For EMPLOYERS - Fee & Design Benchmarking
Better Outcomes Start with Knowing What You Pay and Why
Transparent benchmarking ensures your plan’s costs are fair, your
design competitive, and your fiduciary process audit-ready.
The Challenge
Many plan sponsors don’t realize how much they’re paying, or what those fees actually cover.
Hidden recordkeeping charges, revenue-sharing, and bundled provider costs can quietly drain participant balances and increase fiduciary risk.
Even well-intentioned employers struggle to answer three key questions:
1. Are our fees reasonable for the services provided?
2. Is our plan design competitive with similar companies?
3. Do our vendors still fit our size and needs as we’ve grown?
Capcova + sollinda
Our Solution: Independent Fee & Design Benchmarking
We combine proprietary industry data with independent research to evaluate the total cost and value of your plan, helping you stay compliant and improve participant outcomes.
408(b)(2) Disclosure Review to clarify all direct and indirect fees
Service Provider Benchmarking (RFP/RFI) using peer comparisons across recordkeepers and TPAs
Share-class and revenue-sharing analysis to identify hidden expenses
Design Benchmarking against industry norms on match formulas, auto-features, and eligibility
Vendor due diligence to evaluate performance, responsiveness, and participant experience
Fee allocation review (employer vs. participant) for cost transparency and ERISA prudence
Capcova + sollinda
Who We Serve
Small Businesses
Bring clarity to your SIMPLE, SEP, or 401(k) fees and understand when it makes sense to upgrade services or switch providers.
Franchise & Owner Organizations
Standardize plan costs and features across multiple entities to leverage scale and reduce duplicate fees.
Private Practice Groups (Dentists, Orthodontists, Veterinarians)
Ensure profit-sharing and Safe Harbor designs remain cost-effective as the practice grows and staff changes.
Corporate Partners (100+ Employees)
Validate vendor pricing, document fiduciary reviews, and capture hard-dollar savings without sacrificing participant support.
Results That Matter
Average fee reductions of 10–40 bps without service loss
Stronger vendor contracts and negotiated pricing terms
Documented due-diligence trail for fiduciary audit files
Higher employee confidence through transparent communication
FAQs
Frequently Asked Questions
What is 401(k) fee benchmarking?
It’s the process of comparing total plan costs and services to similar plans to evaluate reasonableness. ERISA doesn’t require the lowest fees—only fees that are reasonable for services provided.
How often should plan fees be benchmarked?
Typically every 2–3 years, and more often if there are major changes in plan size, services, or vendors. Benchmarking should be documented.
What fees are included in a retirement plan?
Investment expenses, recordkeeping, advisory fees, and administrative costs. Sponsors should evaluate all fees together—not in isolation.
Can plan fees be negotiated?
Yes. As assets and participation grow, plans can often secure better pricing. Vendor negotiation is a standard fiduciary practice when supported by benchmarking data.
What happens if plan fees are unreasonable?
Sponsors may face fiduciary exposure and participant dissatisfaction. Benchmarking plus corrective action (renegotiation or vendor change) reduces risk.
Are 401(k) fees higher for small businesses in Virginia?
Fees are more influenced by plan size, complexity, and services than location. That said, improving plan design and vendor structure can significantly reduce per-participant costs.
How can a local advisor help with fee benchmarking?
A local advisor can coordinate provider accountability, gather clean fee disclosures, and document committee decisions. Execution and documentation matter as much as the benchmarking itself.
Capital Investment Company of VA
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