Fee levelization

What is fee levelization? 

A fee collection method that allows retirement plan fees (e.g. fees like recordkeeping, participant services, plan compliance, etc.) to be shared equally among ALL participants no matter which investments are selected or applicable revenue sharing provided.
Financial professionals educating their client on fee levelization options

Three steps to optimize your fee levelization process

Understand the revenue sharing landscape and how to approach clients/prospects
For a quick and easy way to explain fee levelization, Share How to equalize fees for retirement plans video with your plan sponsor.
Tee up the retirement plan conversation
Educate your clients/prospects on retirement plan fee levelization options and considerations. It’s easy. Consider sharing the resources below to help kick off things.

Understanding retirement plan fees and the options for paying them (PDF)

How the fees associated with your retirement plan are paid is important (PDF)

For financial professionals

What's all the buzz about levelizing retirement plan fees?

Options and best practices for setting up a prudent process.
Select an option and document it in a fee policy statement
A fee policy statement provides guidelines for your clients to help them monitor their retirement plan fees and expenses with service providers on a regular basis. By doing this, your clients can better manage their related fiduciary duties.

Fee policy statement template (DOC)

Resources to help with conversations on fee levelization

For financial professionals

Understanding fees case study (PDF)

A case study about how one financial professional delivered quantifiable results — on fees/fee levelization — and earned his client’s trust.

Win over plan sponsors by going deep on fee levelization (PDF)

A case study that highlights how a financial professional is teeing up fee levelization conversations with prospective clients … and winning their plans.
Use with plan sponsors and participants

These presentations can be used if you’re hosting an event.

For plan sponsors: What's all the buzz about fee levelization (PPT)

For participants: Behind the scenes of your organization's 401(k) (PPT)

Intended for financial professionals or plan sponsors.

 

The subject matter in this communication is educational only and provided with the understanding that Principal® is not rendering legal, accounting, investment advice or tax advice. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, investment or accounting obligations and requirements.
 

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