Dramatic Fee Savings for Multi-billion Dollar 401(k) Plan

Challenge:

Blue Prairie Group was retained by a large, billion dollar Client to reduce the Plan’s total cost structure by moving from an asset-based pricing model to a flat, per-participant fee model.

Results:

1.  Reduced total recordkeeping and trust and custody fees by 36%, leading to first year savings of $1,178,399.

2. Generated 5-year cumulative savings of $6.85 million.

3. Moved the incumbent recordkeeper’s pricing model from an asset-based fee to a flat, per participant fee, so as Plan assets increase, recordkeeping fees would not also increase.

4. Provided oversight of the transition team in transitioning the “old” fund lineup from a series of small-sized collective investment trusts to the “new” Plan lineup.

 Background:

BPG had been retained by the Client since 2008. The Plan Sponsor asked BPG to conduct an in-depth due diligent 401(k) recordkeeper search. Although the Client ultimately stayed with the incumbent recordkeeper, BPG was able to use the pricing information collected during the RFP process to successfully negotiate down the Plan’s total cost with dramatic results.