The tool, available for free to registered participants at http://www.BrightScope.com, asks participants for their age and salary. It then asks participants to select a plan they contribute to and enter how much they contribute. If the plan is in the BrightScope database, it will list funds for participants to enter amounts next to.
The database then collects the data and presents the percentage fee the
participant pays—as well as a comparison of those fees to an IRA. Participants
can also view a more detailed report telling them the dollar and percentage cost
of each fund in their lineup.
The service provides “unprecedented
transparency,” said Mike Alfred, CEO and founder of BrightScope, a provider of
independent retirement plan ratings and investment research, in a news release.
“With a comprehensive database of more than 30,000 401(k) plans, we’re uniquely
positioned to deliver a vital resource to millions of Americans unaware of how
much of their retirement savings is going to fees each year.”