Blog: Calling All Plan Sponsors

Ever heard of 408(b)2 or 404(a)5? Neither have many plan sponsors, or company or employee that set up a healthcare or retirement plan.

The Department of Labor has enacted new rules regarding retirement plans such as 401(k) plans.

Come July 1, plan sponsors will be able to see the breakdown of what they are really paying for, so the need to understand the fees and the services they are getting from those fees is greater than ever. Come August 30, plan participants are going to see for the very first time the fees fully explained on their statements. This is very important, because 7/10 participants think their retirement plan is free.

What a plan sponsor can and should do to fulfill part of their fiduciary liability is to have their plan benchmarked.

Essentially benchmarking a plan is evaluating or comparing different things like fees and services to other plans similar in plan asset size and participants.

For more information on how to benchmark your 401(k) plans, visit the 401(k) help center.