Fee Analysis & Benchmarking

How much are you and your participants currently paying for your 401k program?

Most plan sponsors can't answer that question. The impact of excessive fees is significant. The share class decision alone could potentially impact performance by over 20%. What are some of the issues that affect pricing?

401k Fee Analysis

Since most plan sponsors are not familiar with the different aspects of 401k provider pricing, we have developed a Fee Analysis Report that compares your total current fees, both administrative and investment related, to up to ten other providers that work with plans with similar demographics. This analysis will include a cross section of different types of providers, from independent third party administrators to bundled and semi-bundled providers.

During the 401k Fee Analysis, we:
1. Educate plan sponsors on the types of fees plan providers charge, both disclosed and undisclosed.
2. Discloses the amount of fees being paid by the plan sponsor and participants.
3. Discusses alternative fee arrangement.
4. Benchmarks the current provider to other providers that service similar size plans.
5. Reviews the asset allocation and investment quality of current investment offerings.

The Results

The benefits of the analysis to plan sponsors are numerous. First, it provides leverage for improved terms with the current provider. Secondly, it provides an understanding of how mutual fund share classes affect pricing. Finally, it provides documentation that supports the decision to consider formal request for proposal (RFP) and makes for a great fiduciary tool.