The witching hour is fast approaching, as a full, blood red moon appears low on the horizon. Creatures of the night hunt for prey while you lie awake in bed, unable to sleep. Your mind races and your pulse quickens. You can’t get the image out of your head … the shadowy figures … the relentless pursuit … not settling for anything less than the utter destruction of your retirement plan. Suddenly, you hear a knock at the door. Please don’t let it be them! No, not the lawyers!
You bolt up straight in your bed, drenched in sweat. It was just a nightmare, thank goodness.
At least this time …
No, this isn’t a Halloween tale of terror. It’s simply a dramatization of the fear many fiduciaries face in the current litigious climate when it comes to retirement plans. And while this is a lighthearted cautionary tale, excessive fee lawsuits are no laughing matter. As an advisor you can help clients stay on top of fees and keep them reasonable — and hopefully avoid this horrific outcome.
Sadly, 401(k) lawsuits have become increasingly commonplace and are on the rise. Since 2019, workers have filed more than 200 proposed federal class actions challenging their retirement plan fees, with an average deal of about $4.7 million among those that have led to settlements. But with PlanFees you have a number of tools at your disposal to complement the recommended three- to five-year live bid benchmark protocol. PlanFees gives you even more chances to pick up on higher-than-average fees — with tools that are so simple that they can be completed in just minutes.
Total Fees Benchmarking
With PlanFees Prism Total Fees Benchmarking, you can get a fast read on whether investment, recordkeeping, administrative and advisory fees are low, average or high compared with similarly sized plans. You can benchmark on the fly, whenever the situation warrants. Perform an intermediate annual benchmark between three- to five-year live bids. Or conduct a fast fee checkup whenever a plan undergoes significant changes. Stay on top of fees more frequently with Prism Total Fees Benchmarking.
RFP Express allows retirement plan advisors to expand their benchmarking repertoire even further. The latest benchmarking tool from PlanFees will give you instant quotes from leading retirement plan providers and allows you to present fast, actionable data to clients and prospects. Many providers have information available instantly, and others render quotes within 24 hours. You can dig deeper into fees with RFP Express, and it can serve as an informative precursor to putting a plan out to bid.
Benchmark Fears That Go Bump in the Night
With PlanFees, you can take a multi-pronged approach to fee benchmarking and provide additional layers of protection for plan sponsors when it comes to keeping fees reasonable. A lot can happen within an organization — and within the retirement plan market — between three and five years. Prism Total Fees Benchmarking and RFP Express allow you to be more proactive and responsive when monitoring clients’ fees. And while nothing is a silver bullet, with PlanFees you can help fiduciaries fight their fee fears. As for all the other monsters lurking in the darkness, we hear a little garlic can’t hurt.
Happy Halloween from PlanFees.