PlanPremier®-Bundled | American Funds

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PlanPremier®-Bundled

PlanPremier-Bundled is a full-service retirement plan solution that features open architecture1 and robust online services and features.
  • Available for 401(k), ERISA 403(b), profit-sharing and money purchase plans
  • Open architecture offering a choice of investments from well-known managers, including our well-regarded target date funds
  • A choice of 7 share classes for advisor compensation flexibility

Compensation Options to Support Your Level of Service

Choose from 4 share classes that offer asset-based compensation rates and 3 share classes that support fee-based advisors.

PlanPremier-Bundled provides a level payout across all investments. This makes tracking your compensation easier and, if you help sponsors choose investments, can help protect you from any appearance of bias or conflict of interest. Annual advisor compensation is included in the funds’ expense ratios; there are no additional investment-related fees.

Annual Asset-Based Advisor Compensation and Fund Expenses

Share Class

Advisor Compensation

Average Expense Ratio2

R-2

0.65%

1.46%

R-2E

0.50%

1.18%

R-3

0.35%

1.06%

R-4

0.25%3

0.74%

R-5E

Paid separately; set by fee-based advisor

0.55%

R-5

Paid separately; set by fee-based advisor

0.45%

R-6

Paid separately; set by fee-based advisor

0.37%

Advisor compensation is paid quarterly based on average daily assets held during the period. See Advisor Compensation for more details. Compensation guidelines may vary by firm; check with your home office for more information.

Share Class Availability

  • Class R-4, R-5E, R-5 and R-6 shares are available for plans of any size.
  • Class R-2, R-2E and R-3 share availability in PlanPremier is subject to the following plan size parameters:
Class R-2, R-2E and R-3 Share Availability Based on Plan Size

Plan Assets

Class R-2 Shares

Class R-2E and R-3 Shares

$3 million or less

Available for all plans

Available for all plans

$3 million to $5 million

Available only for plans with at least 50 participants

Available for all plans

$5 million to $10 million

Available only for plans with at least 100 participants

Available only for plans with at least 50 participants

$10 million to $20 million

Not available

Available only for plans with at least 100 participants

$20 million to $50 million

Not available

Available only for plans with at least 350 participants

$50 million or more

Not available

Available only for plans with at least 500 participants


Plan Pricing to Help You Win and Keep More Business

  • Straightforward pricing. Your clients will know exactly how much they’re paying and what they’re paying for.
  • Automatic repricing as assets grow. A portion of investment expenses, called plan credits, can be used to reduce or offset recordkeeping fees and other expenses.
  • No plan setup fees. There are no setup fees for new or existing plans. A document fee of $750 for takeover plans and $500 for startup plans applies if a sponsor uses the American Funds prototype plan document.
  • Flat-rate fees. Recordkeeping fees are based on the number of participants — not plan assets. This means recordkeeping costs will not increase just because plan assets grow. Use the following steps to estimate standard ongoing net recordkeeping fees.

Step
1

Determine the gross annual recordkeeping fee

Number of Participants With Account Balances

Annual Fees

1 to 25

$5,400 + $100 per participant

26 to 300

$5,400 + $60 per participant

301 to 500

$6,900 + $55 per participant

501 to 1,000

$9,650 + $50 per participant

1,001 or more

$11,650 + $48 per participant

Step
2

Calculate the annual plan credit

Share Class

Approximate Annual Credit4

R-2

0.45%

R-2E

0.30%

R-3

0.30%

R-4

0.10%5

R-5E

0.15%

R-5

0.05%

R-6

0.00%

Step
3

Subtract the plan credit from the gross recordkeeping fee

For example, the net recordkeeping fees for a plan with R-4 shares, 50 participants and $2.5 million in assets would be:

 $5,400 + ($60 x 50) – (0.10% x $2.5 million)  = $5,900 annual net recordkeeping fees

If plan credits are greater than the recordkeeping fee, the plan sponsor determines whether the net credit will be deposited back into participant accounts or into a plan holding account, which can be used to reduce other plan costs.


Investment Flexibility and Choice to Help Build a Diversified Plan Menu

PlanPremier-Bundled is an open architecture1 solution that offers investments from American Funds and other well-regarded managers. Plans can have up to 20 investments from the following choices:

A simple way for participants to choose a single, diversified fund with a portfolio that changes over time. Fund selection is based on the participant’s expected year of retirement. The series is a qualified default investment alternative and is counted as a single investment option.

Objective-based funds of funds, excluding tax-exempt funds, designed to help investors pursue their investment goals. The funds invest in a carefully selected mix of American Funds that is actively monitored to ensure holdings are aligned with fund objectives.

American Funds offers more than two dozen options and a wide range of investment objectives, excluding tax-exempt funds. We’re one of the nation’s largest mutual fund companies and have been helping investors pursue long-term investment success since 1931.


Resources, Tools and Services to Help Your Plans Run Smoothly

We offer support to help you and your clients manage the plan efficiently and effectively. Our support includes:

Fiduciary services: We make optional, flexible investment-related fiduciary services available through an independent third-party, Wilshire Associates Incorporated, at a reasonable rate.

Annual Fiduciary Services Costs

ERISA 3(21) Nondiscretionary

Investment Advisor

ERISA 3(38) Discretionary

Investment Manager

0.02% of plan assets

0.05% of plan assets

See Third-Party Fiduciary Services for more details.

Personalized Sales and Service

  • Prospecting and selling strategies
  • In-person assistance with finalist presentations
  • Targeted and powerful proposals
  • Responsive ongoing plan service, including investment and plan reviews

Business-Building Resources

  • Personalized value propositions
  • Help with designing plan investment menus
  • Hypothetical examples to address client concerns and encourage a long-term focus
  • Support with plan reviews and reports

On-Site and Web Participant Services

  • Resources and support to educate participants and guide them through enrollment
  • Online and print materials that help employees make sound investment decisions

Sample Websites

Advisor demonstration site — Discover all of the capabilities, reports and information that PartnerLink® provides to help you support your retirement plan business

Sponsor demonstration site — Explore the online features that will help plan sponsors manage their plans

Participant demonstration site — See the online tools and resources available to plan participants

 

What’s Next

Get a Preliminary Fee Quote

Use our Price-It Tool℠ to get an estimate of plan costs.

 


Compare Plan Fees and Expenses

Use our Retirement Plan Cost Comparison Tool to compare various retirement plan providers.

 


Order a Customized Proposal

Close the sale with an American Funds Retirement Plan Proposal.

 


Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing. 

1

Assumes the sponsor selects standard conversion to the American Funds Target Date Retirement Series. If not, American Funds would serve as a core manager and certain investment selection requirements would apply.

2

The average expense ratio for each share class is for all funded investments and is weighted, based on average daily net assets in the program as of 12/31/2016 (however, the weighted average expense ratio for the R-5E share class, which was first offered in PlanPremier on 5/1/2017, is based on program assets invested in the American Funds investment options in all share classes). Accordingly, more weight is given to funds with more assets.
 Average expense ratios are provided only as examples. The actual average expense ratio depends on the investments selected for the plan and participant allocations. Expense ratios reflect applicable fee waivers and expense reimbursements, without which expenses would be higher. Actual expense ratios, as reported in each fund’s prospectus at the time of publication, range from 0.25% to 2.66% for R-2; 0.53% to 2.08% for R-2E; 0.20% to 2.23% for R-3; 0.05% to 2.00% for R-4; 0.05% to 2.15% for R-5E; 0.05% to 1.99% for R-5; and 0.05% to 1.93% for R-6. 

3

Annual advisor compensation of 0.25% for Class R-4 shares applies to plans with plan proposals generated on or after January 27, 2017, unless otherwise agreed upon. Previously, annual advisor compensation was 0.20%.

4

Plan credits may vary by investment and plan. Plan credits are applied quarterly based on plan assets except those in self-directed brokerage accounts and other nonstandard investment options.

5

The approximate annual plan credit of 0.10% for Class R-4 shares applies to plans with plan proposals generated on or after February 1, 2017, unless otherwise agreed upon. Previously, the approximate annual plan credit was 0.15%.

Content contained herein is not intended to serve as impartial investment or fiduciary advice. The content has been developed by Capital Group, which receives fees for managing, distributing and/or servicing its investments.