BrightScope is a financial software company that utilizes data to advise individuals and organizations on finances. The company annually releases a BrightScope plan with the goal of informing the public on retirement saving plans such as 401(k)s.
The Brightscope Defined Contribution Plan
Defined contribution plans are retirement plans that involve both an employee and the employer. Typically, both parties will set aside funds for an employee’s retirement plan. Generally, employees can choose how monetary contributions are applied and how much they will extract from their paychecks through tax deductions. An employer may also add to an employee’s retirement plan by matching the employee’s contributions.
A defined contribution plan’s value is determined by how much money has been applied to it and the success of investments. After an employee retires, they will receive an account balance which includes both employee and employer contributions, investments, and account fees.
The BrightScope Report
BrightScope and the Investment Company Institute (ICI) work together every year to gather and analyze data obtained from Form 5500 filings of private-sector defined contribution plans. The BrightScope and ICI report identifies trends within defined contribution plan fee data. More so, the BrightScope report seeks to analyze the number and type of retirement investment options available, the recordkeeping techniques used by defined contribution plans, and changes to defined contributions over time.