Broker Compensation

Transparency & Disclosure

Beckworth Beneficial gladly practices the principle of cost transparency concerning the compensation our agency receives in return for the consultative partnership and professional services we provide our clients. During a RFP introduction, we provide and detail future clients either a general or company specific explanation of Cost Transparency/Compensation Disclosure. During this meeting we cover a few different optional compensation arrangements, and their corresponding structures. Clients will understand that they should be informed of broker expenses before they have to ask or pour through Form 5500 for themselves. In addition, Section 202 of the Consolidated Appropriations Act, 2021 (“CAA”), requires entities, like Beckworth Beneficial, providing brokerage and consulting services (referred to collectively as “covered service providers”), including their affiliates and subcontractors, who expect to receive $1,000 or more in direct or indirect compensation, to provide plan fiduciaries with a written disclosure “reasonably in advance of” when the contract is entered, extended, or renewed. The effective date of the requirement was December 27, 2021 and applies to contracts executed on or after December 27, 2021. Overall, this required and long overdue five or so page disclosure should be presented to clients so they can easily detail the compensation their broker is receiving directly or indirectly.

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broker compensation disclosure informational MTG




Cost Transparency/ Compensation Disclosure With Beckworth Beneficial

Beckworth Beneficial gladly facilitates a variety of fee structures. Ordinarily, each form of compensation mentioned below would be disclosed on your Schedule A Form 5500 filing.