A third-party administrator (TPA) assists the plan sponsor with plan document design, compliance testing and Form 5500 preparation.
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.
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.
*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.
> Plan assets: $2.5 million
> Estimated annual contributions: $150,000
> Eligible employees: 50
> Participants with account balances: 50
PlanPremier plan credits can offset plan expenses
† Credit rates may vary depending on a plan’s investment options. Reducing the compensation rate for share classes R-2 through R-4 will increase the plan credit for this illustration. In practice, the share class compensation will be directed to an unallocated plan account where it can be used to pay the plan’s financial professional, reasonable plan administration expenses, or allocated to participant accounts.
With PlanPremier-TPA your clients can develop a diversified menu intended to improve retirement outcomes.
Learn more about our target date series and individual mutual funds:
American Funds Target Date Retirement Series
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.
§ As of 12/31/22. Available investment options will vary by retirement plan solution and share class.
# Schwab Asset ManagementTM is the dba name for Charles Schwab Investment Management, Inc. (CSIM)
Price-It Tool
Get estimated costs for retirement plans.
Target Date ProView
Evaluate target date retirement funds.
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.
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.
Get personalized sales support to build their retirement plan business
Rely on ongoing service to help retain satisfied clients
Help improve participant outcomes with enrollment and education support
‡ 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.
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.