Aggregate Level Cost Method

The aggregate level cost method represents a way to figure out the finances of a pension plan. It estimates the costs and benefits that will likely be associated with the plan over the course of its life.

Rather than making the calculations on a person-by-person basis, this process looks at all the people in the plan as a bundle. That's why it's called "aggregate level"; it's looking at things in aggregate, or in total, rather than piece by piece. The goal here is to try and ameliorate sketchy marketing claims that a fund is ‘super low cost' when, in reality, with all kinds of hidden fees...it ain't.