NAPA Net - Polling Places 09017 |
What's Happening with Recordkeeping Fees?
For years, recordkeeping services – complex and difficult as they can be to provide accurately and consistently (not to mention profitably) – have been characterized (some might say disparaged) as a “commodity”, while fee compression (and the aforementioned complexities) continue to fuel industry consolidation.
And then, last week, according to the 12th Annual NEPC Defined Contribution Plan and Fee Survey http://www.napa-net.org/news/managing-a-practice/industry-trends-and-research/large-plan-recordkeeping-fees-snap-losing-streak/ , the asset-weighted average expense ratio for DC plans was found to hold steady at 0.41%, consistent with the ratio reported in NEPC’s 2016 survey (i.e., 0.42%), though both the median fee and average expense ratio have dropped substantially since NEPC first conducted this study in 2006, when per participant fees were $118 and the expense ratio was 0.57%.
And then, last week, according to the 12th Annual NEPC Defined Contribution Plan and Fee Survey http://www.napa-net.org/news/managing-a-practice/industry-trends-and-research/large-plan-recordkeeping-fees-snap-losing-streak/ , the asset-weighted average expense ratio for DC plans was found to hold steady at 0.41%, consistent with the ratio reported in NEPC’s 2016 survey (i.e., 0.42%), though both the median fee and average expense ratio have dropped substantially since NEPC first conducted this study in 2006, when per participant fees were $118 and the expense ratio was 0.57%.