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Broaching the topic of fees with plan sponsors is a data-fueled art. Transparent fee conversations can help build trust and contribute to a plan’s long-term success. As an advisor, your ability to broach fee discussions effectively — and with finesse — can elevate your practice and help you win new business.
In yet another ERISA-related case, aerospace and defense technology firm L3Harris found itself in the crosshairs of an excessive fee lawsuit. Plaintiffs alleged that the retirement plan’s massive size should have given them the leverage to negotiate more competitive recordkeeping and administrative options, as well as lower fees. The company recently arrived at a settlement, though not before enduring a two-year legal battle.
On Valentine’s Day, it’s customary to express caring with a gift of chocolate and roses. But you may get some funny looks if you try that with plan sponsors. When demonstrating your commitment to clients, what you really want to offer them isn’t flowers or foil-wrapped bon bons — it’s fee transparency. That’s because trust is the cornerstone of most lasting relationships, even those steeped in fiduciary responsibility.
Ensuring that PlanFees are reasonable is one of the most important responsibilities as a retirement plan advisor. Excessive fees can negatively impact retirement savings, impacting plan performance and possibly resulting in legal issues. Having reliable tools at your fingertips is essential for executing your fiduciary duty in an efficient and effective manner. We will go over how advisors can be supported by Prism Total Fees and RFP Express to perform fast fee audits, identify the underlying causes of excessive fees, and implement practical measures to control and openly discuss fees.
With the new year approaching, significant shifts within the financial industry are set to impact tax strategies and retirement planning. The IRS has introduced multiple adjustments, from increased contribution limits to expanded income ranges, shaping the financial terrain for the coming year. Let's delve into the highlights of these changes and explore their potential implications for your financial decisions.
In the continually evolving retirement plan space, tailoring your advisory services to the specific needs of plan sponsors can distinguish you in a competitive field. Every plan is influenced by a plethora of factors, all of which can dictate both its requisite advisory services and fees charged. Offering a personalized touch is non-negotiable for advisors who want to grow their book.
The artificial intelligence (AI) boom has led to a lot of attention for NVIDIA, the Silicon Valley-based chipmaker of choice for AI computing. But it’s not just the company’s groundbreaking products that have been in the spotlight — NVIDIA also recently made headlines as the named defendant in a 401(k) lawsuit. The ongoing case underscores the continuing legal perils faced by retirement plans, demonstrating that even companies renowned for their prowess in intelligent computing can find themselves unable to outsmart ERISA challenges.
It's that time of year again when, dark forces are looming and the ghouls and goblins are hiding in every corner waiting to strike. You may be safe... but your heart begins to beat faster as you feel them getting closer. But it's not the monsters; it's the high fees haunting your retirement plan. High fees can be the fuel of nightmares, complete with the threat of losing clients and the horrors of litigation for advisors. Luckily, there is a way to make your high fee fears to vanish before your client's very eyes like a shadowy figure disappearing into the night... Plan Fees.
A multinational biotechnology company based in Cambridge, Mass., has agreed to pay $9.75 million to retirement plan participants and beneficiaries to settle a lawsuit over alleged ERISA violations, according to a recent settlement notice filed in a U.S. District Court in Boston. Biogen, which specializes in therapies for neurological disorders, was accused of failing to properly monitor its 401(k) plan’s investment performance and neglecting to protect participants from excessive fees. The case serves as a reminder of the critical importance of fiduciary responsibility and diligence in managing retirement plan fees, especially in today's litigious and complex environment.
As a retirement plan advisor, one of the most critical parts of your job is ensuring reasonable plan fees. High fees can erode retirement savings and lead to legal entanglements if not properly managed. But having powerful and robust tools at your disposal can help you discharge your fiduciary duty more efficiently and effectively — as well as help provide actionable solutions.