Sponsors of 401(k) plans have a fiduciary obligation to prudently select and monitor their plan's investments, investment options, and third-party service providers. Understanding and evaluating fees charged by those third parties are key components of a fiduciary's responsibility. Employees also have a right to know the fees their plans pay to third-party service providers. Hammering this home, class action lawsuits have been filed against some of the country's largest employers. The lawsuits allege that plan sponsors breached their fiduciary duties by allowing third parties to charge unreasonable fees to their plans. As is inevitable, lawsuits of this type reverberate with employers of all sizes. Now is a good time to assess the fees charged to your plan.
Third-party providers are entitled to reasonable compensation for the services they perform. Fees fall into two broad categories....(register to read more)