Assessment Scoring Methodology & Important Disclosures

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How the Plan Effectiveness Score™ Is Calculated

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The 401(k) Plan Effectiveness Assessment is an educational tool designed to help plan sponsors identify potential opportunities to improve their retirement plans.

 

The assessment evaluates six areas of plan effectiveness using a 100-point scoring system:

Assessment Category                 Maximum Points

Participation & Enrollment                    20

Employee Savings                                   20

Employer Contribution Design             15

Retirement Readiness                            20

Investment & Participant Support       10

Plan Efficiency & Governance               15

Total                                                        100

 

Current Score: Points are assigned to responses based on predetermined scoring criteria. The current score represents the total points earned across the six categories.

Potential Score: The assessment identifies the five individual questions with the largest available point improvements and adds those points to the current score, subject to a maximum of 100 points.

Improvement Opportunity: The difference between the potential score and the current score.

 

The assessment uses standardized scoring criteria and does not independently verify the information entered by the user.

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The assessment is intended to identify plan-design and service considerations for further review and does not constitute a guarantee of plan performance, cost savings, participant outcomes or regulatory compliance. 

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