We offer ERISA 3(38) fiduciary investment management services on a flat-fee basis, while most retirement plans are charged a percentage of assets under management. The flat-fee structure should most likely benefit most larger plans compared to the percentage of assets structure. Our flat annual fee is a base fee of $2,500 plus $200 per participant*.
A study of 525 retirement plans recently found that the average annual fee to be 0.52% of assets under management for plans with between $1 million and $5 million in assets. For a 20-participant plan with $2 million in assets, annual fee would be $10,400.
By contrast, that same 20-participant plan with $2 million in assets would cost $6,500 under our flat fee structure. Our fee stays the same even as the plan assets grow. Also, our fee can be paid from assets other than retirement plan assets, which is generally treated as a tax-deductible expense for the plan sponsor.