, with more than 6% of plans thinking of adding a fund or changing an existing one. After the recent market collapse, even more money managers are rushing toward the DC market. But the barriers to entry are growing - getting on platforms and hiring a sales force to face off against retirement advisers is getting harder.

The real winners in this market are the advisers. More than 80% of plans with less than $100 million in assets use a financial adviser, up from as low as 70% in April of 2008. This past November, more than 11% of plans that have an adviser said that they are thinking of changing, and almost 9% that do not have an adviser are thinking of adding one. Even advisers with more than five plans are in a good position if they have the discipline to focus on this market. Just as for recordkeepers and IOs, the barriers to entry for advisers are growing as plans are getting more sophisticated and less likely to hire the CEO's golfing buddy.

Experienced advisers have never had a better chance to speak to plan sponsors about how they can help the company and their employees. Companies want nothing when it comes to their DC retirement plan - no costs, liability or work. If an adviser can offer "nothing" to the sponsor while still showing that they have the skill set to help participants achieve better results, they will win almost every engagement.

Retirement advisers are small businesses which need support from better capitalized partners. Savvy IOs and recordkeepers realize that the power has shifted to advisers. Advisers should push their advantage. Looking for real support from their partners to help build, manage and grow their retirement practices is not unreasonable. If a provider is unwilling to support the more successful retirement advisers these providers are unlikely to survive the coming purge.