What is fee levelization?

A fee collection method that allows retirement plan fees (i.e., recordkeeping, participant services, compliance, etc.) to be shared equally among ALL participants no matter which investments are selected or revenue provided.

Resources to initiate fee levelization conversations with your clients … and win them over

Are you and your clients discussing retirement plan fees more frequently? That makes sense considering recent litigation and regulations have heightened awareness of fiduciary responsibility related to fees.1 So how do you take advantage of these opportunities and ensure you’re abiding by Department of Labor (DOL) fiduciary rules?

See how to help prevent fee litigation

How to explain fee levelization to clients:

More videos

Zero revenue sharing investment options

Zero revenue sharing through fee credits

Revenue sharing with fee adjustments

Follow these three steps to optimize your fee levelization process

Image for Step 1 | Principal

Understand the revenue sharing landscape and how to approach clients/prospects

What challenges are you most likely to hear from plan sponsors? What is the biggest driver for a plan sponsor to move to fee levelization? And what options are most clients using?

See highlights of the Fee Levelization — Advisor Insights Study
Image for Step 2 | Principal

Tee up the conversation

Then, educate your clients/prospects on retirement plan fee levelization options and considerations. It’s easy. Consider sharing the PowerPoint below to help kick off things. Or check out some of the other tools/resources below, including the "What's all the buzz about leveling retirement plan fees" white paper.

Image for Step 3 | Principal

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. See the template below to create a fee policy statement for all your clients.

Need some help with your conversations? Use these resources.

For you

Improving plan design case study

Case study: Opportunities to improve 401(k) plan design | Principal
How one advisor educated an employer about retirement plan fees/fee levelization and gained $15M in assets.
See the case study

More resources

Whitepaper: debunking misconceptions

Debunking four common fee levelization misconceptions. Thumbnail image of fee levelization white paper.
Separating fact from fiction: Debunking some common fee levelization misconceptions.
Get the whitepaper

Whitepaper

What's all the buzz about levelizing retirement plan fees? Thumbnail image of fee levelization white paper
Illustrates how each option works and outlines best practices for setting up a prudent process.
Take me to the white paper

Fee levelization blogger:
Andrew Miller

Andrew Miller
Follow Andy Miller’s blog to get the latest insights and commentary on fee levelization.
Go to Andy's blog

Case studies

Understanding fees case study

Case study: Opportunities to improve 401(k) plan design | Principal
How one advisor delivered quantifiable results — on fees/fee levelization — and earned his client’s trust.
See the case study

Conversations case study

Case study: thumbnail image of case study
Highlights how an advisor is teeing up fee levelization conversations with prospective clients … and winning their plans.
Show me the case study

Plan sponsor case study

Plan sponsor case study thumbnail image.
Learn how Access Intelligence levelized 401(k) plan administrative fees for its active 401(k) participants.
See the case study

Use with plan sponsors

Video: understanding fee levelization 

More plan sponsor resources

Comparison flier

You've got options comparison flier: thumbnail image of comparison flier
Show your clients the differences between some of the most common fee levelization options.
Go to the comparison flier

Plan sponsor case study

Plan sponsor case study cover image
Learn how Access Intelligence levelized 401(k) plan administrative fees for its active 401(k) participants.
See the case study

Plan sponsor presentation

Plan sponsor event presentation
This presentation can be used if you’re hosting a plan sponsor event.
Get the presentation

Sample fee policy statement

Sample fee policy statement: thumbnail image of sample fee policy statement
Use this template to create a fee policy statement for all your clients.
Go to the fee policy statement

Fee levelization blogger:
Andrew Miller

Andrew Miller
Follow Andy Miller’s blog to get the latest insights and commentary on fee levelization.
Go to Andy's blog

Use with participants

Participant presentation

Plans sponsor event presentation: thumbnail image of fee levelization presentation
This presentation can be used if you’re hosting a participant event.
Get the presentation
1. 401(k) Fee Litigation, Groom Law Group, September 2015.
This page and linked information is intended to be educational in nature and is not intended to be taken as a recommendation.
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