Methodology
Data Collection
RetireGrader's plan analysis is built on DOL Form 5500 data, which every employer retirement plan with 100 or more participants must file annually with the Department of Labor. These filings are public records available through the EFAST2 system.
Plan Metrics
Total Assets
Reported as end-of-year total plan assets from the Form 5500 Schedule H or Schedule I. This includes all investment holdings at fair market value.
Expense Ratio
Calculated as total administrative expenses divided by total plan assets. This captures the direct cost of plan administration as a percentage of assets. Note: this may differ from individual fund expense ratios within the plan, which are reported separately.
Participation Rate
Active participants divided by total participants. This indicates what percentage of eligible employees are actively contributing to the plan.
Assets per Participant
Total plan assets divided by total participants. This provides a rough average balance, though actual individual balances vary significantly based on tenure, contribution rates, and investment choices.
Limitations
Form 5500 data has several important limitations:
- Filings typically lag 6 to 18 months behind current conditions
- Small plans (under 100 participants) file abbreviated forms with less detail
- Expense ratios reflect plan-level costs, not individual fund fees
- Assets per participant is an average that masks wide individual variation
- Plan mergers, acquisitions, and name changes can complicate year-over-year comparisons
Calculator Methodology
Our calculators use standard financial formulas with the following assumptions:
- Compound interest calculated monthly
- Constant rate of return (actual returns vary year to year)
- No adjustment for taxes unless specifically noted
- Social Security calculations based on published SSA reduction and credit formulas
Questions
For questions about our methodology, visit our contact page.