In today’s ever evolving regulatory environment, particularly with the adoption of 408(b)(2) and 401(a) requirements by the DOL, fee transparency and disclosures are becoming increasingly more onerous on plan sponsors.
ERISA requires plan sponsors to identify all “return-reducing” expenses and ensure these costs are reasonable. Not being able to determine the undisclosed or behind the scenes expenses violates this duty and certainly makes it practically impossible to determine if the fees are reasonable.
We are committed to providing complete fee disclosure and transparency so you, the plan sponsor, can quantify the total costs of the plan and determine their appropriateness. However, fee transparency is not enough. We provide clarity to the transparency so proper conclusions and necessary changes can be made.
We also create a Required Revenue Analysis illustrating the revenue necessary to run the plan at the administration level and how much the plan sponsor is paying (or overpaying). We then negotiate to have any excess payments rebated to the plan sponsor for plan level expenses such as plan audits or to the plan participants – since it is their overpayment in plan fees.
What we do:
We avoid conflicts of interest and provide complete disclosure on any and all fees and compensation. We act as our clients’ advocate and are uncompromised in our approach.
What we won’t do:
As plan fiduciaries, we do not accept any soft dollar (undisclosed) compensation nor do we have proprietary mutual funds to cloud our judgment.
|Fee transparency should not be confused with fee clarity; they are not the same.
Many plans have high (undisclosed) embedded fees. It is incumbent upon plan sponsors to identify andevaluate those fees.