NAPA Net - Polling Places 031320

What's Driving Recordkeeping Fee Structures?

Recordkeeping is a tough, low margin business – and one that the plaintiffs’ bar has singled out for scrutiny, going so far as to state not only how it should be compensated, but what rate(s) should be applied.

Once upon a time, per participant charges were a recordkeeping norm. Then revenue-sharing led many, perhaps most, to adopt asset-based fees that covered recordkeeping services. The latter has, of course, been repeatedly criticized in litigation – this week, we’d like to know what you’re seeing – and saying – about recordkeeping fees.

Question Title

* 1. Do the recordkeepers you primarily work with (or choose to work with) charge for their services on a per-participant, or an asset-basis?

Per-participant

Asset-based.

Some per-participant, others asset-based.

Comments on that composition?

Question Title

* 2. When you're recommending a recordkeeper, does their compensation structure matter?

Yes, a great deal.

Yes, it's a big factor.

Yes, it's a factor.

It's how much, not how, it's calculated.

Not really.

Don't recommend recordkeepers.

Comments?

Question Title

* 3. How significant a factor is the fee structure of their recordkeeper to your plan sponsor clients/prospects

It's a big deal - they push for per-participant.

It's a factor - they prefer per-participant.

It's a factor - they prefer asset-based.

It's how much, not how, it's calculated.

Not really.

Comments?

Question Title

* 4. Has that changed in the past two years?

Yes - a big shift in preference for per-participant.

Yes, but only a slight shift in preference for per-participant.

No - they've always preferred per-participant.

No - they've always preferred asset-based.

Not really - they don't really focus on how the fee is calculated.

Not really - they don't really focus on those fees.

Comments?

Question Title

* 5. When recommending a recordkeeper, does their compensation structure matter in your recommendation?

Yes, a great deal.

Yes, it's a big factor.

Yes, it's a factor.

It's how much, not how, it's calculated.

Comments?

Question Title

* 6. How much has your preferences about recordkeeping fees been influenced by litigation trends?

A great deal.

It's on my mind.

I'm aware, but it's not a big deal.

It's how much, not how, it's calculated.

Comments?

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* 7. Other comments about recordkeeping, recordkeeping fees, recordkeeping fee structures, the impact of litigation on recordkeeping fee structures, the influence you may have on recordkeeping fee structures, the recordkeeping business, consolidation in the recordkeeping business, or life in general?

Question Title

* 8. What is your role working with retirement plans?

Advisor

Provider

TPA

Plan sponsor

Recordkeeper

Other (please specify)

Question Title

* 9. What size plans do you PRIMARILY work with?

Under $10 million in assets

$10-$20 million

$20-$50 million

$50-100 million

$100 million - $250 million

$250 million - $500 million

Above $500 million

Other (please specify)

Question Title

* 10. Suggestions for future survey questions? Seriously - what would you like to know about/from your fellow NAPA-Net readers? Or what would you like to be asked?