Dalbar - CFO 401(k) Buyers Guide

The 401(k) Buyers Guide serves two main purposes for financial executives:

Assist in reviewing current provider by providing a context of what is available for other providers.
Narrow the selection of providers for plan sponsors considering a change or comparing costs and capabilities.

DALBAR has worked with CFO Magazine since 1996 to produce the annual 401(k) Buyers Guide. CFO and DALBAR have continued to change the content of the guide to remain current with the ever-changing 401(k) market.

The 2008 edition of the 401(k) Buyers Guide introduces Website ratings and fee disclosures and eliminates the investment only category.

Website ratings in the 2008 Guide reflect the growing importance of Web based services to plan sponsors and participants. See Website Rating Details.
Fee disclosures are introduced to the Guide since these will be required for annual reporting starting in 2009. See Are you aware of all hidden 401(k) fees?
The investment only category has become less relevant as most platforms have adopted an open architecture that is accessible to virtually any mutual fund.

The 401(k) Buyers Guide is open to all firms that offer recordkeeping services to 401(k) plans. Firms that are not listed are invited to contact Dalbar to ensure inclusion in next year’s edition.

The preparation of the Guide consists of the following steps:

Review prior year’s Guide to determine changes among providers, regulations, industry practices or other factors that should be incorporated.
Providers are invited to answer an extensive questionnaire.
Websites identified in the questionnaire are reviewed and a rating (1 to 10) developed based on the functions performed, usability, adaptability to user behavior, consistency and currency of information. See Website Rating Details.
Responses are reviewed and a “proof” created for each provider, noting any discrepancies. Providers are asked to review and correct entries in the “proof”.
Selected items from the Guide are printed in the April and May issues of the CFO Magazine. All items are maintained at www.CFO.com.