Why do some plans with only a Million dollars in assets have ratings, while other with 10 Million do not? Or some with 10 participants have ratings, while some with 100 participants do not.
Hi Zaac! Thanks for your question. I am the director for Spyglass customer support, one of BrightScope's 401k products, and frequently receive this question from our clients. BrightScope begins the rating process with some of the larger plans in our system then progresses to smaller plans that are under $10 Million. This may be why, in some cases, you are seeing unrated plans that are over 100 participants. The smaller plans, which are rated, may be due to specific requests we receive from advisors, participants, or plans sponsors. Also, plans that are under 100 participants do not file an audit, which contains many of the data points that are required for the BrightScope Rating.
Almost all plans in our system are ratable, and we are certainly willing to rate plans, so long as we have all the right documents to provide a rating (Form 5500 and audit report). If a plan does not file the required documents through the Department of Labor, we are able to rate plans using documents provided to us by participants, advisors, or plans sponsors. I hope this explanation helps.