PlanPremier®

We offer investment flexibility and reliable ongoing service — at a competitive price

Capital Group, home of American Funds, offers PlanPremier-TPA®, which is designed for larger 401(k) plans and provides access to a wide range of investments from many well-known investment managers.

PlanPremier-TPA

A third-party administrator (TPA) assists the plan sponsor with plan document design, compliance testing and Form 5500 preparation.

Save your clients money

Our fixed-dollar approach to plan pricing is designed to be low-cost and transparent and to provide better overall value. Our investment and recordkeeping pricing can help you win and retain plans on the basis of our low all-in plan cost.

We also offer a variety of compensation options for TPAs and fee-based and commission-based financial professionals. Recapture accounts for TPA and financial professional compensation are available for share classes R-2, R-2E, R-3 and R-4.

A closer look at PlanPremier-TPA pricing

With a fixed-dollar approach to plan pricing, plan assets — depending on the share class — generate a plan credit that can offset plan expenses. Over time, net plan expenses, as a percentage of assets, will decrease as assets grow.

Step 1: Determine the annual recordkeeping fees based on the number of plan participants.

Step 2: Choose a share class depending on (1) how the plan sponsor wishes to pay for the recordkeeping fees (with or without expense ratio revenue generated by plan credits) and (2) what level of compensation is necessary to meet the plan’s service requirements.

This chart displays how record-keeping fees are determined. The first column shows the number of participants with account balances. The second and third columns display the base fee, dependent on whether it’s a PlanPremier T P A as shown in the second column, or PlanPremier Bundled as shown in the third column. The fourth column lists the cost per participant. So, the base fee would be based on the total number of participants, plus another fee per participant. In this chart, the figures are as follows: For 1 to 25 participants with account balances, a base fee of $2,200 for the PlanPremier T P A or $5,400 for the PlanPremier Bundle plus $100 per participant would provide you with the total record-keeping fee. For 26 to 300 participants with account balances, a base fee of $2,200 for the PlanPremier T P A or $5,400 for the PlanPremier Bundle plus $60 per participant would provide you with the total record-keeping fee. For 301 to 500 participants with account balances, a base fee of $3,700 for the PlanPremier T P A or $6,900 for the PlanPremier Bundle plus $55 per participant would provide you with the total record-keeping fee. For 501 to 1000 participants with account balances, a base fee of $6,200 for the PlanPremier T P A or $9,650 for the PlanPremier Bundle plus $50 per participant would provide you with the total record-keeping fee. For 1,001 or more participants with account balances, a base fee of $8,200 for the PlanPremier T P A or $11,650 for the PlanPremier Bundle plus $48 per participant would provide you with the total record-keeping fee.
  Plan credit and compensation are included in the expense ratio
  Approximate plan credit
(varies by fund)

TPA compensation
Share class Average expense ratio* PlanPremier-TPA Financial professional compensation PlanPremier-TPA
R-2 1.45% 0.40% 0.65% 0.05%
R-2E 1.15 0.25 0.50 0.05
R-3 1.01 0.25 0.35 0.05
R-4 0.70 0.05 0.25 0.05
R-5E 0.43 0.15 0.00 0.00
R-5 0.37 0.05 0.00 0.00
R-6 0.33 0.00 0.00 0.00
This example shows how plan credits can offset recordkeeping expenses if you have a PlanPremier-TPA solution with Class R-3 shares, $2.5 million plan assets, $150,000 estimated annual contributions and 50 participants with account balances. The gross annual recordkeeping fees would be $5,200. The Plan credit or expense offset, which is annual credit rate times plan assets, would be $6,625. The Plan credit or expense offset would be subtracted from the gross annual recordkeeping fee. In this example, those figures would be $5,200 minus $6,625, and would show that the net annual recordkeeping fee would be a credit of $1,425.

*Average expense ratios shown are provided only as examples. The actual average expense ratio depends on the investments selected for the plan and participant allocations. Expense ratios reflect applicable fee waivers and expense reimbursements, without which expenses would be higher. The average expense ratio shown for each PlanPremier-TPA share class is for all funded investments and is weighted, based on average daily net assets in the program as of 12/31/2022. Accordingly, more weight is given to funds with more assets. Actual expense ratios, as reported in each fund's prospectus available at the time of publication, range from 0.89% to 3.46% for R-2; 0.32% to 2.08% for R-2E; 0.78% to 2.45% for R-3; 0.34% to 2.69% for R-4; 0.02% to 1.34% for R-5E; 0.02% to 1.60% for R-5; and 0.02% to 2.46% for R-6.

Build a stronger plan menu

With PlanPremier-TPA your clients can develop a diversified menu intended to improve retirement outcomes.

  • Your clients can start with the target date provider recommended most often by financial professionals.‡
  • They can distinguish themselves by choosing the American Funds Target Date Retirement Series®, which leverages a distinct approach designed to promote better retirement investment outcomes.
  • Better still: Even though the American Funds Target Date Retirement Series is available on many other providers’ platforms, it may be less expensive in a Capital Group retirement plan solution.
  • Then they can build a diversified menu using an expansive choice of investments.
  • Sponsors can then choose from a wide range of more than 40 American Funds.
  • Additionally, sponsors can complete the plan’s core fund lineup with funds from many well-respected investment managers.§

Learn more about our target date series and individual mutual funds:

American Funds Target Date Retirement Series

American Funds mutual funds

The American Funds Target Date Retirement Series and other highly regarded American Funds are also available on many other DC platforms.

¶ Not all of the American Funds are available in our retirement plan solutions.

Related tools

Price-It Tool
Get estimated costs for retirement plans.

Target Date ProView
Evaluate target date retirement funds.

Other resources

Cash Balance Plan (PDF)

By offering a cash balance plan alongside their current 401(k) plan, your clients might be able to increase plan contribution limits and reduce corporate taxes.

Compete with confidence

The true test of any long-term retirement plan solution is the level of service and support the provider offers to you as the TPA as well as to your plan sponsor clients and their plan’s participants.

The PlanPremier online experience makes it easier for plan sponsors to manage their plans and for participants to prepare for their future.

Retirement plan solutions that can benefit you and your clients

What’s next

Get a preliminary fee quote

Use Price-It Tool to get an estimate of plan costs.

‡ Source: Escalent, Cogent Syndicated, Retirement Plan Advisor TrendsTM, September 2022. Methodology: 538 respondents participated in a web survey conducted August 19-30, 2022. American Funds was selected most often by advisors (excluding registered investment advisors) in response to the question ’’Which investment manager do you recommend most often for target date funds?’’ Capital Group has provided input on some of the questions to be included in Cogent surveys over time.
** This feature’s availability is dependent on information provided in the payroll file.
†† A wide range of payroll providers are approved to work with Capital Group.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
Although the target date portfolios are managed for investors on a projected retirement date time frame, the allocation strategy does not guarantee that investors' retirement goals will be met. Investment professionals manage the portfolio, moving it from a more growth-oriented strategy to a more income-oriented focus as the target date gets closer. The target date is the year that corresponds roughly to the year in which an investor is assumed to retire and begin taking withdrawals. Investment professionals continue to manage each portfolio for approximately 30 years after it reaches its target date.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
Use of this website is intended for U.S. residents only.
Capital Client Group, Inc.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.