Assessing Retirement Plan Value - 9

1.68%
0.67%
1.27%
27%
2%
7%
%
0.36%
1.68%
1.61%
7%
1.23%
0.21%
1.17%
27%
1.2 %1.61%
1.68%
0.58%
0.87%
1.2 %27%
NUMBER
>MORE THAN A
2.27%0.83% 0.78%
1.27%
0.21%
1.68%
1.27%
0.21%
0.47%
1.68%
1.68% 0.68%
0.87%
1.68%
1.27%
0.58%
1.68%
0.27%
2.27%
07
0.230%8%.58%
0.58%
2.27%
0.27%
0.78%
0.78%
1.68%
0.58%
0.72%
0.78%
0.58%
1.27%
1.68%
1.27%
1.68%
1.27%
1.68%
1.68% 0.83%
1.68%
2.27%
2.13%
1.68%
0.32%
2.27%
2.13%
2.13%
Utilizing an ERISA Budget
NAVIGATING COST CONSIDERATIONS
WHAT DOES IT MEAN?
UNDERSTANDING
RETIREMENT PLAN COSTS
ERISA Budgets have become more common in the employee
benefits industry over the last few years. An ERISA Budget is
a legal agreement between the plan sponsor and the service
provider to make available an agreed amount accrued over a
period of time which can be used to pay for legitimate
retirement plan expenses -- such as fees for services provided
by a financial professional or third party administrator, plan
audits and legal fees.
REVIEWING PLAN SERVICES
NAVIGATING
COST CONSIDERATIONS
EVALUATING
REASONABLENESS
ADDRESSING
PARTICIPANT QUESTIONS
GLOSSARY OF TERMS
First, you as the plan sponsor will identify the expenses you
intend to pay via this agreement so you can estimate the
amount needed. This amount is then built into the pricing
for your retirement plan. A portion of the revenue sharing
received from investment options is made available through
the ERISA Budget to pay the legitimate plan expenses.
As a fiduciary, it is important for the plan sponsor to:
• Consider the reasonableness of all compensation paid to
the service provider, including the revenue sharing made
available through an ERISA Budget, and
• Not establish an ERISA Budget for more than the amount
expected to be needed to pay legitimate plan expenses.
If you believe the ERISA Budget is accruing more than
what legitimate plan expenses for the calendar year are
expected to be, adjustments can be made. Most often,
changes are made to make suitable investment options
available with lower expected revenue sharing and overall
expense to plan participants.
0.27%
RETIREMENT PLAN VALUE
MAIN
TOOLS & RESOURCES
> BACK TO HOME
TOTAL COST
COLLECTION
METHOD
PASSIVE VS.ACTIVE
FIXED RATE FEES
ERISA BUDGET
MORE THAN A NUMBER • NAVIGATING COST CONSIDERATIONS | 9
Assessing Retirement Plan Value

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