If your organization offers retirement plans as an employee benefit, you’re subject to the provisions of the Employee Retirement Income Security Act (ERISA), a federal law that covers administrative aspects of these plans. Recently, ERISA litigation has been grabbing headlines, and they seem to have a common theme: retirement plan fees.
The courts do not suggest lowest cost is a safe haven. Instead, precedent points to the fiduciary’s duty to maintain a reasonable cost structure with evidence that oversight of participant fees occurs.
If you’re one of the chief people responsible for the oversight of your organization’s plan, what should you do?
1) An understanding of the types of fees paid
2) Hints for negotiating efficient fee arrangements
3) Recommendations for equitably allocating costs to your participant base