Thanks to a decline in recordkeeping costs, fees paid to manage retirement investment accounts have seen another drop this year, a survey of defined contribution plan sponsors has found.
Among the various components examined, median recordkeeping fees dropped the most compared to 2012, from $92 per plan to $80, according to the annual survey, which is conducted by independent investment consulting firm NEPC, based in Boston.
That's down from the $118 paid in 2006, the first year the survey was down.
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Overall fees, which include those paid to manage funds, dropped 2 cents to 53 cents per $100 invested.
The drop in recordkeeping fees, despite rising asset balances, started when new rules kicked in last year that were intended to promote transparency.
The fact that those fees fell 13 percent while the overall expense ratio remained almost flat year-over-year could mean that compensation is being shifted to other areas of the business, NEPC said.
Its survey found that the weighted average expense ratio was unchanged at 0.52 percent. The ratio depends largely on participant allocations and larger plans generally have lower ratios than do smaller ones because of economies of scale.
NEPC also found that, among the 95 plans surveyed, 37 percent offered Plan Expense Reimbursement Accounts, up from 29 percent last year. The accounts help defray expenses incurred by fees.
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