ShareBuilder 401(k), which serves small businesses with a lineup primarily of exchange-traded funds, is offering pricing discounts for plans as they reach savings milestones of $1 million, $2 million and $5 million. For those businesses with plan assets of $5 million or more, the company doesn’t charge any administration fee and reduces asset management fees to less than 50 basis points.
“ShareBuilder 401(k)’s automatic pricing program is a welcome addition to the 401(k) industry and sets a high bar with its straightforward, transparent approach,” said Mike Alfred, CEO of BrightScope, which rates 401(k) plans. “We are excited to see a program that is acting in the best interest of the employer and the employees by automatically lowering fees. High fees can be a big drag on retirement savings over an employee’s lifetime.”