Fee Analysis/Plan Benchmarking
Many plan sponsors struggle in finding an independent consulting firm to answer straightforward questions:
- Are the plan fees competitive?
- Are there any issues we should be concerned about with our plan?
By hiring Comperio on a one-time project basis, the plan sponsor is afforded access to an independent expert who will answer these questions and provide them unbiased advice.
The benchmarking process takes a deep dive into the plan’s current investment, recordkeeping and adviser/consultant fees. A comparison of services and fees is conducted versus a peer universe allowing sponsors to see where their fees rank. In addition, the understanding of how revenue sharing (indirect compensation) is being used within the plan is critical. The propensity of litigation over fees brings a heightened awareness and need to have this type of plan benchmarking conducted.
Target Date Fund Analysis
Today, target date funds are the most popular option for the plan’s default option QDIA (Qualified Default Investment Alternative). Plan Sponsors need to ask themselves a key question:
What process and documentation do we have for the selection of our target date funds-default option?
By hiring Comperio on a one-time project basis, clients receive a deep dive that assesses the plan’s current target date offering. There is a formalized process which integrates the plan’s needs with assessing the current and alternative target date fund universe. We provide an investment analysis of the target date funds, as well as a written report that affords the plan sponsor a detailed documented fiduciary process for target date funds evaluation and selection.
We will conduct a 3(21) or 3(38), also called an OCIO (Outsourced Chief Investment Officer) search for clients. Clients will benefit from Comperio vetting out industry consultants and working to find the best fit consulting firm for their needs. Comperio charges a one-time fee for the search project and has conducted multiple advisor searches focusing on the large and mega market plans ($500M or above).
We work with clients on a one-time project basis for vendor searches for both defined contribution and defined benefit plans. We employ a five-step due diligence process as an independent firm in evaluating the best fit provider for our clients. We meet with the client to understand their specific needs before providing a recommended and vetted list of vendors to consider. We also provide an analytical analysis of the vendors. Our process includes scheduling finals meetings composing a written report documenting the entire fiduciary process.
Also, Comperio conducts defined benefit searches which can consists of a bundle defined-benefit provider or a separate actuary or trustee search. Comperio charges a one-time consulting fee for the research project and does not receive any compensation from any service provider.