Fee Benchmarking

Fee Benchmarking (Project)

Ensuring that all fees are fair and reasonable is a critical fiduciary duty for Plan Sponsors. Understanding the compensation structures of each service provider, such as recordkeepers and advisors, is essential.

Hiring an independent firm like Comperio to manage the Fee Benchmarking Study Project provides Plan Sponsors with clear, actionable insights, addressing questions such as:

• Are our plan’s fees competitive with similar-sized plans (assets/participants)?
• How is our recordkeeping fee charged (per participant or basis point)?
• Is the recordkeeping fee method the most efficient for our plan?
• How is our advisor/consultant compensated (commission, percent of assets, or flat dollar fee)?
• Does the plan have revenue sharing? If yes, how is the revenue sharing used (offsetting recordkeeping fees, advisor fees, returning to plan participants, or allocated to a Plan Expense Account)?

Our benchmarking process involves a thorough analysis of the plan’s current investment, recordkeeping, and advisor/consultant fees. We compare these against a peer universe, allowing sponsors to see where their fees rank. Understanding how revenue sharing (indirect compensation) is used within the plan is critical, especially given the increasing litigation over fees.

Explore our detailed case study to see how our fee benchmarking process can provide valuable insights and ensure compliance.