PlanPremier®

We offer investment flexibility and reliable ongoing service — at a competitive price

Capital Group, home of American Funds, offers two PlanPremier solutions, both of which are designed for larger retirement plans and provide access to a wide range of investments from many well-known investment managers.

PlanPremier-TPA

A third-party administrator (TPA) assists the plan sponsor with plan document design, compliance testing and Form 5500 preparation.

PlanPremier-Bundled

Capital Group assists the plan sponsor with plan document design, compliance testing, eligibility tracking and Form 5500 preparation.

Save your clients money

Our fixed-dollar approach to plan pricing is designed to be low-cost and transparent and to provide better overall value. Our investment and recordkeeping pricing can help you win and retain plans on the basis of our low all-in plan cost.

We also offer a variety of compensation options for fee-based and commission-based financial professionals and TPAs. Recapture accounts for financial professional and TPA compensation are available for share classes R-2, R-2E, R-3 and R-4.

A closer look at PlanPremier pricing

With a fixed-dollar approach to plan pricing, plan assets — depending on the share class — generate a plan credit that can offset plan expenses. Over time, net plan expenses, as a percentage of assets, will decrease as assets grow.

Step 1: Determine the annual recordkeeping fees based on the number of plan participants.

Step 2: Choose a share class depending on (1) how the plan sponsor wishes to pay for the recordkeeping fees (with or without expense ratio revenue generated by plan credits) and (2) what level of compensation is necessary to meet the plan’s service requirements. 

This chart displays how recordkeeping fees are determined. The first column shows the number of participants with account balances. The second and third columns display the base fee, dependent on whether it’s PlanPremier-TPA as shown in the second column, or PlanPremier-Bundled as shown in the third column. The fourth column lists the cost per participant. So, the base fee would be based on the total number of participants, plus another fee per participant. In this chart, the figures are as follows: For 1 to 25 participants with account balances, a base fee of $2,200 for PlanPremier-TPA or $5,400 for PlanPremier-Bundled plus $100 per participant would provide you with the total recordkeeping fee. For 26 to 300 participants with account balances, a base fee of $2,200 for PlanPremier-TPA or $5,400 for PlanPremier-Bundled plus $60 per participant would provide you with the total recordkeeping fee. For 301 to 500 participants with account balances, a base fee of $3,700 for PlanPremier-TPA or $6,900 for PlanPremier-Bundled plus $55 per participant would provide you with the total recordkeeping fee. For 501 to 1000 participants with account balances, a base fee of $6,200 for PlanPremier-TPA or $9,650 for PlanPremier-Bundled plus $50 per participant would provide you with the total recordkeeping fee. For 1,001 or more participants with account balances, a base fee of $8,200 for PlanPremier-TPA or $11,650 for PlanPremier-Bundled plus $48 per participant would provide you with the total recordkeeping fee.
  Plan credit and compensation are included in the expense ratio
  Approximate plan credit
(varies by fund)

TPA compensation
Share class Average expense ratio* PlanPremier-TPA PlanPremier-Bundled Financial professional compensation PlanPremier-TPA
R-2 1.45% 0.40% 0.45% 0.65% 0.05%
R-2E 1.15 0.25 0.30 0.50 0.05
R-3 1.01 0.25 0.30 0.35 0.05
R-4 0.70 0.05 0.10 0.25 0.05
R-5E 0.43 0.15 0.15 0.00 0.00
R-5 0.37 0.05 0.05 0.00 0.00
R-6 0.33 0.00 0.00 0.00 0.00
This example shows how plan credits can offset recordkeeping expenses if you have a PlanPremier-TPA solution with Class R-3 shares, $2.5 million plan assets, $150,000 estimated annual contributions and 50 participants with account balances. The gross annual recordkeeping fees would be $5,200. The Plan credit or expense offset, which is annual credit rate times plan assets, would be $6,625. The Plan credit or expense offset would be subtracted from the gross annual recordkeeping fee. In this example, those figures would be $5,200 minus $6,625, and would show that the net annual recordkeeping fee would be a credit of $1,425.

*Average expense ratios shown 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. The average expense ratio shown for each share class is for all funded investments and is weighted, based on average daily net assets in the program as of 12/31/2022. Accordingly, more weight is given to funds with more assets. Actual expense ratios, as reported in each fund's prospectus available at the time of publication, range from 0.89% to 3.46% for R-2; 0.32% to 2.08% for R-2E; 0.78% to 2.45% for R-3; 0.34% to 2.69% for R-4; 0.02% to 1.34% for R-5E; 0.02% to 1.60% for R-5; and 0.02% to 2.46% for R-6. 

PlanPremier–TPA – sample illustration

> Plan assets: $2.5 million
> Estimated annual contributions: $150,000
> Eligible employees: 50
> Participants with account balances: 50

  1. With PlanPremier–TPA, administration fees pay TPAs for day-to-day plan duties and for help keeping a plan in compliance. TPA fees are usually billed separately and may be charged to the plan. [Note: The $1,750 cited is only an example.]
  2. Gross plan administration expenses reflect the total recordkeeping, administration and trustee/custodial fees, before any plan credit, if applicable, is applied.
  3. The ($6,625) in this example represents a plan credit that comes from revenue in certain share classes, such as R-3. This enables net plan costs, as a percent of assets, to decrease as plan assets grow.
  4. With R-3, financial professional compensation (35 bps) comes from the investment expense ratio.
  5. The R-6 average expense ratio is lower than R-3, in this example, because it doesn’t include any revenue.
  6. Fee-based financial professional compensation is determined by the financial professional and paid separately.
  7. PlanPremier enables sponsors to pay plan expenses either through the plan or, if their objective is to reduce plan expenses participants pay, out-of-pocket.

PlanPremier plan credits can offset plan expenses

llustration showing how plan credits can offset plan expenses for American Funds PlanPremier-TPA. In this hypothetical example, after adding together the annual plan administration expenses, investment expenses and financial professional fee (for fee-based share classes), the first year cost for PlanPremier-TPA (R-3) is 1.03% or $27,355; the first year cost for PlanPremier-TPA (R-6) is 0.98% or $26,030.

† Credit rates may vary depending on a plan’s investment options. Reducing the compensation rate for share classes R-2 through R-4 will increase the plan credit for this illustration. In practice, the share class compensation will be directed to an unallocated plan account where it can be used to pay the plan’s financial professional, reasonable plan administration expenses, or allocated to participant accounts.

Build a stronger plan menu

With PlanPremier you can develop a diversified menu intended to improve retirement outcomes.

  • Start with the target date provider recommended most often by financial professionals.‡
  • Distinguish yourself by choosing the American Funds Target Date Retirement Series®, which leverages a distinct approach designed to promote better retirement investment outcomes.
  • Better still: Even though the American Funds Target Date Retirement Series is available on many other providers’ platforms, it may be less expensive in a Capital Group retirement plan solution.
  • Then build a diversified menu using an expansive choice of investments.
  • Choose from a wide range of more than 40 American Funds.
  • Access hundreds of funds from dozens of well-respected investment managers.§    

Learn more about our target date series and individual mutual funds:

American Funds Target Date Retirement Series

American Funds mutual funds

The American Funds Target Date Retirement Series and other highly regarded American Funds are also available on many other DC platforms#.

¶ Not all of the American Funds are available in our retirement plan solutions.

Multiple investment manager logos

§As of 12/31/2022. Available investment options will vary by retirement plan solution and share class.

**Schwab Asset ManagementTM is the dba name for Charles Schwab Investment Management, Inc. (CSIM).

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Other resources

Financial professional compensation
Look up compensation on different share classes.

Share class pricing and details
Get information on a wide choice of share and unit classes.

Related how-to guides

Identify the retirement plan solution that meets your clients’ needs
Find the right plan for a plan sponsor.

Expand your practice with retirement plans
Strategies to find good leads and new clients.

Compete with confidence

The true test of any long-term retirement plan solution is the level of service and support the provider offers to you, as the plan financial professional, your plan sponsor clients and their plan’s participants.

The PlanPremier online experience makes it easier for plan sponsors to manage their plans and for participants to prepare for their future.

Retirement plan solutions that can benefit you and your clients

If plan sponsors want help selecting and monitoring investments, Capital Group can accommodate 3(21) or 3(38) services from any independent third-party fiduciary services provider.

View third-party fiduciary services

What’s next

Order a proposal for PlanPremier using our Retirement Planalyzer®

‡ Source: Escalent, Cogent Syndicated, Retirement Plan Advisor TrendsTM, September 2022. Methodology: 538 respondents participated in a web survey conducted August 19-30, 2022. American Funds was selected most often by advisors (excluding registered investment advisors) in response to the question “Which investment manager do you recommend most often for target date funds?“ Capital Group has provided input on some of the questions to be included in Cogent surveys over time. 
†† This feature’s availability is dependent on information provided in the payroll file.
‡‡ A wide range of payroll providers are approved to work with Capital Group.

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.
Although the target date portfolios are managed for investors on a projected retirement date time frame, the allocation strategy does not guarantee that investors' retirement goals will be met. Investment professionals manage the portfolio, moving it from a more growth-oriented strategy to a more income-oriented focus as the target date gets closer. The target date is the year that corresponds roughly to the year in which an investor is assumed to retire and begin taking withdrawals. Investment professionals continue to manage each portfolio for approximately 30 years after it reaches its target date.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
Use of this website is intended for U.S. residents only. Use of this website and materials is also subject to approval by your home office.
Capital Client Group, Inc.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.