BrightScope has released a list of the highest ranked law-firm 401(k) plans with assets of more than $100 million. The ranking is based on the proprietary BrightScope Rating, which analyzes “more than 200 individual data points,” according to an announcement Tuesday. Plan sponsors uses BrightScope Ratings and data to optimize retirement plans and “choose the providers that provide the most value for the fees they charge,” according to the firm’s web site.
Plan participants can look at BrightScope’s web site at no cost to see how their plan compares with others, see the top plans in a peer group and get a Personal 401(k) Fee Report. The data shows how their plan compares with peers and indicates, with red flags, where plans cost investors more in “lost retirement savings,” and “additional years of work,” required if a plan is less efficiently managed. Advisors, plan sponsors and plans can subscribe to get more details and information about how to optimize plans.
“The average 401(k) participant in the legal industry has an account balance that is significantly higher than the median, which means that they have more to lose when a plan is not efficiently managed,” said Mike Alfred (left), CEO and coâ€founder of BrightScope. “BrightScope makes it simple to identify weaknesses within plans so participants and sponsors can initiate small adjustments to plan structure that have positive long-term effects on the plan’s value.”