Assessing Retirement Plan Value - 1

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When we say plan fees are “More than a Number”
What Do We Mean?
HAVE YOU EVALUATED YOUR RETIREMENT PLAN LATELY?
WHAT DOES IT MEAN?
UNDERSTANDING
RETIREMENT PLAN COSTS
REVIEWING PLAN SERVICES
NAVIGATING
COST CONSIDERATIONS
EVALUATING
REASONABLENESS
ADDRESSING
PARTICIPANT QUESTIONS
GLOSSARY OF TERMS
As part of a plan sponsor’s ongoing fiduciary responsibility,
you must understand the services received to assess whether
the fees being paid are reasonable for the retirement plan.
Service providers are required to disclose the fees they are
receiving in conjunction with providing services to a plan.
However, there is not one consistent fee structure or
disclosure format to follow.
It’s up to the plan fiduciary to understand all the fee
components – both direct and indirect – for the plan and
decide how the fees will be paid.
Use this site to learn practical tips for understanding
and evaluating plan fees.
• Retirement Plan Costs
• Reviewing Plan Services
• Service & Payment Considerations
• Evaluating Reasonableness
• Addressing Participant Questions
There is more attention these days on the costs of
providing a retirement plan. So how does a plan sponsor
evaluate whether what they are paying is reasonable?
It’s more than a number.
As with any purchase you may make, you must first consider your
needs and wants. Then, you weigh the features and qualities of
the item or service against what you are willing to spend. It’s the
same for a retirement plan — though with ERISA you have the
added requirement of acting in the best interests of the plan
and its participants:
1 Review the objective(s) set for the retirement plan.
2 Consider the value and impact of the services received based
on what’s important to the plan and plan participants.
3 Answer these three questions to help you evaluate if what
the plan receives for the fees paid is helping put it on track
to meet the objective(s).
WHAT IS
BEING PAID?
WHAT IS
BEING RECEIVED
IN RETURN?
WHAT IS
THE ASSESSED
VALUE?
The better informed you are about what services are
included and what fees are charged for those services,
the better equipped you will be to make decisions that
meet the retirement plan’s objective(s).
0.27%
RETIREMENT PLAN VALUE
PRINTABLE PDF
TOOLS & RESOURCES
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DIRECT & INDIRECT
COMPENSATION
MORE THAN A NUMBER • WHAT DOES IT MEAN | 1
Assessing Retirement Plan Value

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