SIMSBURY, Conn. -- Assets in 401(k) plans increased 22% in 2003, reaching a record $1.795 trillion and reversing a three-year decline, according to the latest Marketplace Update report from the Society of Professional Administrators and Recordkeepers. "What a difference a year makes," says Bob Wuelfing, society president. "Solid equity market performance and improving economic conditions were the driving factors in the turnaround." There were more than 395,000 401(k) plans, covering almost 45 million workers in the United States in 2003, compared with 383,000 plans and 40 million participants in 2002, he adds.The outlook for 2004 is a mix of good news and bad for the retirement industry. "The financial markets should continue improving, although not likely at the pace of 2003," Wuelfing says. "And, there will be further legislative and regulatory scrutiny of trading practices in the investment management business which will affect our industry."Additional statistical highlights of the report include:Assets for all types of retirement plans increased 20%, reaching nearly $12 trillion.401(k) participation rates were 78% among plans with more than $5 million in assets and 75% among smaller plans.With the steady improvement across all major equity classes, 401(k) participants started shifting contributions back into stock investments, reversing the prior year's activity, when most transfers came out of equities and into fixed income options.The Society of Professional Administrators and Recordkeepers was founded in 1989 as an inter-industry group of investment managers and service providers, particularly in the defined contribution retirement plan market. Current membership includes 250 companies representing a broad cross-section of banks, mutual funds, insurance companies, third party administrators and benefits consultants. Its member companies provide services to approximately 95% of the nearly 45 million 401(k) participants in the United States."