Solution introduction
Service Providers and Plan Sponsors need to work together to determine fee reasonableness and to produce the best possible retirement outcomes for participants
Fiduciary Benchmarks believes that certain aspects of benchmarking are “non-negotiable” as Plan Fiduciaries are required to ensure that they are “paying only reasonable plan expenses”. So, what do we think a responsible Fiduciary should focus on?
Use the Right Data
All of Fiduciary Benchmarks’ data is obtained directly from the source – the Recordkeepers, TPAs and Advisor/Consultants that know the plan best. The data is 90 days or less old when obtained, is reviewed for accuracy, and is comprehensive in that it includes fees, services, support and participant success measures.
Apply an expert method
Fiduciary Benchmarks’ proven method focuses on building apples-to-apples benchmark groups of similar plans by service provider, using high-quality data and providing a balanced assessment of the relationship between value and fees.
Consider the best information
Fiduciary Benchmarks reports are designed to be simple, transparent and practical. The reports provide concise information and actionable intelligence that support sensible decision making. The reports and the process used to review them can be part of a prudent ERISA required review of fee reasonableness.
With that said, we realize that Plan Fiduciaries also have different approaches as it relates to satisfying their obligations so we have developed a number of different services that adhere to our core principles while allowing for differences in scope and time.
Our benchmarking services:
Value and Fee Benchmark Report with FEEPOINT® Calculation
Our most detailed report includes plan-specific value and fee benchmarking by service provider. This report is available for the plan or for the individual service provider (Recordkeeper, TPA, Investment Manager and Advisor/Consultant).
Each chapter follows a simple 5-step method for assessing fee reasonableness as follows:
- 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
PlanPoint
This report offers plan-specific fee analytics along with a generic description of value for a single service provider. It is offered for Recordkeepers, TPAs and Advisor/Consultants. This report is best for a fee “check-in” when the service providers value is not in question.
Plan Profile
This report offers plan universe data as it relates to fees, plan design, participant success and generic service provider value. This report is a good lead-in to the more robust Value and Fee Benchmark Report with FEEPOINT® calculation.
FeeChecker
This service is intended for service providers for fee and service research as well as a “book of business” analysis. It can provide specific plan size data or analyze all of the plans in your firm from a value and fee standpoint to determine where you need to focus your efforts.
Proposal Validation
This service is intended for service providers as an independent analysis of proposals being submitted to prospective new clients. This helps bring the focus back to what services and value will a service provider add to a plan as opposed to “who has submitted the lowest bid”.
