An easy target on a plan sponsor’s back is the allegation of unreasonable fees charged within the retirement plan. Allegations of unreasonable fees have dominated the headlines of ERISA litigation for years, and this trend will only continue to grow. How do plan sponsors protect themselves?
Retirement plan fee litigation dominates headlines
An easy target on a plan sponsor’s back is the allegation of unreasonable fees charged within the retirement plan. Allegations of unreasonable fees have dominated the headlines of ERISA litigation for years, and this trend will only continue to grow.
How do plan sponsors protect themselves? The courts do not suggest lowest costs as a safe haven. Instead, precedent points to the fiduciary’s duty to maintain a reasonable cost structure with evidence that oversight of participant fees occurs.
As a plan sponsor, you need to clearly identify the fees incurred by your retirement plan and demonstrate a prudent process for monitoring these fees. Through the following three-part Expert View feature, you’ll gain an understanding of the major cost components within your retirement plan, the options you have for paying those costs, and strategies for allocating costs to plan participants.
Part One: The “Big Three” Retirement Plan Fees
Part Two: How to Pay Retirement Plan Fees
Part Three: Plan Participant Cost Allocation Strategies
Access the complete Guide to Retirement Plan Fees.
