Assessing Retirement Plan Value - 10

1.68%
0.67%
1.27%
27%
2%
7%
%
0.36%
1.68%
1.61%
7%
1.23%
0.21%
1.17%
27%
1.2 %1.61%
1.68%
0.58%
0.87%
1.2 %27%
NUMBER
>MORE THAN A
2.27%0.83% 0.78%
1.27%
0.21%
1.68%
1.27%
0.21%
0.47%
1.68%
1.68% 0.68%
0.87%
1.68%
1.27%
0.58%
1.68%
0.27%
2.27%
07
0.230%8%.58%
0.58%
2.27%
0.27%
Evaluating Fee Reasonableness
WHAT DOES IT MEAN?
UNDERSTANDING
RETIREMENT PLAN COSTS
This checklist is meant to assist a plan fiduciary in evaluating the reasonableness
of fees related to the operation and management of a retirement plan. This is not
designed as an all-inclusive checklist, but rather a sample guide for how to establish
a documented monitoring process to fit the specific needs of a plan.
REVIEWING PLAN SERVICES
NAVIGATING
COST CONSIDERATIONS
EVALUATING
REASONABLENESS
ADDRESSING
PARTICIPANT QUESTIONS
GLOSSARY OF TERMS
Other factors to consider include:
• Objective(s) of the plan
• Services received and quality of those services
• Reputation of the service provider and their commitment to
the retirement industry
• Benefits of the services to plan participants
In line with ERISA, it’s strongly suggested that fiduciaries regularly
evaluate reasonableness. In performing this evaluation, fiduciaries
This review checklist approaches the concept of
reasonableness in a two-step process. First, to help
evaluate whether the retirement plan fees are reasonable
for the services and the value received. And secondly,
from an overall plan governance perspective, as “good
governance” is important in the decision-making
processes of sponsoring a retirement plan.
The Employee Retirement Income Security Act of 1974 (ERISA)
requires retirement plan fiduciaries to act solely in the interests
of, and for the exclusive benefit of, plan participants and
beneficiaries. As part of that obligation, plan fiduciaries are
responsible for ensuring the costs of operating the plan are
reasonable compared to the value being received. Yet,
“reasonableness” does not necessarily equate to the lowest fees.
should ensure the fees are appropriate and reasonable compared
to the needs of the plan and to the costs in the marketplace. It’s
important to evaluate the total amount that’s paid to all service
providers for the plan from all sources - including direct and
indirect fees. The appropriate fiduciaries should document the
review process and maintain documentation of the review
with plan records.
0.78%
0.78%
1.68%
0.58%
0.72%
0.78%
0.58%
1.27%
1.68%
1.27%
1.68%
1.27%
1.68%
1.68% 0.83%
1.68%
2.27%
2.13%
1.68%
0.32%
2.27%
2.13%
2.13%
0.27%
RETIREMENT PLAN VALUE
PLAN GOVERNANCE
RESOURCE
TOOLS & RESOURCES
> BACK TO HOME
REASONABLENESS
CHECKLIST
MORE THAN A NUMBER • EVALUATING FEE REASONABLENESS | 10
Assessing Retirement Plan Value

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