NEPC’s DC Plan Trends and Fee Survey data was recently featured in a Pensions & Investments article which covers the decline in managed accounts in retirement plans, citing concerns about provider benefits over participants and advocating for participant-aligned, subscription-based pricing models. View the full article on Pensions & Investments’ site here.
The number of employers offering managed accounts in their workplace retirement savings plans has shrunk, according to NEPC’s “Defined Contribution Plan Trends and Fee Survey” released March 4.
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“We believe managed account providers can and do construct efficient investment portfolios, but plan providers, as fiduciaries, should push for more improved outcomes for their plan participants through negotiating lower fees and seeking to better align the interests of the managed account providers with those of participants,” Mikaylee O’Connor, principal and head of defined contribution solutions at NEPC, said in the news release.
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“By implementing a lower-based fee for less engaged participants, providers can offer an entry-level option, while more engaged participants could access expanded investment options through tiered subscription offerings,” O’Connor said.
O’Connor proposed a single-digit base fee for less engaged participants and a series of subscriptions for additional services and/or investment exposures for individuals who engage with the accounts and want the additional features.
Click here to read the full article on the Pensions & Investment site.