Plan Cost Benchmarking
You can now benchmark your total plan costs against plans with similar assets and average account balance.
Prior to this release, the Annual Cost Summary report section (which can be added to a Monitoring Report template) simply disclosed the costs of the plan and did not offer any context or insight as to whether that cost was reasonable or not. These new charts will serve to do just that through providing additional data talking points for you to discuss with the plan especially if you find yourself on the far left or far right side of the benchmark group.
To calculate the benchmark comparison, Fi360 separately evaluates the three main cost components of a plan (recordkeeping/administration, advisory, and the investment option management fees) and then adds these together to arrive at a total plan level benchmark. Please reference the Benchmark Methodology for additional details on how the peer groups are created and where the data is derived.
In order to get the most out of the Total Plan Cost Benchmark report, please ensure you have the following items completed;
1. The plan lineup is entered with $ values for the monitoring report period you are running.
a. If applicable, Revenue sharing rates (12b1, SubTA, Shareholder Service Fees and/or wrap fees) should be entered within that tab.
2. The current number of plan participants is entered in the client account. Click the 3 vertical dots and then select "Edit Account" within that tab.
3. To ensure the advisor and recordkeeper costs for the plan are complete, ensure a cost report is loaded with the appropriate cost profiles.
a. For more info on how to create a cost profile/cost report, please reference: https://fi360.zendesk.com/hc/en-us/sections/207360827-Costs-Services
It is possible to include the Annual Cost Summary with or without the plan benchmark data. You can control this within the report template once you add the section.
For information on how to utilize the Report Template Editor feature, please reference: https://fi360.zendesk.com/hc/en-us/articles/360038780614-Report-Template-Editor
When reviewing the Annual Cost Summary (with plan benchmark enabled), your report will look something like this if you’ve completed the steps above: