Plan Benchmarking

Plan Benchmarking

Is your retirement plan administrator providing market competitive services — for your plan and plan participants — at a fair price? How often do you check?

When a fiduciary considers the fees and their impact on retirement income, they have to remember that all services have costs. If you have a menu of services and investments, all services received with the total costs for those investments and services need to be reviewed and analyzed.

Fee benchmarking is an activity that is designed to bring all of a plan’s fees and expenses to light to help fiduciaries understand their plan’s total costs. The exercise can also help fiduciaries understand the types of investment related revenue sharing, the amount of revenue sharing available, and how revenue sharing payments are used. Fee benchmarking studies are completed on a blind basis and although the results can be enlightening and beneficial, it may provide the Committee with the motivation to consider a more expansive Request for Proposal process, simply because fees are only one part of a bigger picture.

Advanced Capital Group can evaluate your total plan fees and gauge their level of competitiveness within the marketplace.

Request for Proposal (RFP) is a process that begins by gaining a complete understanding of your goals and expectations of the RFP project. We document services or features you want – or want to avoid – along with specific details of your plan so potential providers can put forth their best effort in the response and pricing. When the results are received, we will present you with a report showing a side-by-side analysis of each provider’s services and costs; highlighting provider competencies and potential concerns.

As with any vendor, a Plan's recordkeeper should be evaluated periodically to ensure they continue to meet plan needs. Should you decide to evaluate options, Advanced Capital Group can help you to identify and evaluate a new recordkeeper as well as guide you through the transition.