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Retirement plan fees have garnered increased attention in recent years due in part to a growing number of lawsuits filed against employers. Since 2020, more than 170 excessive fee suits have been filed in the U.S., leading to tens of millions of dollars in settlements.
Do you hear that sound in the distance growing louder? Feel the rumble of something big coming around the bend? Do you see that light getting brighter and brighter?
One of the primary duties of retirement plan advisors is to help ensure their clients’ fees remain reasonable. But between volatile markets, seismic shifts in American household finances, increased fee litigation and changes within the 401(k) industry itself, it’s become even more critical to keep a watchful eye on fees.
Acting in a fiduciary role can help you elevate your retirement plan practice and provide higher touch service to sponsors. Understanding the different types of fiduciaries, advantages of becoming one and tools available to address fiduciary responsibilities is key for advisors looking to expand their services — and grow their book.
A new small plan benchmarking system from a California KPA network is live as of this week, and a number of recordkeepers involved in the product are spreading the word about its merits.
5-in-1 tools, universal remotes, Swiss Army knives and smartwatches — we all appreciate gadgets that can do a multitude of tasks and make our lives easier. And we think that’s one reason you’ll love PlanFees’ latest offering, RFP Express.
PlanFees helps successful 401(k) advisors “benchmark better” and mitigate fiduciary risk. But you can also use our suite of innovative benchmarking tools to “prospect better,” nurture leads and build your professional practice. It’s as easy as 1-2-3.
Held by schools and other tax-exempt organizations, 403(b)s used to be highly dissimilar to 401(k)s — with fewer rules and requirements. And by far, the majority of high-profile excessive-fee lawsuits have targeted 401(k)s. But a recent suit against Northeastern University’s 403(b) is a strong reminder that all retirement accounts mandated under ERISA to keep fees reasonable are at risk.
Plan fiduciaries have many important responsibilities to uphold. And they must act solely in the interest of participants and their beneficiaries. To that end, they have to prudently manage investments, administer the plan properly, monitor service providers and much more.
PlanFees data shows advisor compensation fee structures are trending away from commission-based schedules and toward fee-for-service models. As a result, it’s more important than ever for advisors to be equipped to justify the fees they charge relative to the level and frequency of the services they provide.