Expense Analyzer

Understanding Expenses

The one constant in the retirement plan industry is change. The new fee disclosure requirements under DOL section 408(b)(2) legislation, when passed, would require 401(k) plan providers to disclose all fees so that workers saving for retirement can make more informed decisions about which plan is best for them. Currently, the varying level of fees is so complex that it is difficult for plan sponsors and fiduciaries to understand. In response to this NRP has created a tool to help.

The NRP Expense Analyzer

National Retirement Partners, in partnership with the Center for Fiduciary Management, is proud to introduce the new NRP Expense Analyzer. The NRP Expense Analyzer is created with fee transparency in mind. Integrated with the NRP Fiduciary Monitoring System, the Expense Analyzer produces a Fee Analysis Report, which includes the following.

• Fund Expense and Revenue Sharing Analysis - A list of all fees at the fund level, including expense ratios, wrap fees and revenue sharing. The totals are displayed in both dollar amounts and basis points.
• Summary Investment Expense/Revenue Sharing – A summary of assets based fees, revenue sharing and wrap fees.
• Fee Details - A list of all parties getting paid by the Plan and how much they are receiving for their services with an optional section for advisor commentary.
• Client Fee Summary – A balance calculation of revenue sharing to total plan fees.

The NRP Expense Analyzer also provides a one-page Fee Analysis Summary that is presentation ready. The summary is comprehensive and easy to read, so that you can sit down with your client and discuss the real costs of the plan.

How it Works

The NRP Expense Analyzer is fully integrated with the NRP Investment Monitoring System. If you are a current user, the process is simple. Just click on the new “fees” tab, input any additional fund data such as revenue sharing and wrap fees. The system will automatically import the fund list, assets and expense ratios and a report will be generated in seconds. If you are new to the NRP Investment Monitoring System the process is almost just as easy. First set up your client demographics and fund information, then proceed to the new “fees” tab as stated above. The NRP Expense Analyzer is a great way for you to demonstrate to your clients your concern that you are assuring that the fee structure is fair, competitive and most of all, transparent.

How to Get Started

Contact NRP Corporate Office Member Firm Service Support at 888-899-4015 for more information.

Key Features:

• Integrates with the NRP Investment Monitoring System
• One-time entry of additional fees
• Professional reporting available in seconds

Benefits to Advisors:

• Be at the forefront of legislation changes
• Provide fee disclosure to your client before someone else does

Benefits to Employers:

• Know how the plans current fees compare to the industry average
• Easy to read format
• Know who, and how much, you are paying