Plan Fee Discovery
Do you know all of your plan costs?
Understanding your plan fees is a critical task. Many plan vendors make this process very difficult - they want to hide their profit centers. Recently the new DOL enacted fee disclosure rules (rule 408(b)(2) and 404(a)(5)) came into effect. The intent of these rules was to make plan fees more transparent and open. Unfortunately, the disclosures for some vendors are far from clear and add to the difficulty.
ERISA requires that plan sponsors pay fees that are "reasonable" to avoid a prohibited transaction. How do you know what is reasonable? The first step is to fully understand what you are currently paying. Most plan vendors have costs that are upfront and costs that are behind the curtain. Plan sponsors must dig deep into the investment fees and revenue sharing arangements to fully understand the plan fees.
BCM can review your plan and determine your true cost and help to determine if the costs are reasonable.