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As the confetti settles and the calendar flips to 2025, it’s the perfect time to set resolutions that truly make an impact — both in your personal life and your retirement plan practice. One resolution that should be on every advisor’s list is to benchmark better. Benchmarking is — or should be — more than just a compliance checkbox; it can be a powerful tool for attracting new prospects, retaining clients and delivering greater value for plan sponsors and participants. 

In an era where innovation drives every facet of business operations, even the most forward-thinking companies can face challenges when it comes to retirement plan fee diligence. NVIDIA, renowned for its groundbreaking advancements in artificial intelligence, recently settled a lawsuit alleging excessive fees in its 401(k) plan. The case underscores a crucial takeaway for plan sponsors: Actionable fee intelligence is an essential part of the fiduciary prudence necessary in today’s retirement plan landscape.

Whether it’s a streaming subscription you forgot to cancel or a coupon you let expire before you could use it, nobody likes to find out they could’ve paid less than they did. And while a forgotten Netflix account might rack up a few extra dollars each month, excessive retirement plan fees can put participants — and the plan sponsor — in jeopardy. One recent study shows that a staggering 80% of plans are paying higher fees than they should. 

Boston College recently settled an ERISA suit, bringing to a close a two-year legal challenge over the management of its retirement plan. In 2022, two former employees alleged that the plan failed to meet fiduciary expectations, citing high fees and questionable investment options. Although the school denies any wrongdoing, the allegations highlight the increasing pressure on institutions to keep their retirement plans cost-effective and prudently managed. 

Advisors across the retirement plan industry often grapple with questions about compensation models. Whether it’s determining how much to charge based on assets or deciding when to use a flat fee, these decisions are made even more complex due to evolving technology, industry changes and rising client expectations.

Building brand awareness is key for any retirement plan advisor. To stand out in a crowded marketplace, it’s crucial that advisors not only differentiate their offering but also create a connection with their target audience.

According to an ERISA lawsuit recently filed against Nordstrom, it’s not just the handbags that come with a hefty price tag — the suit alleges their retirement plan fees were excessive too. Plaintiffs say the luxury retailer overcharged employees for administrative services and misused the forfeiture funds of former workers as well. While the suit is still pending, some of the details have already hit the runway. 

In the future, the way retirement plan advisors operate could look as different as a flying car does from a horse-drawn carriage. And while you might not be soaring through the skies to your next retirement plan committee meeting just yet, the landscape of retirement planning is evolving rapidly.

In its commercials, PNC likes to say it’s “brilliantly boring,” emphasizing that it strives to be “boring” with customers’ money. The company, whose plan has about $8.1 billion in assets according to its most recent Form 5500 filing, prevailed in a recent ERISA lawsuit by sticking to the basics: regular benchmarking, thorough reviews and consistent oversight. It turns out that when the stakes were high, the “boring” work won the day against an expert witness who may have been more flash than facts.

No matter how impressive your credentials, the foundation of every advisor-client relationship is trust. According to Edelman, a leader in the communications and public relations space, trust is a core pillar of business success. This is true for the largest multinational corporation down to a small firm or solopreneur.