# Patent

## Title
System and method for evaluating defined contribution plans

## Abstract

A system and method for comparing retirement plans against a selected group of similar plans is disclosed. In one embodiment, a computer system for evaluating a retirement plan comprises a computer server having a database comprising a plurality of data defining a plurality of characteristics of each of a plurality of retirement plans, software configured for identifying a subset of the plurality of retirement plans having characteristics comparable to characteristics of a selected retirement plan, software configured for permitting the selection of at least one report from a plurality of report types, and software configured for automatically generating the selected at least one report, where the at least one report comprises an evaluation of the characteristics of the selected retirement plan against the characteristics of the subset of the plurality of retirement plans.

## Background
CROSS-REFERENCE TO RELATED APPLICATION
This application claims priority from U.S. Provisional Patent Application Ser. No. 61/218,313, filed Jun. 18, 2009, which is incorporated herein by reference in its entirety.


BACKGROUND
According to the U.S. Census Bureau, 24 million baby boomers will retire over the next ten years. Traditionally, Defined Benefit (DB) Plans (i.e., employer-provided pensions) were an employee's primary source for income during their retirement. In recent years, however, employers and the retirement industry as a whole have shifted away from DB Plans toward Defined Contribution (DC) Plans, such as 401(k) Plans, profit sharing Plans, money purchase Plans and the like.
Today, there are literally hundreds of thousands of different 401(k) Plans, each having any number of Plan designs, services, and fees associated with them. In addition, ERISA requires that Plan Sponsors ensure that Plan fees are “reasonable.” To do this, Plan Sponsors traditionally employ a laborious Request for Proposal (RFP) process that is not only expensive and time consuming but is also limiting in terms of the ability of a Plan Sponsor to compare one Plan to another. Consequently, Plan Sponsors using traditional methods may not be able to determine whether or not the fees that are charged to a DC Plan are reasonable and equitable in view of the services the Plan receives as compared to the fees and services associated with other Plans.
For example, a DC Plan, such as a 401(k) Plan, may pay fees to a number of entities that provide services to the Plan Sponsor, such as fees that pay for record keeping, fees that pay for advisors/consultants, fees that pay for investment managers, and fees paid to others for a variety of services. In addition, Plan fees may include different types of fees, such as investment fees, commissions, finders' fees, managed account fees. Exacerbating the difficulty of determining how much, to whom, and when fees are paid is the fact that many of the fees associated with a given Plan are completely hidden to the Plan Sponsor.
That said, fees may contribute only one aspect of determining the “value” of a given Plan to a Plan Sponsor. The Plan Sponsor may be willing to pay higher fees, for example, if the services that the Plan receives in return are better than the average for similarly constructed Plans. Likewise, the Plan Sponsor may be less willing to pay higher fees if the services that the Plan receives in return are less than average for similarly constructed Plans. Consequently, a method and system for comparing DC Plans and which takes into account not only the fees that are paid for various services that a Plan receives, but also the quantity and quality of services that the Plan receives would assist Plan Sponsors, Recordkeepers, Advisor/Consultants, and the like in evaluating a given Plan against other similarly structured Plans.
A challenge to making this comparison is determining what “other” Plans should be used for this comparison, as well as what features, aspects, and considerations of the “other” Plans that should be used in order to make an apples-to-apples comparison of a selected Plan's fees, design, support and services. Another challenge is determining how best to display and/or report the comparison in a meaningful manner to quickly identify a given Plan's quantitative and qualitative aspects relative to the “other” Plans.
Once a meaningful comparison is made, the various aspects and features of a given Plan may become transparent to the Plan Sponsor so as to make an informed decision as to the Plan's overall value, as well as to lead to clearer documentation of fiduciary objectives, better assistance for Plan Participants, lower potential levels of litigation, and objectively manage Plan fees and services.
SUMMARY OF THE INVENTION
A method of evaluating a retirement plan is disclosed comprising the steps of receiving a plurality of data corresponding to a plurality of retirement plans, storing the data in memory on at least one web-accessible computer, determining a subset of the plurality of retirement plans, comparing characteristics of the selected retirement plan to corresponding characteristics of the subset of the plurality of retirement plans, selecting at least one report for reporting the comparison of the selected retirement plan to the subset of the plurality of retirement plans, and automatically generating the selected at least one report.
In one embodiment, the step of determining the subset of the plurality of retirement plans comprises identifying the characteristics of the selected retirement plan that correspond to at least one factor, and identifying which of the plurality of retirement plans have characteristics that correspond to the at least one factor and which are identical to the identified characteristics of the selected retirement plan or which correspond to a predefined range bracketing the identified characteristics of the selected retirement plan. The at least one factor may comprise at least one of an amount of plan assets, a number of plan participants, a last year the plan was bid or reviewed, a type of company industry, a plan type, whether the plan includes an automatic participant enrollment feature, whether the plan includes an employer match feature, a percentage of plan assets held in index funds, and a percentage of plan assets held in managed accounts.
In an embodiment, the step of comparing characteristics of the selected retirement plan to corresponding characteristics of the subset of the plurality of retirement plans comprises comparing fees paid by the selected retirement plan against fees paid by the subset of the plurality of retirement plans. In another embodiment, the step of comparing characteristics of the selected retirement plan to corresponding characteristics of the subset of the plurality of retirement plans comprises comparing at least one investment option of the selected retirement plan against at least one investment option of the subset of the plurality of retirement plans. In a further embodiment, the step of comparing characteristics of the selected retirement plan to corresponding characteristics of the subset of the plurality of retirement plans comprises comparing the complexity of the selected retirement plan against the complexity of the subset of the plurality of retirement plans. In another embodiment, the step of comparing characteristics of the selected retirement plan to corresponding characteristics of the subset of the plurality of retirement plans comprises comparing at least one participant success measure of the selected retirement plan against the corresponding at least one success measure of the subset of the plurality of retirement plans.
In one embodiment, the at least one report is pre-configured or is user-customizable. The method may further comprise a web portal interface for receiving the plurality of data from a user, the web portal interface dynamically including and excluding data entry fields according to selections received by the user.
In an embodiment, the characteristics of the selected retirement plan include at least one fee. The method may further comprise the step of identifying the at least one fee associated with the selected retirement plan. In another embodiment, the characteristics of the selected retirement plan include at least one source for at least one fee. The method may further comprise the step of identifying the at least one source for the at least one fee associated with the selected retirement plan. The step of identifying the at least one source for the at least one fee may comprise identifying imbedded fees associated with the selected retirement plan.
A computer system for evaluating a retirement plan is disclosed comprising a computer server having a database, the database comprising a plurality of data defining a plurality of characteristics of each of a plurality of retirement plans, a computer-readable medium encoded with a first computer program executable by a computer for determining a subset of the plurality of retirement plans having characteristics comparable to characteristics of a selected retirement plan, a computer-readable medium encoded with a second computer program executable by the computer for permitting the selection of at least one report, and a computer-readable medium encoded with a third computer program executable by the computer for automatically generating the selected at least one report, where the at least one report comprises a comparison of the characteristics of the selected retirement plan against the characteristics of the subset of the plurality of retirement plans.
In one embodiment, the subset of the plurality of retirement plans is determined by identifying the characteristics of the selected retirement plan that correspond to at least one factor, and identifying which of the plurality of retirement plans have characteristics that correspond to the at least one factor and which are identical to the identified characteristics of the selected retirement plan or which correspond to a predefined range bracketing the identified characteristics of the selected retirement plan.
The at least one factor may comprise at least one of an amount of plan assets, a number of plan participants, a last year the plan was bid or reviewed, a type of company industry, a plan type, whether the plan includes an automatic participant enrollment feature, whether the plan includes an employer match feature, a percentage of plan assets held in index funds, and a percentage of plan assets held in managed accounts.
In an embodiment, the comparison of the characteristics of the selected retirement plan comprises a comparison of the fees paid by the selected retirement plan against the fees paid by the subset of the plurality of retirement plans. In another embodiment, the comparison of the characteristics of the selected retirement plan comprises a comparison of at least one investment option of the selected retirement plan against at least one investment option of the subset of the plurality of retirement plans. In a further embodiment, the comparison of the characteristics of the selected retirement plan comprises a comparison of the complexity of the selected retirement plan against the complexity of the subset of the plurality of retirement plans. In another embodiment, the comparison of the characteristics of the selected retirement plan comprises a comparison of at least one participant success measure of the selected retirement plan against the corresponding at least one success measure of the subset of the plurality of retirement plans. The computer system may further include a web portal interface for receiving retirement plan data.
A retirement plan comparison report is disclosed comprising a first data set corresponding to a selected retirement plan and a second data set corresponding to a subset of a plurality of retirement plans. The subset of the plurality of retirement plans is determined by identifying characteristics of the selected retirement plan that correspond to at least one factor, and identifying which of the plurality of retirement plans have characteristics corresponding to the at least one factor and which are identical to the identified characteristics of the selected retirement plan or which correspond to a predefined range bracketing the identified characteristics of the selected retirement plan. The retirement plan comparison report additionally includes a comparison of the first data set against the second data set comprising a comparison of at least one of participant success measures, fees paid, plan design provisions, plan complexity, fiduciary oversight services, fiduciary best practices services, plan-driven services, participant-driven services, timeliness of provided services, and accuracy of provided services.
In one embodiment, the comparison of the first data set and against the second data set is one of qualitative and quantitative.
The at least one factor may comprise at least one of an amount of plan assets, a number of plan participants, a last year the plan was bid or reviewed, a type of company industry, a plan type, whether the plan includes an automatic participant enrollment feature, whether the plan includes an employer match feature, a percentage of plan assets held in index funds, and a percentage of plan assets held in managed accounts.
In one embodiment, participant success measures comprises at least one of a participation rate, an average deferral percentage for non-highly compensated employees, an average deferral percentage for non-highly compensated employees, an average deferral percentage for highly compensated employees, a percentage of participants maximizing a company match feature, a percentage of assets in automatically diversified options, a percent of eligible participants making catch-up contributions, a percentage of participants using an automatic rebalance option, a percentage of participants using an automatic investment selection feature, a percentage of terminated participants that have not cashed out their assets, a percentage of participants with a personal retirement goal, and a percentage of participants on track to achieve their personal goal.
Fees paid may comprise at least one of fees paid at a plan sponsor level, fees paid at a participant level, and fees paid at a plan level. A comparison of the fees paid may comprise determining a reasonableness of the fees paid in view of a qualitative assessment of the selected retirement plan and of the subset of the plurality of retirement plans.
Plan complexity may comprise at least one of plan eligibility features, employee contribution features, employer contribution features, plan investment features, and plan distribution features. Fiduciary oversight services may comprise at least one of plan design services, plan administration services, plan communications services, plan investment services, plan fee services, and plan company stock services.



BRIEF DESCRIPTION OF THE DRAWINGS
For a better understanding of the invention, reference may be had to preferred embodiments shown in the following drawings in which:
FIG. 1 illustrates one embodiment of the present invention;
FIG. 2 illustrates one embodiment of a platform architecture of the system shown in FIG. 1;
FIG. 3 illustrates one embodiment of a hardware infrastructure for the embodiment shown in FIG. 1;
FIGS. 4a-4z illustrate an exemplary report as may be output by the embodiment shown in FIG. 1;
FIGS. 5a-5q illustrate another embodiment of a report that may be output from the embodiment shown in FIG. 1;
FIGS. 6a-6j illustrate yet another embodiment of a report that may be output from the embodiment shown in FIG. 1;
FIG. 7 illustrates one embodiment of a login screen;
FIG. 8 illustrates one embodiment of a user registration screen;
FIG. 9 illustrates one embodiment of a “Welcome” screen;
FIG. 10 illustrates one embodiment of an “Add a Plan” screen;
FIGS. 11a-11q illustrate an embodiment of a “Guide To Survey Questions And Data Elements;”
FIGS. 12a-12b illustrate an embodiment of a Plan summary and selection screen;
FIG. 13 illustrates an embodiment of a data entry screen;
FIGS. 14a-14s illustrate embodiments of Plan data input screens;
FIGS. 15a-15j illustrate embodiments of data elements corresponding to a first exemplary report;
FIGS. 16a-16w illustrate embodiments of data elements corresponding to a second exemplary report; and
FIGS. 17a-17z illustrate embodiments of data elements corresponding to a third exemplary report.



DEFINITIONS
“Plan” means any Defined Contribution Plan, including, 401(k), 403(b), 457, profit sharing, and money purchase Plans.
“Plan Sponsor” means the employer or offeror of the Plan to the Plan Participant.
“Plan Participant” means the employee or beneficiary of the Plan.
“Plan Advisor” means anyone who provides consulting services to the Plan Sponsor, such as how and where to invest Plan assets.
“Service Provider” means any provider of any service to or for the Plan, including, Record keeper; Advisor/Consultant; Investment manager; and Managed Accounts Provider and other service providers.
“Record keeper” means anyone who keeps records for a Plan.
“Investment Manager” means anyone who manages Plan investment options.
“Managed Accounts Provider” means a Service Provider that offers an Internet-based service comprising the creation, implementation, and monitoring of personalized retirement plans for Plan Participants. The services offered by a Managed Accounts Provider are elective in nature and result in additional fees to a given Plan.
“Other Provider” means other providers of services to the Plan, including, legal, accountant, and tax services.
“Third Party Administrator” means anyone who designs and/or administers 401(k) Plans for Plan Sponsors, and who may ensure compliance with ERISA and the IRS.
“TPA” means Third Party Administrator.
DETAILED DESCRIPTION
Turning now to the figures, wherein like reference numerals refer to like elements, there is illustrated in FIG. 1 one embodiment of the present invention. In the embodiment of FIG. 1, system 10 includes a web-based user interface portal 20 for entering a variety of Plan, for example, data 25, into database 90 by a User 16, comprising at least one of, for example, a Plan Sponsor, a Recordkeeper, a Third Party Administrator, and an Advisor Consultant, registration/login module 15 to permit authenticated login access to authorize a User 16 of system 10, a data entry module for facilitating the entry of Plan data 25 into system 10, database 90 for storage and retrieval of a Plan data 25 for a multitude of Plans, Benchmark Group module 100 for determining an appropriate Benchmark Group of Plans that are similar in size, fees, features and services, among others, to the Plan, report generation engine 110 for generating a selected report on demand or at predetermined intervals as may be selected by User 16, and delivery means 80 for delivering the selected report to User 16.
As shown in FIG. 1, Plan data 25 that may be entered into system 10 may include, for example, success measures data 30 (e.g., Plan participation rate), Plan design and fees data 40 (e.g., fees to Recordkeepers and Plan eligibility information), investment data (not shown) (e.g., investment offering information), fiduciary services, advisor services, and advisor satisfaction data 50 (e.g., Advisor/Consultant support services and fee information), administrative services data 60 (e.g., Participant-driven administration services), and timeliness and accuracy factors data 70 (e.g., factors that might be Participant-driven or Plan-driven). Each of these will be discussed in more detail below.
Moving to FIG. 2, there is shown an exemplary platform architecture for system 10. For example, system 10 may include web user interface tier 114, middleware tier 120, and database tier 144. Web user interface tier 114 may include platform user interface pages 115 for interacting with system 10, and particularly, for entering Plan data 25 into database 90, and for selecting one or more pre-styled reports 118 or for selecting one or more options for customizing a user-customizable report 118.
As shown in FIG. 2, middleware tier 120 may include various business objects 122, various list functions 132, database abstraction layer 140, and report generation engine 110. Business objects 122 may further comprise a report bean 124, a client bean 128, a Plan bean 130, and other objects, such as a Benchmark Group bean (not shown). Each of these business objects 122 may include software, one or more CPU's and memory to perform the functions of displaying HTML user interface pages 115 in a web browser and dynamically interacting with User 16, acquiring Plan data 25 or other input data or input selections from User 16, temporarily storing all input data in memory, real-time automatically and dynamically adjusting or manipulating user interface pages 115 in response to various user selections and/or data input by toggling on and off subsequent input fields and selections according to pre-programmed rules, and causing the permanent storage of input data and user selections in database 90. Consequently, User 16 may enter Plan data 25 after logging into web portal 20 and, using user interface pages 115, interact with business objects 122 of middleware tier 120.
By way of example, when entering data, such as Plan data 25, Plan bean 130 may temporarily receive and store the Plan data in middleware memory until such time as the User 16 has entered all of the Plan data. Upon clicking a “Save and Continue” button, for example, on a web page by User 16, software of business object 122 may then command the permanent storage of the data into database 90 of database tier 144. Similarly, when User 16 enters information about themselves, for example, after registering as a “new user” in web portal 20, client bean 128 may present user interface pages 115 having various fields for entering such items as user name, address, etc. Once User 16 has completed entering data about itself on a particular web page, client bean 128 may then cause this data to be permanently stored in database 90 when User 16 clicks on a “Save and Continue” button to, for example, cause the system to display another web page or data entry screen.
Instead of entering data, User 16 may also be presented with various objects 132 connected to various lists stored in database 90. For example, User 16 may select an icon on a user interface page 115 that calls up and displays previously entered and stored Plan list data, user data, or account information data from database 90. Consequently, various objects 132 may comprise read-only functions for retrieving previously entered data from database 90 and displaying this data in user interface pages 115.
Also shown in FIG. 2 is database 90 of database tier 144. Database 90 may be configured for permanently storing Plan, client (e.g., user) data 146 and the like as well as permanently storing any other documents, such as previously prepared reports 118 for later recall should User 16 so elect.
FIG. 3 shows one embodiment of a hardware infrastructure that may be employed for the operation of system 10, comprising database layer 150, application server layer 152, web layer 156, and Internet layer 160. For example, database layer 150 may include database server 151 comprising database 90 which may include various data 146 and documents 148. Database server 151 may be connected to batch processor 153 of application server layer 152. Batch processor 153 may execute business objects 122, various objects 132, and report generation engine 110 to, for example, execute software programs to analyze, store data or for generating reports.
Batch processor 153 may be connected to web layer 156 comprising one or more web servers 157 for communicating with User 16 via the Internet. As shown in FIG. 3, web server 157 may operate behind firewall 158 to protect data stored on database 90 from malicious attack. Communication web server 157 may operate to deliver various web pages and other documents to User 16 using a web browser and who may be logged into web portal 20. Such web pages may include platform user interface pages 115. The software represented by business objects 122 may be executed by batch processor 153 and temporarily stored in batch processor 153 as previously described.
In addition, when a user selects or requests a particular report 118, batch processor 153, through business objects 122, may execute software of report generation engine 110 to generate the selected report using data stored on database server 151 of database 90. When such software completes the preparation of the selected report 118, system 10 may then communicate that report back to User 16 through business objects 122 and through web server 157 and post the selected report 118 on web portal 20 for retrieval or download by User 16 subject to, for example, entering into a payment arrangement with the operator or administrator of web portal 20 before system 10 releases or otherwise allows access to report 118 by User 16. Consequently, at some point prior to User 16 obtaining a deliverable, such as a selected report 118, User 16 may be asked to provide payment to the operator or administrator of web portal 20. Alternatively, access to system 10 by User 16 may be in the form of a subscription spanning a particular time period, such as a month or a year. In this way, either a limited or unlimited quantity of reports 118, as determined by the subscription arrangement, may be delivered to User 16 within the subscription period.
Alternatively, as shown in FIG. 1, system 10 may communicate the selected report 118 to User 16 by sending the selected report 118 as an attachment, such as a PDF, to an email to User 16. In another embodiment, system 10 may communicate the selected report 118 to User 16 by causing the selected report 118 to display in a web browser on a computer screen operated by User 16. Such display may be effected in real-time or near real time, depending on how quickly system 10 can perform the calculations necessary to generate the selected report 118 and transmit the selected report 118 to User 16's computer, as well as the connectivity and available bandwidth that exists between User 16's computer and the hardware elements of system 10 that generate and transmit the selected report 118. In another embodiment, system 10 may communicate the selected report 118 to User 16 using any other electronic or tangible means (e.g., via CD, flash drive, etc.) as may be selected by User 16. In yet another embodiment, system 10 may communicate the selected report 118 to User 16 via cellular communications, facsimile communications, radio frequency, Wi-Fi, satellite communications, and the like. User 16 may also schedule the delivery of a selected report 118 at scheduled times or intervals as may be selected by User 16 in web portal 20.
As shown in FIG. 3, network router 161 of internet layer 160 may operate to complete the transmission of various web pages and documents, such as user selected reports to platform user interface pages 115. Also shown in FIG. 3 is network switch 154, which may operate to connect multiple computers together behind the firewall 158. Lastly, as shown in FIG. 3, database server 151 may be directly connected to web server 157 to permit various objects 132 to communicate previously entered data from database 90 to User 16 without any processing of the data.
In one embodiment, report generation engine 110 prepares one or more reports 118 using various software means, including Big Faceless Java Report Generator (available at http://big.faceless.org/), which takes XML data, such as Plan data 25 stored in database 90, and converts such data into PDF format. In another embodiment, report generation engine 110 uses Microsoft Excel to create charts and tables, which may be assembled using, for example, Microsoft Publisher and output to, for example, PDF and delivered to User 16 as described above. Report 118 may alternatively be formatted for delivery to User 16 as JPEG, TIFF, as a Microsoft Word document, as HTML web pages, or any other report format suitable for displaying comparison information between a selected Plan and a suitable Benchmark Group on either a computer display or in hard copy form.
In one embodiment, database 90 may manage and store all data that it acquires using, for example, a MySQL database with a standby server. In one embodiment, all of the data that is stored on database 90 may be centrally stored on database server 151. In another embodiment, data may be stored on many database servers 151 distributed and/or located throughout the world.
Data may make its way into database 90 of system 10 by any number of different ways. As shown in FIG. 1, data may be directly entered by User 16 into system 10 via web portal 20. Alternatively, system 10 may collect Plan data 25 through automated direct data feeds, which may be scheduled on demand or at regular or irregular intervals, through uploads from third party investment databases, or through proprietary processing of government Plan databases. Data entry through web portal 20 may also be performed by an Advisor/Consultant, a Recordkeeper, or by any other Service Provider of a particular Plan, and in some instances the Plan Sponsor may enter the data themselves. Alternatively, Plan data 25 may be entered by the operator or administrator of database 90, or by a subcontracted third party.
To ensure that Plan comparisons against a Benchmark Group of Plans are as relevant and accurate as possible, system 10 may collect and report current, actual Plan data. In one embodiment, fee and service data for a particular Plan must have been bid or reviewed within the last three years to avoid stale data from becoming part of the Benchmark Group of Plans. Entry of data within a given time period may help to ensure that system 10 acquires only relatively new or current information. For example, system 10 may restrict data entry on web portal 20 to Plan data that is less than a prescribed time period, such as less than three months old. Similarly, system 10 may restrict data from automatic data feeds to real Plan data that is less than, for example, one month old. Some information, such as platform data from, for example, Recordkeepers, may be updated quarterly, or at any other interval, in system 10. Basic investment information may be updated monthly, for example, from the Service Provider.
To compare a given Plan against a database of Plans, system 10 may take into consideration a number of “fee components” and a number of “value components.” “Fee components” may include, for example, fees to a Plan's Recordkeepers, fees to Advisor, Consultants of the Plan, fees to money managers or investment managers of Plan assets, and fees to other Service Providers. “Value components” may include various measures of a Plan Participant's success at meeting their goals, Plan complexity, the type and quality of fiduciary support, the type and number of Plan services that the Plan includes, the type and number of Participant services that the Plan includes, and the type and quality of various service standards of the Plan.
To construct one or more reports 118 that compare a given Plan against a computer-selected group of plans (a “Benchmark Group of Plans”) selected from a database of Plans, and in particular a given Plan's fees, services, and overall value as compared to other, similarly structured Plans, a multi-step process may be employed comprising: (1) determining a Benchmark Group of Plans, (2) comparing Plan fees to the fees associated with the Benchmark Group of Plans, (3) comparing Plan value to the value associated with the Benchmark Group of Plans, and (4) determining the reasonableness of the Plan's fees in view of the Plan's value. This multi-step process may involve more than or fewer than these steps depending on what specific comparisons and/or reports may be desired by User 16.
The first step is to determine a Benchmark Group of Plans comprising a number of Plans from database 90 that are most similar to the given Plan. This task of determining a Benchmark Group of Plans from database 90, which may comprise potentially hundreds of thousands of plans and millions of records, is challenging at least because Defined Contribution Plans come in a myriad of shapes and sizes, where no two Plans are exactly identical. However, system 10 may consider a number of “sort factors,” such as relative Plan size and relative number of Plan Participants, to quickly identify from database 90 which Plans are most similar to the given Plan.
In one embodiment, the Benchmark Group of Plans may be determined from approximately nine relevant sort factors, including the dollar amount of Plan assets, the number of Plan Participants, the last year that the Plan Sponsor or Recordkeeper, for example, reviewed its Plan or bid on a Plan, the relevant company industry of the Plan Sponsor, the Plan type, whether or not the Plan uses automatic enrollment for Plan participants, whether and how much the employer matches contributions to the Plan from Plan participants, the percent of Plan assets invested in Index funds, and the percent of Plan assets in managed accounts, so as to filter database 90 of potentially hundreds of thousands of Plans to the Plans that are most relevant for comparison purposes to the selected Plan. Other embodiments may require more or fewer number of sort factors to determine a relevant Benchmark Group of Plans.
System 10 may determine a Benchmark Group of Plans that is tailored to the given Plan's characteristics. For example, system 10 may identify plans in database 90 with similar economic profiles, cost structures and designs. By grouping plans in this way, system 10 may generate one or more reports 118 that enable a Plan Sponsor, for example, to accurately assess a given Plan's fees, support, services, and success measures relative to the Benchmark Group of Plans.
For example, Plan size and number of Plan Participants may be selected as within a similar range of sizes and number of Participants to ensure matching economic profiles. In addition, by considering only those Plans that have bid or reviewed fees and services within, for example, three years may help to ensure that the Benchmark Group of Plans reflect relatively current assessment of the marketplace. It may also be inappropriate to compare a Plan with 100% passive investments to one with 100% active investments because the 100% passive Plan may have substantially lower costs due to the fiduciary's belief in indexing. However, costs associated with a 100% passive Plan may be high when compared to other passively managed Plans. Therefore, under certain circumstances, it may be useful to compare Plans with similar active/passive investment ratios. It may also be useful to compare Plans with similar exposure to Managed Accounts because Managed Accounts provide Plan Participants with an important additional service, albeit at higher structural costs. A Plan's participation and deferral rates can be directly related to the presence of an employer match or use of “auto” features. Consequently, grouping Plans of similar designs may help to determine what additional factors may generate better Participant behaviors. Establishing a Benchmark Group of Plans and comparing the Plan to the Benchmark Group of Plans in this way ensures an apples-to-apples comparison of various aspects of the Plan to those in the Benchmark Group of Plans, leading to better, more informed decision making by, for example, a Plan Sponsor.
To arrive at a Benchmark Group of Plans, system 10 may employ pre-programmed rules that may flexibly set the criteria for each sort factor depending on the system's analysis of the makeup of the plans in database 90. For example, system 10 may set ranges of the dollar amount of Plan assets to 0 to $20 million, $21-$50 million, $51-$100 million, etc., depending on the distribution of Plans that fall into each respective range or “bin.” System 10 may change these ranges as new Plan data is stored in database 90. Thus, some ranges may become smaller or larger to distribute the universe of plans in database 90 into meaningful ranges for comparison purposes. During the report generation phase, the software of system 10 may analyze Plan data 25 for the given Plan and determines, given the universe of plans in database 90 at the time, what the respective ranges for each of the sort factors should be as well as which and how many sort factors will be used to filter database 90 to arrive at the Benchmark Group of Plans. In another embodiment, the ranges applied to the sort factors is fixed regardless of the make up of and quantity of the universe of plans in database 90. In yet another embodiment, which and how many sort factors that system 10 uses to filter database 90 is fixed regardless of the make up of and quantity of the universe of plans in database 90. In still another embodiment, the ranges applied to the sort factors and the number of sort factors used to filter database 90 are selectable by User 16. In this way, User 16 may control, to some extent, not only the determination of the Benchmark Group of Plans but the resulting comparison output reflected in the one or more Reports 118 that User 16 chooses to receive.
Once a Benchmark Group of Plans is determined by system 10, system 10 may then examine a number of measures that may indicate how well Plan Participants are preparing for retirement according to their retirement goals. Such “Participant Success Measures” may include, for example, the Plan's current participation rate, the average deferral percentage for non-highly compensated employees, the average deferral percentage for highly compensated employees, the percentage of participants maximizing the available company match, the percentage of Plan assets in automatically diversified options, the percent of eligible participants making catch up contributions, the percentage of participants using an auto rebalance option or investment selections, the percentage of terminated participants that have not cashed out their assets in the Plan, the percentage of participants with a personal retirement goal, and the percentage of participants on track to achieve their personal goal.
The companies and entities that provide retirement plan services may widely vary. In addition, the companies and entities that provide retirement plan services may provide such services on an a la carte basis as well as by bundling a number of services together, often with varying fee structures and approaches for charging and collecting fees or compensation for the services rendered. Thus, a process for comparing a given Plan against a database of Plans may involve identifying and considering the numerous, often disparate approaches to how fees are charged to a Plan, and unifying the fee types into an apples-to-apples structure for comparison.
To do this, one step in comparing a given Plan to a Benchmark Group of Plans is to identify all fees and the sources for all fees that are being paid by the Plan in question. Plan level fees may be paid to a number of Service Providers including, for example, to Recordkeepers, Advisor/Consultants, investment managers, and to a number of other providers of services to the Plan. Fees charged to a Plan at the Service Provider level may come from a variety of sources, such as investment fees, commissions, finders' fees, managed account fees, and a variety of other potentially hidden (i.e., imbedded) fees. Fees at the investment level include the fees paid directly through investments in the Plan, and are often charged as a percentage of Plan assets. Fees at the Participant level include for Participant-elected services like loans, distributions and self-directed brokerage transactions. Since some fees are paid by the Plan and others are paid by the Plan Sponsor, including all fees related to the Plan regardless of who pays the fee is one way to ensure accurate Plan comparisons.
Depending on the selected report 118, system 10 may then determine a Plan's design features and associated complexity and compare these to the Benchmark Group of Plans. Plan design features may relate to Plan eligibility, employee and employer contributions, invests structure and distributions. System 10 may assign a “cost factor” to each Plan, which may be totaled and compared to the cost factors of plans in the Benchmark Group of Plans. Although Plan design complexity may be neither good nor bad, what may be important to know is whether the costs associated with a complex Plan are in line with, or better than, the cost to administer similarly complex Plans.
System 10 may also identify the fiduciary oversight and best practices support a Plan is receiving. Categories that may be considered include, for example, Plan design and administration, communications, investments, fees, and, if applicable, company stock. Information considering comparison of these categories to the Benchmark Group of Plans may be summarized at both the Plan and Service Provider levels.
System 10 may also identify the additional services the Plan is receiving from the Advisor/Consultant. Additional Advisor/Consultant services may include, for example, fiduciary status of advisor, participant education and communication efforts (including numbers and type of meetings such as whether in group sessions or one on one). In addition, the Advisor/Consultant services may include providing, for example, newsletters for Participants on a quarterly basis or some other interval, providing a website with financial Planning tools for Participant use, and whether or not the Advisor/Consultant accepts phone calls directly from Participants to address Plan questions.
System 10 may also make available a multi-part “Assessment of Satisfaction” survey that may solicit opinions on the Plan Recordkeeper's Services Team, Participant's services and Sponsor services.
System 10 may also examine the Plan and Participant services that are being provided to the Plan. Such services may include, for example, Plan-driven services, Participant-driven administration services and Participant-driven communication services. System 10 may also assign a “difficulty factor” to each service. To compare services of a given Plan against the Benchmark Group of Plans, system 10 may multiply the number of transactions for each service (“called volumes”) by the degree of difficulty (“difficulty factor”) assigned to each service. The system 10 may sum these amounts and the Plan's total may then be compared to the total of other Plans in the Benchmark Group.
System 10 may also consider various service standards of the Plan's Recordkeeper, such as timeliness and accuracy of the services that are provided. Accuracy standards may include various service categories such as, for example, contributions, distribution processing, compliance, and communications. Examples of contributions may include processing of payroll tapes, employer match calculations, profit sharing calculations, and required contribution calculations. Examples of distribution processing may include new loans, in-service withdrawals, hardship withdrawals, termination distributions, QDRO's, and MRD's. Examples of compliance may include ADP/ACP testing, 415 testing, and signature ready 5500. Examples of communications many include, for example, newsletters, custom communication campaigns, quarterly statements, and annual statements.
As for timeliness standards, system 10 may consider both Participant-driven and Plan-driven standards. Examples of Participant-driven standards may include eligibility information, investment information, loans, in-service withdrawals, hardship withdrawals, termination distributions, other processing such as for QDRO's and MRD's, and statements. Examples of Plan-driven categories that system 10 may consider include contributions, investment changes, compliance, other communications, and Plan events.
System 10 may summarize all of the fees and services provided by the Plan's Recordkeeper and Advisor/Consultant, respectively, on a single page of a selected report 118 for easy review by User 16.
As shown in Table 1 below, system 10 may generate one of a number of different pre-styled reports 118 comparing a given Plan against a Benchmark Group of Plans, as selected by User 16. In one embodiment, one or more reports 118 may be configured using “Data Categories” as indicated in Table 1. In another embodiment, reports 118 may be configured using any combination of the “Data Categories” shown in Table 1. In yet another embodiment, individual “Data Categories” may be selected by User 16 to create one or more customizable Reports 118. In still another embodiment, additional or fewer “Data Categories” may be used or selected than those shown in Table 1.










TABLE 1






Benchmarks
Benchmarks




Report 1
Report 2
Benchmarks



Fees,
Sponsor and
Report 3



Plan Design,
Advisor
Plan and



and Participant
Provided
Participant


Data Category
Success Measures
Services
Services Report







Basic Plan
●
●
●


Information


Participant Success
●


Measures


Plan Design Features
●


Plan Investment
●


Choices-Type


Plan Investment
●


Choices-Fees


Other Fees
●


Sponsor Fiduciary

●


Support


Advisor Provided

●


Services


Satisfaction-

●


Recordkeeper


Services


Plan-Driven Services


●


Participant-Driven


●


Administration


Participant-Driven


●


Communications


Service Volumes


●


Accuracy &


●


Timeliness Standards









As described above, system 10 may provide User 16 with one of a number of pre-styled reports, each relying on a unique set of Plan data. In one embodiment, as shown in Table 1 above, system 10 may generate Benchmark Report 1 entitled, “Fees, Plan Design and Participant Success Measures,” which may compare a given Plan against a Benchmark Group of Plans by comparing, for example, “Basic Plan information,” Participant Success Measures” information, “Plan Design Features” information, “Plan Investment Choices—Type” information, “Plan Investment choices—Fees information,” and other fees. Another exemplary report 118 identified in Table 1 is Benchmarks Report 2, entitled “Sponsor and Advisor Provided Services,” which may compare a given Plan against a Benchmark Group of Plans by comparing, for example, “Basic Plan Information,” “Sponsor Fiduciary Support,” “Advisor Provided Services,” and “Satisfaction—Recordkeeper Services.” Yet another exemplary report 118 identified in Table 1 is Benchmarks Report 3 entitled, “Plan and Participant Services Report,” which may compare a given Plan against a Benchmark Group of Plans by comparing, for example, “Basic Plan information,” “Plan-Driven Services,” “Participant-Driven Administration,” “Participant-Driven Communications,” “Service Volumes,” and “Accuracy and Timeliness Standards.”
As shown in Tables 2-15 below, each of these “Data Categories” may individually comprise a number of subcategories or items of information that User 16 may enter into system 10 or that system 10 may acquire. In one embodiment, “Basic Plan information” may include 18 different items of information relating to the Plan, as shown in Table 2 below. Tables 2-15 are, in essence, a roadmap of the type and extent of data fed into system 10 about a given plan.
Basic Plan Information







TABLE 2





Basic Plan Information

















 1) Plan type



 2) Recordkeeper



 3) Plan size - dollars



 4) # of Plan participants



 5) Auto enrollment used?



 6) Employer Match offered?



 7) Max employer match?



 8) Participant contribution to reach max match?



 9) Supported by Advisor/Consultant?



10) Advisor/consultant Firm name (if applicable)



11) Supported by a TPA?



12) TPA Firm Name (if applicable)



13) Date of most recent fees/services review



14) Plan Sponsor Name



15) Plan Name (from Form 5500)



16) Plan's three digit ID number (from Form 5500)



17) Plan Sponsor Tax ID Number (from Form 5500)



18) Plan Sponsor principal business activity (from Form 5500)










Participant Success Measures







TABLE 3





Participant Success Measures

















 1) Participation rate



 2) Deferral rate for non-highly compensated employees



 3) Deferral rate for highly compensated employees



 4) % of participants getting maximum match



 5) % of eligible participants making catch-up contributions



 6) % of Plan assets invested in auto-diversified options



 7) % of participants using auto re-balancing of investments



 8) % of terminated participants “cashing out”



 9) % of participants with a personal retirement savings goal



10) % of participants on track to achieve savings goal










Plan Design Features







TABLE 4





Plan Design Provisions

















 1) Eligibility - Service Requirement applies?



 2) Eligibility - Age requirement applies?



 3) Maximum pre-tax contribution allowed?



 4) Auto deferral increase offered?



 5) Maximum deferral rate reached through auto increase?



 6) Catch-up contributions allowed?



 7) After-tax contributions allowed?



 8) ROTH contributions allowed?



 9) Roll-ins′′ allowed?



10) Vesting schedule applies to employer match?



11) # of years to fully vest employer match?



12) Discretionary profit sharing contributions offered?



13) Vesting schedule applies to discretionary contributions?



14) # of years to fully vest discretionary contributions?



15) Employer required contributions made?



16) Vesting schedule applies to employer required contribution?



17) # of years to fully vest employer required contribution?



18) Maximum number of loans per participant?



19) Allows in-service withdrawals?



20) Allows hardship withdrawals?



21) Allows installment payments?



22) Offers an annuity distribution option at retirement?










Plan Investment Choices—Type







TABLE 5





Plan Investment Choices - Type















For each choice WITH a Ticker Symbol - Provide the following:









  1) Ticker symbol or CUSIP



  2) Dollar value of Plan assets invested



  3) Portion of total expense ratio to Recordkeeper (fee offset)



  4) Portion of total expense ratio refunded to participants



  5) Portion of total expense ratio to TPA (fee offset)



  6) Portion of total expense ratio to Advisor (Fee offset)







For each choice WITHOUT a Ticker Symbol - Provide the following:









  1) Vehicle type



  2) Asset class



  3) Name of choice



  4) Dollar value of Plan assets invested



  5) Total expense Ratio



  6) Portion of total expense ratio to Recordkeeper (fee offset)



  7) Portion of total expense ratio refunded to participants



  8) Portion of total expense ratio to TPA (fee offset)



  9) Portion of total expense ratio to Advisor (Fee offset)



 10) Portion of the total expense ratio to Others







Other information:









  1) The “as of date” of data provided



  2) Total Plan assets in participant loans



  3) Identify Plan default choice or series from Plan choice list










Plan Investment Choices—Fees







TABLE 6





Plan Investment choices - Fees















For each Plan choice - identify where the answer is yes:









1) Accepts new contributions



2) Proprietary to the Recordkeeper



3) Passive index fund



4) Pays commissions to Advisor/Consultant



5) Pays finder's fees to Advisor/Consultant



6) Contingent deferred sales charges apply



7) Wrap fees apply (same or different by choice)



8) Sub-TA fees paid on a per account basis apply







If applicable - provide the following at the PLAN LEVEL









1) Total amount of commissions paid to Advisor/Consultant



2) Total amount of finder's fees paid to Advisor/Consultant



3) Wrap amount to Recordkeeper



4) Wrap amount to TPA



5) Wrap amount to Advisor/Consultant







If applicable - provide the following by the CHOICE LEVEL









1) Wrap amount to Recordkeeper



2) Wrap amount to TPA



3) Wrap Amount to Advisor/Consultant



4) Sub-TA $ per account



5) Who collects Sub-TA fee (Recordkeeper or TPA)



6) Where Sub-TA applies - # of participants owning choice










Plan Investment Choices—Fees







TABLE 7







Additional Fees to Recordkeeper:










1)
Annual retainer fee ($)



2)
Total Other Fees ($)



3)
Portion of fees Plan paid vs. sponsor paid ($)







Additional Fees to TPA:










1)
Annual retainer fee ($)



2)
Total Other Fees ($)



3)
Portion of fees Plan paid vs. sponsor paid ($)







Additional Fees to Advisor/Consultant:










1)
Annual retainer fee ($)



2)
Plan service fees paid by the Recordkeeper (BPS)



3)
Total Other Fees ($)



4)
Portion of fees Plan paid vs. sponsor paid ($)







Additional Fees Other Service Providers:










1)
Annual retainer fee ($)



2)
Total Other Fees ($)



3)
Portion of fees Plan paid vs. sponsor paid ($)







Participant Paid Fees:










1)
Annual per participant charge ($)



2)
Annual per participant advice charge ($)



3)
Loan origination fee - per occurrence ($)



4)
Loan maintenance fee - annual ($)



5)
Hardship approval fee - per occurrence ($)



6)
QDRO approval fee - per occurrence ($)



7)
QDRO processing fee - per occurrence ($)



8)
Periodic payment processing fee - per occurrence ($)



9)
Non-periodic payment processing fee - per occurrence ($)







Managed Account Program:










1)
Plan has a managed account program?



2)
Total Plan $ invested in program



3)
Number of participants using program



4)
Annual Plan sponsor paid fee



5)
Minimum annual managed account fee per participant



6)
Fee for a $10,000 account in basis points



7)
Fee for a $25,000 account in basis points



8)
Fee for a $50,000 account in basis points



9)
Fee for a $100,000 account in basis points



10)
Fee for a $250,000 account in basis points



11)
Fee for a $500,000 account in basis points



12)
Provider of investment advice for managed accounts?



13)
% of fees credited to managed accounts provider



14)
% of fees credited to Recordkeeper



15)
Total $ fees paid for managed accounts by the Plan Annual per




participant charge ($)







Self Directed Account Program










1)
Plan has a self directed account (SDA) program?



2)
Total Plan $ invested in SDA program



3)
Annual Plan sponsor paid fee to offer SDA ($)



4)
Annual fee per participant to use the SDA ($)



5)
Fee for internet placed transactions - stock or fund ($)



6)
Fee for 800 # operator assisted transactions - stock or fund ($)



7)
% of the SDA fees credited to the SDA provider



8)
% of the SDA fees credited to the Recordkeeper



9)
Provider of the self directed account service



10)
# of participants with SDA accounts







ERISA Spending Account










1)
Plan has an ERISA spending account?



2)
$ credited to account by Service Provider



3)
How was ERISA account used in last 12 months?



4)
What approach is used to deal with yearend remainders?










Sponsor Fiduciary Support







TABLE 8







Section 1 - Plan Design & Administration Support Provided










For each item, indicate who provides service (Recordkeeper, Advisor/


Consultant, TPA, or Other) and if the services is a “Hot Button” issue


for the Plan (yes/no)?








1)
Alerts Plan decision makers of important regulatory and rules



changes


2)
Assists in design of Plan's eligibility provision, including use



of Auto Enrollment


3)
Assists in design of Plan's Employee Contribution structures,



including Roth or use of Auto Increase


4)
Assists in design of Plan's Employer Contribution approach,



including use of employer match


5)
Assists in design of Plan's loan and withdrawal policy


6)
Aids in structuring Plan's distribution options, including possible



use of installments and annuities


7)
Helps monitor ongoing performance of Recordkeeper


8)
Carries out a recordkeeping search with appropriate



recommendation to Plan sponsor


9)
Assesses benefits of outsourcing all retirement Plans to your



Recordkeeper










Section 2 - Communications Support Provided (yes/no)










For each item, indicate who provides service (Recordkeeper, Advisor/


Consultant, TPA, or Other) and if the services is a “Hot Button” issue


for the Plan (yes/no)?








1)
Assists with setting and monitoring goals for Plan participation



rates


2)
Assists with setting and monitoring goals for participant deferral



percentages for Non-HCEs


3)
Assists with setting and monitoring goals for number of



participants obtaining maximum company match


4)
Assists with setting and monitoring goals for number of



participants in Automatically Diversified Options


5)
Assists with setting and monitoring goals for number of



participants using advice program


6)
Assists with setting and monitoring goals for participant



diversification


7)
Assists with setting and monitoring goals for the number of



participants not cashing out


8)
Assists with setting and monitoring goals for number of



participants establishing a retirement goal


9)
Assists with setting and monitoring goals for number of



participants on track to attain a retirement goal










Section 3 - Investments Support Provided (yes/no)










For each item, indicate who provides service (Recordkeeper, Advisor/


Consultant, TPA, or Other) and if the services is a “Hot Button” issue


for the Plan (yes/no)?








1)
Helps develop the investment policy statement


2)
Aids in the examination of whether a Plan is 404(c) compliant


3)
Helps Plan sponsor to determine the number and type of



investment funds to offer


4)
Assists with selection of the default fund


5)
Builds and manages risk-based or target retirement date



portfolios from core funds


6)
Helps determine the proper fund benchmarks and documenting



any benchmark changes


7)
Assists in consideration to offer an advice program


8)
Assists in consideration to offer Managed Accounts


9)
Assists in consideration to offer Self-Directed Account


10)
Assists in consideration to offer an annuity option


11)
Helps monitor the investment policy statement


12)
Helps monitor ongoing performance of all investment choices


13)
Carries out investment manager searches with appropriate



recommendation to Plan sponsor


14)
Helps Plan sponsor examine “mapping/blackout” options when



replacing an investment manager










Sections 4 - Fees Support Provided (yes/no)










For each item, indicate who provides service (Recordkeeper, Advisor/


Consultant, TPA, or Other) and if the services is a “Hot Button” issue


for the Plan (yes/no)?








1)
Analyzes and makes specific recommendation for how



to contract with all Service Providers


2)
Helps Plan sponsor make sure all participants share equitably in



the cost of administering the Plan


3)
Helps Plan sponsor make sure all Plan fees paid to all parties are



FULLY DISCLOSED


4)
Helps Plan sponsor make sure all Plan fees paid to all parties are



REASONABLE


5)
Helps Plan sponsor make sure that only “qualified” expenses are



being paid by the Plan


6)
Helps Plan sponsor determine which expenses should be



assessed against the ERISA spending account


7)
Helps Plan sponsor determine what to do with excess ERISA



account credits


8)
Provides participants with an annual fee disclosure statement










Section 5 - Company Stock Support Provided (if applicable) (yes/no)










For each item, indicate who provides service (Recordkeeper, Advisor/


Consultant, TPA, or Other) and if the services is a “Hot Button” issue


for the Plan (yes/no)?








1)
Identifies a source or sources of independent research on your



company stock


2)
Evaluates the diversification rules in your Plan design


3)
Assesses pros and cons of share versus unit accounting


4)
Assesses amount of cash to hold in the company stock fund


5)
Helps design the company stock dividend feature of your Plan


6)
Helps participants address the Net Unrealized Appreciation issue



upon termination


7)
Designs a behavioral finance program to encourage



diversification









Advisor Provided Services







TABLE 9





Additional Advisor/Consultant services provided (yes/no)

















1) Acts as a Fiduciary under 1940 Act



2) Acts as a Fiduciary under ERISA



3) Provides Financial Planning Services



4) Provides Group Meetings



5) Number of Group Meetings (fill in)



6) Provides One-on-One Meetings



7) Number of One-on-One Meetings (fill in)










Satisfaction—Recordkeeper Services







TABLE 10







Level of Satisfaction - Recordkeeper Service Team











1)
Rate the service team's overall expertise and knowledge level



(Responses: A True Expert, Adds Value, Satisfactory, Needs



Improvement)


2)
Rate the service team's overall approach (Responses: An



Advocate, Proactive, Satisfactory, Needs Improvement)


3)
Has turnover in the service team negatively impacted service



quality? (Responses: Not at all, A little, A lot, Not applicable)


4)
Does the frequency with which the service team is onsite meet



the Plan's needs?(Responses: Yes, Almost, No, Not applicable)


5)
What is the overall assessment of the service team? (Responses:



Insightful and Adds Value, Adds Value, Satisfactory, Needs



Improvement, Not applicable)


6)
Does the service team's work product meet the Plan's needs?



(Responses: World Class, Very Good, Satisfactory, Needs



Improvement, Not applicable)










Level of Satisfaction - Participant Services - part A










Internet Services








1)
Availability


2)
Speed


3)
Easy to find what you want


4)
Range of available information


5)
Quality of information available


6)
Ease of conducting a transaction


7)
Ease of using the advice program


8)
Range of educational materials


9)
Quality of educational materials


10)
OVERALL SATISFACTION - Internet Services







800 Number Phone Services








1)
Hours of availability


2)
Answers call in an acceptable amount of time


3)
Ease of use of automated phone system


4)
Range of services of automated phone system


5)
Ease of accessing a customer service representative


6)
Phone rep's knowledge of your retirement Plan


7)
Able to resolve an issue on the first call


8)
Processes transactions accurately


9)
Treats our participants as valued customers


10)
OVERALL SATISFACTION - Phone Services










Level of Satisfaction - Participant Services - part B










Participant Print Materials (content, clarity, accuracy, timeliness)








1)
Participant statements


2)
Enrollment Kits


3)
Newsletters and other education materials


4)
Loan paperwork


5)
Withdrawal paperwork


6)
Distribution paperwork


7)
Confirmations


8)
OVERALL SATISFACTION - Print Materials







In Person Services








1)
Availability of group workshops


2)
Accuracy of content of group workshops


3)
Range and clarity of content for group workshops


4)
Willingness to answer questions in group workshops


5)
OVERALL SATISFACTION - Group Workshops


6)
Availability of one-on-one meetings


7)
Accuracy of content of one-on-one meetings


8)
Range and clarity of content for one-on-one meetings


9)
Willingness to answer questions for one-on-one meetings


10)
OVERALL SATISFACTION - one-on-one meetings










Level of Satisfaction - Plan Services - Part A










Plan Sponsor Portal








1)
Availability


2)
Speed


3)
Ease of use


4)
Range of information


5)
Quality of information


6)
Range of available reports


7)
Ad hoc reporting tool


8)
Range of educational materials


9)
Clarity of educational materials


10)
OVERALL SATISFACTION - Sponsor Portal







Plan Sponsor Reporting








1)
Accuracy


2)
Timeliness


3)
Quantity


4)
Clarity


5)
OVERALL SATISFACTION - Sponsor Reports










Level of Satisfaction - Plan Services - Part B










Administrative Transactions


(flexibility, accuracy, timeliness, responsiveness)








1)
Enrolling employees in the Plan


2)
Processing employee contributions


3)
Processing employer contributions


4)
Processing loans, withdrawals, distributions, etc.


5)
Producing participant statements


6)
Producing compliance testing


7)
Producing year-end 5500 and audit package


8)
OVERALL SATISFACTION - Plan Administration







Plan Sponsor Education


(Services such as webinars, newsletters, and legislative updates)








1)
Accuracy


2)
Timeliness


3)
Quantity


4)
Clarity


5)
OVERALL SATISFACTION - Educational Services









Plan-Driven Services







TABLE 11





Plan-Driven Services - For each service indicate the following:



















Service Provided (Yes/No)?




Who provides service (Recordkeeper, TPA, or Other Service




Provider)?



1)
Processes Fund Additions/Deletions



2)
Conducts ADP/ACP Tests



3)
Makes Plan Design Changes



4)
Processes Mergers/Acquisition/Divestitures



5)
Provides Plan Sponsor Reports



6)
Offers Company Stock Trustee Services



7)
Offers Company Stock Custody Services



8)
Calculates Company Stock NAVs



9)
Calculates Company Performance



10)
Calculates Company Stock Proxy Labels



11)
Processes Payroll Files



12)
Conducts 415 Test



13)
Offers Online Access for Plan Sponsor to Trust System



14)
Provides Video



15)
Provides Trustee Services



16)
Provides Custodial Services



17)
Processes Signature-Ready 5500



18)
Conducts Annual Audit



19)
Provides Plan Document



20)
Makes Plan Amendments



21)
Sends Determination Letters



22)
Provides Summary Plan Description



23)
Calculates Employer Profit-Sharing Contribution



24)
Calculates Employer Matching Contribution



25)
Manages Start Up or Conversion



26)
Conducts Top-Heavy Testing



27)
Conducts 410(b) Testing



28)
Conducts 401(a)4 Testing



29)
Provides NAV Calculation Services










Participant-Driven Administration







TABLE 12





Participant-Driven Administration - For each service, indicate the


following:



















Service Provided (Yes/No)?




Who provides service (Recordkeeper, TPA, or Other Service




Provider)?



1)
Originates Loans



2)
Provides Participant Recordkeeping - Actives



3)
Provides Loan Maintenance (payments, payoffs, defaults)



4)
Provides Participant Recordkeeping - Terminateds



5)
Monitors 402(g) Limit on Contributions



6)
Monitors 414(s) Limit on Compensation



7)
Processes QDROs



8)
Processes Distributions



9)
Processes In-Service Withdrawals



10)
Approves Hardship Withdrawals



11)
Processes 401(a)(9) Minimum Distributions



12)
Processes Hardship Withdrawals



13)
Processes Rollovers



14)
Processes Investment Transfers



15)
Approves QDROs



16)
Mails Enrollment Kit



18)
Maintains Beneficiary Files










Participant-Driven Communications







TABLE 13





Participant-Driven Communications - For each service, indicate the


following (where applicable):

















Service Provided (Yes/No)?



Who provides service (Recordkeeper, TPA, or Other Service



Provider)?



Is the service paperless?



Is the service customized? (Standard = Designed for general use,



Branded = includes Plan sponsor branding/logo, and Customized =



completely customized for the Plan Sponsor)


1)
Delivers Quarterly Statements - Paper Based


2)
Delivers Quarterly Statements - Electronic


3)
Delivers Investment Advice


4)
Creates Paper-Based Message Campaigns


5)
Provides Internet Services


6)
Provides 800-Number Services


7)
Delivers Newsletter


8)
Produces Enrollment Kits


9)
Creates Electronic Message Campaigns


10)
Provides Personal Access Codes


11)
Sends Prospectuses


12)
Delivers On-Demand Statements


13)
Provides Self-Directed Account Materials


14)
Holds Enrollment Meeting/Group Meetings


15)
Holds One-on-One Meetings


16)
Provides Investment Transfer Confirmations


17)
Produces Annual Benefit Statements


18)
Produces Quick Enrollment Card









Service Volumes







TABLE 14







Service Volumes - Plan-Driven Services










Provide the requested number of each item. For activity based


items, provide the totals for the 12 months ending the


“as of” date of this submission.







Plan Processing








1)
Number of participants processed due to startup Plans or Plan



conversions


2)
Number of participants added or subtracted due to merger/



acquisition/divestiture activity


3)
Number of payroll files processed


4)
Number of fund changes processed


5)
Number of Plan design changes processed







Calculations Performed








6)
Number of employer matching Contribution calculations performed


7)
Number of employer profit sharing contribution calculations



performed


8)
Number of employer other contribution calculations performed







Compliance








9)
Number of ADP/ACP Tests


10)
Number of 415 Tests


11)
Number of Top-Heavy Tests Conducted


12)
Number of 410(b) Tests Conducted


13)
Number of 401(a)4 Tests Conducted







Other








14)
Number of Plan Sponsor Reports Provided










Service Volumes - Participant-Driven Services










Provide the requested number of each item. For activity based


items, provide the totals for the 12 months ending the “as of”


date of this submission.







Administration


Participant Counts








1)
Number of active Plan participants with an account balance


2)
Number of new Plan participants ADDED to Plan during period


3)
Number of terminated Plan participants with an account balance


4)
Number of Plan participants TERMINATED during period


5)
Number of newly eligible employees processed







Distributions Approval and Processing








6)
Number of new loans processed


7)
Number of outstanding loans maintained


8)
Number of in service withdrawals processed


9)
Number of hardship approvals processed


10)
Number of hardship withdrawals processed


11)
Number of Other Distributions processed


12)
Number of QDRO approvals processed


13)
Number of QDROs processed


14)
Number of Minimum Required Distributions processed







Other Processing








15)
Number of investment transfers processed


16)
Number of rollovers into the Plan processed


17)
Number of beneficiary files maintained


18)
Number of enrollment kits mailed







Communications


Statements








1)
Number of Paper Statements Sent to Each Participant


2)
Number of Electronic Statements Sent to Each Participant


3)
Number of on demand statements accessed







Web and VRU Use








4)
Number of participant website sessions


5)
Number of participant phone calls taken


6)
Number of Newsletters Provided







Print Materials & Video








7)
Number of prospectuses sent


8)
Number of Self Directed Account materials packages sent


9)
Number of quick enroll cards sent


10)
Number of Videos Provided







Face to Face








11)
Number of Enrollment/Group meetings


12)
Number of One-on-One Meetings







Campaigns








13)
Number of Paper-Based Message Campaigns Provided


14)
Number of Electronic Message Campaigns Provided









Accuracy and Timeliness Standards







TABLE 15





Accuracy and Timeliness Standards







Accuracy Standards (fill in percent)





Contributions









 1) Payroll Tapes accuracy



 2) Employer Match Calculations accuracy



 3) Profit Sharing Calculations accuracy



 4) Required Contribution Calculations accuracy







Distribution Processing









 5) Loan accuracy



 6) In-Service Withdrawals accuracy



 7) Hardship Withdrawals accuracy



 8) Termination Paperwork accuracy



 9) QDROs accuracy



10) MRDs accuracy







Compliance









11) ADP/ACP testing accuracy



12) 415 testing accuracy



13) 5500 accuracy







Communications









14) Newsletter accuracy



15) Paper Based Campaigns accuracy



16) Quarterly Statement accuracy



17) Annual Statements accuracy











Timeliness Standards - Participant-Driven Services


(fill in # of days unless otherwise noted)





Eligibility Information









 1) Quick Enrollment Card Sent



 2) Enrollment Kits Sent



 3) Personal Access Codes Sent







Investment Information









 4) Prospectuses Sent



 5) Self Directed Account Materials Sent



 6) Newsletter Sent



 7) Investment Transfer Confirmations Sent







Loans









 8) New Loan Paperwork Processed



 9) Loan Coupon Books Sent



10) Loan Default Letters Sent



11) Loan Payoff Letters Sent



12) Loan Check Sent







In-Service Withdrawals









13) In-Service Withdrawal Paperwork Processed



14) In-Service Withdrawals Check Processed







Hardship Withdrawals









15) Hardship Withdrawal Paperwork Processed



16) Hardship Withdrawals Check Sent







Termination Distributions









17) Termination Paperwork Processed



18) Terminations Check Sent







Other Processing









19) QDROs Processed



20) MRDs Processed







Statements









21) On Demand Statements Availability Post Quarter End



22) Quarterly Statements Sent



23) Annual Statements Sent







800-Number Service Standards (hours or # of seconds)









24) 800-Number Hours Per Week Available



25) 800 Number average speed to Rep in seconds











Timeliness Standards - Plan Driven Services (fill in # of days)





Contributions









 1) Processing of Payroll Tapes



 2) Employer Match Calculations



 3) Profit Sharing Calculations



 4) Required Contribution Calculations







Investment Changes









 5) Adding/Changing a Fund







Compliance









 6) ADP/ACP Testing



 7) 415 Testing



 8) Top-Heavy Testing



 9) 410(b) Testing



10) 401(a)4 Testing



11) Proxy Voting on Mutual Funds



12) Signature-ready 5500







Other Communications









13) Electronic Messaging Campaigns Developed



14) Paper-Based Messaging Campaigns Developed



15) Group Meetings







Plan Events









16) Merger/Acquisitions/Divestiture Processing










Once all of the relevant information is entered into database 90 about a given Plan, system 10 may then process a request for a given report 118, as selected by User 16. For example, if User 16 selects Report 1 from within web portal 20, system 10 then may generate Report 1 for any given Plan that User 16 is associated with.
One exemplary report 118 is shown in FIGS. 4a through 4z, which is entitled “Fees, Plan Design and Participant Success Measures.” This report includes a Table of Contents, such as shown in FIG. 4b, an analysis of how the Benchmark Group was determined in comparison to the given Plan, as shown in FIG. 4c, as well as a number of individual reports and/or report summaries relating to Plan fees, Plan design, and “Participant Success Measures,” as shown in FIGS. 4e-4x. In FIG. 4y, there is shown an exemplary glossary page to assist User 16 in understanding certain terms used throughout the report. In FIG. 4z, there is shown an exemplary disclosure page providing, for example, various disclaimers and information concerning report 118. As discussed below, FIG. 4z may be customized in its content. If desired, the disclosure page shown in FIG. 4z may also be excluded from report 118.
In the exemplary report shown in FIG. 4c, there is illustrated various sort factors that system 10 considered when determining the Benchmark Group of Plans corresponding to the given Plan from which all subsequent comparisons are made and illustrated throughout the report. As shown in Column (1) of Table 1 of FIG. 4c, system 10 considered nine sort factors as being most relevant to arrive at the Benchmark Group of 576 similar Plans filtered from a database of hundreds of thousands of Plans.
As illustrated in Column (2) of Table 1 on FIG. 4c, the Plan being compared to the Benchmark Group of Plans is identified as having $54.86 million in Plan assets, 1,085 Plan Participants, was last reviewed in 2006, has “manufacturing” as the industry of the Plan's Sponsor, is a 401(k) Plan, uses automatic enrollment into the Plan for new hires, has a 3% maximum employer matching contribution, has 9% of Plan assets in index investment funds, and has 15% of Plan assets in managed accounts.
As shown in Column (3) of Table 1 of FIG. 4c, system 10 determined the Benchmark Group of Plans to be all Plans from database 90 that had Plan assets of between $50 million and $100 million and between 1,000 and 1,500 participants, were each reviewed within the last three (3) years, 100% of the Benchmark Group of Plans are in manufacturing, 100% of the Benchmark Group of Plans are 401(k) Plans, 100% of the Benchmark Group of Plans use auto enrollment for new hires, each of the Benchmark Group of Plans have as the maximum matching contribution somewhere between 2% to 3%, the Benchmark Group of Plans all have between 1% to 10% of their Plan assets in index funds, and each of the Benchmark Group of Plans have between 10% to 20% of Plan assets in managed accounts.
Table 2 of FIG. 4c illustrates what percent of the Benchmark Group use a particular Service Provider type, as well as the given Plan's specific Service Providers by provider type. For example, as shown in Column (2) of Table 2, 100% of the Benchmark Group of Plans uses a Recordkeeper as a Service Provider, 51% use an Advisor/Consultant, 28% use a Third Party Administrator, and 27% of the Benchmark Group of Plans employs other Service Providers.
FIG. d illustrates another embodiment of the report page shown in FIG. 4c. For example, FIG. 4d shows a different set of sort factors that system 10 considered when determining the Benchmark Group of Plans corresponding to the given Plan from which all subsequent comparisons may be made and illustrated throughout the report. As shown in Column (1) of Table 1 of FIG. 4d, system 10 considered nine sort factors as being most relevant to arrive at the Benchmark Group of 41 similar Plans, as illustrated in this example, that were filtered from a database of hundreds of thousands of Plans. Column (1) of FIG. 4d further shows that the Sort Factors for this embodiment includes a Yes/No answer (Table 1 Column (2)) to the question of whether the Benchmark Group of Plans include employer match, as opposed to the embodiment shown in FIG. 4c which attempts to quantify a Maximum Employer Matching Contribution. In this embodiment, 80% of the Benchmark Group of Plans has an Employer Matching component to the Plan (Table 1-Column (3)).
FIG. 4e illustrates an exemplary “Plan Fees Summary” page of Report 1, which provides an overall summary of the Plan's fees as compared to the fees charged to the Benchmark Group of Plans. Column (2) of Table 1 of FIG. 4e illustrates the fees charged to a given Plan by source of those fees. In the exemplary embodiment of Table 1, investment fees totaled $268,493, which represents 72% of the total fee outlay for the Plan as shown at the bottom of Column (3). Table 1, Column (4) refers User 16 to a detail page “A-2” of Report 1 for a breakdown of all of the Plan's investment fees. In this embodiment, detail page “A-2” is shown in FIG. 4l of Report 1.
FIG. 4l, for example, shows a number of core investment funds as shown in Row (1), a number of automatically diversified funds as shown in Row (2) of Table 1, and a pair of other types of funds of the Plan, shown in Row (3) of Table 1.
Column (2) of Table 1 of FIG. 4l illustrates the percentage of the Benchmark Group of Plans that held the corresponding category of asset as shown in Column (1) of Table 1. For example, in Row (a), Column (2) of Table 1, 89% of the Benchmark Group of Plans held a “stable value” asset category of funds.
Column (3) of Table 1 of FIG. 4l illustrates the total expense, by percent and by Service Provider, charged to the Plan for each category of investment. Column (4) of Table 1 of FIG. 4l shows the combined Service Provider fee per investment category.
Adjacent to Column (4) in Table 1 is Column (5), which shows a percentage breakdown of the total expense charged to the Benchmark Group of Plans for each of the category of investments. System 10, for example, resolves the Benchmark Group of Plan's total expense by percent per fund category, where the Benchmark Group of Plans are ranked in groupings or “bins” labeled “Low,” “Below Average,” “Average,” “Above Average,” and “High,” each representing the 5th percentile, 25th percentile, 50th percentile—median, 75th percentile, and 95th percentile, respectively, of the Benchmark Group of Plans, as also shown in, for example, Table 1 of FIG. 4b. Consequently, the use of the term “Average,” whether alone or with any other term, is a descriptive use rather than a mathematical use of the term.
In Column (6) of Table 1 of FIG. 4l, system 10 computes the difference between the total investment fees of Column (4) and the average fees charged to the Benchmark Group per investment category. As shown in Column (6), Row (a) of Table 1, the total investment fee of 0.30% (as shown in Column (4), Row (a)), is 0.08% more expensive than the average Benchmark Group fees of 0.22%. Consequently, by examining Column (6), User 16 may quickly determine how many investments in the Plan exceed the median of the Benchmark Group of Plans and by how much.
FIG. 4m illustrates another embodiment of the report page shown in FIG. 4l. For example, Table 1 of FIG. 4m includes Column (1), which indicates the total credit, by percent, credited to the Plan's participants for each category of investment. In addition, Table 1 of FIG. 4m includes Column (2), which indicates the total expense, by percent, charged to the Plan as a credit to the government for each category of investment.
Returning to FIG. 4e, there is shown in Table 2 an exemplary distribution of total investment fees in dollars and in percent, by Service Provider. As shown in Column (4) of Table 2 of FIG. 4e, User 16 is referred to various pages in the appendix of Report 1 to review the breakdown of the fees for each Service Provider. For example, to obtain the breakdown of the total investment fees for Recordkeepers of the Plan as compared to the Benchmark Group of Plans, Table 2 refers User 16 to detail page “A-3,” which is illustrated in Report 1 as FIG. 4n. 
Referring to Table 1 of FIG. 4n, there is illustrated various types of Recordkeeper fees, by percent, by type of fee per investment fund, as shown in Column (1). Column (2) of Table 1 is the calculated total investment fee for the Recordkeeper per fund.
Column (3) of Table 1 represents the distribution, using the same “bins” identified in FIG. 4l, of Recordkeeper fees, by percent, of the Benchmark Group of Plans. Column (4) represents the difference in percent from the respective values in Column (2), representing the total fees for Recordkeepers per investment fund, relative to the average Recordkeeper fees of the Benchmark Group of Plans. Column (5) of Table 1 shows the percentage of Plans in the Benchmark Group of Plans that pay fees to the Recordkeeper. By illustrating the data as shown in Table 1, User 16 or other fiduciary to the Plan may quickly determine what needs to be changed or improved about the Plan.
FIG. 4o illustrates another embodiment of the report page shown in FIG. 4n. For example, Table 1 of FIG. 4o includes other types of Recordkeeper fees, by percent, by type of fee per investment fund, as shown in Column (1). For example, Table 1 shows credits paid to ERISA, credits paid to Participants, and payments made to Advisors, in percent, per investment fund.
Returning to FIG. 4e, Table 3 shows a graphical representation of how the total fees of the Plan compare to the Benchmark Group, in percent. For example, Table 3 shows that the total Plan fees of 0.64% is slightly below the average of the Benchmark Group, which is 0.67%. Table 3, therefore, shows how numerical data (via the numerical amount positioned over respective bars in the histogram) can be blended together with an easily discernable qualitative ranking of the Plan (via the relative magnitude of each graphical bar and the lateral position of the Plan on the histogram) relative to the Benchmark Group of Plans.
Table 4 of FIG. 4e illustrates in words how the Plan fees compare to the Benchmark Group of Plans. For example, Table 4 illustrates that this particular Plan's fees are 0.03% less per year than the average in the Benchmark Group, which is equal to about $16,458 less per year, which is $15 less per participant per year.
FIG. 4f summarizes the fees paid to the Plan's primary Service Providers, such as Record keepers, Advisor/Consultants, and Investment Managers. As before, the summary tables for each Service Provider shown in FIG. 4f refer User 16 to various detail pages in the appendix for a further breakdown of these fees.
FIG. 4g provides a high-level comparison of the investment expenses for this Plan as compared to the Benchmark Group of Plans. While investment expenses may be the largest component of Plan costs, these costs should be considered in conjunction with the performance of the investments in the Plan. While not shown in FIG. 4g, investment performance relative to Plan costs may be another comparison that can be made. In any event, Table 1 of FIG. 4g indicates that, in this exemplary case, nine funds in the Plan are well below average in the Benchmark Group of Plans in terms of the total expense ratio, two funds are below average, four funds are above average, and six funds are well above average. Thus, in this example, roughly half of the funds in the Plan are average or below in terms of total expense ratios, while the other half of the funds that are offered in the Plan are above average in total expense ratios.
Table 2 of FIG. 4g shows a graphical summary how this particular Plan's total investment expense compares to the Benchmark Group of Plans, which in this case, are 0.02% less than average.
FIG. 4h reflects the Plan's relative complexity, which may be an indicator of how the Plan's design compares to other Plan designs of the Benchmark Group's.
Table 1 of FIG. 4h is arranged in a series of five columns and a number of rows, where the rows reflect various Plan provisions, which may be assigned a maximum cost income factor. Column (2) indicates whether this particular Plan has the Plan provisions and type shown in Column (1). Column (3) represents the percentage of Plans in the Benchmark Group of Plans with a “Yes” for the specific Plan provision. Column (4) indicates the maximum cost impact factor from 1 to 5 that system 10 assigns to each respective Plan provision identified in Column (1). A maximum cost impact factor expresses how much difficulty a certain Plan provision adds to a Plan's design. For example, a Plan with a higher number of investment options compared to the industry norm may receive a maximum cost impact factor of 5, whereas a Plan with a relatively low number of investment options may receive only 1 point, thereby indicating that the cost should be less to administer that particular Plan. Column (5) shows this particular Plan's cost impact factor for each of the respective Plan provisions identified in Column (1).
Tables 2 and 3 show a graphical summary and a written summary, respectively, of how the Plan compares in complexity to the Benchmark Group of Plans. Table 2 of FIG. 4h, for example, in this exemplary case, indicates that the Benchmark Group of Plans range from a low of 20 points to a high of 50 points with an average of 35 points in terms of the Plan complexity. In addition, Table 2 shows that the Plan being compared to the Benchmark Group of Plans had 43 points, which is above the Benchmark Group average.
FIG. 4i reflects 10 recognized industry statistics for various “Participant Success Measures,” as shown in Table 1. In Column (2) of Table 1 of FIG. 4i, system 10 determined the percentage of Plans in the Benchmark Group of Plans that have each of the respective “Participant Success Measures” shown in Column (1). For example, in Column (2) Row (a), 100 percent of the Benchmark Group of Plans reports that they measure the plan's current participation rate against the available pool of plan participants. Column (3) of Table 1 shows how this particular Plan compares to the Benchmark Group of Plans with respect to each of the “Participant Success Measures” identified in Column (1). For example, Column (3) Row (a) indicates that this particular Plan has an 81 percent participation rate, which is 21 percent higher than the average participation rate of 60%, as shown in Column (4) Row (a) and Column (5) Row (a).
Table 2 of FIG. 4i shows what percentage of Plans in the Benchmark Group of Plans have particular numbers of “Participant Success Measures.” For example, in Column (1) of Table 2 of FIG. 4i, 4 percent of the Benchmark Group of Plans reported “zero” as the number of “Participant Success Measures” that were average or better. Column (2) indicates that 33 percent of the Benchmark Group of Plans had at least three out of the ten “Participant Success Measures” that were average or better. By contrast, Column (3) shows that this particular Plan ranks average or better in five out of the ten categories of “Participant Success Measures” listed in Column (1), as indicated by the highlighted cell in Column (3).
Table 3 of FIG. 4i summarizes the “Participant Success Measures” for easy review by User 16. In this case, this particular Plan ranks average or better in five out of ten categories. In addition, 77 percent of the Plans in the Benchmark Group rank lower than this particular Plan, and 9 percent of Plans rank above this particular Plan.
FIG. 4k is a summary of the investment offering of this particular Plan and how it compares to the Benchmark Group of Plans. FIG. 4k may be helpful to Plan Sponsors and their Advisors in comparing the scope of their investment offerings relative to other, comparable Plans. FIG. 4k may also provide additional details on investment program fees.
FIGS. 4p, 4r, and 4t provide comparison detail information regarding investment fees paid to Advisor/Consultants, to Investment Managers, and to Others, respectively. The arrangement and content of the tables in FIGS. 4p, 4r, and 4t are similar to that shown and discussed above for FIG. 4n. 
Referring to FIGS. 4q and 4s, there is illustrated another embodiment of the report pages shown in FIGS. 4p and 4r, respectively. For example, Table 1 of FIG. 4q reduces the number of columns in the section entitled, “Disclosure of Advisor/Consultant Fee in percent” to just the total fee paid to the Advisor/Consultant, by percent, per investment fund (Column (1)). Similarly, Table 1 of FIG. 4s reduces the number of columns in the section entitled, “Disclosure of Investment Manager Fee in percent” to just the total fee paid to the Investment Manager, by percent, per investment fund (Column (1)). In this way, User 16 may more quickly ascertain the Advisor/Consultant Fee and the Investment Manager Fee for the Plan, particularly if User 16 is less interested in knowing the individual components that make up these fees.
FIG. 4u shows the percentage of Participants using Managed Accounts in this Plan as compared to the Benchmark Group of Plans, as shown in Table 1. In addition, Table 1 shows the percentage of assets held in Managed Accounts in this Plan as well as how it compares to the Benchmark Group of Plans. The percentage of Participants using Managed Accounts and the percentage of assets held in Managed Accounts for the Benchmark Group of Plans is shown in a distribution of qualitatively labeled groupings or “bins.”
Table 2 of FIG. 4u shows the fee disclosure and an indication of reasonableness of those fees for the Plan's Managed Accounts relative to the Benchmark Group of Plans. The total fees paid for managed accounts is shown in Column (1) Row (a), and in this exemplary case, this particular Plan has $49,374 paid for Managed Accounts. Fifty percent of the total fees paid for Managed Accounts are paid to the Recordkeeper or their affiliates, and the other fifty percent of these fees are paid to the Managed Account Provider identified in Table 1. This compares to 51 percent and 49 percent respectively for the Benchmark Group average, as shown in Column (2), Rows (b) and (c).
FIG. 4v is arranged similarly to FIG. 4u, and represents information for “Self Directed Accounts” relative to the Benchmark Group of Plans.
FIG. 4w provides a detailed analysis of the Other fees being paid by Participants, the Plan, or the Plan sponsor. For example, Table 1 of FIG. 4w shows various Participant Paid fees in Column (1), and the percentage of Plans in the Benchmark Group that pay each of these respective fees, as shown in Column (2). Column (3) shows this exemplary Plan's unit cost for each of the Participant-paid fees in Column (1) as compared to the Benchmark Group unit cost, as shown in each of the columns in item 4. Column (5) shows the difference between this particular Plan's unit cost and the Benchmark Group average unit cost for each of the Participant-paid fees identified in Column (1).
FIG. 4x is a summary of various responses from the Benchmark Group of Plans to basic ERISA “Spending Account” questions. For example, in Table 1 of FIG. 4x, 12 percent of the Benchmark Group of Plans reported that they do have an ERISA spending account. Table 2 shows the Benchmark Group's responses to a question of “What are the most common expenses paid from ERISA spending accounts?,” while Table 3 shows the Benchmark Group's response to the question of, “If a remainder exists at year end, how is it disbursed?”
In summary, Report 1 may include a number of individualized reports that either summarize or provide detail to any number of aspects of a Defined Contribution Plan as well as how that Defined Contribution Plan compares to a Benchmark Group of Plans that system 10 determines according to criteria relating to a selected group of “sort factors.” In addition, the Benchmark Group may be represented by groupings or “bins” labeled “High,” “Above Average,” “Average,” “Below Average” and “Low,” representing the 95th percentile, 75th percentile, 50th percentile—median, 25th percentile, and 5th percentile, respectively, of the Benchmark Group of Plans, as also shown in, for example, Table 1 of FIG. 4b. Consequently, the use of the term “Average” in any report, whether alone or with any other term, is a descriptive use rather than a mathematical use of the term. Various reports may also present comparison data between a given Plan and a Benchmark Group of Plans using both or either qualitative measures and quantitative measures and which may further be summarized in a way that enables User 16 to quickly and easily ascertain the Plans' relative position on any given measurement or aspect.
Taking FIG. 4g as a representative example, Table 3 shows a detailed, numerical comparison of the total expense ratio of the Plan relative to the Benchmark Group of Plans, and percent. Although a User 16 may want to have at their disposal the various data represented in Columns (1) and (2), reflecting the Plan's total expense ratio and the difference of the Plan's total expense ratio relative to the average of the Benchmark Group, respectively, User 16 may instead want to merely refer to either Tables 1 or 2 of FIG. 4g, which summarize the story told in Table 3. Table 1, for example, visually represents how many of the particular funds are well below average in expenses, below average in expense, above average in expenses or well above average in expenses to help User 16 to form a quick opinion as to the position of the Plan relative to the Benchmark Group of Plans.
Similarly, Table 2 graphically and numerically shows how the Plan's total investment expense compares to the Benchmark Group, where color coding and/or shading may help to show that the fees of the Plan are 0.02 percent less than the average of the Benchmark Group of Plans. In addition, Table 2 shows how the Plan qualitatively compares to the Benchmark Group due to the Plan's relative placement on the histogram. Table 2 also shows the magnitude of the differences between the Plan and the Benchmark Group of Plans, and how the 0.49 percent magnitude of the Plan compares to the Benchmark Group range of 0.40 percent to 0.61 percent.
As indicated above, each of reports 118 numbers 1, 2, or 3 may be preprogrammed and selected for delivery or viewing by User 16. In addition, each of the various “reports” or “charts” within reports 118 may also be individually selected by User 16 via, for example, web portal 20. Consequently, User 16 may cause system 10 to build any report 118 comprising any number of reports, summaries, charts, and the like, as may be selected or requested by User 16. Although not shown, an “Exception Report,” which can form a separate report 118 or be part of one of the pre-programmed reports 1, 2 or 3 identified in Table 1 above, can also be generated by system 10 to summarize, for example, the top five strengths of the Plan and the top five weaknesses of the Plan as compared to the Benchmark Group of Plans. In this way, User 16 may quickly identify which aspects of the Plan need no further attention as well as those aspects that may need prompt attention to correct identified deficiencies.
“Trending” is another area that may be useful to User 16. For example, while each of reports 118 numbers 1, 2, and 3 comprise snapshots of a given Plan against a Benchmark Group of Plans, it may also be important to show, for example, how the Plan's services measure over time. System 10 may generate a “Trend Report,” which may compare any measurable aspect of a Plan to, for example, one or more prior years or prior reports, and which may project a trend going forward. In one embodiment, a “Trend Report” may comprise information regarding the participation rate of a Plan or for a Benchmark Group of Plans for the years 2007, 2008, and 2009. The “Trend Report” may also include a projection as to what may be expected for 2010. For example, if the Plan Participant participation rate for either the Plan or the Benchmark Group of Plans was 68% in 2007, 70% in 2008, and 72% in 2009, a “Trend Report” may be able to project that the participation rate will be 74% for 2010.
Turning now to FIG. 5a-FIG. 5q, there is shown another exemplary report 118 entitled, “Sponsor and Advisor Provided Services” comprising “Basic Plan Information,” “Sponsor Fiduciary Support,” “Advisor Provided Services,” and “Satisfaction—Recordkeeper Services.” These categories are shown in Table 1. The layout of the report shown in FIGS. 5a-5q is similar to that shown in FIGS. 4a-4z, except as may be driven by the specific Data Category that is being compared to the Benchmark Group of Plans or the manner in which data is presented. In addition, color coding and/or shading, as described above, may be used in various ways to enable a single column of data, for example, to carry additional meaning.
Referring to FIG. 5j, there is shown a summary of the “Additional Advisor/Consultant Services” provided to the Plan as compared to the Benchmark Group of Plans. Among the tables shown in FIG. 5j, there is also shown Table 1, which can output “free form” data that the Advisor/Consultant inputs into database 90. For example, if the Advisor/Consultant provides additional services that are not otherwise covered by any of the pre-prepared questions during input of Plan data 25, then system 10 may be programmed to include “free form” fields in one or more web pages of web portal 20 to allow the Advisor/Consultant to enter information of their own choosing about additional services that they provide to the Plan. The output of such “free form” fields may be reflected in Table 1 of FIG. 5j. 
Referring to FIGS. 5k-5m, there is shown an exemplary summary of the “Advisor/Consultant Services” provided to the Plan as compared to the Benchmark Group of Plans. Column (1) of Table 1 on FIGS. 5k-5l, for example, quickly identifies to User 16 the types of services that the Plan receives from the Advisor/Consultant. Column (2) of Table 1 of FIGS. 5k-5l shows what percentage of the Benchmark Group of Plans also receive the itemized list of services to enable User 16 to quickly compare the services it receives against those of the Benchmark Group of Plans. In addition, Column (3) of Table 1 of FIGS. 5k-5l shows a comparison of the fee, if paid, that the Advisor/Consultant receives for providing the itemized list of services shown in Table 1. FIG. 5m is an exemplary summary of additional services that an Advisor/Consultant may provide that are not otherwise identified on FIGS. 5k-5l. 
Referring to FIG. 5o, there is shown the qualitative results of the satisfaction survey that the Plan Sponsor completed or that the Advisor/Consultant completed on behalf of the Plan Sponsor. In particular, FIG. 5o shows the relative satisfaction by the Plan Sponsor of the Recordkeeper service team. In one exemplary response to the question, “What is the overall assessment of the service team?,” the Plan Sponsor reported that the service team “added value” as shown in Table 1. In response to the question, “Does the service team's work product meet the Plan's needs?,” the Plan Sponsor responded that the service team's product was “satisfactory,” as indicated in Table 2 of FIG. 5o. Although the tables in FIG. 5o show a qualitative measure of a Plan Sponsor's satisfaction with the Recordkeeper's service team performance, quantitative measures can also be used, such as through the use of a quantitative rating system (e.g., rating each question on a scale of 1 to 5, or 1 to 10, for example). In an alternative embodiment, a blend of qualitative and quantitative measures is used. In another embodiment, only quantitative measures are used.
FIGS. 5d-5i show various “Fiduciary Oversight and Best Practice Support” reports. Every Plan has a named fiduciary whose job is to make sure the Plan complies with all laws. The exemplary reports illustrated in FIGS. 5d-5i may help raise awareness of issues to minimize fiduciary liability as well as improve the performance of the Plan.
Table 1 of FIG. 5e, for example, shows whether the Plan's Service Providers provide the services identified in Column (1). Taking this one step further, a Plan fiduciary may want to know how well a particular service is actually being provided to the Plan. Thus, qualitative and quantitative measures may be employed to ascertain not only the existence of a particular service to a Plan, but how well that service is being performed by the Service Provider as compared to the Benchmark Group of Plans.
Another exemplary report as shown is FIGS. 6a-FIG. 6j entitled, “Plan and Participant Services.” This report, identified in Table 1 above, may include comparisons of the Plan against the Benchmark Group of Plans with respect to “Plan-Driven Services,” “Participant-driven Administration,” and “Participant-driven Communications,” as shown on FIGS. 6e-FIG. 6g, respectively. Examples of “Plan-driven Services” include Plan design changes, mergers and acquisitions, and ADP/ACP testing. Examples of “Participant-driven Administration Services” include loans, withdrawals, and QDRO's. Examples of “Participant-driven Communications” include quarterly statements and 800 number customer support.
On FIG. 6d, there are shown three summary tables for each of these three types of Plan services. Table 1 of FIG. 6d shows how the Plan's “Plan-driven Services” compares to the Benchmark Group, which for this particular Plan, exceeds the benchmark average of 24,000 points by 3,457 points. “Points” (or “score”) is determined by system 10 by multiplying the number of transactions for each service (called “volumes”) by the degree of difficulty to complete that work (called “difficulty factor”). For example, if 26 payrolls are processed in a Plan year with each payroll having a complexity factor of 50, the service's “score” for payroll processing would be 13,000 points. Or, if only 5 percent of Plan Participants took a loan and each loan had a complexity factor of 75, the service's “score” for loans would be 3.75. Thus, adding the individual scores for all services allows for a comparison of the amount of work being done for the Plan as compared to the Benchmark Group of Plans.
FIG. 6e is a detail breakdown of the “Plan-driven Services” that are summarized in Table 1 of FIG. 6d. Column (1) of Table 1 of FIG. 6e shows a list of various “Plan-driven Services” to be compared. Column (2) of Table 1 is entitled “Scope of Service” and shows not only the percentage of Plans in the Benchmark Group receiving each service, as identified in Column (1), but also which of the Column (1) services this particular Plan has, as shown by the highlighted cells in Column (2). Thus, in this particular example, the Plan has 24 of the 29 “Plan driven Services” that are listed in Column (1). Column (3) is entitled “Service Volumes” and represents this Plan's “service volume” as compared to the Benchmark Group average. Taking the cell at Column (3), Row (a), for example, Table 1 shows that this Plan processes two fund additions/deletions compared to the Benchmark Group average, which processes only one fund addition/deletion.
Like Column (2), Column (4) also shows two pieces of information: which of the “Plan-driven Services” shown in Column (1) that this Plan Service Provider (i.e., Recordkeeper) provides, and the percentage of the Benchmark Group of Plans that are supported by the provider. Column (5) reflects the same information as Column (4) except that all of the “Other Providers” are grouped together in a Column called “Other.” As can be seen from the shaded cells of Columns (4) and (5) of Table 1, the total number of cells must equal the total number of cells shaded in Column (2). Column (6) identifies the name of the “Other” Service Provider adjacent the shaded cells in Column (5).
Column (7) shows the “difficulty factor” that system 10 assigned to each of the Recordkeeper services listed in Column (1). Column (8) shows the Plan's “service volumes” taken from Column (3) for each of the services shown in Column (1) for the Recordkeeper. Column (9) totals the Recordkeeper “Plan-driven Service Score,” which is the result of multiplying the items in Column (7) the items in Column (8). At the bottom of Column (9) there is shown the sum total of the Column (9) scores for this Plan (at Row (b)). Just below this total, at Row (c), Column (9), is an identification of the “Low,” “Average,” and “High” “service scores” for the Benchmark Group of Plans, representing the 5th percentile, the 50th percentile—median, and 95th percentile rankings, respectively, of the Benchmark Group of Plans, for easy comparison of this Plan's score to the Benchmark Group. As before, the use of the term “Average,” whether alone or with any other term, is a descriptive use rather than a mathematical use of the term.
A “Timeliness Standards” report is shown in FIG. 6i. This page compares 41 services of the Plan and reports how well the Plan performs on these measures as compared to the Benchmark Group of Plans. For example, one measure of a Plan's timeliness may be how quickly the Plan executes requests for on-demand Plan Statements. If the Plan executes such requests within one day, and the Benchmark Group of Plan executes such requests within 3 days, such information may be shown in the report of FIG. 6i, such as in Columns (1) and (2) of Row (a) of Table 1. Taking this one step further, system 10 may compare actual Plan metrics against what the Plan's Service Providers agreed to provide to help inform a Plan Sponsor, for example, as to whether the Plan actually receives each of the Plan services within the timeliness guidelines as agreed to by each of the Plan's Service Providers. Thus, if a Plan Participant is supposed to receive an On-Demand Plan Statement within one day of their request, such a report would compare actual delivery statistics of On-Demand Plan Statements against the Plan's design to verify that the Plan is actually receiving the service(s) that it pays for.
As described above, User 16 may select one or more pre-styled reports 118 or select one or more options for customizing a user-customizable report 118. In this way, elements of one or more of Reports 1, 2, and 3 may therefore be combined into a pre-styled report 118 or user-selectable for creating a user-customizable report 118.
In one embodiment, a report template may be created for use or distribution by, for example, a Broker/Dealer who may be associated with, for example, dozens of Advisor/Consultants, where each of the Advisor/Consultants may receive the same basic report type(s) but where such reports are tailored to the particular Advisor/Consultant to whom the report(s) is directed. To create the template, the Broker/Dealer may define customizable aspects of the template to identify a particular Advisor/Consultant to whom a particular report is directed as well as to identify the Broker/Dealer, for example, from whom the report may be distributed. Such customizable aspects may include, for example, customizable fields on the cover page of the report (e.g., FIG. 4a) and the disclosure page of the report (e.g., FIG. 4z). The customizable fields may include, for example, fields 220, 230, as shown on FIG. 4a. Field 220 may comprise, for example, the name or logo of the Broker/Dealer, while field 230 may comprise, for example, the name of the Advisor/Consultant associated with that Broker/Dealer. Similarly, FIG. 4z comprising an exemplary disclosure page of a report shows field 240, which may comprise the name of the Broker/Dealer. By associating, for example, each Advisor/Consultant corresponding to a Broker/Dealer, system 10 may automatically create personalized reports of the same report type that are customized with one or more customized elements described above on one or more pages of the report as well as the report data summarized therein.
In addition, system 10 may dynamically include or exclude entire sections of a given report or, alternatively, various elements of a given report (such as one or more columns or rows on a given sheet) depending on the components of the particular Plan. For example, if the Plan does not have a managed account, then system 10 may automatically exclude any pages or any data elements that pertain to managed accounts.
To access system 10 through web portal 20, a login/user ID and password may be entered into User ID field 167 and password field 168, as shown in a representative login screen 166. Login screen 166 may be a web page on a website operated by, for example, an operator or administrator of database 90 and system 10.
If User 16 does not have a login ID or password, system 10 may require that User 16 register to obtain access to system 10. To register, User 16 may select button 169, as shown in FIG. 7, to cause a “User Registration” web page 171 to activate, as shown in FIG. 8. To complete the registration process, User 16 may enter all of the information as requested in various fields on the page, including an email address and a password selected by User 16 to be used for future access to system 10. User 16 may cancel the registration process by selecting the “cancel” button 172. Alternatively, if User 16 is satisfied with the entries on “User Registration” web page 171, User 16 may continue by selecting “Done” button 173.
Upon successful registration or logging into the system using a previously registered login ID and password, system 10 then may display a “Welcome” screen 175 to User 16, as shown in FIG. 9. As shown in FIG. 9, “Welcome” screen 175 may include several icons, that when selected by User 16, may activate preprogrammed functionality in system 10. As shown in FIG. 9, these icons may include an “Add Plan” icon 176, an “Add Sponsor” icon 177, an “Edit Plan” icon 178, and a “Dashboard” icon 179. If User 16 selects “Add Plan” icon 176, system 10 then may activate software comprising Plan bean 130 of middleware tier 120, and may cause the display of an “Add a Plan” screen 181 to User 16, as shown in FIG. 10. The “Add a Plan” screen 181 may be used to enter any kind of Defined Contribution Plan data into database 90. As shown on FIG. 10, the “Add a Plan” screen 181 may include a number of drop-down boxes for selecting one out of a number of pre-programmed choices to ensure uniformity of data in database 90.
Data entered in this page may be stored temporarily in the memory allocated to Plan bean 130. In addition, the software of Plan bean 130 and middleware tier 120 may be programmed to auto-complete certain predetermined fields as User 16 begins to type characters in these fields. For example, the beginning three characters of a Plan Sponsor's name may trigger Plan bean 130 to either populate the remaining fields with a Plan Sponsor's information or may present User 16 with choices for Plan Sponsor names that the three characters match 1—database 90. To do this, software Plan bean 130 may activate a lookup table connected to database 90 to retrieve and populate multiple fields on the fly.
Additional assistance is provided to User 16 for many, if not all, of the data entry fields of system 10. For example, as shown in FIG. 10, icon 182, if selected, may activate software to call up and display a “Guide to Survey Questions and Data Elements,” which may be a valuable online resource for User 16 to understand what each particular field is requesting to be input. A representative “Guide” is shown in FIGS. 11a-11j. The software of system 10 may further be configured to “jump” to the precise location in the “guide” that relates to the particular field in question. For example, a user selecting help icon 182 may be shown the appropriate “guide” page that relates to the “Add a Plan” screen 181, and specifically, to “Sponsor Name” 182 shown in FIG. 11a. Likewise, for example, a user selecting help icon 183 relating to the field “Recordkeeper” on “Add a Plan” page 181 of FIG. 10 may be taken directly to the information relating to “Recordkeeper” 183, as shown in FIG. 11a. 
To navigate between or among various screens of system 10, User 16 may be presented with “Go Back” button 185, “Cancel” button 186, “Add Another Sponsor” button 187, “Continue” button 188, and “Add more plans with this Sponsor” button 189, as shown in FIG. 10. In addition, various screens may include a “delete” button 184, as is shown in FIG. 10, to enable a Plan Sponsor or Recordkeeper, for example, to delete information concerning a particular Plan from database 90.
If User 16 selects “Add more plans with this Sponsor” button 189, software of Plan bean 130 of system 10 may cause a clean “Add a Plan” screen 181 to display thereby allowing entry of data about another Plan for the same Plan Sponsor. Any data entered into screen 181 will be stored on database 90 upon selection of “Add more plans with this Sponsor” button 189.
If User 16 selects “Continue” button 188, software of Plan bean 130 of system 10 may cause a “Dashboard” screen 190 to be displayed, as shown in FIGS. 12a-12b. “Dashboard” screen 190 may display a concise listing of all of the prior Plans previously entered, and Plans that are in the process of being entered, into database 90, as well as various options selected by User 16. For example, Column (1) shows a list of Plan Sponsors that have been entered into database 90 or are currently being entered or in the process of being entered. Column (2) shows a list of Plan names, Column (3) shows a list of the assets in those Plans, Column (4) shows the name of the Recordkeeper for each respective Plan, Column (5) shows the type of report that the user has selected to receive, if at all. Column (6) of FIGS. 12a-12b shows the type of method for entering data for each respective Plan (either, for example, “self” or “Recordkeeper/TPA”) as selected by User 16. Column (7) shows the current status of entry of Plan data. Column (8) shows the next scheduled report date as may be currently scheduled in system 10.
As detailed above, User 16 may select one or more of reports 118 numbers 1, 2, or 3, or all of them, or any portion thereof. If more than one Plan is shown on a particular “Dashboard” screen 190, as is illustrated in FIGS. 12-12b, User 16 may select or deselect which Plans to “benchmark” (i.e., compare to the Benchmark Group of Plans that is uniquely tailored to each individual Plan). In one embodiment, system 10 defaults to benchmarking all of the Plans shown in a given “Dashboard” screen 190, allowing User 16 to deselect those Plans that it does not want to benchmark. In another embodiment, system 10 defaults to benchmarking none of the Plans shown in a given “Dashboard” screen 190, allowing User 16 to select those Plans that it wants to benchmark.
To proceed with entering specific Plan data, User 16 may then select button 191 to cause system 10 to show a “Choose Plan Data Entry Method” screen 194, as shown in FIG. 13. On this particular screen, User 16 may be presented with two options 195, 196 where the selection of one or the other may cause system 10 to show different screens to User 16 for further data entry. For example, if User 16 selects option 195, system 10 may then initiate the display of a screen that requests entry of the Recordkeeper/TPA that User 16 wants to send a request to, to have them enter the respective Plan data. On the other hand, if User 16 selects option 196, then system 10 may then cause “Dashboard” screen 190 to show. At this point, User 16 may be shown a hyperlink called “Edit Plan Data” under “Plan Data Status,” which when selected, causes the “Edit Plan Data—Basic Information” screen 199 to display, as shown in FIG. 14a-14b. 
If User 16 elects to have the Recordkeeper/TPA enter data about a Plan into system 10, then system 10 sends an email to the identified Recordkeeper/TPA containing a hyperlink to system 10. When the Recordkeeper/TPA selects the hyperlink in the body of the email, system 10 recognizes the connection as being a semi-authenticated user and displays a partially pre-populated version of “Welcome” screen 175 to the Recordkeeper/TPA.
If User 16 is a Plan Sponsor, for example, and elects to self-enter Plan data, User 16 may be given the opportunity at the end of entering all of the Plan data to request that someone else review the data they entered. System 10 may then send an email, as described above, to the requested person to review the Plan data. In this way, a Recordkeeper/TPA, for example, may have dual capability—to respond to a request from a Plan Sponsor or to review data previously entered by someone else, such as a Plan Sponsor, and also to enter data if and when requested to do so.
As shown in FIG. 14a, the “Edit Plan Data” screen 199 may have a number of tabs shown near the top of the page, such as “Basic Information” 202, “Success Measures” 203, “Design” 204, “Investments” 205, “Fees” 206, “Managed Account” 207, and “Self Directed Account” 208. Selecting any one of these tabs may cause system 10 to activate the respective data entry screens that relate to the selected tab. In addition, the number and type of tabs that are displayed on the “Edit Plan Data” screen 199 may be dependant on the type of report that is selected in Column (5) of FIG. 12a. For example, if the “Fees, Plan Design, and Participant Success Measures” report is selected in the menu option of Column (5) in FIG. 12a, system 10 may cause to be displayed each of the tabs 202-208 as shown on 14a. However, if User 16 selects any other report in Column (5) of FIG. 12a, more or less tabs 202-208 may be shown on “Edit Plan Data” screen 199 as are necessary to populate and generate the selected report. FIGS. 14a-14s reflect exemplary data input pages for inputting Plan data into system 10.
Once User 16 enters all of the data as is requested on each of the respective screens represented by 202-208, system 10 may then cause all of the data to be permanently stored on database 90.
During entry of data in any of FIGS. 14a-14s, system 10 through its middleware software may dynamically adjust subsequent data entry fields according to a user's response to a current data entry field. By dynamically adjusting subsequent fields, User 16 may not be burdened by having to populate unnecessary fields that do not apply to a given Plan based on the user's entry of data in a current field. To accomplish this, the middleware software of system 10 employs logic to toggle on and off subsequent fields based on responses to a current data entry field.
Taking, for example, question 4 under “Basic Plan Information” on “edit Plan data” screen 199 of FIG. 14a, (i.e. “Does the Plan provide employer matching contributions?”) User 16 selects option “No,” then middleware software of system 10 may immediately toggle off the data entry field under question 5, which is shown at the top of FIG. 14b. Conversely, if User 16 selects option “Yes —% match,” then middleware software of system 10 may immediately toggle on the data entry field underneath question 5, which is shown at the top of FIG. 14b and which asks, “If applicable, what is the maximum match the Plan provides as a percentage of employee pay?” Given the sheer volume of data the system 10 may request to be entered about any given Plan, dynamically toggling on and off fields as needed may dramatically improve the speed at which data is entered and stored into system 10.
FIGS. 15a-15j, FIGS. 16a-16w, and FIGS. 17a-17z reflect exemplary “Data Elements” for report numbers 1-3, respectively (See Table 1 above). Of course, depending on the structure and composition of the pre-programmed reports in system 10 the “Data Elements” shown in FIGS. 15, 16 and 17 may vary from what is shown in these figures.
Although the foregoing describes a system and method for evaluating Defined Contribution plans, it should be understood by one of ordinary skill in the art that the teachings of the present disclosure can be applied to evaluate Defined Benefit plans, and non-qualified retirement plans as well.
While specific embodiments of the invention have been described in detail, it will be appreciated by those skilled in the art that various modifications and alternatives to those details could be developed in light of the overall teachings of the disclosure. Accordingly, the particular invention disclosed is meant to be illustrative only and not limiting as to the scope of the invention which is to be given the full breadth of the appended claims and any equivalents thereof.

## Claims

1. A method of evaluating a retirement plan, comprising the steps of:
a. receiving data comprising fee data, cost data, and value data corresponding to a plurality of retirement plans;
b. storing the data in memory on at least one web-accessible computer;
c. determining from the fee data, via a processor associated with the at least one web-accessible computer, a fee component associated with each of the retirement plans and for each of a plurality of service providers associated with the retirement plans, comprising the steps of
identifying a plurality of fee sources and an amount of fees associated with each fee source for each of the service providers, and
for each of the service providers, normalizing the amount of fees associated with each fee source;

d. determining from the cost data via the processor a cost component associated with each of the retirement plans and for each service provider, comprising the steps of
determining a plurality of complexity metrics comprising a plan complexity score associated with a plurality of plan design features,
determining a plurality of plan and participant services metrics comprising an overall services score to quantify an amount of work associated with a plurality of plan-driven services and/or a plurality of participant-driven services provided to the retirement plans by each of the service providers,
determining a plurality of accuracy metrics to quantify an accuracy of execution of agreed upon services by each of the service providers associated with the retirement plans, and
determining a plurality of timeliness metrics to quantify a timeliness of execution of agreed upon services by each of the service providers associated with the retirement plans;

e. determining from the value data via the processor a value component associated with each of the retirement plans and for each service provider, comprising the steps of
determining a plurality of participant success metrics to quantify preparedness for retirement by participants of the retirement plans, and
determining a plurality of fiduciary support metrics to quantify an amount of fiduciary oversight and best practices support provided to the retirement plans by each of the service providers;

f. assembling, via the processor, a comparison group from among the plurality of retirement plans; and
g. providing, via the processor, a comparison of the fee component, the cost component, and the value component associated with a selected retirement plan to the fee component, cost component, and the value component associated with the comparison group.

2. The method of claim 1, wherein the service provider is a Recordkeeper.

3. The method of claim 1, wherein the service provider is a Third Party Administrator.

4. The method of claim 1, wherein the service provider is an Advisor.

5. The method of claim 1, wherein the service provider is an Investment Manager.

6. The method of claim 1, wherein the fee sources associated with a plan-driven fee component include investment fees.

7. The method of claim 1, wherein the fee sources associated with a plan-driven fee component include commissions.

8. The method of claim 1, wherein the fee sources associated with a plan-driven fee component include Finder's fees.

9. The method of claim 1, wherein the fee sources associated with a plan-driven fee component include Managed Account fees.

10. The method of claim 1, wherein the fee sources associated with a plan-driven fee component include Other fees.

11. The method of claim 1, wherein the fee sources associated with a plan-driven fee component include amounts credited to an ERISA spending account.

12. The method of claim 1, wherein normalizing the amount of fees associated with each fee source includes aggregating the amount of fees associated with a plan-driven fee component, and dividing the aggregated amount of fees by a total amount of assets associated with the selected retirement plan.

13. The method of claim 1, wherein normalizing the amount of fees associated with each fee source includes identifying a unit cost per occurrence for fee sources associated with a participant-driven component.

14. The method of claim 1, wherein the fee sources associated with a participant-driven fee component include annual per participant advice fees.

15. The method of claim 1, wherein the fee sources associated with a participant-driven fee component include loan origination fees per occurrence.

16. The method of claim 1, wherein the fee sources associated with a participant-driven fee component include annual loan maintenance fees.

17. The method of claim 1, wherein the fee sources associated with a participant-driven fee component include hardship approval fee per occurrence.

18. The method of claim 1, wherein the fee sources associated with a participant-driven fee component include QDRO approval fees per occurrence.

19. The method of claim 1, wherein the fee sources associated with a participant-driven fee component include QDRO processing fees per occurrence.

20. The method of claim 1, wherein the fee sources associated with a participant-driven fee component include periodic payment processing fees per occurrence.

21. The method of claim 1, wherein the fee sources associated with a participant-driven fee component include non-periodic payment processing fees per occurrence.

22. The method of claim 1, wherein determining the plurality of complexity metrics comprises the steps of
assigning a maximum cost impact factor to each of the plan design features, and
for each retirement plan by service provider, summing the maximum cost impact factor associated with each of the plan design features.

23. The method of claim 1, wherein the plan design features include plan eligibility features.

24. The method of claim 1, wherein the plan design features include employee contribution features.

25. The method of claim 1, wherein the plan design features include employer contribution features.

26. The method of claim 1, wherein the plan design features include investment features for participants.

27. The method of claim 1, wherein the plan design features include plan distribution features to participants.

28. The method of claim 1, wherein the overall service score is determined by
identifying a frequency with which each of a plurality of services associated with the plan-driven services and/or the participant-driven services is provided by each of the service providers,
assigning a difficulty factor to each of the services,
multiplying the difficulty factor by the frequency for each of the identified services to obtain a product, and
summing the product for each of the services.

29. The method of claim 1, wherein the plurality of participant success metrics includes a participant participation rate.

30. The method of claim 1, wherein the plurality of participant success metrics includes an average deferral percentage for non-highly compensated employees.

31. The method of claim 1, wherein the plurality of participant success metrics includes an average deferral percentage for highly compensated employees.

32. The method of claim 1, wherein the plurality of participant success metrics includes a percent of participants maximizing an employer matching feature.

33. The method of claim 1, wherein the plurality of participant success metrics includes a percent of plan assets in automatically diversified options.

34. The method of claim 1, wherein the plurality of participant success metrics includes a percent of eligible participants making a catch-up contribution.

35. The method of claim 1, wherein the plurality of participant success metrics includes a percent of participants using an auto-rebalance feature.

36. The method of claim 1, wherein the plurality of participant success metrics includes a percent of terminated participants electing not to take, withdraw or transfer assets.

37. The method of claim 1, wherein the plurality of participant success metrics includes a percent of participants with a personal retirement goal.

38. The method of claim 37, wherein the plurality of participant success metrics includes a percent of participants on track to achieve the personal retirement goal.

39. The method of claim 1, wherein the plurality of fiduciary support metrics includes supported plan design and administration features, plan communications features, plan investment features, plan fees features, and plan company stock features.

40. The method of claim 1, wherein the plurality of accuracy metrics includes a plurality of accuracy standards for executing the agreed upon services.

41. The method of claim 1, wherein the plurality of timeliness metrics includes a plurality of timeliness standards for executing the agreed upon services.

42. The method of claim 1, wherein assembling a comparison group includes
identifying characteristics from among the fee component, the cost component, and the value component associated with the selected retirement plan that correspond to a plurality of factors, and
identifying which of the plurality of retirement plans have characteristics that correspond to each of the factors and which are identical to the identified characteristics of the selected retirement plan or which correspond to a predefined range bracketing the identified characteristics of the selected retirement plan.

43. A method of evaluating a retirement plan, comprising the steps of:
a. receiving data corresponding to a plurality of retirement plans;
b. storing the data in memory on at least one web-accessible computer;
c. determining from the data, via a processor associated with the at least one web-accessible computer, a fee component associated with each of the retirement plans and for each of a plurality of service providers associated with the retirement plans, comprising the steps of
identifying a plurality of fee sources and an amount of fees associated with each fee source for each of the service providers, and
for each of the service providers, normalizing the amount of fees associated with each fee source;

d. determining from the data via the processor a cost component associated with each of the retirement plans and for each service provider, comprising the step of
determining a plurality of complexity metrics, a plurality of plan and participant services metrics, a plurality of accuracy metrics, and/or a plurality of timeliness metrics,

e. determining from the data via the processor a value component associated with each of the retirement plans and for each service provider, comprising the step of
determining a plurality of participant success metrics, and/or a plurality of fiduciary support metrics;

f. assembling, via the processor, a comparison group from among the plurality of retirement plans; and
g. providing, via the processor, a comparison of the fee component, the cost component, and the value component associated with a selected retirement plan to the fee component, cost component, and the value component associated with the comparison group.

44. A method of evaluating a retirement plan, comprising the steps of:
a. receiving data corresponding to a plurality of retirement plans;
b. storing the data in memory on at least one web-accessible computer;
c. determining from the data, via a processor associated with the at least one web-accessible computer, a fee component, a cost component, and a value component associated with each of the retirement plans and for each of a plurality of service providers associated with the retirement plans;
d. assembling, via the processor, a comparison group from among the plurality of retirement plans;
e. providing, via the processor, a comparison of the fee component, the cost component, and the value component associated with a selected retirement plan to the fee component, cost component, and the value component associated with the comparison group; and
f. delivering via the processor and via email to a user at least one report comprising the comparison.