Use the RIGHT data

  • 100% of data comes directly from the people who know the plan best – it’s Service Providers
  • All data is current, accurate and consistent with 408(b)(2) disclosures

A 5 Step Process that is Fair and Repeatable

  • Customize Benchmark Group
  • Consider the Quality of your Service Providers
  • Analyze the Scope of Services and their impact on Plan Costs
  • Assess Value Delivered to the Plan Sponsor and their Participants
  • Examine Fees including “extra credit” items.

Custom Benchmark Groups by Service

  • Build the group based on the specific economic factors that drive each Service Providers costs
  • Ensure the group is statistically valid by removing outliers and maximizing predictability
  • Diversify the group so no single service provider dominates the group, all business models are depicted and it is accurately representing the market segment

A Framework to Review Provider Quality

  • Characteristics of the Service Provider
  • Services/Process
  • People/Technology/Resources

Assess Scope of Services

  • Identify core services that are being provided to the plan
  • Analyze services that drive plan costs based on volume and degree of difficulty

Examine Value Delivered

  • To Plan Sponsors:
    • By Fund Managers: Investment Performance, Compliance with Plan’s IPS and Optimized Treatment of Indirect Compensation
    • By RK’s and TPA’s: Service Quality, Support Services and Plan Design Assistance
    • By Advisor/Consultants: Mitigating current legal issues, addressing DOL audit concerns and utilizing best practices
  • To Participants: Retirement Outcomes

Track & Compare Fees Allowing for Extra Credit

  • Start with a base Service Provider Fee
  • Adjust for additional services and extra meetings/work