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October 07, 2013 at 11:18 AM
Fueled by recent litigation and new rules aimed at making fees more transparent, define contribution plan fees dipped to a record low this year, according to a 2013 survey from NEPC LLC.
The report shows the annual median total plan costs for plan sponsors was 0.53 percent or 53 cents for every $100 in fund assets, compared to 0.55 percent in 2012.
The report adds that the annual weighted average expense ratio was 0.52 percent or 52 cents for every $100 in find assets. This is unchanged from the 2012 survey, the report notes. The annual median recordkeeping fee was $80 for each plan participant, compared to $92 in 2012.
During the same period, the Standard & Poor’s 500 Index gained 3 percent.
“This is a continuation of a trend that began last year, where assets have grown, yet fees have fallen on the heels of legislative changes and fear of potential litigation,” the report states. “The increased attention to these fees by plan sponsors, their advisors and record-keepers themselves has also helped fuel this downward trend.”
