New 401(k) Program Rewards Best-Saving Small Businesses With Lowest Prices

As Customers Reach Specific Assets Levels, ShareBuilder 401k Automatically Drops in Cost and Fees

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Jan 21, 2010, 09:00 ET

SEATTLE, Jan. 21 /PRNewswire/ -- At a time when small businesses are searching for cost-effective ways to offer their workers invaluable benefits, one 401(k) provider is unveiling a new program that can keep employee satisfaction high and the price of retirement services low.

ShareBuilder 401k, a leading provider of 401(k) plans for small businesses, has launched automatic pricing discounts which reduce business administration costs and participant fees on plans as they reach and exceed specific savings milestones of $1 million, $2 million and $5 million.

"ShareBuilder 401k's automatic pricing program is a welcome addition to the 401(k) industry and sets a high bar with its straightforward, transparent approach," said Mike Alfred the CEO of BrightScope, an independent firm that rates the quality of 401(k) plans. "We are excited to see a program that is acting in the best interest of the employer and the employees by automatically lowering fees. High fees can be a big drag on retirement savings over an employee's lifetime – this program helps address that issue."

As an example, a business starting a ShareBuilder 401k plan with less than 15 employees pays $100 a month for administration. But once a plan reaches $1 and $2 million in assets that monthly fee drops to $65 and $35 per month respectively. When the plan tops $5 million in assets, that administration cost goes away altogether. The ShareBuilder 401k Automatic Pricing Discount program also lowers participant asset fees from 75 basis points for businesses with less than $1 million in assets to as low as 45 basis points for customers with assets exceeding $5 million. To view or download the complete pricing schedule, just visit www.sharebuilder401k.com where it is publicly available.

"For a small business that's launching its first 401(k) plan, ShareBuilder 401k stands out with great pricing that, over time, can get better and better," said Stuart Robertson, general manager of ShareBuilder 401k. "We believe that this program will help us attract more businesses as it differentiates our plans even more from other ones that small businesses may be considering."

Small businesses that already have a 401(k) plan exceeding $1 million in assets can also roll their assets into a ShareBuilder 401k plan and, from the very start, benefit from the new pricing. For those businesses with assets that exceed $5 million, ShareBuilder 401k eliminates all administration fees and reduces asset management fees to less than one-half of one percent.

"Automatically reducing administration costs is a great feature for any small business and will represent a significant savings for us," said Norm Stipp, director of finance for SH Worldwide, a 60 employee business in Seattle. "This is another great incentive for our employees to save and a more cost-effective way for us to continue providing a valuable benefit to our employees."

Unlike traditional 401(k) plans that rely primarily on mutual fund offerings, ShareBuilder 401k plans are comprised of exchange-traded funds (ETFs). As ShareBuilder 401k is not a fund provider, it takes an unbiased approach in the evaluation and selection of funds with a focus on low-expense investments from the leading ETF providers such as iShares, SPDR and PowerShares to create a great line-up from which participants can choose, including five model portfolios.

All ShareBuilder 401k products offer the latest features including auto-enrollment, auto-re-balancing, Roth, signature-ready 5500s and much more. The plans are typically priced significantly less to start up and administer than traditional providers. Additionally, each plan is fully-supported with access to 401(k) consultants, customer success managers, implementation specialists and customer care for each participant.

About ShareBuilder 401k

ShareBuilder 401k provides easy, affordable and smart 401(k) retirement plans for small businesses, ranging from the self-employed to those with 250 employees. ShareBuilder 401k is a leader in providing 100 percent index-based ETF investments (plus a money market) in 401(k) plans. ShareBuilder 401k offers a suite of on-demand services that make it simple for employers and employees to open and manage their retirement plans online at www.sharebuilder401k.com. ShareBuilder 401k plans provide market-efficient investments and model portfolios that make it easy for employees to select the smart investments to help them get on track to meet their retirement goals. Customers can also take advantage of ShareBuilder 401k Consultants, Customer Success Managers, and Customer Care Agents to receive assistance in choosing and managing their retirement benefits.

ShareBuilder Advisors, LLC, is a registered investment advisor and a subsidiary of ING DIRECT.