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Benchmarking Your Company's Retirement Plan

Benchmarking Your Company's Retirement Plan

September 30, 2021


In addition to serving our individual clients – we have built a practice that also advises on company retirement plans. If you own a business, or know someone that does, we believe each plan should be benchmarked every couple of years. This will help the management team understand where their plan can improve from on technology, investment lineups, plan provisions, efficiency and fees. Below, we discuss these areas where we have noticed some plans fall short.

  • Fees – Many plan sponsors and participants are spending above market rates for fees and expenses. As an owner, understanding the industry standards for provider, advisor and investment fees are a part of the fiduciary responsibility owed to participants.
  • Investment Lineup – this is really where we (the advisor) come in. We help develop a diverse fund lineup comprised of investment options that will help participants reach their retirement goals. Performance, functionality, fees and diversity of investments should be considered. We’re happy to review your plans fund options during our benchmarking process. 
  • Technology – with the world moving at the speed of light thanks to technology – so should your retirement plan. Many providers now offer in –depth online tools and resources that allow plan participants to not only view their balance, but alter contribution amounts, change investments, designate a beneficiary, and map out certain retirement scenarios. If your plan doesn’t have an incredible online platform for participants you should consider more updated options for your provider. 
  • Efficiency – many providers now offer a bundled approach that includes TPA services, recordkeeping and custody of assets. They also offer help in preparing documents to complete the Tax Form 5500 as well as direct payroll links, which could help the finance and HR department during audits and throughout the year. 
  • Plan Provisions – there can be updates to the specifications and requirements for retirement plans. For example, in 2001, the Roth 401(k) came into existence. A thorough benchmarking process will determine provisions that should be added or removed, some of which can be very impactful to participants.

Please let us know if you’d like to complete a benchmark of your company retirement plan,


Matt and Andrew