The BPG Plan Health Smartcard™


We created a powerful diagnostic tool – the BPG Plan Health Smartcard™. It’s designed to give DC plan sponsors a holisitic overview of their plan expressed as a numerical score.  The methodology is based on two fundamental assumptions: that the purpose of an ERISA-sponsored retirement plan is to maximize the chance that participants will achieve retirement security and that a plan should be run in such a way as to minimize organizational risk and the personal liability associated with being a fiduciary to a plan.

The BPG Plan Health Smartcard™ looks at a plan from a total of 6 different dimensions: Participation, Total Contributions (both EE and ER), Asset Class Representation, Participant Diversification, Total Plan Costs and Fiduciary Governance. The first two – participation and total contributions – account for 60% of the score with the other elements accounting for forty percent.

In designing our Plan Health Smartcard ™, we’re trying to use relevant and easy-to access data points that are fundamentally objective in nature. And by creating a unique number for each plan at a specific point in time, we can then track a plan’s health index over time as well as make comparisons between plans of different sizes and across different industries.

Finally, we benchmark the plan’s score by comparing it against an “average” plan based on national normative data and against BPG’s client base. Our clients’ scores are divided into quartiles so they have a sense of how they score. Since most plans fall short of a perfect score, we also include high-level recommendations in order to facilitate a conversation with the sponsor about specific tactics to improve the plan.