Plan fiduciaries have a legal obligation to identify and monitor the plan’s fees and ensure that those fees are reasonable in light of the level and quality of services being provided. This is not as simple as it sounds. As services and investments have become bundled, it’s been increasingly difficult to identify who’s being paid for what and what is being paid for each service provided. As your Advisor, we will clearly identify and benchmark your plan’s fees on an ongoing basis, providing you with the information needed to identify any conflicts-of-interest and help ensure that your plan’s costs and value are properly aligned.
The Department of Labor has taken the position that fiduciaries who fail to know about and evaluate indirect fees (often referred to as revenue sharing payments) are in breach of their fiduciary responsibilities. Although revenue sharing is a common – and legal – practice which has long been used to pay all, or a significant portion, of the plan’s administrative costs, it can potentially have some serious, unintended consequences. We will provide the plan fiduciaries with a thorough analysis of your plan’s indirect fees and provide appropriate recommendations should there be any concerns or issues.
Our extensive experience in ascertaining, benchmarking and negotiating services and fees with a myriad of plan providers has provided us with valuable insight into the intricacies of pricing retirement plans. If it’s determined that your plan’s fees are not reasonable relative to the value and services being received, we have the expertise to identify and take appropriate action.