What plan benchmarks can and cannot show

Benchmarking places one plan beside others like it. Done carelessly it misleads.

Define the peer group

Plans should be compared by size and industry at least. A 40-person manufacturer and a 40-person law firm have different workforces and different participation patterns.

Say how old the data is

Public filings lag. A plan may have changed providers since the year shown. State the filing year whenever you present a figure.

Keep it a question

A benchmark opens a discussion about the plan. A recommendation comes only after a proper review.