When 401(k) fees are paid from plan assets, they reduce the investment returns of plan participants dollar-for-dollar. Over time, these losses can add up to hundreds of thousands of dollars when missed compound interest is considered. Due to the erosive effect of 401(k) fees, business owners have a fiduciary responsibility to pay only “reasonable” fees from plan assets.
If you’re a small business owner, you must “benchmark” your 401(k) fees to prove they are reasonable. This process usually involves comparing your 401(k) provider’s administration and investment fees to competing providers or industry averages on an apples-to-apples basis.
We can help you benchmark your plan. If you send us a copy of your 401(k) provider’s 408b-2 fee disclosure, we’ll provide you with a detailed a 401(k) fee report that shows…
Step 1
Your plan's "all-in" fee (administration & investment fees), including any hidden fees charged by your 401(k) provider
Step 2
Investment alternatives that can lower your cost without sacrificing performance
Step 3
How much you and other plan participants could save by switching to Fiduciary Retirement Services
Between commissions, hidden fees, and assets under management charges, you may be paying a fortune and not realizing it.
The first step to lowering your fees starts by comparing your plan.
The Department of Labor (DOL) recommends “Benchmarking Your Retirement Plan” every three years.
The Employment Retirement Income Security Act (ERISA) imposes high standards and provides guidance that fiduciaries gather the information necessary to assess the “reasonableness” of fees paid for services by both the company and the participants.
Benchmarking your retirement plan will help protect against possible fiduciary breaches, disgruntled employees, and legal hassles.
Benchmarking is not just about fiduciary protection. Plan design features and participant education have a huge impact on retirement savings for participants, contributing not only to the success or failure of their retirement readiness but also to the overall value of a company’s retirement plan as an employee recruitment and retention tool.
Regularly benchmarking your retirement plan is not only a DOL “best practice” – it is just good business.
An independent analysis will provide the plan sponsor an objective look at their present situation as well as propose multiple alternatives to consider.
Regular benchmarking of retirement plan costs and performance can go a long way to protect plan fiduciaries, reduce plan fees, and maintain the quality of service and advice participants deserve.
We reduce the costs, risks, and complexities in managing your company’s 401(k) plan.
How Does Your Current 401(k) Investment Advisor Compare?
Administrative Support
- Assist Sponsor in reviewing objectives & options available through the Plan
- Review Plan committee structure & administrative policies/procedures
- Recommend Plan participant education & communication policies under ERISA 404(c)
- Assist with development/maintenance of fiduciary audit file and document retention policies
- Deliver fiduciary training and education periodically or upon reasonable request
- Recommend procedures for responding to Plan participant requests
Service Provider Support
- Assist fiduciaries with a process to select, monitor, and replace service providers
- Assist fiduciaries with review of Covered Service Providers (“CSP”) and fee benchmarking
- Assist with preparation & review of Requests for Proposals and/or Information
- Coordinate & assist with CSP replacement and conversion
Investment Monitoring
- Periodic review of investment policy in the context of Plan objectives
- Assist the Plan committee with monitoring investment performance
- Education Plan committee members regarding replacement of DIA(s) and QDIA(s)
Participant Serivces
- Facilitate group enrollment meetings and coordinate investment education
- Assist Plan participants with financial wellness education, retirement planning and/or gap analysis