INSIGHTS

Understanding: Advisor Fees and Fiduciary Roles

Many 401(k) plans engage advisors to provide investment guidance and fiduciary support. It is crucial for plan committees to fully understand the structure of these fees and the role of the advisor. Advisor fees can be charged as a flat fee, an hourly rate, or a percentage of assets. Beyond the fee structure, committees must determine whether their advisor is acting as a fiduciary when giving advice. Understanding the advisor’s fiduciary status is critical. A fiduciary advisor is legally obligated…

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Fiduciary Corner / Inflation: FAQ

As the inflation story continues to drag on longer than anyone hoped or expected, we continue todissect it and present our findings to clients. In those discussions, a few questions keep surfacing. Here are a few answers: Inflation simply refers to the change in prices, typically reported on a year-over-year basis. Ifan apple cost $1.00 last year but costs $1.10 this year, the ten cent increase amounts to 10%inflation. However, if the price of the apple falls to $0.90, it…

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Considering a 401(k) Plan Recordkeeping Review? Here’s Why It Matters

Embarking on a review of your 401(k) plan’s recordkeeping services is a proactive step that can deliver significant benefits for both your plan and its participants. Here’s how: Cost Efficiency: The market for recordkeeping services is dynamic, with new entrants often offering competitive pricing and innovative features. A periodic review could uncover opportunities to reduce costs and secure better terms, aligning more closely with your plan’s financial goals and constraints. Enhanced Services: As technology advances and industry standards evolve, new…

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Understanding 401(k) Fees: How They Work and Why They Matter

Introduction: The Department of Labor offers flexibility in determining and paying plan fees, placing a significant fiduciary responsibility on Retirement Plan Committees to evaluate and document all administrative expenses. As fees can greatly influence retirement outcomes, understanding the structure of these costs is crucial for ensuring transparency and assessing their reasonableness. The Impact of Recordkeeping Fees: Recordkeeping fees and other costs play a pivotal role in managing a 401(k) plan. These expenses impact the overall effectiveness of the plan and…

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Fiduciary Corner / Inflation Ripples Continue

As another day (week, month, year) of Fed Watching begins, we thought it would be useful to remind readers that CPI is not a mystical beast but rather a man-made system for measuring price changes across a basket of goods. These baskets are well known and their price indices are published each month. The CPI aggregate index tends to mask what is actually happening in the individual components. Journalists can’t see past the mask and their reports are misleading. They…

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Fiduciary Corner / Pivotal Progress

This past week, Fidelity® wrote about the likelihood of Fed rate cuts in 2024, despite higherthan expected inflation reports in January and February. We made a similar case to clients inlast quarter’s market update and felt the idea was worth repeating. The Federal Reserve closely monitors a wide range of economic conditions whendetermining its monetary policy. While inflation, labor conditions, and wage growth receivesignificant attention, there’s an often overlooked factor: real interest rates (or real yields). FedChair Jerome Powell has…

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2024 Pension Plan Limits

On November 1, 2023, the IRS announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2024. The Internal Revenue Code requires that the Secretary of the Treasury adjust the limits annually. Some highlights are:      The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan will increase to $23,000.     The catch-up contribution limit for those aged 50 and over…

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Navigating Conflicts of Interest in Investment Advisory Services

Introduction In the realm of investment advisory services, the presence of conflicts of interest can pose significant challenges. One such scenario arises when an investment advisor offers an Individual Retirement Account (IRA) to a participant within a retirement plan they also advise for the plan sponsor. This white paper delves into the complexities of this situation and sheds light on the pivotal issues at play. The Conflict of Interest At the core of this dilemma is a conflict of interest…

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Are you benchmarking your recordkeeping fees?

Are you benchmarking your recordkeeping fees? If not, you could be missing out on an important opportunity to improve your plan and better serve your participants. Benchmarking your recordkeeping fees involves comparing your plan’s fees to those of similar plans in your industry, with similar plan sizes and features. This allows you to determine whether your fees are reasonable and competitive, and identify potential areas for improvement. By benchmarking your recordkeeping fees, you can: – Ensure that you are paying…

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2023 Pension Plan Limits

On October 21, 2022, the IRS announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2023. The Internal Revenue Code requires that the Secretary of the Treasury adjust the limits annually. Some highlights are:      The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan will increase to $22,500.     The catch-up contribution limit for those aged 50 and over…

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Locations

North Carolina Office:
51 Kilmayne Drive, Suite 304
Cary, North Carolina 27511
Phone: 800-479-9869

Pennsylvania Office:
McMurray Pennsylvania
Phone: 412-417-6645

In the News

Comperio Retirement Consulting named a 2020 Firm to Watch by investor.com

 

 

National Association of Plan Advisors (NAPA) has named Comperio Retirement Consulting one of the Top DC Advisor Teams in 2019, 2020, 2021, 2022, 2023 and 2024

 

Comperio Retirement Consulting has been named one of the largest 100 Investment Consultants in the United States according to Pension & Investments (P&I) for the past 7 years