Defined Contribution (DC) Revenue Sharing Considerations

 

Mercer typically recommends that plan sponsors eliminate the use of revenue sharing within investment options to the extent possible. However, we know there will be circumstances where a plan sponsor may find it appropriate to retain revenue sharing.

 

In such cases, it is important that the plan sponsor consider issues of fee allocation, fee transparency and clarity for participants. Focusing on net of revenue sharing expense ratios and relying on revenue share re-credits does add more complexity that the plan sponsor should consider.

 

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Please see Important Notices for further information.