“Can we get sued?”
Excessive fees are among a plan sponsor’s biggest sources for potential liability … not to mention the harm they cause to your employees’ hard-earned savings! Beginning in 2012, the Department of Labor’s 408(b)2 and 404(a)5 regulations mandated increased disclosures for you and your employees, shedding light on previously hidden fees and murky profit-sharing relationships. But critical gaps remain:
- Comparison – Some providers’ reports are considerably easier to read than others, frustrating your ability to make informed comparisons among plans.
- Context – There is a big difference between knowing what your fees and relationships are, versus knowing whether they are “reasonable” and in participants’ best interests.
The Rockbridge Remedy: We can begin by sharing a simple table here of the average costs faced by most small businesses with plans in the $2–$10 million range.
For additional assistance … Even with data to reference, it’s still a challenge to conduct apples-to-apples comparisons among plans. As a complimentary, no-obligation service, Rockbridge will review your current providers’ 408(b)2 disclosure statements to you, and your 404(a)5 disclosures to participants. If they seem clear and reasonable, we’ll tell you so. If there are areas of concern, we’ll let you know that too. We’ll tell you what we see plainly and directly, to help you cut through any smoke-and-mirror confusion.
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