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Service Provider and Fee Benchmarking Consulting Services
As you may know by now, retirement plan service providers must deliver detailed fee disclosures to plan sponsors by July 1st of the year (ERISA 408(b)(2). Sixty days later, plan participants are required to be notified by the plan sponsor of plan–related and investment–related information and the associated expenses actually charged to or deducted from their individual accounts and investment options (ERISA 404(a)(1)(A) and (B)). The new disclosure rules under ERISA 408 and 404 are intended to provide plan providers with the information needed to determine the reasonableness of fees charged to their plan and to their plan participants. The question squarely before plan fiduciaries to answer is, "Can you support that your plan’s fees are reasonable?" First Commonwealth Financial Advisors has over 20+ years of service provider and ERISA experience to assist you with determining the "reasonableness" of fees being charged to your plan while providing you with the guidance and unbiased advice necessary to minimize confusion the new disclosures will create with your participants.
Our Service Provider and Fee Benchmarking Consulting Services provide your plan fiduciaries with:
- Identification of all service provider and investment revenue sources including recordkeeping and administration, broker/advisor compensation, commissions, wrap charges, special fee arrangements, 12b–1, Sub TA, Shareholder Service, and investment management expenses.
- Fee comparisons versus plans of like industry and size
- Analysis and recommendations for cost savings
- Plan design and participant success measure statistics versus peer plans
- Market the plan to other service providers if necessary