Labor & Employment Law

BrightScope's 401(K) ranking system now available

Brightscope has launched a 401(k) ranking system that appears to have a lot of promise. The Retirement Plan Blog described there system as follows:

The new BrightScope Rating? debuted today (see Press Release) at the 2009 Los Angeles Benefits Conference, co-sponsored by the Internal Revenue Service (IRS), the American Society of Pension Professionals & Actuaries (ASPPA) and the National Institute of Pension Administrators (NIPA).

What?s a BrightScope Rating?? It?s a quantitative 401(k) plan rating developed by BrightScope, Inc. in partnership with some of the country's top independent fiduciaries, finance professors, and 401(k) experts. BrightScope Ratings? take into account over 200 unique data inputs per plan and calculate a single numerical score to define 401k plan quality at the company level.

For example, BrightScope currently rates the 401(k) Plan for the Southwest Airlines Pilots as among the top plans within its respective peer group, as measured in terms of plan size, number of participants and employee demographics.

Hat Tip: Workplace Prof Blog

Mitchell H. Rubinstein

NYPPL Comments: BrightScope?s CEO, Mike Alfred, advises NYPPL that ?Currently we do not rate plans for non-profits, universities, and government entities. These plans are typically 401(a) or 403(b) plans. We have received an overwhelming amount of inquiries from people who would like more information about these plans. We are looking into it ? and may be able to offer these ratings in the near future.?

Full post as published by New York Public Personnel Law on February 24, 2009 (boomark / email).