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Fees Still a Mystery to Plan Sponsors |
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Despite growing awareness of the costs associated with their plans, retirement plan sponsors overall still do not understand the fees they are paying to plan providers.
 Nearly three-fourths (74%) of the plan sponsors surveyed by Spectrem Group pay an annual per participant fee and/or a flat dollar-based fee in addition to investment management fees.
Some 10% of plan sponsors pay an annuity fee; 9% pay a third-party provider for investment education or advice services; 9% pay sub-transfer agency fees; and 7% pay 12(b)-1 fees. Slightly less than one-fourth (24%) of plan sponsors pay no fees other than the investment management fees charged against plan assets.
As plan sponsors increase their demands for transparency in the fees they pay, those providers that adopt clearer fee disclosure may gain an upper hand in attracting plan sponsors to their products.
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High Net Worth Advisor Insights Newsletter April 2008
