This week I asked readers to characterize their plan’s fee/service combination; is it (a) fair, (b) a bargain, (c) unfair, (d) unknown, (e) a crime, or (f) other?
The good news – no one responded that their current structures were “a crime”, nor did anyone confess that the value of the fee/service combination was “unknown (although our annual Defined Contribution Survey suggests that as many as one-in-ten are in that category). Still, roughly 5% did characterize the structure as “unfair”.
On the other hand, nearly 14% were willing to call them a “bargain” – and several of the 3% in the “other” category said they were a bargain from the participant standpoint, since the plan sponsor picked up the tab for the fees.
Consider, however, that more than three-quarters ( 78% ) of this week’s respondents said that the fees paid for the services rendered were – fair.
Included among them was this week’s Editor’s Choice , who said their fee/service combination was ” Fair” – – – but we don’t do a good enough job publicizing that fact for our employees.”
Thanks to everyone who participated in our survey!