Not who you would expect. Brightscope, the experts in rating 401(k) plans put out a top 30 list each year. What are the Brightscope ratings based on?
“The BrightScope Rating was developed by BrightScope, Inc. with the help of leading academics and independent 401k fiduciaries. By analyzing more than 200 individual data points, the BrightScope Rating algorithm calculates a single numerical value for each 401k plan. The data points examined cover broad categories such as total plan cost, company generosity and investment menu quality.”
So, they care about three main factors: plan cost (think fees), company match and the quality of the investment choices offered.
So, who’s #1 on their list (drumroll please)?