Social(k) Structure & Pricing Grid
Ten years ago we partnered with ExpertPlan to deliver a unique 401(k) platform. We found a low-cost Record Keeper with thousands of traditional mutual funds using web-based administration to reduce costs for plan sponsors. To that Social(k) added over 200 Environmental, Social, and Governance, ESG, screened funds. After 10 years we have $150 million in assets, 300 plans, and over 7500 participants. We provide a welcome opportunity for employers to offer employees investment options aligned with their financial AND ethical beliefs.
In 2015 Social(k) moved away from a single record keeper and custodian. One offers ESG Portfolios and Fossil Free Model Allocations, monitor, and maintain. With this new custodian and our relationship with asset managers who manage ESG screened portfolios, we bring additional ESG portfolios to Social(k) clients.
Social(k) now works with more than one Recordkeeper and TPA.
Recordkeeping and plan administration is not a one size fits all solution. Plans under 10 people are much different than plans with over 50. Plans with over 100 have extra annual audits costing thousands. Employers now have the option to choose the Social(k) platform that works best. The grid below shows pricing by service and provider.
The Easy Plan was designed for small start-up plans. Lower fund expenses, higher contribution limits and the Roth option make this an easy choice over a SIMPLE. Quarterly fees are $400 plus $12.50 pp. We provide ESG, Target Date and Indexes for the line-up, monitored by a 3(38) fiduciary, average expense ratio of the lineup is 26bps.
The Big Green Retirement Plan is an industry first.
A multifaceted aggregate program (MAP) with a strict focus on ESG/SRI/green investing. The Big Green Retirement Plan or BGR, is uniquely bringing to market a full-fiduciary outsourced retirement plan for companies who align themselves with the importance of socially responsible investing or ESG.
It is designed to provide 3(16), 402a, RK, TPA, Trustee, custody, 3(38), to organizations looking to add ESG screens to their plan in a highly cost-effective turn-key bundled solution. Services can also be a-la-carte if desired, which further highlights the flexibility of the MAP. Until now green companies have had limited options for outsourcing their fiduciary liabilities and reducing their internal admin workload, while still being able to support their ESG/SRI beliefs. BGR Plan allows a company to stay true to its mission while getting a safer, simpler, cost-effective 401k/403b. Utilizing the full fiduciary coverage of a 3(16) and appointing a Trustee we take the plan off your hands, completely, for far less than you expect. Ask for a quote today.
IRAs and HSAs
SIMPLE IRAs, SEPs, and a variety of IRAs are available with an ESG advisor. These individual accounts do not need a recordkeeper or TPA. We also offer the first Health Savings Account with 60+ ESG and Index options with lower institutional pricing and no minimum investment.
Pricing is generally customized based on plan assets and the number of participants. For example, as assets increase the overall percentage of fees tends to decrease. Conversely, if the number of participants in a plan was high but assets low, the administration costs would be higher.
For a proposal from any of the record, keepers send an email to firstname.lastname@example.org with details. Record keeper name. Plan Sponsor name. A number of participants or employees. List of funds with assets, if possible, to show fund revenue against plan costs. Finally any advisor fees.
|Sample Social(k) cost structures
||Turning Point Associates
||Retirement Plan Consultants
||$1000 + $40 pp
[Turning Point fee is $1500 if you go direct]
|0-$250,000 45bps+$39 pp
$750K -$1mil 35bps+$39 pp
$1mil -$2mil 30bps+$29 pp
$2mil – $5mil 25bps+$29 pp
$5mil – $10mil 20bps+$29 pp
|$0-$500k 65bps ($1250 minimum)$500-$1mil 50bps$1 – $3mil 42bps$3 -$5mil 34bps$5 -$10mil 26bps
custom over $10mil
||$950 [RPC fee is $1250 if you go direct.]
||$1000 + $35 pp
|Plan Document & PPA Restatement Fee
||One time $750 total for both.
||One Time $500 Waived for plans with 250K+ in plan assets
||$1500. 50% discount available. Applied to early termination. Gone after 4 yrs. If no PPA needed and doc in good order, no set-up fee.
|Custodian Trust Bank Pricing
||included in fees
||$250 +$10pp [Offset with $300 discount]
|QBOX Fiduciary Services
|Annual Fee $500: Plan Assets -Startup to $500,000
Annual Fee $1000: Plan Assets -$500,000 to $1 Million
Annual Fee $2000: Plan Assets -$1 Million to $2 Million
Annual Fee $3000: Plan Assets -Above $2 million custom pricing for plans over $10 Million
|HIP Impact Scores for plan holdings,10bps
pp is per participant with balance
bps stands for Basis Points. 100bps = 1%
All fees quoted annually
Each provider has others fees as needed, disclosed on a proposal. Examples of other fees; loans, distributions, plan amendments.
A proposed fund line-up will show fund revenue which is applied to plan costs.
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